Price Asymmetric Evaluation on the Cocoa Market as an Effort to Increase Economic and Bargaining Position of Cocoa Farmers in Pidie, Aceh

DOI

10.2991/aebmr.k.211214.002How to use a DOI?

Keywords

bargaining position; asymmetric; price transmission

Abstract

The price transmission process on agricultural commodities especially at the smallholder level generally occurs imperfectly as price asymmetric. This study aims to evaluate and identify the occurrence of price asymmetric in the cocoa commodity market in the Pidie Regency. This study also aims to look at the causes and obstacles faced by cocoa farmers in the price issue and how the solutions strengthen their bargaining position against the power of wholesalers in the cocoa market. Thus, a solution will be found to reduce the gap between cocoa farmers and traders. Increasing the bargaining position of farmers is of course one of the efforts to increase. This study uses the Vector Error Correction Model (VECM) method. The data used are secondary data in the form of monthly average data for 2018-2020. There is a long-term and short-term price transmission relationship between the price of cocoa at the farm level and the price of cocoa at the collected trader’s level in the Pidie Regency. The causes of the price transmission relationship are the lack of information availability, the low quality of cocoa produced by farmers, less supportive agribusiness institutions such as the inactive cocoa farmer associations or cooperatives and limited transportation. For this reason, an efficient marketing channel is needed, for example by establishing farmers cocoa association, and drying the processing practices that comply with the desired moisture standard.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Zakiah Zakiah
AU  - Monalisa Monalisa
AU  - Ahmad Humam Hamid
AU  - Fauzan Fauzan
AU  - Ade Ratna Juniar
PY  - 2021
DA  - 2021/12/15
TI  - Price Asymmetric Evaluation on the Cocoa Market as an Effort to Increase Economic and Bargaining Position of Cocoa Farmers in Pidie, Aceh
BT  - Proceedings of 1st International Conference on Sustainable Agricultural Socio-economics, Agribusiness, and Rural Development (ICSASARD 2021)
PB  - Atlantis Press
SP  - 5
EP  - 12
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211214.002
DO  - 10.2991/aebmr.k.211214.002
ID  - Zakiah2021
ER  -