Potato Trading Based on Structure Conduct Performance (SCP) in the Centre of Vegetable Production at Central Java Indonesia

Abstract

This study aims to examine potato trading based on Structure, Conduct, Performance (SCP) in the highland vegetable production centers of Central Java Province. Potato trading in highland vegetable production centers in Central Java province has been analyzed using Structure, Conduct, and Performance (SCP) techniques. The data was collected through a survey and observation. The market structure was analyzed by market share, the Herfindahl-Hirschman Index (HHI) and the Concentration Ratio for Biggest Four (CR4). Analysis of market behavior includes the presence or absence of collusive practices in determining prices, the process of selling and buying, the formation of equilibrium prices, payment systems (cash, credit), and cooperation with other trading institutions. While market performance is analyzed by marketing margins and farmer's share. The samples of potato farmers were determined by the random sampling method and the traders determined by the snowball sampling method. The number of samples used was 82 potato farmers, 45 collecting traders, 10 wholesaling traders, and 14 retailing traders. The results of market structure research on potato trading are oligopsonies. Price behavior at farmers (producer) level is more controlled by collectors who deal directly with farmers. Wholesalers dominate purchases from collectors, the payments are made in cash or paid later. Moreover, the collusive practice between collectors and wholesalers occurs, especially in the provision of capital or credit. Furthermore, the performance of the potato market based on the trading system margin is greatest in pattern 2, while the farmer’s share is greatest in pattern 1 in the potato trading system.