SUGAR CANE AGRIBUSINESS MARKETING ANALYSIS ON DRY LAND PEOPLE IN NGAWI DISTRICT, EAST JAVA, INDONESIA (Special review of farmers' share price, the price transmission elasticity, and market integrated, and so the structure of the people sugar market)

Abstract

The purposes of the research are to analyze the people’s cane marketing activities
covering: (1) margin analysis and farmer‘s price share, (2) analysis of price transmission
elasticity and market integration, and also (3) analysis of established market structure. The
research is brought about in cane-farming-on-dry-land in the district of Ngawi, which is
chosen with purposive sampling, then the sub district of Pitu as representation of the
District of Ngawi is also picked up with purposive sampling, while as the sites of the
research, two villages namely Ngancar and Papungan are taken with simple random
sampling method. In current research 87 farmers for sample are obtained with stratified
random sampling method. The traders chosen as sample are decided with purposive
sampling considering that the traders chosen can represent the trader population and it is
intended to avoid repeated sampling on the same traders. In this research, 25 retailers from
about 85 retailers and 10 wholeslers from total 36 wholesalers in Ngawi are sampled. From
87 farmer in the sample, all their cane crops are collected by 25 retailers and 10
wholesalers chosen, so that it is expected that traders in the sample can represent other
retailers and wholesalers in Ngawi. The results of the research show that (1) in marketing
process phase show that the longer the cane marketing chain (the first and the second
marketing pattern) make the marketing margin the larger so the lower farmer’s share price,
(2) the longer the cane marketing chain , the lower the transmission elasticity (not quite
perfect) and market integrity occurs in the long run, which makes the marketing pattern
less efficient,(3) on the short chained marketing pattern (the third marketing pattern) tends
to make the marketing margin narrower, the farmer price share gets larger, the price
transmission elasticity gets higher (perfect) and market integrity occurs in the short run
(ideal for cane marketing), and it all means that marketing pattern will be relatively more
efficient.