ANALYSIS OF FACTORS INFLUENCING AUCTION MARKET CHANNEL CHOICE BY NATURAL RUBBER FARMERS IN MUSI BANYUASIN REGENCY OF SOUTH SUMATRA PROVINCE, INDONESIA

Rumbiati, rumbi and Syamsurijal, Syamsurijal and Bernadette, Robiani and Suhel, Suhel (2019) ANALYSIS OF FACTORS INFLUENCING AUCTION MARKET CHANNEL CHOICE BY NATURAL RUBBER FARMERS IN MUSI BANYUASIN REGENCY OF SOUTH SUMATRA PROVINCE, INDONESIA. EURASIA: Economics & Business. ISSN 2522-9710

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Abstract

The purpose of this study is to investigate several factors influencing the auction market to be chosen by the rubber farmers. In this study, the model of farmers’ marketing channel selection was based on random utility theory using Binomial Logit Model. The results showed that the probability of sales in the auction market was influenced by several factors, namely: level of education, the area of land owned, the distance to the market, awareness of product quality and participation in farmer groups. The results emphasized the importance of participation in farmer groups because if seen from the value of Exp (B) or the odds ratio of 80.131, it can be concluded that the participation of farmers in farmer groups increased their chances of selling their product to the auction market at 80.131 times. The results also emphasized accessibility of modern marketing information in order to support farmers’ bargaining power to increasing their income and prosperity. The results of this study suggested that having government support to improve the functions and roles of UPPB (Bokar Processing and Marketing Unit) as bokar (rubber processed materials) auction operators is necessary, especially on the functions of transportation, warehousing and finance. Many farmers need transportation facilities to facilitate their access to the auction market, and they also need warehousing facilities to reduce the risk of rubber storage that is kept for too long, in addition, the farmers also need the financial function so that the immediate need for farmer cash can be met without being dependent on middlemen.

Item Type: Article
Uncontrolled Keywords: Natural rubber, auction market, bargaining power, farmers groups.
Subjects: H Social Sciences > HC Economic History and Conditions > HC10-1085 Economic history and conditions
Divisions: 01-Faculty of Economics > 60201-Development Economics (S1)
Depositing User: Dr Suhel Suhel
Date Deposited: 26 Apr 2023 00:08
Last Modified: 26 Apr 2023 00:08
URI: http://repository.unsri.ac.id/id/eprint/96502

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