Beef Cattle Large Commodity Chain in East Java: Market Structure and Performance Analysis
2019
Sunyigono, Andrie Kisroh
Smallholder farmers dominate in the beef cattle industry (98%), and the contribution of large farmers is only 2%. National beef cattle industry could not fulfill domestic demand. This research focuses on the identification of the contribution of larger beef cattle farmers. The objectives of this study are to analyze the market structure and performance of large beef cattle farmers in East Java Province. The analytical methods are Concentration Ratio, Gini Coefficient, and barrier to entry and exit the market. The research results are: 1) Market structure of calf suppliers and processors are weak oligopoly while the farmers and traders reveal strong oligopoly; 2) The performance analysis of beef cattle commodity chain shows that the calf suppliers, farmers, traders, and processors were profitable and efficient; 3) There are relationship between market structure and performance of beef cattle industry. The higher concentration ratio will affect the higher level of profitability and efficiency.
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