Investigation of saba banana marketing efficiency: structure, conduct and performance approach

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Research Paper 01/04/2022
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Investigation of saba banana marketing efficiency: structure, conduct and performance approach

Rokhman Permadi, Ahmad Alim Bachri, Muhammad Fauzi, Hamdani
Int. J. Biosci.20( 4), 106-120, April 2022.
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Abstract

Smallholders, including saba banana farmers, often find it difficult to sell their produce to high-value markets and generally sell to intermediaries. However, intermediary traders can eliminate the opportunity for farmers to get high profits, so the market becomes inefficient. This study investigates banana saba’s channel pattern and marketing efficiency holistically, which has not been widely studied using the structure, behavior, and performance (SCP) approach. A random sampling technique was determined to find 254 farmer samples. A total of 149 traders have been found, consisting of 13 collectors, 26 wholesalers, and 110 retailers spread over several banana saba marketing destinations. Based on the findings, seven marketing channels are divided into two marketing areas, namely rural and urban markets. The structural analysis results show that the rural market structure is characterized by a monopolistic market, while the urban market is perfectly competitive. Market conduct analysis shows that the price of saba bananas is determined by market equilibrium in rural markets and by traders in urban markets. Performance analysis shows that farmers’ share is highest in rural markets and lowest when sold to urban markets. Under the SCP approach, rural markets are efficient, while urban markets are inefficient. This study highlights the need for future research to determine the distribution of saba banana farmers’ produce directly to the market.

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