Cashew market behavior with environmental considerations in Southeast Sulawesi

Abstract

Market behavior will determine price changes. This study aims to examine the behavior of the organic cashew market with an environmental approach in Southeast Sulawesi. This research was carried out in Southeast Sulawesi Province which was divided into several clusters in Buton Regency, South Buton Regency, Central Buton Regency, Baubau City and Muna Regency, which was conducted in April to July 2019. Determination of the research area was purposive using cluster sampling techniques. The determination of this area is based on the fact that the five regencies/cities are producing organic cashew nuts because they do not fertilize and spray using pesticides. Market behavior was analyzed descriptively qualitatively by observation and interview methods. The number of informants is 437 people from 821 population. Market behavior reviewed includes: (a) Payment system, (b) Determination of prices shows the conditions of price determination at the time of the transaction, (c) Cooperation of marketing institutions. The results of the research show that market behavior is shown in every activity of marketing functions by carrying out activities such as drying, sorting and grading, financing, by establishing cooperation that is built on mutual trust in terms of providing capital, fulfilling the supply of cashews, shipping cashews together, determining prices based on market mechanisms, cost analysis, number of requests and offers by applying a cash, partial, initial and debt payment system. The dominant determinant of prices is traders not farmers although there is a bargain between farmers and traders and prices that occur based on prices that occur in the market and cashew farmers know about market prices available through the farmer’s own network, so that the position of farmers is only as a price recipient (price taker) is not a price maker.