Abstract

This research is aimed to analyze the marketing system of Scad (Decapterus russeli) by analyzing the market structure, behavior, and performance. It was conducted in traditional markets: Mardika and Transit Passo, Ambon from September to December 2014. The method used was survey for 40 of 45 fish traders in these markets, selected in simple random sampling. The analyses used included: 1). Integration of vertical market, 2). Elasticity of price transmission, and 3). Pricing efficiency. The results show: (1) market structure of scad in Ambon is not integrated and leads to oligopoly; (2) change of 1% at the consumers’ price level leads to less than 1 % of price change in the fishermen’s price level, indicating that scad marketing system is inefficient; and (3) the marketing system of scad in channel 3 is inefficient. The smallest share (89%) was also showed in this channel. Scad market structure was not perfectly integrated for the oligopoly practice by traders. Therefore, dependence of fishermen on traders should be reduced i.e. by giving assistance such as loans with low interest rates especially in no fish season. Communication network should also be expanded so that market information can be transmitted perfectly to all marketing agencies in Ambon. The government should control the price fluctuations by setting the minimum price (floor price) and maximum price (ceiling price) in order to create price stability. Keywords: conduct market, oligopoly market, performance market, scad structure, fish traders

Highlights

  • As a capital of Maluku Province, Ambon is the center of Regional Government administrative and the center of economy

  • This study aims to analyze the marketing system of Scad (Decapterus russeli) through its market structure, behavior and performance in Ambon

  • The market structure of Scad in Ambon is not perfectly integrated and leads to an oligopoly, while its market conduct shows that 1% price change at the consumer level will result in a price change of less than 1% at the fisherman level and indicates that the marketing system is inefficient

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Summary

Introduction

As a capital of Maluku Province, Ambon is the center of Regional Government administrative and the center of economy. Being located in Ambon Island with a large population and high purchasing power makes it as a potential market in Maluku Province. The high purchasing power of the community is shown by one of their habits to consume fresh fish. In 2012, Maluku had the highest fish consumption in national level, amounting to 49.19 kg per capita (Tuhuteru, 2013). In 2014, the level of fish consumption in Maluku was 54.12 kg per capita per year and still the highest among 33 provinces in Indonesia (Information on Marine and Fisheries, 2016). At certain times, the high level of consumption is not comparable to the availability of fresh fish in the market indicating that the demand for fresh fish in Ambon is sometimes imbalanced to the supply

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