Marketing analysis and price transmission elasticity of beef cattle at Batang Kapas District, Pesisir Selatan Regency

Abstract

This study aims to determine the marketing channels and institutions, marketing functions, marketing margins, elasticity of price transmission and marketing efficiency of Pesisir cattle in Batang Kapas District. This research was conducted using the survey method. The data collected were primary and secondary data. Respondents were 60 farmers and 8 cattle traders. Data analysis used was descriptive qualitative and quantitative analysis. The results showed that there were three types of marketing channels in Batang Kapas Sub-district, South Pesisir Regency, consisting of: (1) farmers – collectors – wholesalers – consumers, (2) farmers – wholesalers – consumers, (3) farmers – collectors – consumers. The marketing functions carried out by collectors and wholesalers are almost the same, namely the exchange function includes buying and selling, the physical function includes transportation and storage, the facility function includes risk management, financing and market information, but wholesalers do not carry out the risk management sub-function. The marketing channel with the highest marketing margin is channel I at IDR 2,375,000/cattle. The price transmission elasticity of Pesisir cattle is 0.97. The smallest efficiency value is channel II at 2.54% and marketing channel I at 3.67% and channel III at 2.94%. Based on these results, it can be stated that the most efficient marketing channel is channel II.