Abstract
The pepper auction market in Sleman Regency was formed in 2017. This market is becoming the main marketing line for all pepper traders in Sleman Regency because it is serving appropriate prices for the farmer. Some problems also appeared during the implementation of the pepper auction market. This study aimed to arrange an effective strategy in developing a pepper auction market in Sleman Regency. This study conducted from January to February 2020 involving 23 major traders who chosen by the census method and 6 stakeholders who chosen by purposive sampling technique. SWOT analysis was applied to arrange an effective strategy in developing the pepper auction market. The result showed that the most effective strategy used in developing the pepper auction market was the SO-Strategy, such as: improving product quantity and quality, improving the quality of services and creating good relationships with the assembly point management party and auction participants, and building an online product and price database system. The auction market management parties and some stakeholders are required to regularly monitor and assure the market system in conducting a market auction process appropriately. We also suggested to use modern technology devices to assure the auction transparency.
Highlights
Pepper agribusiness was vulnerable to various risk factors, such as climate conditions, pests, diseases, and improper agricultural techniques (Parining & Dewi, 2018)
The stakeholder who were participated in this study were two auction market management parties, two officials from the Sleman Agricultural Department, and two farmers who sold their pepper commodity to Sleman Auction Market
RECOMMENDATION The auction market management parties and stakeholder is suggested to conduct a sustainable monitoring on the auction process, on the auction point or central auction market
Summary
Pepper agribusiness was vulnerable to various risk factors, such as climate conditions, pests, diseases, and improper agricultural techniques (Parining & Dewi, 2018). Before using the auction market, the farmer was using a long marketing line to sell their pepper commodity. The weakness of this system was the low pepper price gained by the farmer because they did not have enough power in setting proper prices for their commodity. This system affected the amount of the profit they obtained, a high cultivation and production cost made the farmer couldn’t get the appropriate amount of profit (Argade & Laha, 2018)
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