The Analysis of the Structure, Behavior, and Performance of Tual Sagu Market in Kepulauan Meranti District

Fariz Al Azmi,Novia Dewi,Syaiful Hadi

doi:10.31258/ijesh.2.1.1-12

Fariz Al Azmi, Novia Dewi + Show 1 more

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https://doi.org/10.31258/ijesh.2.1.1-12

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Abstract

This study is aimed at analyzing the 1) structure; 2) behavior; and 3) performance of TualSagu market in Kepulauan Meranti Regency. This research was conducted using a survey method. Participants were selected using purposive sampling (27 farmers, 6 collectors, and 6 factory owners). The analysis of Tual Sagu market was done using descriptive, qualitative and quantitative methods. The findings show that 1) the structure of Tual Sagu market in Kepulauan Meranti Regency leads to a perfect competition market; 2) the market behavior shows an imperfect competition market leading to oligopsonism; and 3) the performance of Tual Sagu market in Kepulauan Meranti Regency is not yet efficient. This is seen from the fact that the margin marketing is greater at the merchant level and the inequality of the benefits obtained.

Highlights

Riau Province is well recognised to have the potential of considerable and diverse natural resources
The findings show that 1) the structure of Tual Sagu market in Kepulauan Meranti Regency leads to a perfect competition market; 2) the market behavior shows an imperfect competition market leading to oligopsonism; and 3) the performance of Tual Sagu market in Kepulauan Meranti Regency is not yet efficient
Regency consists of one marketing channel, namely marketing channel I, where farmers sell Tual sagu to the collectors, the collectors sell to the wholesalers or refineries

Summary

Introduction

Riau Province is well recognised to have the potential of considerable and diverse natural resources. Land and forest resources are used as one of the capitals for development which can be aimed to increase the income and improve the welfare of Riau Province people. Sago plants (Metroxylonsp) are potential enough to be developed as raw materials that can be processed into food and industrial materials (Timisela, 2006). Data from the Plantation Office of Kepulauan Meranti Regency (2016) indiocate that the area of sago plantations in Kepulauan Meranti Regency reaches 38.614 ha, which is 2.98 percent of the national sago plant area. The sago plantation in Kepulauan Meranti Regency with sago production reaches 202.062 tons/year and supplies raw materials for 67 sago refineries (The Central Bureau of Statistics of Kepulauan Meranti Regency, 2017)

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