E3S Web Conf.
Volume 142, 2020The 3rd International Conference on Agricultural and Life Sciences (ICALS 2019)
|Number of page(s)||6|
|Section||Smart Farming and Food Business|
|Published online||21 January 2020|
Transaction Cost and Market Development of Cassava Production in Jember Regency, East Java, Indonesia
Faculty of Economics and Busines – University of Jember
1 Faculty of Economics and Busines – University of Jember
* Corresponding author: firstname.lastname@example.org
Rapidly growing food needs require a strategy to achieve self-sufficiency based on a diversity of local food resources. One source of carbohydrates based on local ingredients, namely cassava, which occupies a quite important role in the food structure of Indonesian society, after rice and corn. Institutional arrangement and transaction costs in managing cassava production in Jember Regency, East Java, Indonesia have strong implications in relation to specifications and estimates of production function responses. If transaction costs are fixed costs, discontinuities will occur in response to incentives that occur in the market. The purpose of this study is to determine the amount of transaction costs and the development of cassava markets that occur in the business of managing cassava production in Jember Regency. The method used in answering the purpose of the study is value chain analysis. Based on the results of the analysis it was found that the largest transaction costs were at the level of sellers and industry compared between farmers and sellers. At the farmer level, social capital is one of the strengths for cassava marketing sustainability. The social capital is in the form of guarantees for the certainty of the sale of crops by buyers who already have a cooperative relationship. The policy recommendations that can be given are the optimization of the role of farmer groups for the sustainability of cassava production and the implementation of cassava-based processed product development programs and the provision of marketing.
Key words: Transaction Costs / Market Development / Cassava
© The Authors, published by EDP Sciences, 2020
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Current usage metrics show cumulative count of Article Views (full-text article views including HTML views, PDF and ePub downloads, according to the available data) and Abstracts Views on Vision4Press platform.
Data correspond to usage on the plateform after 2015. The current usage metrics is available 48-96 hours after online publication and is updated daily on week days.
Initial download of the metrics may take a while.