SPATIAL PRICE CONNECTIVITY IN MARKETING BEEF CATTLE IN KUPANG REGENCY, INDONESIA

Abstract

Farmers as producers in the process of fattening cattle are needed a long time between 6 (six) months to 1 (one) year longer. It is expected that the proceeds from the sale of cattle raised will provide an adequate imbalance. The research was used survey method, data analysis was performed by S-C-P analysis. Objectives: 1) Analyze market connectivity spatially, both in the short and long term in marketing beef cattle in Kupang Regency, NTT. 2) Analyzing selling prices in cattle marketing and 3) Analyzing increasing markets in marketing cattle producing. Conclusions: 1) Spatial market connectivity between farmers and inter-island traders in the short term is imperfect which is translated by the regression coefficient (b1 = 0.79); the same thing is even weaker the price connectivity between opposing traders and farmers associated with the regression coefficient (b2 = 0.19) while the price connectivity between the related traders and inter-island traders is complete as presented by the regression coefficient (b3 = 1.0851). In the long term, there is a connectivity between the prices of cattle, both at the level of farmers and traders, traders and traders between islands and between farmers and traders between islands. 2) Transmission of prices between farmers and traders between islands is not perfect, the price of beef cattle transmission between farmers and traders also is not perfect; inter-island traders and inter-island traders prices go perfectly. 3) The average share of farmers is 60.59%. Its marketing margins are still quite high at 38.66%. Margin distribution is not proportional among marketing institutions involved in marketing beef cattle. Profit and margin ratios, for traders participation 87.98% and inter-island traders only 62.10%. The ratio of total profits to marketing margins is 76.13%.

Keywords

• connectivity spasially
• farmers
• price transmission
• marketing margins