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Market Structure of Beef Cattle Business in Payakumbuh West Sumatera

Dwi Yuzaria 1 and M. Ikhsan Rias 2
1. Development and Agribusiness, Faculty of Animal Science, Padang, Indonesia
2. Faculty of Animal Science Padang, Indonesia
Abstract—The purpose of this study is to determine the market structure and the barriers to entry and exit of beef cattle market in Payakumbuh. Survey was conducted in Payakumbuh West Sumatra, with total of 106 respondents. The market structure was analyzed using concentration ratio. The results showed that cattle traded value of each actor is varies, the highest is Butcher, middlemen, breeder and trader respectively with total value of Rp 7,217,760,000. The results also showed that the concentration ratio of beef cattle market is less than 40%. This situation gives a strong bargaining position for the beef cattle market and market are identified as perfect competition market. The main barriers to entry are big investment value and marketing. Meanwhile, barriers to exit are, again big investment value and the fact that beef cattle business is as the community’s main source of income.
 
Index Terms—market structure, business cattle, market barriers, concentration ratio, investment value, bargaining position

Cite:  Dwi Yuzaria and M. Ikhsan Rias, "Market Structure of Beef Cattle Business in Payakumbuh West Sumatera," Journal of Advanced Agricultural Technologies, Vol. 4, No. 4, pp. 324-330, September 2017. Doi: 10.18178/joaat.4.4.324-330
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