Tropentag, October 5 - 7, 2004 in Berlin "Rural Poverty Reduction through Research for Development and Transformation"

Structure- Conduct-performance Analysis of the Cocoa Market in the Vicinity of Lore Lindu National Park, Central Sulawesi, Indonesia

Georg-August-Universität Göttingen, Institute of Rural Development, Germany

Abstract

Since the introduction of cocoa in the early 1980s, it became a major export crop of Central Sulawesi/Indonesia. Nowadays, it is the most important cash crop of farmers. Therefore, the performance of the Cocoa market highly influences rural incomes as well as economic growth in the region. This study aims to analyse the current marketing system and to examine policy options to improve performance of the cocoa market.
The cocoa market in Central Sulawesi performs with only limited control from the local government. The market system is open to private traders without any involvement of marketing boards. In 2003, the share of price received by the farmers on average was 82% compared to the border price of cocoa from Palu shipping port. The spread price was 18 % and it distributed to the middleman that interconnected farmers in producer side and importers in consumer side.
The spread price in each village and in different times varies depending on some influencing factors such as distance to the central market in Palu, roads and transportation vehicles. This paper will examine alternative option of policies by using market-conduct-performance approach completed by descriptive statistics to analyse the volatility of shares of each actor in cocoa market.
Primary price data was collected in 2002 and 2003 through standardised, formal questionnaires from 14 selected villages in the vicinity of the Lore Lindu National Park. The secondary data was gathered from various institutions related to the cocoa market. The research is part of the Collaborative Research Center 552 “ Stability of Rainforest Margin”.

Keywords: Cocoa marketing system, Indonesia, structure-conduct-performance

Contact Address: Triana Anggraenie, Georg-August-Universität Göttingen, Institute of Rural Development, Waldweg 26, 37073 Göttingen, Germany, e-mail: triana.anggraeniestud.uni-goettingen.de