Exploring the Conventional Ijon Market and its Impact to Strengthen Vegetable Farmers Bargaining Power in Central Java, Indonesia
Exploring the Conventional Ijon Market and its Impact to Strengthen Vegetable Farmers Bargaining Power in Central Java, Indonesia
Author(s): Dumasari DUMASARI, Budi DHARMAWAN, Imam SANTOSA, Wayan DARMAWAN, Dinda Dewi AisyahSubject(s): Economy, National Economy, Agriculture, Marketing / Advertising
Published by: ASERS Publishing
Keywords: auctions; ijon markets; farmers’ bargaining power; middlemen; mutual reciprocity;
Summary/Abstract: This study aims to explore the conventional ijon market and its impact to strengthen bargaining power of vegetable farmers in rural area of Central Java, Indonesia. The research design was based on narrative synthetics, which uses in-depth case studies method with quantitative qualitative approaches. The results showed that the bargaining power of farmers was positively affected by ijon markets with an auction based on mutual reciprocity. However, their personal status was still lower than the middlemen in terms of formal education, business capital, ownership of transport vehicles, storage warehouses and the ability to hire workers. Middlemen compete to bid on pre-harvest vegetables produce at a price determined by farmer. The farmer sells the crop to the highest bidder, who subsequently sells the harvest for a profit in the local market. The reciprocal mutualism underlying the farmers’ bargaining power is based on their social interaction, persuasive communication routine, and their strong business cooperation networks. The ijon market was originally viewed as detrimental to farmers, but since it has begun to operate using an auction process, it now provides some profit. Another benefits for farmers including market guarantees, reasonable prices, production cost savings, minimization of crop failure, social relationships, and production security.
Journal: Journal of Applied Economic Sciences (JAES)
- Issue Year: XV/2020
- Issue No: 68
- Page Range: 415-424
- Page Count: 10
- Language: English