TINGKAT INTEGRASI PASAR AYAM BROILER DI SENTRA PRODUKSI UTAMA: STUDI KASUS JAWA TIMUR DAN JAWA BARAT

As one of the staple foods in Indonesia, chicken broiler prices tend to increase and experience price fluctuation. This high price fluctuation generates disincentive for the poultry sector that leads to business uncertainty. This study analyzed vertical market integration of chicken broiler at the level of farmers-wholesalers and wholesalers-retailers in the main production centers (East Java and West Java Province). The Ravallion model approach was used to analyze price transmission. The results of the analysis concluded that there was no vertical market integration at the farmers-wholesalers level in both East Java and West Java as well as at the level of wholesalers-retailers in West Java. However, for East Java there was a vertical market integration in the wholesalers-retailers level. Vertical price disintegration reflects a tendency that profit margins werenot well distributed in the distribution chain. This study recommended that increasing the transmission of prices from retailers to wholesalers and subsequently to the farmers can be done through increasing the access of market information by providing facilities and infrastructure in the form of online price information.