Marketing and Rubber Price Transmission in Kampar Subdistrict of Kampar District

Abstract

Marketing of rubber is the process of distributing rubber from farmers to last consumers through marketing institutions. Price movements at the marketing institution level are not followed by the movement of rubber prices at the farmer level. The purposes of the research are (1) analyzing channel, margin, cost, and efficiency of rubber marketing (2) Correlation and transmission of rubber price between farmer and factory. The research uses survey method, sampling of rubber farmers by purposive sampling which is rubber’s age > 10 year, 70 samples of rubber farmers, sampling by snowball sampling. Research result are three marketing channels of rubber, 1) farmer - trader collector - big trader - factory (25.71%), Channel (2) is farmer - trader collector - factory (41,43%). Channel (3) is farmer - Joint Business Group - factory (32,86%). The highest cost and marketing margin is marketing channel (1), largest farmers share is marketing channel (3), marketing efficiency is channel (3). The correlation value of 0.869 means the closeness of the strong relationship between the price at factory level and the farmer. The value of price transmission elasticity (b1) 0.814 < 1 indicates weak transmission of price between farmer's market and consumer’s market, so that market structure is imperfect competition market.