Pages: 20-27

Abstract

The development of population in a region affect the chance in business world including the Beef Cattle Breeding Industry. The increase of pupulation is usually not followed by the increase of products availability, such as cattle. One of the problems in the marketing system of cattle products is on how to decide a good marketing pattern for cattle products in order to make it sustainable. The development of livestock business in North Sulawesi is supported by the availability of cattle market. The cattle central market is in Manado, Tomohon and Minahasa. Based on the problems above, this research is aimed at determining the marketing structure of beef cattle in North Sulawesi. This research was conducted in North Sulawesi on the cattle marketing model with a purpose to find out the market structure of integrated model of beef cattle marketing and the efficiency of cattle marketing in Manado City with its pasar blantek in Tomohon and Minahasa City. The result of market structure of the beef cattle marketing in North Sulawesi are as follows: (1) The calculation results in a percentage of Concentration Ratio (KR) on three (3) collecting markets of 85.86 percent, shows that the structure of the market tends to lead to the high-concentration oligopsony market. The analysis showed that the magnitude of price transmission elasticity (B) is approximately 0.915 for Manado market, 0.936 for Tomohon market, and 0.817 for Minahasa market (not equal to 1), indicate that the marketing of beef in Manado, Tomohon and Minahasa is less efficient, (2) From the result of simultaneous model, three out of four independent variables are significant in determining the prices in the producers level (Y) in Manado, Tomohon, and Minahasa markets, that are the prices in the retail level (X1), supply (X3), and demand (X4), (3) The calculation of the short-term Indeks Market Connection (IMC) between the producers and the retailers markets in Manado, Tomohon, and Minahasa Market is not equal to 1, means that the prices between the producers and retailers in those three markets are not integrated (the markets are not run efficiently). It shows that in a short-term, if there is a price change, will not affect the price change in producers market. The price integration in the producers and retailers level, in a long-term, shows the coefficient which is not equal to 1, means that in a long term, the producers and consumers markets will be integrated perfectly, in which the prices of both markets are mutually affecting.