Egg Market Integration and Financial Feasibility Laying Hens Farmer in Central Java, Indonesia
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Jun 28, 2022
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Abstract
The research aims to determine the degree of chicken egg market integration, determine the price asymmetric and determine the financial feasibility of chicken egg business in Central Java, Indonesia. Secondary data from January 2017- December 2019 was used for research. Survey research was conducted on 100 (one hundred) laying hens farmers. The research study was conducted in Semarang city, Kendal regency and Semarang regency. Johansen test, Pearson correlation and Granger Causality test were used in this study. Financial feasibility analyses such as investment, payback period (PP), net present value (NPV), Internal Rate of Return (IRR), Return on Investment (ROI), and Benefit-cost (B/C) ratio are used in this study. The result showed there was a positive correlation between the Price in Kendal Regency and Semarang City. Increasing prices in Semarang City caused the increasing Price in Kendal regency vice versa. There was a marketing integration between Semarang city and Kendal regency, and Granger Causality showed Price in Semarang city influenced the Price in Kendal regency and Semarang regency. The price of chicken eggs in Semarang city, Kendal regency, and Semarang city were symmetric. Based on the calculation of PP, NPV, IRR, ROI and B/C ratio, laying hens business in Central Java is feasible to run.
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SETIADI, Agus; IMAM SANTOSO, Siswanto; SUMALDE, Zenaida.
Egg Market Integration and Financial Feasibility Laying Hens Farmer in Central Java, Indonesia.
SOCA: Jurnal Sosial Ekonomi Pertanian, [S.l.], v. 16, n. 2, p. 144 - 154, june 2022.
ISSN 2615-6628.
Available at: <https://ojs.unud.ac.id/index.php/soca/article/view/81626>. Date accessed: 25 apr. 2024.
doi: https://doi.org/10.24843/SOCA.2022.v16.i02.p02.
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References
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Waroux, Y.P. & J.Chiche. (2013). Market Integration, Livelihood Transitions and Environmental Change in Areas of Low Agricultural Productivity: A Case Study from Morocco. Hum. Ecol, 41, 535–545
Yazdani, S., H. Rafiee., S.S. Hosseini. & A. Chizari. (2013). Spatial Integration of The Caspian Sea Bony Fish Market: An Application of The Seasonal Cointegration Approach to Monthly Data. Ocean and Coast. Manag, 84, 174-179.
Zhao, X., K. V. Calvin., M. A. Wise. & G. Iyer. (2021). The Role of Global Agricultural Market Integration in Multiregional Economic Modeling: Using Hindcast Experiments to Validate An Armington Model. Economic Analysis and Pol, 72, 1–17.
Craig, L.A. & M. T. Holt. (2017). The Impact of Mechanical Refrigeration on Market Integration: The U.S. Egg Market, 1890–1911. Explorations in Eco. Hist, 66, 85–105.
Eakin, H., S. Sweeney., A.M. Lernerc., K. Appendini., H. Perales., D. G. Steigerwald. & C. F. Dewes., F. Davenporth. & J. C. Bausch. (2018). Agricultural Change and Resillience & Agricultural Policy, Climate Trends and Market Integration in The Mexican Maize System. Anthropocene, 23, 43–52.
Eryigit, K.Y. & S. Karaman. (2011). Testing for spatial market integration and law of one Price in Turkish wheat markets. Qual Quant, 45, 1519–1530.
Franken, J.R.V., J.L. Parcell., M. Sykuta. & C.L. Fulcher. (2005). Market Integration: Case Studies of Structural Change. Agricultural and Res. Eco. Rev, 34, 163-172.
Gan, J., I. Stupak. & C. T. (2019). Smith. Integrating Policy, Market, and Technology for Sustainability Governance of Agriculturebased Biofuel and Bioeconomic Development in The US. Energy, Sustain. Soc, 9, 43
Ganneval, S. (2016). Spatial Price Transmission on Agricultural Commodity Markets Under Different Volatility Regimes. Economic Mod, 52, 173–185
Gelli, A., E. Becquey., R. Ganaba., D. Headey., M. Hidrobo. & L. Huybregts. (2017). Improving Diets and Nutrition Through An Integrated Poultry Value Chain and Nutrition Intervention (SELEVER) in Burkina Faso: Study Protocol for A Randomized Trial. Trials, 18, 412.
Hamulczuk, M., O. Makarchuk. & E. Sica. (2019). Searching for Market Integration :Evidence from Ukrainian and European Union Rape Seed Markets. Land Use Pol, 87, 104078.
Krisdiana, R., Prasetiaswati, N., Sutrisno, I., Rozi, F., Harsono, A. & Mejaya, M.J. (2021). Financial Feasibility and Competitiveness Levels of Soybean Varieties in Rice-Based Cropping System of Indonesia. Sustainability, 13, 8334.
Longworth, N., R.A. Jongeneel. & H.W. (2019). Saatkamp. A Vertically Linked Dynamic Partial Equilibrium Model to Analyze Market Shocks Caused by HPAI Control in The Dutch Egg Production Chain. Wageningen J. Li. Sci, 88, 112–128.
Mafimisebi, T.E. (2012). Spatial Equilibrium, Market Integration and Price Exogeneity in Dry Fish Marketing in Nigeria: A Vector Auto-Regressive (VAR) Approach. J. Econ. Finance Adm. Sci, 17, 31-37.
Mahmoud, C.S., I. Hossain. & G. Shively. (2005). Vegetable Market Integration In Bangladesh. The Bangladesh Development Studies, 31, 3-4.
Marks, D. (2010). Unity or Diversity? On The Integration And Efficiency of Rice Markets in Indonesia 1920-2016. Exploration Eco. Hist, 47, 310-324
Ravallion, M. (1986). Testing Market Integration. American J. Agri. Eco, 68, 1.
Sekhar, C.S.C. (2012). Agricultural Market Integration in India: An Analysis of Select Commodities. Food Pol, 37, 309-322
Setiadi, A., Sunarso., F. A. Lantican. & N. L. de Castro. (2012). Spatial Integration of Beef Markets at The Retail Level in Central Java, Indonesia. Philipp J. Vet. Anim. Sci, 38, 97-106.
Setianti, C T. Ekowati. & A. Setiadi. (2017). Market Integration of Fresh Milk in Dairy Business Area of Pamijahan District and Cisarua District, Bogor Regency – Indonesia. J. Indo. Trop. Anim. Agric, 42, 42-47
Sofyan A, E Suprijatna, S I Santoso, and A Setiadi. (2019). Business Sustainability Model of Smallholder Layer Farms in Kendal Regency, Central Java, Indonesia. J. Indo. Trop. Anim. Agri, 44(4): 408-414
Sun, Q., X. Gao., S. Wen., Z. Chen. & X. Hao. (2018). The Transmission of Fluctuation Among Price Indices Based on Granger Causality Network. Physica A, 506, 36–49.
Swanson, J.C., Y. Lee., P. B. Thompson., R. Bawden & J. A. Mench. (2011). Integration: Valuing stakeholder input in setting priorities for socially sustainable egg production. Poultry Sci, 90, 2110–2121.
Tinta, A.A. (2017). The Effect of A Positive Policy Integration on Agriculture and Climate Change Adaptation in ECOWAS. Agric & Food Secur, 6, 54.
Walker, S. (2018). Cultural Barriers to Market Integration: Evidence from 19th Century Austria. Journal of Comparative Economics, 46, 1122–1145.
Waroux, Y.P. & J.Chiche. (2013). Market Integration, Livelihood Transitions and Environmental Change in Areas of Low Agricultural Productivity: A Case Study from Morocco. Hum. Ecol, 41, 535–545
Yazdani, S., H. Rafiee., S.S. Hosseini. & A. Chizari. (2013). Spatial Integration of The Caspian Sea Bony Fish Market: An Application of The Seasonal Cointegration Approach to Monthly Data. Ocean and Coast. Manag, 84, 174-179.
Zhao, X., K. V. Calvin., M. A. Wise. & G. Iyer. (2021). The Role of Global Agricultural Market Integration in Multiregional Economic Modeling: Using Hindcast Experiments to Validate An Armington Model. Economic Analysis and Pol, 72, 1–17.