Perfect Competition Market

Oct 13, 2025 by wbrum.org 120 views

Analysis of the Jengkol (Archidendron pauciflorum) in Medan City: The case of Lau Cih Village, Medan Tuntung District

Introduction

Medan City, the capital of North Sumatra, is known for its rich agricultural products, including the jengkol fruit (Archidendron pauciflorum). The jengkol fruit is a staple food in many Indonesian households, particularly in the Medan region. However, the jengkol trading system in Medan City is complex and involves various stakeholders, including farmers, collectors, large traders, and retailers. This study aims to analyze the jengkol trading system in Lau Cih Village, Medan Tuntung District, Medan City, with a focus on market structures, trading functions, and channel efficiency.

Jengkol Traffic Order in the Lau Cih Main Market

The jengkol trading system in Lau Cih Village involves various trading institutions, including farmers, collectors, large traders, and retailers. From each of the trading institutions involved, there are three different trading channels. Each channel has a different trading process, which can be seen from various aspects such as the function of the trading, market structure, market behavior, and market security.

Function of the Training

The functions carried out by the institutional institutions include:

Physical function: Providing infrastructure and logistics for jengkol product distribution.
Exchange function: Involving transactions between farmers and consumers, as well as other intermediaries.
Market function: Regulating the market and ensuring fair competition among traders.

Although these functions have been carried out quite well by the trading institution involved, unfortunately farmers have not fully implemented optimal trading functions. This is evident in the fact that farmers often sell their products at a lower price than they could have obtained through other channels.

Market Structure

In the context of market structure, researchers found that:

Monopsony: Farmers face a limited number of options to sell their products, which can lead to lower prices and reduced bargaining power.
Perfect Competition Market: Collector traders operate in a competitive market, where they can compete with each other without significant market dominance.
Oligopoly Market: Large traders and retailers tend to dominate the market, which can lead to higher prices and reduced competition.

The efficiency of the traffic channel

Operationally, of the three existing trading channel patterns, the third trading channel proved to be more efficient. This can be seen from the equitable margin in every trading institution involved, the smallest margin, and Farmer’s Share the biggest. In other words, farmers get a greater part of the selling price of jengkol, while the costs incurred for the relatively lower trading. This can be seen from the spread of the ratio of profits to costs (Li/Ci Ratio), which shows the most significant results in this channel.

Conclusion

Analysis of the Jengkol Training in Lau Cih Village revealed the various dynamics that occurred in the Jengkol trading system. Knowledge of market structures, trading functions, and channel efficiency can be a reference for business people, policy makers, and further researchers. Increasing understanding of the mechanism of this trading is expected to help farmers get better results and improve the quality of the trading in the area.

Recommendations

Based on the findings of this study, the following recommendations are made:

Improving market structures: Policymakers should work to improve market structures, including increasing competition and reducing market dominance.
Enhancing trading functions: Farmers and traders should work to improve trading functions, including increasing transparency and fairness in transactions.
Increasing channel efficiency: Traders and policymakers should work to increase channel efficiency, including reducing costs and increasing profits for farmers.

Limitations

This study has several limitations, including:

Sample size: The sample size of this study was limited to 34 trading institutions in Lau Cih Village.
Data collection: Data was collected through surveys and interviews, which may be subject to bias and limitations.
Generalizability: The findings of this study may not be generalizable to other regions or contexts.

Future Research Directions

Future research should focus on:

Expanding the sample size: Increasing the sample size to include more trading institutions and regions.
Collecting more data: Collecting more data on market structures, trading functions, and channel efficiency.
Analyzing the impact of policy interventions: Analyzing the impact of policy interventions on market structures, trading functions, and channel efficiency.

By addressing these limitations and expanding the scope of the study, future research can provide a more comprehensive understanding of the jengkol trading system in Medan City and inform policy interventions to improve the lives of farmers and traders.
Frequently Asked Questions (FAQs) about the Jengkol (Archidendron pauciflorum) in Medan City

Q: What is jengkol (Archidendron pauciflorum)?

A: Jengkol is a type of fruit that is native to Southeast Asia, including Indonesia. It is a staple food in many Indonesian households, particularly in the Medan region.

Q: What is the significance of the jengkol trading system in Medan City?

A: The jengkol trading system in Medan City is significant because it involves various stakeholders, including farmers, collectors, large traders, and retailers. Understanding the dynamics of this trading system can help policymakers and businesspeople make informed decisions to improve the lives of farmers and traders.

Q: What are the different trading channels in the jengkol trading system?

A: There are three different trading channels in the jengkol trading system:

Direct channel: This channel involves farmers selling their products directly to consumers.
Collector channel: This channel involves collectors buying jengkol from farmers and selling it to large traders.
Large trader channel: This channel involves large traders buying jengkol from collectors and selling it to retailers.

Q: What are the market structures in the jengkol trading system?

A: The market structures in the jengkol trading system are:

Monopsony: Farmers face a limited number of options to sell their products, which can lead to lower prices and reduced bargaining power.
Perfect Competition Market: Collector traders operate in a competitive market, where they can compete with each other without significant market dominance.
Oligopoly Market: Large traders and retailers tend to dominate the market, which can lead to higher prices and reduced competition.

Q: What is the efficiency of the traffic channel in the jengkol trading system?

A: The efficiency of the traffic channel in the jengkol trading system is measured by the equitable margin in every trading institution involved, the smallest margin, and Farmer’s Share the biggest. In other words, farmers get a greater part of the selling price of jengkol, while the costs incurred for the relatively lower trading.

Q: What are the recommendations for improving the jengkol trading system?

A: The recommendations for improving the jengkol trading system are:

Improving market structures: Policymakers should work to improve market structures, including increasing competition and reducing market dominance.
Enhancing trading functions: Farmers and traders should work to improve trading functions, including increasing transparency and fairness in transactions.
Increasing channel efficiency: Traders and policymakers should work to increase channel efficiency, including reducing costs and increasing profits for farmers.

Q: What are the limitations of this study?

A: The limitations of this study are:

Sample size: The sample size of this study was limited to 34 trading institutions in Lau Cih Village.
Data collection: Data was collected through surveys and interviews, which may be subject to bias and limitations.
Generalizability: The findings of this study may not be generalizable to other regions or contexts.

Q: What are the future research directions for this study?

A: The future research directions for this study are:

Expanding the sample size: Increasing the sample size to include more trading institutions and regions.
Collecting more data: Collecting more data on market structures, trading functions, and channel efficiency.
Analyzing the impact of policy interventions: Analyzing the impact of policy interventions on market structures, trading functions, and channel efficiency.