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The Insertion of Small-scale Farmers into market auction, Can it really improve the Indonesian gurem farmers’ welfare? The perspective of the auction price formation and farmers’ motivation factors

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  • Winarsih, Dwi
  • Sutanto
  • Augier, Laurent
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    Abstract

    The condition of small-scale farmers in Indonesia is getting worse that is caused by an unfair low price that reflects to the low level of revenue for their income. This happens either because the dependency on trader/middlemen for selling the produce and the low accessibility of farmers to the market. The existence of auction mechanisms created by the Indonesian government auctions is still dominated by traders/middlemen, so that the increasing of prices have not affected to the farmers. Alternatively, by linking directly farmers to the auction mechanism will be analyzed in a descriptive and a qualitative ways from the point of view of price formation in the auction and the farmers’ determining factors to participate in the auction. The analysis conducts policy recommendations for ongoing agricultural auction development with the direct participation of small-scale farmers in the mechanism.

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    Bibliographic Info

    Paper provided by Agricultural Economics Society in its series 84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland with number 91946.

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    Date of creation: 29 Mar 2010
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    Handle: RePEc:ags:aesc10:91946

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    Keywords: Small-scale Farmers; Auction mechanism; price formation; farmer’s motivation; International Development;

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