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Market-Channel Choices of Indonesian Potato Farmers: A Best-Worst Scaling Experiment

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  • Wendy J. Umberger
  • Thomas Reardon
  • Randy Stringer
  • Simone Mueller Loose

Abstract

We present an empirical analysis of how buyer (and trader) attributes influence decisions of market participation and channel choice among smallholder potato farmers in West Java, Indonesia. We use a best-worst scaling experiment to evaluate the determinants of these decisions and gauge the influence of buyer attributes. Our latent-class cluster analysis reveals that producers have heterogeneous preferences for buyer attributes, which address classic smallholder constraints such as access to inputs, credit, and information. This heterogeneity can be somewhat explained by household characteristics and assets. The broad mass of our sample sought buyers whose attributes imply lower market risk for farmers. Yet roughly a quarter of our sample, a portion that included farmers with large, specialised farms, sought buyers who could provide inputs such as high-quality seeds.

Suggested Citation

  • Wendy J. Umberger & Thomas Reardon & Randy Stringer & Simone Mueller Loose, 2015. "Market-Channel Choices of Indonesian Potato Farmers: A Best-Worst Scaling Experiment," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 51(3), pages 461-477, December.
    • Handle: RePEc:taf:bindes:v:51:y:2015:i:3:p:461-477
    DOI: 10.1080/00074918.2015.1108389
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    References listed on IDEAS

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    1. Puspitawati, Eka & Guyau, Amos & Stringer, Randy & Umberger, Wendy J., 2011. "Determinants of Trust in the Indonesian Potato Industry: A Comparison Between Groups of Potato Farmers," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 29(1).
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    Cited by:

    1. Vosloo, Jodie, 2021. "A profitability and risk assessment of market strategies for potato producers in South Africa," Research Theses 334757, Collaborative Masters Program in Agricultural and Applied Economics.
    2. Keijiro Otsuka, 2021. "Strategy for Transforming Indonesian Agriculture," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 57(3), pages 321-341, September.
    3. Maligalig, R. & Umbeger, W. & Demont, M. & Peralta, A., 2018. "Farmer preferences for rice varietal trait improvements in Nueva Ecija, Philippines: A latent class cluster approach," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277476, International Association of Agricultural Economists.
    4. Rio Maligalig & Matty Demont & Wendy J. Umberger & Alexandra Peralta, 2021. "Understanding Filipino Rice Farmer Preference Heterogeneity for Varietal Trait Improvements: A Latent Class Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(1), pages 134-157, February.
    5. Rida Akzar & Wendy Umberger & Alexandra Peralta, 2023. "Understanding heterogeneity in technology adoption among Indonesian smallholder dairy farmers," Agribusiness, John Wiley & Sons, Ltd., vol. 39(2), pages 347-370, March.
    6. Pagare, Dewang & Biswas, Indranil & Agrahari, Amit & Ghosh, Sriparna, 2023. "A small farmer’s market choice in the presence of multiple markets: The Indian case," European Journal of Operational Research, Elsevier, vol. 311(2), pages 739-753.

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