Market Integration and Price Transmission of Grain And Rice In Jepara Regency

Abstract Jepara is one of the rice-producing centers in Central Java. The price of rice in Jepara always experiences an increase, which is not always the same as changes in the price of grain at the producer level. The differences in price movements in the market vertically indicate the need to stud...

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Bibliographic Details
Published inIOP conference series. Earth and environmental science Vol. 1364; no. 1; pp. 12042 - 12051
Main Authors Wulandari, Tri, Ekowati, Titik, Komalawati
Format Journal Article
LanguageEnglish
Published Bristol IOP Publishing 01.06.2024
Subjects
Agriculture
Data analysis
Farms
Food security
Grain
Integration
Rice
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Summary:Abstract Jepara is one of the rice-producing centers in Central Java. The price of rice in Jepara always experiences an increase, which is not always the same as changes in the price of grain at the producer level. The differences in price movements in the market vertically indicate the need to study integration analysis and vertical price transmission. This study aims to analyze the market integration and price transmission of grain and rice between producers and consumer in Jepara Regency. The data used is secondary data in the form of daily data on the real price of dry unhusked rice harvested at the farm level, the price of rice at the mill level and the price of rice at the consumer level in Jepara Regency from 2020 to 2022 from the Office of Agriculture and Plantation of Central Java Province and the Food Security and Agriculture Service, Jepara Regency. Data was analysed using the VECM (Vector Auto Correction Model). The results showed that there was a vertical price asymmetry in the short and long term between the price of grain at the producer level (GKP), the price of milled rice (BMP), the price of wholesale rice (HBG) and the price of retail rice (BME) in Jepara Regency. Price formation at the consumer or retail level is influenced by the price of rice at the wholesale level and the price of grain at the farm level. The price of grain at the farm level also affects the price of rice at the milling level and the wholesale level but not vice versa. Thus, it can be concluded that grain producers are the determinants of rice prices in Jepara Regency.
ISSN:1755-1307
1755-1315
DOI:10.1088/1755-1315/1364/1/012042