| Abstrak/Abstract |
The auction market of chili in the Kulon Progo Regency has proven to have many
benefits to the farmers. The competition among traders in the auction market will
elevate the price, making it more profitable to the farmers. However, there are still
opportunities to improve the auction market performance. This study was intended to
help determine the efficiency of the auction market of chili in the sandy coastal area
and its determinant factors. The research was conducted from April to July, 2018. The
respondents were 13 managers of all auction markets in the sandy coastal area of Kulon
Progo Regency. The research used the Data Envelopment Analysis to know the
efficiency of the auction market and binary logistic methods for analyzing its
determinant factors. The study showed that most of the auction markets were not
efficient. There were only 2 efficient auction markets, namely Auction Group 5 and
Gisik Pranaji. This was due to the fact that the two auction markets had complete
supporting infrastructure and management training. Both of the auction markets’
manager also had a good partnership with the traders in other cities. Meanwhile, the
main problem of the inefficient auction market was getting a low selling price in the
harvest season. The determining factor of the efficiency is the managers’ experience in
farming. In fact, managers with long working experience have an impact on their
creativity to develop the auction market. This is because such managers with a long
experience of chili farming will understand market conditions. The experience is also
beneficial for the managers in establishing partnerships with buyers. The other variable,
the auction markets’ capital, did not affect probability of the auction market to increase
their efficiency. To increase their efficiency, it is necessary for the auction markets’
manager to follow the various management training and formal education. |
