Market Efficiency and Integration Analysis of Organic Vegetables in Medan

Abstract

The study aims to analyze about marketing chain of organic vegetables, margin trading system, and level efficiency of organic vegetables market chain and the market structure and the integration of organic vegetables in a market. From theoretically, there are three basic theory is the basic for forming an efficient trading system is the theory of marketing chain and its functions, the farmer's share, the efficiency of marketing chain and transmission theory to analyze the structure of organic vegetables market price. The samples are vegetable farmers and institutions involved in organic vegetables chain in trading system which is comprised of ten farmers, a collectors and two wholesalers supermarkets. The research found from three organic vegetables chain have three channels, wherever the first channel are from farmers to traders and then to wholesalers and consumers; the second channel are farmer to consumer and the third channel the growers to wholesalers and consumers. The farmer's share analysis concluded the second channel was the most efficient channel because the efficiency levels up to 100 percent, while based on a calculation form of marketing chain efficiency, generally that three organic vegetables have been efficient. Analysis of the organic market integration, organic vegetable market was monopsony market and monopoly market. The recommendations of research was expanding the market share of organic vegetables again in the city of Medan.