| dc.description.abstract | Maize plays a vital role as raw material for animal feed, especially poultry,
and is an essential commodity in Indonesia. Maize production and consumption
centers are spread across several provinces in Indonesia. In addition, differences in
harvest seasons result in disparities in supply and demand, leading to inter provincial trade and price transmission. However, a significant price disparity
between one province and another indicates that price transmission has not gone
well, and the market has not been integrated yet. An understanding of market
integration can describe market performance that leads to market efficiency. In
addition, the relationship between maize and poultry feed shows a reciprocal
relationship possibility. This study aims to analyze the spasial integration of the
maize market in Indonesia and the vertical integration between maize at the
producer level, maize at the wholesale level, and animal feed.
Spasial integration uses monthly data on maize prices for ten years from
January 2010 to December 2019 in 13 selected provinces, while vertical integration
uses monthly data on maize prices at the producer level, maize prices at the
wholesale level, and animal feed prices in Indonesia from January 2017 to October
2020. Data were obtained from the Central Statistics Agency of the Republic of
Indonesia (BPS) and internal data from one of Indonesia's major animal feed
companies. The secondary data were then analyzed using the Johansen
cointegration test, error correction model (ECM), and Granger causality test.
The study results prove that there is no full spatial integration of the maize
market in Indonesia, but only partially integrated. This illustrates that the maize
market in Indonesia is still not efficient, so the existing maize trade policies must
be directed to increase marketing efficiency. Banten province has the most
influence on prices, showing that the demand side more affects maize prices. The
vertical integration analysis proves that the price of feed is influenced by the price
of maize, both at the producer and wholesaler levels. The results of this study also
confirm that the price level of maize affects the development of the animal feed and
livestock industry in Indonesia, so the policies applied to the production and trade
of corn will also affect the feed and livestock industry in Indonesia. | id |
