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Seizing Agro-commodities competitiveness through Local Auction Markets |
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What is Agrobusiness Auction Markets? Auction market is a market in which buyers enter competitive bids and sellers enter competitive offers at the same time. Meanwhile, agribusiness auction market is a place which matchs bid and offers of respective customer and farmer on dealing agro-commodities. The agro-products are such as: cucumber, soybean, rice, chili, garlic, pepper, cattles, vegetable and essential oil, and so forth. According to UKM DIY (2014), there are two kinds of the markets based on the characteristics which are as follows: a. Spot auction market: farmers directly bring their agro-commodities which will be sold to the markets. b. Forward auction market: farmers sufficiently bring the examples of commodities with agro-products specification to costumers. It is known as physical market due to an obligation to give the products in the line of the determined price, quality, quantity and time.
Auction market is intended redundantly to help farmers outing of unfair price accepted by initial farmers and paid by consumers. In addition, auction market have been proven able to create better trading system via transparency of price determination to enhance efficiency and effectiveness of trading system and to embody incentive for increasing the productivity and quality as well as income of farmers. As pertaining the market, it is not far from the kinds of institution. Damona et al. (2013), institutional concept of auction market is the organizer of agro-commodities trading in which price discovery efforts will be open, transparent and the best providing value protection and increasing the efficiency of trade. So, auction market is institutionally and technically able to seize the competitiveness of agro-commodities in Indonesia. In Indonesia, there are some young energitic agriculturists who have been started to implement the market as integral ways of their agrobussineses. The markets considerably have assisted Indonesia young people on agriculture to expand their entepreneurships by defining prices. The youths sell out their agro-commodities directly to consumers without interupted by any discrepancy. For further information, please click this link: http://achmadmoslem.blogspot.com/2014/12/seizing-agro-commodities.html |
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5 Comments
Auction market will for sure ensure transparency for fair market price of agro commodities and I am cherished to see Indonesians attracted to auction markets. In my country Nepal too there are many auction markets that promotes local agro produces. Thanks for sharing dear Achmad :) Keep writing.
Posted 14-01-2015 01:54
Awesome, Achmad. Some supermarket are selling vegetables at the price that are not too reasonable. The auction of farming products sound like great and interesting way to solve that.
Posted 11-01-2015 17:45
Thanks for sharing very interesting report on agriculture auction markets. It is really a good strategy to fight the war against unfair prices paid to farmers. I enjoyed reading your report.
Posted 09-01-2015 23:55
Thanks for this article as well, Achmad.
Posted 09-01-2015 18:12
It's impressive that youths are selling veges in the auction market :)
Thank you for sharing interesting information, Achmad.
In our town, flee market for veges opens regularly and I can buy fresh veges at very reasonable prices. I like these kinds of markets really!
Posted 09-01-2015 14:12