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Market-Channel Choices of Indonesian Potato Farmers: A Best-Worst Scaling Experiment

Wendy Umberger, Thomas Reardon, Randy Stringer and Simone Mueller Loose

Bulletin of Indonesian Economic Studies, 2015, vol. 51, issue 3, 461-477

Abstract: We present an empirical analysis of how buyer (and trader) attributes influence decisions of market participation and channel choice among smallholder potato farmers in West Java, Indonesia. We use a best-worst scaling experiment to evaluate the determinants of these decisions and gauge the influence of buyer attributes. Our latent-class cluster analysis reveals that producers have heterogeneous preferences for buyer attributes, which address classic smallholder constraints such as access to inputs, credit, and information. This heterogeneity can be somewhat explained by household characteristics and assets. The broad mass of our sample sought buyers whose attributes imply lower market risk for farmers. Yet roughly a quarter of our sample, a portion that included farmers with large, specialised farms, sought buyers who could provide inputs such as high-quality seeds.

Date: 2015
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DOI: 10.1080/00074918.2015.1108389

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Bulletin of Indonesian Economic Studies is currently edited by Firman Witoelar Kartaadipoetra, Arianto Patunru, Robert Sparrow, Sarah Xue Dong and Sean Muir

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