Analysis of the Structure, Conduct, and Market Performance of Gambier in West Sumatra, Indonesia

Gambier is a significant Indonesian export commodity contributing more than US$ 55 million to the economy. Production of gambier is centered in the province of West Sumatra, specifically Lima Puluh Kota Regency. This research aims to analyze the structure, conduct, and market performance of gambier commodity in West Sumatra. Fifty-two gambier farmers and twelve gambier traders were interviewed with data that were analyzed descriptively to determine the market structure, market conduct, and market performance.  Based on the number of end buyers (exporters) in West Sumatra, which are relatively small, only 16 companies compared to the number of sellers (farmers Gambier), this study concluded Gambier market structure tends to be monopsony. The majority of gambier exports from West Sumatra went to India. The market concentration analysis obtained a CR4 value of ≥ 0.8, which means low competition in the gambier commodity market. The market entry barriers analysis obtained an average value of MES of 35%, indicating the existence of barriers to market entry for new competitors. Four institutions were involved in marketing; collecting traders I, collecting traders II, interregional traders, and exporters. Of the four marketing channels, farmers-traders II-interregional traders (PAD)-exporters, was the most widely used, amounting to 51.92% of gambier trade. The research shows how different marketing channels benefit different institutions and provides suggestions to move towards a marketing system that provides more benefits to producers. The highest total marketing margin is on channel 1; Farmers-Merchants Merchants Gatherer I-II- Traders Inter (PAD) - Exporters. It occurs because channel 1 provides more marketing agencies. The highest of sharing farmers is the channel 4, i.e. farmers- interregional traders -exporters by 63.15%, and the lowest is in channel 2 (farmers-collecting traders II - interregional traders (PAD)-exporters) of 57.2 %.