Structure, Conduct and Performance of the Coffee Processing Industry in Palembang and Pagar Alam Cities

The purpose of this study was to analyze the structure, conduct, and performance of the coffee processing industry in Palembang and Pagar Alam cities. The data used in this study are primary data collected by distributing questionnaires to coffee processing firms in Palembang city and Pagar Alam city. The analysis technique used is the Structure-Conduct-Performance (SCP) analysis. The results of the SCP analysis found that the market structure of the coffee processing industry in Palembang city and Pagar Alam city is Monopolistic Competition with a CR4 value of 32.43 percent in Palembang City and 37.65 percent in Pagar Alam city. Market Share values are less than 5.83 percent indicate opportunities for new firms to enter the industry. Analysis of the conduct of the coffee processing industry shows the strategies used are product, price, and promotion strategies. Performance measures can be seen from the ratio of productivity, efficiency, and profitability. Keywords: Structure-Conduct-Performance (SCP), concentration ratio, Market Share, productivity, efficiency, profitability