THE ANALYSIS OF PRICE AND MARKET INTEGRATION OF BANANA COMMODITIES IN LAMPUNG, INDONESIA

ABSTRACT Price Stability is a price condition since all parts which relate to marketing relationship reach the same information of price with CV 9% as the threshold value. Market integration is the rate of price movement in a different territory, where the same product will have the same price. Even though it is sold in a different place, the price signal and market information are evenly transmitted. The purpose of this research is to analyze the price stability of banana and to vertically analyze the market integration of banana commodities in Lampung. This research had been done in December 2019. The location election was done purposely. It was located in Lampung with the consideration that Lampung is a region of Indonesia's number one productivity crop of Banana. The used method of this research is a secondarydata analysis method. The data types and sources that are used in this research are secondary data such as the price list in producer and consumer‟s level of banana in Lampung. The collected secondary data had been time-series data for 10 years recently from 2009 to 2018 or as much as 120 monthly data. The data analysis used analysis variant and testing data by using Johansen‟s cointegration and VAR. Based from the research showing that the rate of stability for the banana supply in Lampung is stable. The vertical market integration analysis shows that the market at the farmer level is not a long-term relationship related to the consumer level, yet it still has a short-time relationship. KEY WORDS Price, market integration, banana, stability