Analyzing the Potato Market in Malang Raya: Insights from the Structure-Conduct-Performance (SCP) Approach

Department of Agribusiness, Faculty of Agriculture and Animal Science, Universitas Muhammadiyah Malang, Indonesia

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Abstract

Potatoes serve as an essential food commodity in Indonesia, with demand continually increasing, particularly as raw materials for snack-based small and medium enterprises (SMEs). Although production has grown, farmers in Malang Raya still encounter considerable marketing difficulties. This study aims to examine the market structure, conduct, and performance of potatoes in Malang Raya using the Structure-Conduct-Performance (SCP) approach. Primary data were collected from producers, farmers, and traders through structured and semi-structured questionnaires, with respondents chosen via a snowball sampling method. Data were analyzed using descriptive and SCP analyses, emphasizing market concentration, price behavior, and marketing efficiency. The results demonstrate that the potato market in Malang Raya has an oligopolistic structure, with a concentration ratio (CR4) below 40% and a Herfindahl-Hirschman Index (HHI) of 0.06. Farmers function mainly as price takers due to limited bargaining power. Four main marketing channels were identified, with Channels I and II showing the highest efficiency. Furthermore, market performance analysis indicates a relatively fair distribution of margins between farmers and marketing institutions. These findings provide insights into the functioning of the potato market in Malang Raya and suggest strategies for promoting sustainable agribusiness development.