The study of local beef market structure in Jakarta, Indonesia

Abstract

Abstract This study was implemented to determine benefit distribution from the value chain and analyze Jakarta’s local beef market’s price determination processes. The research method was a survey, and a purposive sampling technique was used to select key informants. A structured questionnaire was designed to collect the data supplemented with focus group discussion. Data were analyzed using descriptive quantitative statistics. The descriptive statistics revealed a market structure based on the elements to have many consumers and suppliers with ex-imported cattle (98 percent) and local cattle from East Nusa Tenggara and East Java (2 percent) fulfilled the demand in a year. Middlemen in the supply chain have more significant benefits than producers (feedlots and farmers) and consumers. The implication of the study is developing a business model for modern retail or butchering-based meat shops that increases the added value of local meat and benchmarking of a long beef chain efficiency at post-cutting (downstream). The development of a modern retail business model is expected to drive the shifting system sales of beef from a commodity to a product basis.