Agriecobis : Journal of Agricultural Socioeconomics and Business
Vol. 8 No. 02 (2025): October

Analyzing the Efficiency of the Curly Red Chili (Capsicum annuum L.) Supply Chain: A Structure-Conduct-Performance Approach in East Payakumbuh Subdistrict

Fariz Fahrezi Taufiq (Agribusiness Departement, Faculty of Agriculture, Universitas Pembangunan Nasional '
Veteran'
Jawa Timur)

Syarif Imam Hidayat (Agribusiness Departement, Faculty of Agriculture, Universitas Pembangunan Nasional '
Veteran'
Jawa Timur)

Ika Sari Tondang (Agribusiness Departement, Faculty of Agriculture, Universitas Pembangunan Nasional '
Veteran'
Jawa Timur)



Article Info

Publish Date
31 Oct 2025

Abstract

Curly red chili (Capsicum annuum L.) is a strategic horticultural commodity in Indonesia, vital for both food security and rural livelihoods. In East Payakumbuh Subdistrict, West Sumatra, it serves as a primary income source for local farmers. However, the supply chain faces significant challenges, including price volatility, constrained market access, and a high dependence on intermediaries, which collectively erode farmer bargaining power. Applying the Structure-Conduct-Performance (SCP) framework, this study analyzes the market dynamics of curly chili. We collected primary data through in-depth interviews with key supply chain actors farmers, collectors, wholesalers, retailers, and sub-terminal agricultural officers using snowball sampling. Our quantitative analysis employs concentration ratios (CR4), Minimum Efficiency Scale (MES), marketing margins, and farmer’s share to evaluate market efficiency. The findings reveal an oligopsonistic market structure, where four dominant firms control 95.48% of purchases, supported by a high MES of 85.82%. This concentration, coupled with farmers' reliance on these few buyers, results in persistently low farmer bargaining power. Furthermore, marketing channel efficiency is heterogeneous; one distinct channel demonstrates superior efficiency and returns a higher profit share to farmers. These results underscore the imperative for policy measures designed to strengthen farmer cooperatives, reform trading mechanisms, and facilitate direct market linkages to enhance overall supply chain equity and performance.

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Journal Info

Abbrev

agriecobis

Publisher

Subject

Economics, Econometrics & Finance Environmental Science Social Sciences

Description

Agriecobis diterbitkan dalam kurun waktu dua kali setahun pada bulan Maret dan Oktober yang berisi artikel hasil pemikiran dan penelitian di bidang sosial, ekonomi, penyuluhan dan kebijakan pertanian. Jurnal ini mencakup artikel hasil penelitian termasuk bidang Agribisnis, Sosial Pertanian, ...