The analysis of structure, conduct, and market performance of the Indonesian sago: A case study in South Sulawesi, Indonesia
Sri Hastuty Saruman, Masyhuri, Jangkung Handoyo Mulyo, Jamhari
Abstract: The agricultural product market in developing countries involves complex marketing channel systems. In many areas, most farmers cannot directly access the consumer market. They have to sell the commodity to the wholesalers. This situation sometimes creates unfair market conditions and drives the market into inefficiency. Sago, as one of the strategic foods for Indonesians, also faces a similar problem in the market systems, particularly in eastern Indonesia. This study analyzes the sago market structure, conduct, and performance in South Sulawesi, Indonesia. The research was conducted in Luwu and North Luwu Districts, South Sulawesi Province. Primary data were collected by leading observations, interviews, and questionnaires to farmers, processors, wholesalers, collectors, and retailers. Interviews were directed to 100 farmers, 31 refinery processors, and 42 traders. The data were analyzed by applying quantitative and qualitative approaches and using the structure, conduct, and performance of the sago marketing (SCP) approach. The results show that the market structure formed from sago marketing in South Sulawesi tends towards an oligopsony market between farmers and wholesalers, and an oligopoly market structure between traders and consumers. This condition is reflected in the existence of several large traders, who significantly control the market share and the barriers to entry and exit from the market are relatively high. Sago market behavior tends to implement a uniform pricing strategy and engage in price collusion practices. Only the sago market in channel five is efficient, and the overall farmers still receive the smallest share of the sago market margin.
Keywords: conduct; performance; sago market; structure
Citation: Saruman, S. H., Masyhuri, Mulyo, J. H. M. & Jamhari (2026). The analysis of structure, conduct, and market performance of the Indonesian sago: A case study in South Sulawesi, Indonesia. Bulg. J. Agric. Sci., 32(2), 260–271
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| Date published: 2026-04-29
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