Marketing Analysis of Rubber (Hevea brasiliensis) as a Non-Timber Forest Product in Paringin District, Balangan Regency

Abstract : This study analyzes the marketing system of smallholder rubber (Hevea brasiliensis) as a non-timber forest product in Paringin Subdistrict, Balangan Regency, South Kalimantan Province. Data were collected through interviews with 35 farmers selected using purposive sampling and 5 key informant traders, supplemented by secondary data from relevant institutions. The analysis employed the Structure-Conduct-Performance (SCP) framework encompassing market concentration ratio, price integration coefficient, price transmission elasticity, marketing margin, and farmer's share. Results revealed that the market structure is characterized by a strong oligopsony, with a Concentration Ratio (CR₄) of 83.0%, indicating dominance by four major traders. Market conduct is marked by unilateral price determination in which farmers act solely as price takers, reinforced by patron-client relationships through a debt-binding system involving approximately 40% of farmer respondents. Price integration analysis yielded a Pearson correlation coefficient (r) of 0.65 and a price transmission elasticity (Et) of 0.70, confirming asymmetric and imperfect price transmission. Market performance assessment demonstrated that the primary marketing channel (Channel I) achieved a farmer's share of only 47.22%, below the 50% efficiency threshold, while the shorter Channel II reached 52.78%, accessed by only 20% of farmers. Total marketing margin in Channel I reached Rp 9,500 per kilogram, of which 87.4% constituted net profit for intermediaries. These findings indicate that the rubber marketing system in Paringin Subdistrict is structurally uncompetitive, behaviorally unintegrated, and performs inefficiently to the detriment of farmers' welfare. Strengthening farmer collective institutions, improving access to formal credit, and enhancing price information transparency are critical interventions needed to create a more efficient and equitable rubber marketing system.