Analysis of Poultry Product Market Integration at the Producer, Wholesaler, and Retail Levels in Jambi Province, Indonesia

Price increases in poultry products remain inevitable, with a significant price disparity persisting between consumer and producer levels. This condition results from an unhealthy oligopolistic livestock market, leading to low purchase prices for farmers. The present study aimed to analyze market integration at the producer, wholesale, and retail levels for poultry products (chicken meat and eggs) and to develop a price-forecasting model for these products at the producer, wholesale, and retail levels for the future. A quantitative approach was used to analyze secondary data on average weekly prices for chicken meat and eggs at producer, wholesale, and retail levels in Jambi Province, Indonesia. The present data were obtained from the Center for Strategic Food Price Information from January 2020 to July 2023. The present results indicated a long-term cointegration relationship among chicken meat and egg prices at producer, wholesale, and retail levels in Jambi Province, Indonesia. The prices of chicken meat and eggs at the producer, wholesale, and retail levels influence each other not only in the current period but also concerning prices over the previous 2-6 weeks. Wholesale and retail chicken prices affect producer prices, and retail prices affect wholesale prices. For eggs, wholesale prices affect producer prices, and retail prices also affect producer and wholesale prices. The Vector Error Correction forecasting model for chicken and egg prices at producer, wholesale, and retail levels in Jambi Province demonstrated strong forecasting performance. Market integration occurs across different market levels, producer, wholesale, and retail, for chicken meat and eggs, both in the short and long term. This integration contributed to improving the efficiency of poultry marketing in Jambi Province, Indonesia. Keywords: Market integration, Producer, Retail, Wholesaler