MARKET FOR FACTOR INPUTS

Abstract

This study aims to investigate the characteristic of input and output market institutions for smallholder livestock and also identify factors influencing the market institution performance in smallholder livestock. Data are collected through unstructured interviews using Participatory  Rural  Appraisal  (PRA)  with focus group discussion at  Tapanuli Selatan in  FY  2003  covering  30  selected livestock farmers and some traders as interviewed respondents.    Data analysis conducted using qualitative and quantitative description,  and research results reveal that:  (a) input-output market institutions have an important role as determinant factors in smallholder livestock especially the correlation of livestock farmer earnings,  (b)  Bargaining position of farmers' very weak in the marketing of livestock output because the market structure of tending to oligopoly,  (c)  Performance of livestock market not only influenced by an internal factor,  however, is also determined factor of external,  (d)  Motivation for a form of mutual profiting partner between livestock farmer and other party is needed to improve performance of input-output marketing of livestock.