HORIZONTAL AND VERTICAL INTEGRATION OF RICE MARKETS IN JAMBI PROVINCE
Published:
2026-08-23Downloads
Abstract
Variations in rice-price movements across regions and marketing levels indicate that price formation and market-information transmission are not uniform. This study describes rice-price developments at the producer level in Jambi, West Sumatra, and South Sumatra and at the wholesale and consumer levels in Jambi, and analyses horizontal and vertical market integration. Monthly prices from January 2021 to April 2026 were examined using descriptive and linear-trend analysis, vector autoregression, and error correction models within a cointegration framework. All series trended upward, although their rates of change and fluctuations differed. Producer markets did not share a long-run equilibrium, but one-way short-run linkages ran from West Sumatra to Jambi and from Jambi to South Sumatra. Vertically, the South Sumatra chain exhibited the broadest set of long-run relationships, whereas the West Sumatra and local Jambi chains showed no long-run linkage between producer and downstream prices. The wholesale-consumer segment displayed the most consistent adjustment mechanism. Rice-market integration in Jambi therefore varies across regions, marketing levels, and time horizons and does not necessarily imply proportional price transmission. The study’s originality lies in jointly analysing price trends and horizontal and vertical integration while retaining the geographical identity of each producer-price series.
Keywords:
horizontal integration price transmission price trends rice prices vertical integrationReferences
Arida, A., Masbar, R., Majid, M. S. A., & Indra, I. (2023). Does vertical asymmetric price transmission exist in the rice markets? Agricultural and Resource Economics: International Scientific E-Journal, 9(1), 69–90. https://doi.org/10.51599/are.2023.09.01.04
Aryani, D., Natawidjaja, R. S., Noor, T. I., & Mulyana, A. (2021). The integration of rice market in Indonesia as an archipelago country (vector error correction model analysis). International Journal on Advanced Science, Engineering and Information Technology, 11(4), 1599–1605. https://doi.org/10.18517/ijaseit.11.4.11264
Asrin, S., Putri, T. A., & Utami, A. D. (2022). Rice price transmission in Indonesia during the COVID-19 pandemic. Indonesian Journal of Agribusiness, 10(1), 159–168. https://doi.org/10.29244/jai.2022.10.1.159-168
Central Statistics Agency. (2025). Distribution of Indonesian rice commodity trade 2025. https://www.bps.go.id/id/publication/2025/12/31/f7bd40cb4779162e89bf2eda/distribusi-perdagangan-komoditas-beras-indonesia-2025.html
Deb, L., Lee, Y., & Lee, S. H. (2020). Market integration and price transmission in the vertical supply chain of rice: An evidence from Bangladesh. Agriculture, 10(7). https://doi.org/10.3390/agriculture10070271
Emediegwu, L. E., & Rogna, M. (2024). Agricultural commodities' price transmission from international to local markets in developing countries. Food Policy, 126(102652). https://doi.org/10.1016/j.foodpol.2024.102652
Engle, R. F., & Granger, C. W. J. (1987). Co-integration and error correction: Representation, estimation, and testing. Econometrics, 55(2), 251–276. https://doi.org/10.2307/1913236
Fackler, P. L., & Goodwin, B. K. (2001). Spatial price analysis (B. L. Gardner & G. C. Rausser, Eds.; Vol. 1B, pp. 971–1024). Elsevier. https://doi.org/10.1016/S1574-0072(01)10025-3
Granger, C. W. J. (1969). Investigating causal relations by econometric models and cross-spectral methods. Econometrica, 37(3), 424–438. https://doi.org/10.2307/1912791
Graubner, M., Salhofer, K., & Tribl, C. (2021). A line in space: Pricing, location, and market power in agricultural product markets. Annual Review of Resource Economics, 13, 85–107. https://doi.org/10.1146/annurev-resource-110220-010922
Hamilton, J. D. (1994). Time series analysis. Princeton University Press.
Herawati, H., & Harianto, H. (2021). Patterns of changes in prices and margins in food marketing during the COVID-19 pandemic. Indonesian Journal of Agribusiness, 9(2), 188–199. https://doi.org/10.29244/jai.2021.9.2.188-199
Hoffmann, C., Kastens, L., Portugal-Perez, A., & von Cramon-Taubadel, S. (2026). Food price crises and the insulation of domestic grain markets. Agricultural Economics, 57(4). https://doi.org/10.1111/agec.70125
Johansen, S. (1988). Statistical analysis of cointegration vectors. Journal of Economic Dynamics and Control, 12(2–3), 231–254. https://doi.org/10.1016/0165-1889(88)90041-3
Lütkepohl, H. (2005). New introduction to multiple time series analysis. Springer.
Nasir, N., Fitriyana, G., Simanjuntak, R., Afriatna, S. B., & Nasution, Z. (2025). The rice marketing system in tidal farming: A case study of Banyuasin Regency. Indonesian Journal of Agricultural Sciences, 31(1), 167–178. https://doi.org/10.18343/jipi.31.1.167
Nguyen, C. T., Morales, L. E., Hoang, N., Balié, J., & Valera, H. G. (2025). How integrated are rice markets in Asia? Effects of crises and rice export quality on price shock transmission. Australian Journal of Agricultural and Resource Economics, 69(4), 960–973. https://doi.org/10.1111/1467-8489.70045
Novianti, T., Mashito, M. A., & Muryani, M. (2020). Asymmetry price transmission in market rice in Indonesia. Journal of Applied Economics, 5(2), 64–78. https://doi.org/10.20473/jiet.v5i2.23612
Oksalia, E. P., Asmarantaka, R. W., & Yusalina, Y. (2023). Rice marketing efficiency with a structure conduct performance approach. Indonesian Journal of Agribusiness, 11(1), 87–104. https://doi.org/10.29244/jai.2023.11.1.87-104
Onumah, E. E., Addey Owusu, P., Mensah-Bonsu, A., & Acquah Degraft, H. (2022). Rice price volatility and transmission: Implications for food security in Ghana. Cogent Economics & Finance, 10(1). https://doi.org/10.1080/23322039.2022.2085605
Prihartini, N., Sari, P., & Hadi, I. (2020). Design Research: Developing Opportunity Concept Learning with an Indonesian Realistic Mathematics Education Approach for Grade IX Students at SMPN 220 Jakarta. J. Ris. Matt. Sec., 4(1), 1–8.
Prihtanti, T. M., & Pangestika, M. (2020). Rice productivity dynamics, rice retail prices (HEB), and government purchase prices (HPP), as well as the correlation between HPP and HEB. Indonesian Journal of Agricultural Sciences, 25(1), 1–9. https://doi.org/10.18343/jipi.25.1.1
Rahmadina, M., Mutiara, V. I., & Hendri, M. (2024). Integration of the rice market in West Sumatra. Journal of Agricultural Economics and Agribusiness, 8(4), 1628–1638. https://doi.org/10.21776/ub.jepa.2024.008.04.33
Ravallion, M. (1986). Testing market integration. American Journal of Agricultural Economics, 68(1), 102–109. https://doi.org/10.2307/1241654
Ruspayandi, T., Bantacut, T., Arifin, B., & Fahmi, I. (2022). Market-approach-based policy to achieve rice price stability in Indonesia—Can it be a complement? Economies, 10(12). https://doi.org/10.3390/economies10120296
Shaffitri, L. R., Suryana, E. A., & Sinuraya, J. F. (2024). Market integration and rice price transmission in Indonesia. BIO Web of Conferences, 119(02007). https://doi.org/10.1051/bioconf/202411902007
Vavra, P., & Goodwin, B. K. (2005). Analysis of price transmission along the food chain [OECD Food, Agriculture and Fisheries Papers No. 3]. OECD Publishing. https://doi.org/10.1787/752335872456
von Cramon-Taubadel, S., & Goodwin, B. K. (2021). Price transmission in agricultural markets. Annual Review of Resource Economics, 13, 65–84. https://doi.org/10.1146/annurev-resource-100518-093938
Wahyuni, F., Asmarantaka, R. W., & Rosiana, N. (2023). Rice marketing system in Landak Regency, West Kalimantan Province. Agribusiness Forum, 13(2), 203–217. https://doi.org/10.29244/fagb.13.2.203-217
Wooldridge, J. M. (2020). Introductory econometrics: A modern approach (7th ed.). Cengage.
Zahra, Z. N., Fernando, Z., & Rahmatullah, R. A. (2026). Seasonal variation in rice price transmission in Indonesia. Agrisocionomics: Journal of Agricultural Socioeconomics, 10(2), 644–656. https://doi.org/10.14710/agrisocionomics.v10i2.28636
License
Copyright (c) 2026 Camilla Fani, Zulkifli Alamsyah, Yanuar Fitri
This work is licensed under a Creative Commons Attribution 4.0 International License.
