Indonesia Conference Directory

Rubber is small scale plantation cultivated by smallholders. Jambi Province is one example that crucially depends on its agricultural sector like rubber. Rubber does have the potential to be one key to economic and social development in the rural area, improving the socio economic situation of millions farmers in Jambi Province. However the farmers do not have bargaining power to determine the price of rubber slab to the traders. One of the distribution channels through the auction market, which try to help farmers getting the higher price from trader. The Objectives was analyzing the impact of rubber auction market toward transmission price for farmers. By using descriptive method to describe the changing in price received by farmer in auction market and counting the price transmission elasticity through simple regression, also the farmer share.The result shows that farmers only got 40-60 percent from selling their rubber in auction market. This condition explains the vulnerability of the farmer position. One of the reasons is farmers who do not optimally role their marketing function. Rubber auction market is an alternative marketing distribution for farmers to get a more decent price with good quality of BOKAR, with the price transmission elasticity 2.85. While the price changes at the export level are transmitted very little to farmers and the effect on farmers is very low. In the future farmers need to cooperate in one group to sell their rubber in huge quantity to get bargaining power and appropriate price.