Abstract
This study focuses on the dual paradox of production cost phenomenon as a consequence of the tobacco market characteristics. More specifically, we motivate our study by emphasizing the oligopsonic price transaction and farmers’ lack of direct access to factories. The paradox causes production costs to be determined by mediating actors between farmers and tobaccos. More specifically, tengkulak (middlemen) powerfully mediate business transactions between farmers and factories so that price fluctuation harms farmers. Using the phenomenology study, this research harmonizes the production costs determination from the planting time to harvesting time. The production cost harmonization shows that farmers and factories initiate intensive and open communication about their own production costs. It is therefore expected that this practice could eliminate the oligopsonic market and the one-sided price determination by tengkulak who mainly act for cigarette industry. Eventually, it is also expected that the dual paradox of production cost determination could be eliminated. Keywords:
Cite
CITATION STYLE
Prasetyo, W. (2017). Paradoks Ganda Kos Produksi Petani Tembakau (Studi Fenomenologi pada Petani Tembakau di Kabupaten Jember). Jurnal Ekonomi Dan Bisnis, 20(1), 69. https://doi.org/10.24914/jeb.v20i1.611
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