Nama : Iham Romadhon

NIM : 051752733
Matkul : Bahasa inggris niaga
Prodi : Administrasi bisnis
UPBJJ : Surabaya
Jawaban:

Impact of Monopsony-Like Conditions in the Indonesian

Agricultural Sector
The dominance of a few large buyers, such as supermarket chains, in the
Indonesian agricultural sector can have significant effects on small-scale
farmers. One of the most notable impacts is on pricing. When large
buyers have substantial market power, they can dictate lower prices for
agricultural products, squeezing the profit margins of small-scale farmers.
This can lead to income instability for farmers, making it challenging for
them to invest in their farms or improve their livelihoods. For example, in
Indonesia, large supermarket chains have been known to impose low
purchase prices on farmers for their produce, leading to financial strain
and limited resources for the farmers.
Furthermore, the influence of monopsony-like conditions on the
agricultural sector can also affect the overall sustainability of the
industry. When small-scale farmers are consistently offered low prices for
their products, they may struggle to maintain their farms and invest in
sustainable agricultural practices. This can lead to environmental
degradation and reduced productivity in the long run. For instance, the
pressure to meet the demands of large buyers at low prices may drive
farmers to use unsustainable farming methods, such as excessive
pesticide or fertilizer use, which can harm the environment and
compromise the long-term viability of the agricultural sector.
In conclusion, the monopsony-like conditions created by the dominance
of large buyers in the Indonesian agricultural sector can have detrimental
effects on small-scale farmers, including reduced income stability and
potential harm to the sustainability of the industry. It is crucial for
policymakers and industry stakeholders to address these imbalances in
buyer power to ensure fair pricing, support the livelihoods of small-scale
farmers, and promote sustainable agricultural practices in Indonesia.