Comparative Analysis of Transaction Costs of Seaweed Farmers

Abstract

This research aims to compare transaction costs farmers contract the formal and informal financial institutions in business farmer of cultivating seaweed in Takalar Regency of South Sulawesi. Design of research using survey method with random sampling data collection via questionnaires and in-depth interviews to the respondents. The Unit of analysis is 30 informal institutions contract farmers of Eucheuma Cottoni seaweed and 30 formal farmer. Methods of analysis used is the average ratio analysis (test the difference 2 average).

This research resulted in three (3) findings i.e.; (1) there are 13 (thirteen) components of transaction costs seaweed growers. The component market transaction cost consisting of cost of intermediaries to buy seeds, fee sales contract, the cost of financing the management of the intermediary and the difference between the sales price. Production managerial transaction cost components, consisting of the cost of planting seeds, transport costs of purchasing seeds, transportation costs of financing institutions, the cost of eating and drinking and celebrate the seed belt (appanaung ri jenne) while the political component of the transaction cost consisting of  credit interest, administrative costs, costs of documents, cost of postage labels. The results of comparative transaction costs transaction costs shows farmer informal institutions contract is larger than the formal institution of contract farmers.

Key words: Seaweed Farmers, institutional, transaction costs, access to financing and welfare.