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#3783

Analyzing long run equilibrium of broiler egg prices between
wholesalers and retailers in Banda Aceh City: using

cointegration and Error Correction Model (ECM)
approaches

1
Novrizal , Romano , A Nugroho and S Kasimin 2
2
2
1 Student of Master Agribusiness, Syiah Kuala University, Banda Aceh
Indonesia
2
Department of Agribusiness, Syiah Kuala University Banda Aceh Indonesia

E-mail: romanos_agri@unsyiah.ac.id

Abstract. Broiler eggs are a strategic food commodity whose price stability must be maintained.
During a period of 4 years, from 2016-2019 the City of Banda Aceh did not produce eggs, so
eggs were supplied from outside the city, especially North Sumatra with the main distribution
pattern involving wholesalers and retailers. This study aims to apply the cointegration test to
figure out a long-term or stability relationship between the price of eggs at the wholesale trader
level and the price of eggs at the retail trader level in Banda Aceh City, using monthly time
series data for the period January 2017 to December 2019. The analytical method using the
Johansen Cointegration approach and the Error Correction Model (ECM). Data processing used
Stata SE-64 software. The results showed that there was a cointegration relationship between
the price of eggs at the wholesaler level (HPG) and the price of eggs at the retailer level (HPE).
This means that there is a long run equilibrium or price stability of eggs at the wholesale trader
level and the retail trader level in Banda Aceh City.

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