Competition Gaps of Tomatoes’ Industries in Cameron Highland, Malaysia

Abstract

Currently, the price range of tomatoes is a great loss to the producers or tomato growers in Malaysia. Meanwhile, in terms of the purchasing power of consumers, Malaysia is one of the more prosperous in the countries in Asia with a GDP per capita of about US $ 10,876 in 2016. In reducing the width of the tomato price range, it needs of industrial competition analysis or market tomatoes in Cameron Highland pertinent for the issue. The aim of this study was to identify the tomato industry competition in Cameron Highland, Malaysia, and it was conducted in three (3) stages: a) in this stage, carried out literature studies and searches related and related information to the players, organization, customer, and supplier market tomatoes, b) the collection of data and information according to the research objectives, and c) conduct focus group discussions with the topic a tomato industry competition and tabulation of data. Results of the study found that the tomato industry competition is quite significant in Cameron Highland. The threat of substitute product's tomatoes from other regions or import is very dominant. Nearly 60 percent of tomatoes from Thailand supplied to Malaysia. The indicators, tomatoes are very easily available in the entire super market and traditional market in the peninsula Malaysia. Meanwhile, the State Thailand is a threat from new entrants who have high accessibility of land, which is between Bukit Kayu Hitam (Malaysia) and Sadao (Thailand). On the other hand, distributors have greater bargaining power in determining the market price because he is dealing with a large number of intermediaries to be selected. Industry competition structure above causes the position of farmers locked in power distributor or intermediary is dominant. Meanwhile, developments in information technology become an opportunity for farmers to get information about the price of tomatoes at the farmers directly in connection to the supermarket or to the market. Indirectly, the role of intermediaries can be reduced. Thus, the price of tomatoes is not manipulated by them. In addition, farmers can plan for the future market production.