Transaction Costs of the Striped Buffalo Market in the North Toraja Regency

The aim of this study is to (1) identify various transaction costs incurred by the farmers and (2) look at the effect of transaction
costs from striped buffalo in the market. To achieve these objectives, qualitative and quantitative approaches are used with
multiple linear regression analysis tools. The research was conducted from April to July 2019 in the North Toraja Regency by
taking a sample of 30 breeders who specialized in selling striped buffalo. The results showed the largest transaction costs incurred by farmers was a brokerage fee of Rp.5,000,000/buffalo/transaction (12.30%) and the least cost is the transportation fee of Rp.2,100,000/month (0.53%). The amount of the brokerage fee is due to the information gap from the lack of education and weak negotiating abilities. The results of the regression analysis showed that brokers significantly affected the market of striped buffalo with a sig value of 0.006.