Analysis of comparative and competitive advantages of maize, rice and cocoa commodities in Gorontalo, Indonesia

Abstract

The objectives of the study were to determine the profitability, comparative and competitive advantages, and to analyze the impact of government policies on the competitiveness of maize, rice and cocoa farming in Gorontalo Province, Indonesia. The study was conducted in 5 districts on 2019. The Policy Analysis Matrix (PAM) was used. Maize, rice and cocoa farming in Gorontalo was profitable and feasible to implement; based on the value of private profitability and social profitability and the value of RC-ratio. Maize, rice and cocoa farming in Gorontalo had a competitive advantage of 0.74, 0.58 and 0.31 respectively. Maize, lowland rice and cocoa commodities had comparative advantages of 0.5, 0.5 and 0.27 respectively. The results of the PAM analysis showed that regional policies on the three commodities were a disincentive to output. To increase the competitiveness of maize, rice and cocoa farming in Gorontalo, it is necessary to control the output price at the farmer level; so that prices are not manipulated by collectors and the price received is in accordance with the government purchase price. This imply the need to increase technical efficiency, allocative efficiency, and improve the quality of results through intensive application, technology assistance and counseling.