Competitiveness and Effect of Government Policies on Laying Hens Farming Business in West Pasaman Regency, West Sumatra Province. Indonesia

Abstract

This research aimed to analyze the profitability, competitiveness and the effect of government policy on laying hen business in West Pasaman Regency. Survey was done on 10layer chicken breeders in West Pasaman regency. Policy Analysis Matrix (PAM) was employed in this survey finding that the laying hens business done was profitable based on the private and social profit. The laying hens farming business’ competitiveness can be seen based on its competitive and comparative excellence. Furthermore, the policy established by the government caused the farmer to spend more money of tradable input on private price than the social price, while the output price on local market was higher making it surplus for the farmer. Thus, the policy established gave negative effect on the tradable input, but positive effect on the output. However, the business of laying hens farming in West Pasaman Regency can be developed through some ways regarding the government policy. First, the government shall give better incentive and provide infrastructure, so that the farmer can increase the production and business scale.