Abstract
A significant change in the composition of agricultural exports from major plantation crops to non-traditional tree crops such as spices, fruits, and timber which mainly originated from small holder agroforestry systems is evident during the last few decades in Sri Lanka. Development of supply chain for products that are competitive in the world market will enable small holder farmers to reap the economic benefits from agroforestry systems and will make such systems economically viable. The objective of this work was to analyze the trade competitiveness of agroforestry crop sector in the country. Revealed Comparative Export Advantage (RXA), Relative Trade Advantage (RTA) and Revealed Comparative Advantage (RCA) indices were computed for 580 agroforestry products using data extracted from the trade map at the HS level 6. The 580 products were grouped into 82 categories based on the crop origin. The analysis revealed that on average, 58 products had both relative export advantage and revealed comparative advantage and 124 products had relative trade advantage at HS 6 level during 2001-2008. Among the non-traditional exports, fruit crops (avocado, papaya, citrus, pineapple, cashew, lemon and lime, guava, mango, mangosteen and durian), root crops (manioc and arrowroot), medicinal plants (ginger and turmeric), cardamom, coffee, mushroom, bamboo, vanilla, cocoa and beans were found to be competitive in the world market according to relative trade advantage index. Cinnamon fetched the highest RXA, RTA and RCA values, followed by tea, cloves, coconut and nutmeg. The United Arab Emirates, France and Germany were found to be the major export destinations for the products that are highly competitive. <strong>Key words: </strong>Agroforestry; Comparative advantage; Sri Lanka DOI: http://dx.doi.org/10.4038/tar.v22i4.3784 <em>TAR </em>2011; 22(4): 338-347
Highlights
A significant change in the composition of agricultural exports from major traditional plantation crops to non-traditional agricultural crops which mainly originate from small holder agroforestry systems has been evident in Sri Lanka during the last few decades
The objectives of the study were to analyze the competitiveness of agroforestry products in Sri Lanka using the Revealed Comparative Export Advantage (RXA), Relative Trade Advantage (RTA) and Revealed Comparative Advantage (RCA), identify the major export destinations, and identify the import tariff restrictions, if any, for products that are highly competitive in the export market
Trade competitiveness indices were computed for 580 products at Harmonized System (HS) level 6 which have an agroforestry origin and were aggregated at crop levels to examine products from which crops are competitive in the world market
Summary
A significant change in the composition of agricultural exports from major traditional plantation crops (i.e. tea, rubber and coconut) to non-traditional agricultural crops (i.e. spices, coffee, arecanuts, cashew nuts, vegetables and fruits) which mainly originate from small holder agroforestry systems has been evident in Sri Lanka during the last few decades. At the micro-level, export competitiveness was defined as the ability of a firm to compete in domestic and international markets. At the meso and macro levels, a country’s competitiveness is defined as the ability to compete or produce goods that meet the test of international markets, while simultaneously maintaining and expanding the real income of its citizens (Samen, 2010). Málaga and Williams (2006) analyzed the export performance of the Mexican agricultural and food sector in recent years with a particular emphasis on the changing competitiveness of those exports in the US and world markets. Samaratunga and Thibbotuwawa (2006) revealed that Sri Lanka is competitive for fish and crustaceans, plantation crops, spices, cut flowers, vegetables and oil seeds among the agricultural products Málaga and Williams (2006) analyzed the export performance of the Mexican agricultural and food sector in recent years with a particular emphasis on the changing competitiveness of those exports in the US and world markets. Utkulu and Seymen (2004) analysed the competitiveness and the pattern of trade flows/trade specialization from Turkey to the EU on sectoral levels. Stefan and Imre (2009) investigates the level, composition, and differences in agro-food relative trade advantages and disadvantages for eight Central European and Balkan countries on the European Union (EU) markets and their implications for food policy. Samaratunga and Thibbotuwawa (2006) revealed that Sri Lanka is competitive for fish and crustaceans, plantation crops, spices, cut flowers, vegetables and oil seeds among the agricultural products
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