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ISHS Acta Horticulturae 794: II International Symposium on Improving the Performance of Supply Chains in the Transitional Economies

EVALUATION OF PROFITABILITY AND COMPETITIVENESS OF VEGETABLE FARMING SYSTEMS IN UPLAND AREAS OF INDONESIA

Authors:   I.W. Arsanti, M.H. Böhme
Keywords:   horticulture, profitability, comparative advantage, competitive advantage, smallholder farmer
Abstract:
Vegetables are considered to be one of the most promising agricultural commodities in Indonesia. There is increasing consumer demand as a consequence of population growth and improved nutritional awareness in the community, and government support in terms of physical and non-physical infrastructure and facilities. However, there are many problems influencing vegetable production and marketing such as a low yields, high prices in the domestic market, various export barriers, an increase in vegetable imports and environmental degradation. This paper seeks to identify the profitability of different vegetable crops cultivated in Indonesia by using the Policy Analysis Matrix (PAM) methodology. The study was conducted in three vegetable production centres in upland areas of the country: Pangalengan in West Java, Kejajar in Central Java and Berastagi-Simpang Empat in North Sumatra. Results indicate that vegetable farming in upland areas of Indonesia is an important source of income for farmers. Vegetable farming is profitable with regard to the private and social profits, as well as competitive and comparative advantages. The following products are generally considered to be competitive: potatoes and head cabbages grown in Pangalengan and Kejajar; and tomatoes and carrots grown in Berastagi-Simpang Empat.
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