Down-Streaming Impact to the Competitiveness of Indonesia Cocoa
DOI:
https://doi.org/10.15575/ks.v6i1.33343Keywords:
Competitiveness, Down-streaming, Indonesia Cocoa, Supply ConcentrationAbstract
The objective of this paper is to provide qualitative and quantitative analysis on the competitiveness of Indonesia cocoa beans post down-streaming push by the Government of Indonesia. Indonesia cocoa has been part of the top three producers and exporters of global cocoa beans and had been shifting into cocoa processed products to create more value. Quantitative analysis from upstream perspective measures the supply concentration and competitive advantage using The Four-Firm Concentration (CR4), Herfindahl-Hirschman Index (HHI), and the model of Revealed Comparative Advantage (RCA) while value creation impacted by down-streaming is based on published data during the period of 2012-2021. The qualitative analysis uses the framework of Global Competitiveness Index to measure the competitiveness gap of Indonesia cocoa sector based on interview with Indonesia cocoa experts consisted of respected government officer, academic, researcher, cocoa trader association, and cocoa farmer association. The result concludes the domination of top four countries on supply side has shifted from “moderately concentrated†to “highly concentratedâ€; and confirms the improvement of Indonesia cocoa from value creation perspective by down-streaming the export product. Competitiveness gap analysis compares the current condition with ideal condition of industry; as a result, identify there are one area that in line with sectoral environment and three major areas that need to be resolved to close the competitiveness gap especially in the area of productivity and efficiency, institutional framework, and prices. Government should continue the capacity building program to improve smallholders’ capability and monitor the implementation of warehouse receipt program to ensure the partiality to cocoa smallholders.
References
Abdullahi, N. M., Zhang, Q., Shahriar, S., Kea, S., & Huo, X. (2022). Relative export competitiveness of the Nigerian cocoa industry. Competitiveness Review, 32(6), 1025–1046. https://doi.org/10.1108/CR-03-2021-0036/FULL/XML
Abukari, A., & Cunfeng, T. (2021). The Export Competitiveness of Ghana’s Cocoa Industry in West Africa. Journal of Agricultural Science, 13(3), 80. https://doi.org/10.5539/jas.v13n3p80
Azorji, J. N., Okechukwu, R. I., Udebuani, A. C., & Duru, C. M. (2021). Evaluation of Physicochemical Properties and Heavy Metal Levels in Soils From Selected Auto Mechanic Workshops in Imo State, Nigeria. In Original Research Article Asian Journal of Advances in Research (Vol. 4, Issue 1).
Becker, G. (2015). Horizontal Merger Guidelines. In Wiley Encyclopedia of Management (pp. 1–6). Wiley. https://doi.org/10.1002/9781118785317.weom080020
Boamah, B. B., Assiamah, A. A., Cailou, J., Shuangqin, L., & Adu-Gyamfi, E. (2019). Factors Influencing the Competitiveness of Cocoa Export of Ghana and Its Implication on Ghana’s Economy. Journal of Development and Agricultural Economics, 10(6), 39–46. https://doi.org/10.7176/JESD
Candy Industry. (2021). Global Top 100 Candy Companies | Snack Food & Wholesale Bakery.
Das, B. K., Jha, D. N., Sahu, S. K., Yadav, A. K., Raman, R. K., & Kartikeyan, M. (2023). Some Multivariate Analysis Techniques for Fisheries Data. In Concept Building in Fisheries Data Analysis (pp. 173–193). Springer Nature Singapore. https://doi.org/10.1007/978-981-19-4411-6_10
Fahmid, I. M., Wahyudi, Salman, D., Kariyasa, I. K., Fahmid, M. M., Agustian, A., Perdana, R. P., Rachman, B., Darwis, V., & Mardianto, S. (2022a). “Downstreaming†Policy Supporting the Competitiveness of Indonesian Cocoa in the Global Market. Frontiers in Sustainable Food Systems, 6(June), 1–12. https://doi.org/10.3389/fsufs.2022.821330
Fahmid, I. M., Wahyudi, Salman, D., Kariyasa, I. K., Fahmid, M. M., Agustian, A., Perdana, R. P., Rachman, B., Darwis, V., & Mardianto, S. (2022b). “Downstreaming†Policy Supporting the Competitiveness of Indonesian Cocoa in the Global Market. Frontiers in Sustainable Food Systems, 6. https://doi.org/10.3389/fsufs.2022.821330
Food and Agriculture Organization of the United Nations. (2023). World Food and Agriculture – Statistical Pocketbook 2023. In World Food and Agriculture – Statistical Pocketbook 2023. https://doi.org/10.4060/cc8165en
Hapsari, T. T., & Yuniasih, A. F. (2020). The determinant factors of Indonesian competitiveness of cocoa exports to Germany. Jurnal Ekonomi Pembangunan, 18(1), 75–84. https://doi.org/10.29259/jep.v18i1.9978
Hariyati, Y., & Daqianus, D. R. H. (2023). Indonesian Cocoas Export Commodity: A Comparison in Competition and the Affecting Factors. AIP Conference Proceedings, 2583(1). https://doi.org/10.1063/5.0117379/2875371
Hemphill, T. A., & Banerjee, S. (2015). Genetically Modified Organisms and the US Retail Food Labeling Controversy: Consumer Perceptions, Regulation, and Public Policy. Business and Society Review, 120(3), 435–464. https://doi.org/10.1111/basr.12062
John-Eudes, B., Alexander, A. F., Seth, E., Enoch, K. T.-A., Isaac, N. S., Emmanuel, A. D., Mark, A., Evelyn, K. B., & Mariama, I. (2021). Competitive strategies for purchasing of cocoa by licensed buying companies in Ghana: The determinants and performance implications. Journal of Development and Agricultural Economics, 13(4), 295–303. https://doi.org/10.5897/JDAE2021.1303
Kuzman, B., Stegic, M., & Subic, J. (2016). Market oriented approach of revealed comparative advantage in international trade. Ekonomika Poljoprivrede, 63(1), 247–260. https://doi.org/10.5937/ekoPolj1601247K
Nabhani, I., Daryanto, A., Machfud, & Rifin, A. (2016). Mobile Broadband for the Farmers: A Case Study of Technology Adoption by Cocoa Farmers in Southern East Java, Indonesia. Agris On-Line Papers in Economics and Informatics, 2(June), 111–120. https://doi.org/10.7160/AOL.2016.080209
Nabhani, I., Daryanto, A., Yassin, M., & Rifin, A. (2015). Can Indonesia Cocoa Farmers Get Benefit on Global Value Chain Inclusion? A Literature Review. Asian Social Science, 11(18), 288–294. https://doi.org/10.5539/ASS.V11N18P288
Nisa, D. P. J. I. N., Darsono, & Antriyandarti, E. (2023). Comparative Analysis of Indonesian Cocoa Competitiveness in the International Market. AIP Conference Proceedings, 2583(July). https://doi.org/10.1063/5.0116309
Purwono, R., Sugiharti, L., Handoyo, R. D., & Esquivias, M. A. (2022). Trade Liberalization and Comparative Advantage: Evidence from Indonesia and Asian Trade Partners. Economies, 10(4), 80. https://doi.org/10.3390/economies10040080
Sudheer, D. T. (2022). Managerial Economics. Royal Book Publishing. https://doi.org/10.26524/royal.131
Wilkinson, N. (2022). Managerial Economics. Cambridge University Press. https://doi.org/10.1017/9781108989367
Wohlers, A. E. (2016). Labeling of Genetically Modified Food in the United States. In Genetically Modified Organisms in Food (pp. 433–441). Elsevier. https://doi.org/10.1016/B978-0-12-802259-7.00038-5
Downloads
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).