Pig Feed Industry Competitiveness (Case Study in Kupang City, East Nusa Tenggara)

Abstract

The study of the competitiveness of the animal feed industry in East Nusa Tenggara (NTT) is essential since the provincial government of East Nusa Tenggara (NTT) has expressed a strong desire to establish a similar industry on a larger scale. The reasoning is that East Nusa Tenggara (NTT), as a potential livestock development area, requires a sustained and high-quality feed supply. As a result, this research is likely to provide useful information for future attempts to advance similar sectors in the province of East Nusa Tenggara (NTT). The Policy Analysis Matrix (PAM) is a tool for evaluating industrial competitiveness in terms of both financial (competitive advantage) and social/economic factors (comparative advantage). Similarly, depending on the actual conditions encountered by the animal feed industry unit, analyzing the role of the government when policy distortions and market failures arise. The analysis results demonstrate that the pig feed industry at Kupang State Polytechnic has a competitive and comparative advantage, as evidenced by the PCR and DRCR values being less than one, which are 0.9805 and 0.5660, respectively. From a financial standpoint, the established animal feed industry is very sensitive (PCR value > 1) to changes in input prices that raise and reduce output prices, even while the DRCR value grows but remains smaller by one. Based upon the results of the analysis, it can be recommended that at the micro level, policies at the producer level are required to implement management of the supply of raw materials as a buffer stock, taking into account availability and much fluctuating prices owing to seasonal forces while competing with the needs of other sectors. Meanwhile, given the large price disparity throughout seasons and locations of origin of raw materials, the local government must interfere at the macro level through a proportional and applicable raw material price control program.