An assessment of comparative advantage of pineapple production (ananas comosus) among smallholders in Johor, Malaysia

Abstract

Pineapple is a tropical fruit that contains great nutritional values and fine flavor with high export potential and provide income generation for many smallholders in Malaysia. Despite its popular appeal, there is little empirical data on the costs and competitiveness of its production in Malaysia. The objective of study was to assess a comparative advantage of pineapple production in Johor using Policy Analysis Matrix Model. A sample of 191 farmers was selected through a random sampling technique in Johor. The study demonstrated that Malaysian smallholders particularly in Johor had strong comparative advantages in the production of pineapple. The findings showed that the Domestic Cost Ratio (DRC) value for pineapple was 0.94, suggesting pineapple smallholders generated private profits because their ratio implied that the value added per unit of product was larger than the value of domestic resources used to produce a unit of pineapple. Along with it, the SCB value was positive, which means at social price, smallholders were socially profitable and internationally competitive. To conclude, the article presents recommendations for potential enhancement of the viability of pineapple smallholders.