Measuring the competitiveness of cassava in East Java, Indonesia: Evidence in Jember regency

Abstract

The development of cassava is vitally important in the effort to supply non-rice carbohydrate foodstuffs, diversify local food consumption, develop food processing industries and agro-industries, source foreign exchange through exports, and support increased food security and food self-sufficiency. The problem of cassava production and productivity in the management of cassava farming in Jember Regency has strong implications about the specification and response estimation of the production function. If productivity is one component of increasing the competitiveness of cassava, there will be a discontinuity in responding to incentives in the market. The purpose of this study was to measure the competitiveness of cassava in Jember Regency using revealed comparative advantage (RCA) analysis techniques. The results show that the cassava commodity has a value of 17.23 or above one, which means cassava has a comparative advantage compared to other regions with the same commodity. The high RCA value can occur due to several things, for example, the influence of the need for dried cassava to the industry so the cassava production is prioritized to meet the needs of dry cassava outside the region (exports), or the domestic dry cassava flour industry is developing, efficient, or attractive for investors to engage in the agro-industry because of the large profits. This value has increased when compared to the previous year which was 16.31. This can occur because the demand for cassava from outside the region has also increased as a raw material for bioethanol and its derivative products as well as improved prices at the farm level and the average price of cassava in the national market.