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Analysis of Indonesian Cocoa Product Competitiveness in European Market
Edi Utomo Putra,조규대(Gue Dae Cho) 한국농업경제학회 2020 農業經濟硏究 Vol.61 No.3
The European Union is one of the most important and strategic markets for Indonesian cocoa exports. However, a market share of Indonesian cocoa products in this market is far less than production capability. Although the Indonesian government have developed a policy to increase the exports of cocoa related products, it should find out which cocoa products have competitiveness in the European market to determine the direction of cocoa export policy. The main interest of this study is to determine how competitive is the cocoa product and its derivative from Indonesia in European market compare to other cocoa-producing countries. We use the trade value of each commodity (cocoa beans, cocoa paste, butter, and powder) from Ivory Coast, Ghana, Ecuador, Nigeria, and Indonesia from 2000 to 2018. Then we compared them using Revealed Comparative Advantage (RCA), Constant Market Share Analysis (CMSA), and Export Product Dynamics analysis (EPD). The result showed that from RCA analysis, cocoa products and its derivatives from Indonesia have a competitive advantage except for cocoa Beans. However, it is lagging far behind other cocoa-producing countries. Furthermore, Indonesian cocoa products and derivatives continue to experience declining competitiveness in the European market. Using the constant market share analysis, we reach a similar conclusion except during the period from 2010 to 2015. Furthermore, the results of calculations using EPD show that in general, cocoa and derivative products originating from Indonesia in the European Market are not able to take the region s market share.
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