Hamin, Alhusniduki
Description
The maize industry plays a significant role within the
economy of the province of Lampung , Indonesia. In addition to its
use for domestic human consumption, maize is also exported to
countries such as Japan, Singapore and Malaysia.
This study attempts to formulate analytical techniques
for examining and/or estimating production activities , demand,
supply and the marketing o f maize grown in Lampung.
A Cobb-Douglas (C-D) production function was fitted to
cross-sectional data of 106...[Show more] units of samples of smallholders from
north, central and south Lampung. A multi-equational model was
employed in the case of north Lampung where rice production information
was available . It was felt that the latter model was more
realistic and less restrictive , since it incorporated the concept
of factor sharing under a multiple cropping system.
Sample farms were classified as small or large depending
on the area being cultivated to maize. The study indicates that the
potential to expand production is greater for the relatively large
farms than for the small farms. Misallocation of resources (input
factors ) seems to be a general problem in farm practices .
Econometric models were formulated to estimate the
supply response and both domestic and export elasticity of demand
in the short and long-run, using time series data for the period
1957 t o 1974. To assess the market prospect s for maize, a market
clearing equation was also used. The results show that the supply
response of maize i s dependent not only on the price of maize, but
also the prices of other food crops and the cost of factors of
production. With respect to domestic demand, it was found that per
capita consumption was responsive to the price of rice relative to
other foods such as cassava, and the level of income. The demand for maize exported to Japan and Singapore was found to be responsive
to the prices of substitutes used in livestock and poultry feeds,
the size of the livestock population, and changes in the economic
activity (i.e . income level ) in the importing countries . The market
clearing equation indicated that there is a possibility of demand
exceeding supply in the future . Unless serious efforts are under -
taken to increase local production, the price of maize in the
domestic market would therefore be expected to rise .
Examination of the traditional marketing system reviews several imperfections which could be overcome by improving transport,
storage and quality control throughout the marketing chain . Changes
in the structure of the marketing chain and in government policy on
maize marketing are also considered necessary .
Such improvements would reduce the cost of maize
marketing thereby enabling Indonesian maize to compote more
effectively on the world market. The study also undertakes an
analysis of the share of Indonesian maize within the world market.
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