THE LEVEL OF COMPARATIVE ADVANTAGES OF WORLD MAIN COFFEE PRODUCERS
Journal: Buletin Ilmiah Litbang Perdagangan (Vol.11, No. 2)Publication Date: 2017-12-31
Authors : Nia Rosiana Rita Nurmalina Ratna Winandi Amzul Rifin;
Page : 227-246
Keywords : Export of Coffee; Comparative Advantage; Coffee; Market Share;
Abstract
The rate of world coffee production growth tends to decrease compared to the growth rate of world coffee consumption. This is due to the decline of coffee production in some major producing countries. This has an impact on the quantity of exported coffee to meet the demand of world's coffee. This paper analyzed the level of competition among major producing countries in five periods of time using the analysis of RCA and DRCA. The results showed that during the period 2001-2003,the average growth of competitiveness among countries was found to be the highest compared to other periods. This was due to a significant increase in export from Honduras which affected the value of RCA. During the period 2012-2015, Colombia became a country that achieved the highest growth rate of competitiveness due to the significant increase in the number of export. Change in competitiveness can affect the export market position of a country. During the period 2012-2015, the decline in market shared occurred in Vietnam, Ethiopia, India, Honduras, Guatemala, and Peru, while the increasing market share occurred in Brazil, Colombia, Indonesia, and Uganda. Indonesia's position in the world coffee in 2015 was at failing stars in which the coffee share in that country was higher than in the world market. Increased competitiveness will enhance the market share of a country that is supported by improvement of the technology, quality and productivity of coffee.
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