Conclusion and recommendation Dianita

248 Competitiveness and policy impact analysis of feedlots in Lampung Labudda Paramecwari 1, , Rachmat Pambudy 2 , Nunung Kusnadi 2 1 Master candidate at Master Science of Agribusiness, Bogor Agricultural University, Indonesia 2 Master Science of Agribusiness, Bogor Agricultural University, Indonesia Corresponding author: labudda.paramecwarigmail.com Abstract Perceiving the importance of beef and cattle as high-valued commodities and the concern of sustaining under market liberalization, many countries stimulate massive production and improve competitiveness, particularly Indonesia. Government put efforts which focused in the production center such as Lampung through intervening the input and output sectors. However, it is arguable whether these interventions are encouraged or discouraged competitiveness. The study assesses the competitiveness level and the policy implication to feedlots in Lampung by employing Policy Analysis Matrix PAM. Feedlots in Lampung are shown to have comparative and competitive advantage according to Private Cost Ratio PCR and Domestic Resource Cost DRC ratio of 0.53 and 0.77, respectively. Further, government efforts are proved to promote competitiveness. Keywords competitiveness, feedlot, policy analysis, beef

1. Introduction

The trade of valuable commodities such as beef and cattle gives an important contribution to the agricultural sector. Although the impact of market liberalization remains unknown and unclear, many developed and developing countries are prepare to have a gain in international arena. For this reason, many countries enthusiast to encourage production activities and at the same time, improve competitiveness. Indonesia, as one of the net importing countries, has the same motivation, interpreted as the beef-self-sufficiency program, in order to be less reliant on imported product. Although the import trend for the past 5 years shows a different direction, Indonesia still have the potential to improve its productivity by looking at the adequate natural resources and supportive government intervention to promote competitiveness.