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A Comparative Advantage of Selected Livestock Production in Negara Brunei Darussalam
Dissertation Abstract:
Brunei policy measures are geared toward conserving foreign exchange. Presently, the government bans the importation of eggs and regulates the importation of fresh, chilled and frozen beef and chicken meat, while the importation of live animals is subjected to stringent health measures. While the local production is given tremendous support like the provision of basic infrastructure facilities, input subsidies and output price control, these give repercussions to the whole economy and play a role in directing the course of the industry.
Primary data through census were collected in 1998 where a total of 94 broiler farms, 21 layer farms, one feed lot beef operator, and four commercial goat farms were involved. Indicators of NPR, EPR, DRC, RCR, and NEB were used to estimate the impact of government intervention and comparative advantage. Prior to these, the cost and profit performance were analyzed in financial and economic terms.
The results showed that the policy of the government give minimal impact to the domestic production. A wedge between domestic and border price gave slight protection to domestic producer’s range from a minimum NPR of 6.83 percent in broiler to 95.12 percent in goat. EPR in egg based on farm size ranged from 175 percent in very large to 748 percent in medium. Even though the layer farms were protected, their continued existence remained doubtful. The small and medium failed to sustain their growth as shown by negative social profitability, and was an indication of inefficient producing units and so with other livestock commodities except in very large layer, broiler and goat farm. The lowest EPR was broiler having an average of 120 percent, while in goat was 239.03 percent.
The analysis of private profitability showed that all enterprises were generating profit. Financially, the highest profit recorded was goat production by USD8.7533 per kilogram dressed weight. In egg, the very large farm generated the highest positive private profit among its category by USD33.5344 per 100 dozen. There was also profit in all broiler farms.
The results of DRC, RCR, and NEB showed comparative disadvantage except for very large layer and broiler farm and goat. The non-ruminant was proven to be more effective in saving the foreign exchange, followed by goat. Therefore, recommendations should be concentrated on the promotion of non-ruminant and goat sectors, and continued provision of the critical infrastructure support in the form of comprehensive R&D, credit, and marketing.