Background. Objectives and Scope. Research Method. Trade Flows. Competitiveness. Conclusion
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1 PERFORMANCE OF AGRICULTURAL TRADE AMONG DEVELOPING COUNTRIES FACULTY OF ECONOMICS AND MANAGEMENT BOGOR AGRICULTURAL UNIVERSITY 2011
2 OUTLINE Background Objectives and Scope Research Method Trade Flows Competitiveness Conclusion
3 Background Islamic countries as New Markets in current agricultural world trade Indonesia, Pakistan are the most populated Islamic countries in the world Malaysia as one of more developed countries with higher income per capita Study of agricultural trade among Islamic and non Islamic world and those three countries
4 Objectives The objectives of paper are to: a. describe the contribution i of agricultural l exports from Islamic developing countries compared to non Islamic Il developing countries b. describe agricultural trade flows among Islamic countries c. compare the competitiveness of agricultural export and import from Indonesia, Malaysia and Pakistan in the world market
5 m1 Methods Data Seondary data from UN Comtrade, Pew Forum of Religion and Public Life Tools Descriptive analysis Revealed Comparative Advantage (RCA)
6 Slide 5 m1 coba dijelaskan mutiara, 3/9/2011
7 RCA Indicator of competitiveness. If RCA is more than 1, means the commodity is competitive in a market. Formula RCA = ; where X i = Export value of commodity i of a country in the world X t = Total export value of a country in the world W i = Export value of commodity i of allcountries inthe world W t = Total Export value of all commodities in the world
8 Scope a. 24 agricultural commodities based on HS 2 digit (01 24) b. Special commodities, including fish, shrimp, flower and foliage plants, CPO, coffee, tea, cocoa, rubber, banana, pineapple, mango, mangoesteen and guava c. 15 Islamic developing countries (India is included) d. 15 non Islamic developing countries
9 SCOPE 24 agricultural lcommodities i Code Description i Code Description i Code Description i 01 Live animals 09 Coffee, tea, mate and spices Meat and edible meat offal 10 Cereals Fish & crustacean, mollusc & other Dairy prod; birds' eggs; natural honey, edible animal product nes Products of animal origin, nes Live tree & other plant; bulb, root, cut flowers, etc Prod.milling industry; malt; starches; inulin, wheat gluten Oil seed, oleagi fruits; miscell grain, seed, fruit, etc, nes Lac; gums, resins & other vegetable Vegetable plaiting materials; vegetable products, etc Sugars and sugar confectionery. Cocoa and cocoa preparations. Prep.of cereal, flour, starch/milk Prep of vegetable, fruit, nuts, etc Miscellaneous edible preparations. Beverages, spirits and vinegar. Edible vegetables and Animal/veg fats & oils & Residues & waste from the certain roots and tubers their cleavage products, etc food dindustry, animal lfodder Edible fruit and nuts; peel of citrus fruits, mellons 16 Prep of meat, fish or crustaceans 24 Tobacco and manufactured tobacco substitutes
10 SCOPE Islamic Developing Countries Afghanistan Egypt Algeria Morocco Bangladesh Nigeria Ethiopia Pakistan India Saudi Arabia Indonesia Sudan Iran Turkey Malaysia Non Islamic Developing Countries South hafrica Cote d Ivoire Argentina Peru Brazil Philippines China Sri Lanka Colombia Tanzania Costa Rica Thailand Mexico Vietnam Zimbabwe
11 State of the Art Export contribution i in the World ldmarket (Estate Crops) Commoditi es Year Non Islamic Countries (%) Islamic Countries (%) Brazil Cote d Ivoire India Turkey Indonesia ,2 5, ,9 5, ,2 1, ,6 0, ,8 2, ,7 4, ,0 20 2, ,1 2,7 Some Islamic developing countries those are major in estate crops export are India, Turkey, and Indonesia Contribution of non Islamic developing countries in the world market of estate crops is higher than Islamic developing countries
12 Export contribution i in the World Market (Estate Crops) Comm Non Islamic Countries (%) Islamic Countries (%) Year odities Thailand China India Malaysia Turkey ,4 4, ,2 40 4, ,6 3, ,7 5, ,4 1, ,3 1,6 Some Islamic Il developing countries ti those are major in food crops export are India, Turkey, and Malaysia Contribution of non Islamic developing countries in the world market of food crops is higher than Islamicdeveloping countries, but contribution of Turkey on products of milling industry; malt; starches; inulin, wheat gluten is higher than Thailand in 2009
13 Export contribution i in the World Market (Horticulture) Com Non Islamic Countries (%) Islamic Countries (%) modit Year ies Colo China Brazil Mexi Ethio India Indo Tur mbia co pia nesia key ,5 0, ,2 0, ,9 1, ,7 2, ,9 45 4, ,8 4, ,5 16 1, ,0 1,2
14 Export contribution i in the World Market (Horticulture) Com Non Islamic Countries (%) Islamic Countries (%) modit Year ies Colo China Brazil Mexi Ethio India Indo Tur mbia co pia nesia key ,4 9, ,3 8, ,1 9, , ,9 3, ,9 29 2,9
15 Export contribution in the World Market (Horticulture) Some Islamic developing countries those are major in horticulture export are Ethiopia, India, Indonesia, dan Turkey. Non Islamic developing countries are Colombia, China, Brazil, dan Mexico Generally Contribution of non Islamic developing countries in the world market of horticulture is higher than Islamic developing countries Contribution of Indonesia is quite high on export of vegetable plaiting liti materialsand vegetable tbl products (14), little bit lower than China For gums, resins & other vegetable (13), the highest contribution comes from India (2004) and China in 2009 Export of edible fruit and nuts; peel of citrus fruits, mellons (08)form Turkey is higher h than China and Mexico
16 Export contribution i in the World Market (Fish ihand Animal Products) Com modi ties Year Ar gen tina Non Islamic Countries (%) Islamic Countries (%) Bra zil Chi na Mexi co Thai land India Indo nesia Iran Mor occo SAU Su dan ,0 1, ,9 1, ,9 0, ,4 1, ,8 2, ,9 2,7
17 Export contribution i in the World Market (Fish ihand Animal Products) Com modi ties Year Ar gen tina Non IslamicCountries(%) Bra zil Chi na Mexi co Thai land India Indo nesia IslamicCountries(%) Iran Mor occo SAU ,6 0, ,4 0, ,8 1, , ,9 1, ,2 1,9 Su dan
18 Export contribution in the World Market (Fish, Animal) Some Islamic developing countries those are major in fish and animal export are India, Indonesia, Iran, Maroko, Saudi Arabia, dan Sudan. Non Islamic developing countries are Argentina, Brazil, China, Mexico, dan Thailand. Contribution of non Islamic developing countries in the world market of fish and animal is much higher than Islamic developing countries
19 Trade Flows among Islamic Countries
20 Trade Flows among Islamic Countries and Indonesia Year The Most Frequently Interact Countries Indonesian Islamic Export to Countries Islamic Export to Countries Indonesia The Most Rarely Interact Countries Indonesian Export to Islamic Countries 2004 Malaysia Malaysia Ehtiopia 2009 Malaysia Malaysia Ethiopia IslamicCountries Export to Indonesia Afghanistan, Algeria, Bangladesh, Egypt, Morocco, Nigeria, Saudi Arabia Afghanistan, Bangladesh, Iran, Egypt, Nigeria, Saudi Arabia
21 The Most Frequently Traded Commodities The Most Rarely Traded Commodities Year Indonesian Export to Indonesian Export Islamic Countries Islamic Countries Islamic ountries to Islamic Countries Export to Indonesia Export to Indonesia 1. Coffee, tea, mate and spices 2. Sugars and sugar confectionery. 1. Products of animal origin, nes 2. Edible fruit and nuts; peel of citrus fruits, mellons 1. Meat and edible meat offal 2. Products of animal origin, nes 1. Live animals 2. Animal/veg ft fats & oils & their cleavage products, etc 1. Edible fruit and 1. Meat and edible nuts; peel of meat offal Animal/veg fats & citrus fruits, 2. Products of oils; their cleavage mellons animal origin, Live animals products, etc 2. Oil seed, oleagi nes fruits; miscell grain, seed, fruit, etc, nes 3. Cocoa and cocoa preparations.
22 Trade Flows among Islamic Countries and Malaysia Year The Most Frequently Interact Countries Malaysian Islamic Export to Countries Islamic Export to Countries Malaysia 2004 Indonesia India and Indonesia The Most Rarely Interact Countries Malaysian Export to Islamic Countries Ehtiopia IslamicCountries Export to Malaysia Afghanistan, Algeria, Egypt, Nigeria, Saudi Arabia, Sudan 2009 Indonesia India and Indonesia Afghanistan Afghanistan, Bangladesh, Iran, Egypt, Nigeria, Saudi Arabia
23 Year The Most Frequently Traded Commodities The Most Rarely Traded Commodities Malaysian Export to Islamic Countries Malaysian Export to Islamic Countries Islamic Countries Eportto Export to Malaysia Islamic Countries Eportto Export to Malaysia Animal/veg fats & 2004 oils; their cleavage products, etc Animal/veg fats & oils; their cleavage products, etc 2. Miscellaneous edible preparations. Coffee, tea, mate and spices. Coffee, tea, mate and spices. 1. Products of animal origin, nes 2. Cereals Meat and edible 3. Vegetable plaiting meat offal materials; vegetable products, etc Products of animal origin, nes Rata rata tidak terlalu banyak komoditas yang diekspor negara Islam ke Malaysia
24 Trade Flows among Islamic Countries and Pakistan The Most Frequently Interact Countries The Most Rarely Interact Countries Year Pakistan Islamic Pakistan Export to Countries Export to Islamic Export to Islamic Countries Pakistan Countries Islamic Countries Export to Pakistan 2004 Saudi Arabia India Sudan Afghanistan, Algeria, Egypt, Nigeria, Saudi Arabia, Sudan 2009 Saudi Arabia Indonesia Ethiopia Algeria, Bangladesh, Iran, Egypt, Saudi diarabia
25 The Most Frequently Traded Commodities The Most Rarely Traded Commodities Year Pakistan Export to Islamic Countries Islamic Countries Export to Pakistan Pakistan Export to Islamic Countries Islamic Countries Export to Pakistan 2004 Cereals Edible vegetables and certain roots and tubers 2. Coffee, tea, mate and spices. 3. Oil seed, oleagi fruits; miscell grain, seed, fruit, etc, nes 4. Prep of vegetable, fruit, nuts, etc 1. Cocoa and cocoa preparations 2. Beverages, spirits and vinegar Prep of meat, fish or crustaceans 1. Live 1. Cereals animalsproducts of animal origin, 2. Oil seed, oleagi Oil seed, oleagi fruits; nes Cocoa and cocoa fruits; miscell miscell grain, seed, 2. Meat and edible preparations grain, seed, fruit, fruit, etc, nes meat offal etc, nes 3. Products of animal origin, nes
26 The Main Destinations of Export from Indonesia
27
28 The main destination of Fish export is Japan The main destination of Shrimp export is USA The main destination of Flowers and Foliage Plants export is Japan The main destination of Coffee export is USA The main destination of Cocoa export is USA and Malaysia The main destination of Tea export is Russia, Pakistan (2009) The main destination of Rubber export is USA The main destination of Fruits export is Hongkong, SingaporeandTurkey and (Pineapple) The main destination of CPO export is India
29 The Main Destinations of Export from Malaysia
30
31 The main destination of Fish, Coffee and Tea export is Singapore The main destination of Shrimp export is USA The main destinations of Flowers and Foliage Plants export are Japan and Singapore The main destination of Cocoa export is USA The main destination of Rubber export is China The main destinations of Fruits export are Singapore, Iran, UEA and Brunei The main destination of CPO export is Netherland
32 The Main Destinations of Export from Pakistan
33
34 The main destinations of Fish are China and Malaysia The main destination of flower and foliage plants export is UEA The main destination of Tea export is USA The main destinations of Fruits export are Afghanistan and UEA
35 The Main Origins of Import by Indonesia
36
37 The main origin of Fish import is China The main origin of Flowers and Foliage Plants import is China The main origin of Coffee import is Brazil The main origin of Rubber export is China The main origin of Fruits import is Philippines The main origin of CPO export is Netherland
38 The Main Origins of Import by Malaysia
39
40 The main origins of Fish import are Thailand and Indonesia The main origins of Flowers and Foliage Plants are import Japan and China The main origins of Tea import are Indonesia and China The main origins of CPO import is Indonesia
41 The Main Origins of Import by Pakistan
42
43 The main origin ii of Fish import tis Myanmark The main origin of Flowers and Foliage Plants is import Saudi Arabia The main origins of Cocoa and Rubber import are Malaysia The main origins of CPO import are Indonesia and Malaysia
44 Competitiveness of Agricultural Commodities in the World Market
45 Competitiveness of Indonesian Agric Products
46 INDONESIA RCA > 1 Commodities: 1. Fish & crustacean, mollusc & other (03) 2. Coffee, tea, mate and spices (09) 3. Lac; gums, resins & other vegetable (13) in Vegetable plaiting materials; vegetable products, etc (14) 5. Animal/veg fats & oils & their cleavage products, etc (15) 6. Prep of meat, fish or crustaceans (16) 7. Cocoaandcocoa and cocoa preparations (18) 8. Tobacco and manufactured tobacco substitutes (24)
47 Competitiveness of Malaysian Agric Products
48 MALAYSIA RCA > 1 Commodities: 1. Vegetable plaiting materials; vegetable products, etc (14) in Animal/veg fats & oils & their cleavage products, etc (15) 3. Cocoa and cocoa preparations (18) 4. Prep.of cereal, flour, starch/milk (19) in 2009
49 Competitiveness of Pakistan Agric Products
50 PAKISTAN RCA > 1 Commodities: 1. Fish & crustacean, mollusc & other (03) 2. Products of animal origin, nes (05) 3. Edible vegetables and certain roots and tubers (07) 4. Edible fruit and nuts; peel of citrus fruits, mellons (08) 5. Coffee, tea, mate and spices (09) 6. Cereals (10) 7. Prod.milling industry; malt; starches; inulin, wheat gluten (11) 8. Lac; gums, resins & other vegetable (13) 9. Vegetable plaiting materials; vegetable products, etc (14) 10. Animal/veg fats & oils & their cleavage products, etc (15) 11. Sugars and sugar confectionery (17) 12. Beverages, spirits and vinegar (22)
51 Conclusion a. Contribution of Islamic countries on the world agricultural market is lower than Non Islamic countries. Export volumes from Islamic countries are larger for animal/veg fats & oils & their cleavage products b. Agricultural trade is significant among Indonesia, Malaysia and India or Pakistan, Saudi Arabia and Indonesia e. Mainly Indonesia exports agricultural products to Japan and USA f. Malaysia plays significant role in fruits trade with Islamic countries g. Pakistan exports more products (flowers, fish, coffee, tea, fruits) to UEA, Afghanistan, Saudi Arabia, Malaysia and Iraq
52 Conclusion e. Pakistan exports more products (flowers, fish, coffee, tea, fruits) to UEA, Afghanistan, Saudi Arabia, Malaysia and Iraq f. Indonesia, Malaysia and Pakistan have interacted on some commodities such as Fish, Tea, Cocoa and CPO g. Mostly Indonesia imports some agric products from China and Thailand. h. Pakistan imports some agric products from Malaysia. i. Pakistan is more competitive than Indonesia, followed by Malaysia in World Agricultural Market
53
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