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Shvoong Home>Science>Agronomy - Agriculture>Soybean Supply Response Analysis in East Java Summary

Soybean Supply Response Analysis in East Java

Academic Paper Summary   by:IkhsanulKh    
ª
 
Ikhsanul KH, Agricultural Economics Graduate Studies Program Faculty of Agriculture, Brawijaya University, July 2011 th. Soybean Supply Response Analysis of East Java. Team Supervisor.

East Java Province is one of the centers of soybean in Indonesia. Soybean is an important commodity, therefore, efforts toward self-sufficiency is a program that should disukseskan. Efforts to increase production and productivity levels of soy needs to be addressed through trending policies, including policies of intensification, extensification, rehabilitation and improvement of production.

The purpose of this study was to estimate the supply response of soybean in East Java. Specifically this study uses data over the period 1970-2010, the estimated elasticity of suspect soybean harvested area, productivity and supply of soybean by using Model Nerlovian. The research was supported by the data available from the agency the Central Bureau and the Department of Agriculture Stastistik East Java Province, as well as related institutions and agencies, thus providing an opportunity to measure the supply response of soybean farmers in East Java as a reaction to changes in soybean prices.

The analysis showed that the soybean crop acreage elasticity to price is equal to 0.112 in the short run and by 0.163 in the long run, in this case the input is obtained to conduct extensive in supporting efforts to increase soybean production through the area. The results of productivity analysis indicate that soybean productivity on the price elasticity is equal to 0.015 in the short run and by 0.039 in the long shelf, in this case the obtained input for intensification in supporting efforts to increase soybean productivity through improved technology. The results showed that soybean supply elasticity of East Java 0.127 in the short term and long-term elasticity of 0.202, indicating that the soybean farmers' response to price changes. The value of this elasticity in the range of inelastic, meaning that the percentage changes in supply less than the price which decreased by 0.127% in the short term and 0.202% in the long run due to a decrease of 1% soybean prices.

Keywords: soybeans, supply response, elasticity, price.

Published: August 21, 2011   
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