Financial Feasibility and Competitiveness Levels of Soybean Varieties in Rice-Based Cropping System of Indonesia

Ruly Krisdiana, Nila Prasetiaswati, Imam Sutrisno, Fachrur Rozi, Arief Harsono and Made Jana Mejaya
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Ruly Krisdiana: Indonesian Legume and Tuber Crops Research Institute (ILETRI), Malang 65101, Indonesia
Nila Prasetiaswati: Indonesian Legume and Tuber Crops Research Institute (ILETRI), Malang 65101, Indonesia
Imam Sutrisno: Indonesian Legume and Tuber Crops Research Institute (ILETRI), Malang 65101, Indonesia
Fachrur Rozi: Indonesian Legume and Tuber Crops Research Institute (ILETRI), Malang 65101, Indonesia
Arief Harsono: Indonesian Legume and Tuber Crops Research Institute (ILETRI), Malang 65101, Indonesia
Made Jana Mejaya: Indonesian Legume and Tuber Crops Research Institute (ILETRI), Malang 65101, Indonesia

Sustainability, 2021, vol. 13, issue 15, 1-12

Abstract: This research was conducted to determine the financial feasibility of growing soybean varieties and their competitiveness in the rice-based cropping system of Indonesia. The research was conducted at two locations in 2020. The results showed that the use of improved varieties of soybean yielded 2.24 t/ha and 2.09 t/ha, which was higher than using local (non-improved) varieties. The use of improved varieties was financially feasible with Revenue Cost (R/C) ratios of 1.88–1.98 and Benefit Cost (B/C) ratios of 0.88–0.98. The competitiveness of soybeans in Mojokerto and Pasuruan was lower compared to maize and mungbean. Soybean could compete with competing crops if the productivity and price were higher than the current conditions. To be able to compete with maize, the soybean productivity should be 5.14–5.22 t/ha if the current soybean price per kg is IDR 7200 (about US $ 0.51). To compete with mungbean, the soybean productivity should reach 3.05 t/ha with the current price per kg of IDR 7200 (about US $ 0.51). When measured by the price level, to be able to compete with maize, the soybean selling price per kg should be IDR 14,428–IDR 14,893 (about USD 1.06) with a productivity level of 2.24 t/ha.

Keywords: competitiveness level; cropping pattern; financial feasibility; soybean; Indonesia (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
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