Performance of cocoa beans production modelling in Indonesia

Abstract

Cocoa beans production Indonesia has decline in recent years but demand for cocoa beans relatively increase. This research aims to analyse the modelling of cocoa beans production in Indonesia. This research used secondary data from 2005-2018, with simultaneous equation models. The results of this research indicate that the production of cocoa beans has a positive relationship with land area, international price of cocoa beans and lag of cocoa beans production, while the price of domestic cocoa beans has a negative relationship with cocoa beans production. Domestic demand for cocoa beans has a positive relationship with domestic price of cocoa beans and the cocoa processing industry. Domestic price of cocoa beans has a positive relationship with domestic demand for cocoa beans, international price of cocoa beans and lag domestic price of cocoa beans, while cocoa beans production has a negative relationship with domestic cocoa bean prices.