Brunei policy measures are geared toward conserving foreign exchange. Presently,government bans the importation of eggs and regulates the importation of fresh, chilledand frozen beef and chicken meat while the importation of live animals is subjected tostringent health measures. While the local production is given a tremendous supportslikes the provision of basic infrastructure facilities, input subsidies and output pricecontrol. These give repercussions to the whole economy and play a role in directing thecourse of the industry.Primary data through census were collected in 1998 where a total of 94 broiler farms, 21layer farms, 1 feedlot beef operator and 4 commercial goat farms were involved.Indicators of NPR, EPR, DRC, RCR and NEB were used to estimate the impact ofgovernment intervention and comparative advantage. Prior to these, the cost and theprofit performance are analysed in financial and economic terms.The results appear that the policy of the government give a minimal impact to thedomestic production. A wedge between domestic and border price give slight protectionto domestic producers' ranges from a minimum NPR of 6.83 percent in broiler to 95.12percent in goat. EPR in egg based on farm size ranges from 175 percent in very large to748 percent in medium. Even though the layer farms are protected, their continuedexistence, remain doubtful. This is true, that the small and medium failed to sustain theirgrowth as shown by negative social profitability, and is an indication of inefficientproducing units and so with other livestock commodities except in very large layer andbroiler and goat farm. The lowest EPR is broiler having an average of 120 percent, whilein the goat is 239.03 percent.The analysis of private profitability shows that all enterprises are generating profit.Financially, the highest profit recorded is the goat production by $8.7533 per kilogramdressed weight. In egg, the very large farm generates the highest positive private profitamong its category by $33.5344 per 100 dozen. There is also a profit in all broilers farms.The results of DRC, RCR and NEB show comparative disadvantage except for very largelayer and broiler farm and goat. A lower the cost of production vis-a-vis efficientlyoperated attributes the source of comparative advantage. The non-ruminant is proven tobe more effective in saving the foreign exchange and followed by goat. Therefore,recommendation should be concentrated on the promotion of the non-ruminant and goatsectors, continues provision of the critical infrastructure support in the form ofcomprehensive R&D, credit and marketing is a priority.
A Comparative Advantage of Livestock Production in Brunei Darussalam
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