THE DYNAMICS OF INDONESIA’S ANIMAL FEED INDUSTRY: AN SCP FRAMEWORK USING PANEL DATA ANALYSIS

Abstract

To support the livestock sector in meeting the growing demand for animal protein in Indonesia, the animal feed sub-sector faces various structural challenges, including volatility in imported raw material prices, high market concentration, and competitive imbalance leading to margin pressure. This study aims to analyze the Structure–Conduct–Performance (SCP) of the animal feed industry listed on the Indonesia Stock Exchange for the period 2023–2024. The SCP framework is employed to assess the industry’s market structure, firm conduct, and performance. Furthermore, panel data regression is used to examine the influence of market share (MS), market concentration (CR4), and internal efficiency (X-EFF) on return on assets (ROA). The findings reveal that the industry exhibits characteristics of an oligopolistic market dominated by a few large firms. Panel data analysis shows that the three independent variables jointly have a significant effect on ROA. Individually, market share (MS) has a positive but statistically insignificant effect, while both CR4 and X-EFF demonstrate significant positive effects on ROA.