This report identifies intervention opportunities to strengthen the performance of the vegetable sub-sector in Eastern Indonesia. The research is based on field observations, interviews with value chain participants and consultation with other stakeholders in West Java, East Java, Central Java, Bali, South Sulawesi and North Sumatra. The report contains a summary of the vegetable sub-sector and an outline of private and public sector roles. Critical problems and constraints limiting the vegetable sub-sectors performance were summarised as: disorganised seed industry; excessive pesticide residues increasing production costs and threatening markets; neglect of wet markets including transport and handling, health and sanitation, food safety concerns and market waste; limited relationships between farmers and supermarket wholesalers; lack of awareness and access to market intelligence; reduction in suitable vegetable producing land; lack of marketing technology e.g. packaging; and globalisation resulting in reduced production of certain vegetables. The report suggests various interventions, among them seed industry development, improved farmer buyer contracts, a pesticide focused extension program, marketplace design, market development, packaging and waste management options. It also includes location specific considerations where necessary.

Aquaculture is an important contributor to the Indonesian economy and has considerable potential for expansion. This publication presents the findings of a review and SWOT analysis of aquaculture development in Indonesia, and discusses the possible approaches to support its sustainable development. The authors suggest that a combination of strategies (intensification and production segmentation, areal expansion, and production diversification) is necessary to meet the Government's vision to become the world's leading aquaculture producer by 2015. A critical issue identified in the analysis is the need for improved coordination and linking of industry development efforts, such as coordination across government levels, consistent implementation of regulations, and linking of research, development, extension and training activities. The paper also highlights that 95 percent of aquaculture farms in Indonesia are smallholdings, which the authors argue could be negatively impacted by the promotion of large-scale aquaculture and changing international market requirements, unless policy development specifically addresses the issue.

Many Indonesian companies are not adequately prepared to compete in a global free trade market because of their low level of competitiveness. In this article, Ibrahim and Zailani examine the supply chain implementation in Indonesia's coffee industry and the specific issues that it faces in competing in a global market. Among them is the excess in supply and production in recent years—an effect of the global economic crisis—that has led to unemployment, retrenchment of workers and a reduction in production activities to save or reduce operational costs and to minimize loss in profits. A further challenge is the low quality of Indonesia's coffee, which results in relatively low prices on the international market. This is primarily caused by the poor and inefficient production process. The authors conclude that for Indonesia to increase efficiency and cost productivity in its coffee supply chains to face the challenges of globalization and the opening up of its own economy to global players, it needs to implement (and maintain) a well-structured global supply chain. This will require, first and foremost, the development of an integrated global supply chain infrastructure.

The competitive advantage of Indonesian cocoa production has been threatened by poor and inconsistent quality. This report includes a desktop analysis to identify the key issues impacting on the cocoa value chain and details proposed interventions to benefit cocoa production, quality and smallholder income. Field visits were undertaken to identify the issues facing smallholders and potential collaborators for intervention. The following key interventions were recommended: farmer training programs in pest and disease management and post-harvest handling and quality issues with a training target of 20 000 farmers over 3 years within the provinces of South, Southeast and West Sulawesi; and establishment of a price premium paid to smallholders for export grade cocoa through direct market linkages and partnership with a key exporter and US based cocoa bean processor. The report also summarises potential areas for leveraging and collaboration with various cocoa stakeholders as well as various training delivery mechanisms. The authors detail guidelines for implementation of the recommended cocoa interventions.

While many forages suitable for improving livestock production in mixed crop-livestock systems in the tropics have been identified, their adoption has been limited. Before farmers will introduce new forages into their farming system an important prerequisite is that the change will be considered profitable, will have an acceptable level of risk and will not interfere with food security. This paper describes a whole farm systems approach used to identify the benefits of new forages to improve Bali cattle production in the smallholder mixed crop-livestock systems of eastern Indonesia. Data collection took place with farmers, village heads and extension staff in four villages in Sulawesi and Sumbawa. Preliminary analyses indicate that retaining residue from grain legume crops, growing tree legumes as living fences or hedgerows, and elephant grass all contribute to increased animal production by reducing annual forage deficit. This, in turn, decreases labour requirements in the late dry season as fodder does not have to be obtained from long distances. These findings suggest that substantial improvements can be made to farm profitability and family welfare from within the resources and constraints of current farming practices.

This article presents the findings of a study that introduces community-based seed production of new open-pollenated maize varieties that are suited to the local environment, as well as the sociological conditions and farmer's preferences, in East Nusa Tenggara. It aims to accelerate distribution of these high quality seeds in sufficient quantities and at affordable prices in order to increase maize productivity for farmers. Experiments were conducted over a two year period in one village in Kupang district, recording grain yield, return:cost ratio, income generation, rate of distribution, and farmer's responses to the new varieties. Results show that the new variety of seed introduced by community-based seed production was well adopted by local farmers and sold at acceptable prices. Seed growers received a benefit of Rp 10,476,000ha-1 at a return:cost ratio of 2:9. The authors conclude that community-based seed production is suitable for extension to other villages where farmers have difficulty accessing high-yield seed varieties that are suited to both their agroclimatic zone and personal preferences.

This study encompasses profiling of the Edamame supply chain management, analysis of value adding and performance at each part of the supply chain and concludes with recommendations to improve performance of the supply chain. The report includes a generalist literature review focusing on management, performance and added value analyses of perishable product supply chains and specifically outlining Edamame characteristics and production data. Primary data was sourced through in- depth interviews with supply chain participants and secondary data from a desktop analysis. The paper outlines the Edamame supply chain roles and responsibilities, mechanism of interactions and risk profiles. Case study analysis of a West Java Edamame supply chain was discussed in terms of added value to farmers, processors and retailers. The supply chain processor, received the highest added value (24% for packaged, 28% for unsorted Edamame), approximately 50% of farmer groups had negative added values and retailers received 10-20% added value. Performance analysis of suppliers compared farmer financial (revenue and production costs) and operational (quantity, quality and on-time delivery) performance. There was also discussion of the managerial implications to improve supply chain responsiveness and efficiency.

This paper examines the problem of aflatoxin in Indonesian peanuts and discusses potential initiatives to minimize contamination at pre and postharvest stages. The research uses data from 62 farmers, penebas, collectors, processors and retailers in Pati Regency, Central Java, during the wet and dry seasons in 2002. The findings revealed that the highest percentages of samples infected by Aspergillus flavus (100 per cent in both seasons) and contaminated by aflatoxin (2-124 and <4-342 ppb during wet and dry seasons, respectively) were found in raw kernels of peanuts collected from retailers in traditional markets. It found that pre and postharvest handling methods prior to peanuts being delivered to retailers (especially at the retailer level in traditional markets) severely impact on aflatoxin contamination levels in the Indonesian food chain. The authors present a number of pre and postharvest practices to help minimize aflatoxin contamination in Indonesian peanuts. Critical to further development of this work is a concentrated effort to monitor postharvest handling methods by farmers, collectors and retailers in traditional markets and identify the critical control points for potential changes needed in their procedures.

Maize yields in West Timor average around 2 t/ha, but have the potential to reach more than 4 t/ha with improved varieties, agronomy and nutrition. This paper explores the agronomic and physical characteristics of West Timor's landrace maize and production systems to determine the best approach for improving maize production and yield in West Timor. The research trials five maize varieties—three West Timor landrace populations and two open pollinated varieties—and grows them in the villages of Benlutu and Mnelalete in East Nusa Tenggara. The study used a spilt plot experimental design with three replications. The findings demonstrated wider variability in yield and agronomic performance of landrace maize with regard to seedling emergence, plant and ear height compared to certified improved open pollinated varieties. This crop-stand variability is probably due to low seed viability resulting from poor storage conditions, variable seasonal climatic conditions and/or high genetic variability within the landrace populations. The authors affirm that the impact of genetic variability and the enhancement of agronomic management of landrace maize will be investigated in future research.

This paper examines the impacts of contract farming on its smallholder participants in East Java, Bali and West Nusa Tengarra (NTB). Three contracts were selected for detailed analysis: seed corn in East Java; seed rice in Bali; and broiler chickens in NTB. The analysis was informed through key informant interviews and household surveys. The report includes a review of contract farming and detailed description and analysis of the three selected contracts. Analysis results are discussed in terms of the factors that impact on smallholder participation in contract farming and the effects of contract farming on gross margins and farm employment. Smallholder age, education and participation in farm groups are identified as key factors influencing smallholder contract participation. The authors highlight the importance of local conditions and technical considerations in evaluating smallholder participation and the impacts of different contracts. Of the contracts studied the seed rice contract did not increase returns to capital. Contract benefits to smallholders are detailed including access to markets, credit or inputs and reduced smallholder risk. The authors conclude with how each contract contributes to smallholder welfare.

This working paper uses a multi-market model to assess ex ante the impact of yield increases for maize, soybean and cassava on cropping patterns, producer and consumer prices, household income and other variables related to maize policy. The findings reveal that raising maize yields alone reduces imports and has generally small but positive effects on output, consumption, income and purchasing power. Raising the yields of all three commodities stimulates production of these crops and reduces imports in particular of maize and cassava but not of soybeans. Rice imports also fall strongly, while household welfare is positively affected but only by a small margin. The authors also assess the impact of removing rice tariffs in each scenario, but admit that this would be politically risky and thus unlikely. The main limitation of this study is that it is not able to capture the wider impacts of wage and labour changes as would be the case with a CGE model. Therefore, information on welfare changes based on household income and expenditure should only be treated as data specific to the model. Overall, this assessment is an important contribution to the literature as it helps to shape the policy debate on agricultural reform alternatives.

This paper reviews the impact of Indonesian Government regulations on organic food supply chains and provides recommendations to assist in further development of these chains. It encompasses the marketing system for organic produce and consumer perceptions of organic food. The bulk of the discussion relates to the regulations associated with organic food and how these affect organic food supply chains. The paper outlines the regulations that organic food is subject to in relation to production, labelling, processing and food safety. A list of constraints to organic supply chains are identified by the author as high certification costs, limited locally produced organic food, inability for smallholders to sell organically produced food as organic, fraudulent organic certifications, unproven claims of organic status. Recommended actions to address these constraints are listed and focused on training in organic farming systems, grower group organisation, subsidies for certification and inspections to ensure compliance.

This report details the development of a Flores cocoa farmer decision taking model using systems thinking, in particular systems dynamics and the creation of a management flight simulator. The model is based on understanding the key elements in cocoa farmer decision taking and who farmers listen to. Each chapter of the report represents a step in system dynamics methodology as the model is developed and tested. The systems decision taking model is used to simulate the potential impacts of proposed interventions for the Flores cocoa value chain. The results indicate that improvements in the cocoa value chain are likely to be short-term unless the core problem of lack of farmer knowledge is addressed, rather than the specific constraints dealt with by each intervention. An alternative strategy to improve farmer knowledge is suggested and model results indicate this has a long-term benefit on income and productivity. Based on a critical analysis of system dynamics in international development, the author recommends using this methodology to test interventions prior to implementation.

Cocoa plays two major roles in the Indonesian economy, providing important export earnings and a source of employment for millions of rural smallholders. This research uses an Econometric Model to analyse the factors responsible for the Indonesian cocoa demand and to assess the impact of oil prices and interest rate policies on cocoa exports and production. It uses data from 1983 to 2002 and divides the cocoa production regions into four provinces: South Sulawesi, West Sulawesi, Central Sulawesi and East Java. The findings reveals that Indonesian cocoa demand is influenced by the country's cocoa price, wages in the industrial sector, per capita income, oil prices and lag cocoa demand. The research shows that increasing oil prices in Indonesia have had a negative impact on cocoa exports and production. However, it also indicates that government policies leading to a decline in interest rates could be expected to increase export and production. While this may not be economically feasible for the country as a whole, the authors suggest that providing cocoa smallholders with subsidies on oil prices and interest rates offers the best solution to increasing Indonesian cocoa exports and production.

This paper assesses the influence of environmental (non-genetic) factors of kid production traits of Kacang goats under smallholder production systems in Purwodadi regency in Central Java. The traits evaluated in this study were birth weight, weaning weight and pre-weaning growth weight. The environmental factors assessed were sex, type of birth, and dam's parity (1-7). Data was analysed statistically using the General Linear Model. The results showed that dam's parity, birth type and sex of the kid were significant sources of variation for Kacang kid production traits. Furthermore, the average birth weight, weaning weight and pre-weaning growth of males (2.07±0.02 kg; 10.457±0.1 kg; 69.35±0.73 g/d) were found to be higher than females (1.95±0.02 kg; 9.15±0.09 kg; 60.73±0.71 g/d). Kid production traits increased with parity, with the largest values at the fourth parity and then slightly decreased thereafter. The average male and female production traits of single kids were heavier than twins and triplets indicating the influence of the mothering ability of doe. The authors recommend that farmers consider maternal ability for improvement of weaning weight and growth rate of Kacang kids.

This report presents the results of an ACIAR-funded research project that provides a comparative analysis of the beef supply chain through benchmarking to inform future activities in the beef sector. It covers the supply chain of beef products from on-farm cattle production to the consumer in four regions of eastern Indonesia (East Nusa Tenggara, West Nusa Tenggara, South Sulawesi and East Java) and Jakarta. The research found there is a strong market demand for beef, which drives prices up and in some areas strips the productive basis where herd and productivity growth cannot keep pace with demand. Beef prices, sometimes costs and in most cases profitability are high throughout the supply chain. The report makes several recommendations, among them to target policies and projects towards incentives and driving forces, and to focus on the development of local markets instead of Jakarta. It further suggests the improvement of herd, production and trade statistics and the establishment of a market information system, as well as creation of a national beef forum as a platform for professional exchange of information, expertise and technologies.

This article presents an overview of a management system that was established to monitor Bali cattle performance on the islands of Lombok and Sumbawa. Research was carried out over a three-year period in two villages on each island—one village adopting new management and the other retaining prevailing management. The primary components of new management were: controlled seasonal natural mating using a selected bull, calf weaning at 5-6 months of age and managing weaner diets. Data collected included diary, pedigree, growth, mating management and outcome, ownership, health, diet, commodity use and weather. All data was linked to a unique animal number and was replicated in village and office books. A technical officer on each island supported all aspects of the village beef business at both villages, and the officers were in turn supported by a scientist. Overall, the monitoring system was very effective in providing a full data set for village cattle production and demonstrated high reproductive capacity of Bali cattle. However, the success of the system was highly dependent on the dedication and skills of the technical officers.

The low weight of Bali cattle for sale was a major issue related to smallholder farmer poverty and an impediment to the development of a cattle industry in eastern Indonesia. An ACIAR-funded research team established that the low weight was due to poor management, particularly nutrition, which led to low reproductive efficiency, and poor survival and growth of the calf. The research team worked with villagers to introduce a simple management system aimed at increasing pregnancy rates in lactating cows, reducing calf mortality, reducing the bull cost per calf, and increasing average post-weaning growth rates and survival. These strategies aimed to minimise costs, increase turn-off rates, reduce average turn-off age and increase net financial returns. This case study outlines the approach taken to develop an integrated management system for Bali cattle, with emphasis on both successes and failures.

This paper reviews cassava research in Indonesia prior to 2000 and presents the key achievements in farmer adoption of new technologies to increase cassava yields and income. The improved practices the authors examine include land preparation, erosion control, planting material, plant growth management through plant population and spacing, planting time, weed control, cropping systems and fertilization. The research highlights that cassava planting time is affected by cropping system, soil type and water availability. Planting cassava on medium to light textured soils can be done from the beginning to the end of the rainy season without significant effects on root yield when plants are harvested at 8-12 months, since water availability of 35-60 mm/10 days could be maintained during the first five months. It outlines the optimum plant population for monoculture cassava using non-, late- or branching varieties on poor and better soils: 12,000-14,000, 10,000 and 10,000 plants/ha, respectively. Intercropping systems of cassava with upland rice and other secondary food crops increased Land Equivalent Ration to 1.59, increased net income by 15 per cent, reduced soil erosion by 20 per cent and resulted in a B/C ratio of about 2.80.

Forty-six coffee companies in Indonesia have currently been certified, producing a total of 47,000 tons of certified coffee per year. This paper examines the challenges of sustainable farming system certification for coffee in Indonesia. Coffee companies were found to engage in coffee certification for a number of reasons, namely as a marketing tool, to reduce risk when prices fluctuate, to make it easier to gather coffee beans from farmers, and to receive a price premium. Among the main challenges highlighted for certification is that smallholders do not fully understand the intention and objective of certification programs, which leads to confusion in responding to complex certification criteria and indicators. The research highlights the differences in implementation of certification programs for smallholders and private and government estates. Certification for smallholders is usually conducted by traders and exporters, while for coffee estates it is conducted by plantation owners. Coffee farmers have no capability to hold certification due to constraints in cost, knowledge, networking and marketing. The authors point to the need for efficient sustainable coffee certification in Indonesia—as well as other ASEAN countries—that is cost effective and globally acceptable.

This study provides a comprehensive overview of the production practices, consumption habits, consumer preferences and distribution of chilli in Indonesia. Data was collected via secondary sources as well as interviews with key food chain stakeholders, including 306 chilli and non-chilli farmers from West Java, Central Java and East Java, as well as 16 market agents, 6 chili processors, and 289 chilli and non-chilli farmer housewives and 62 urban housewives. Key constraints identified by farmers were insect and pest losses (up to 63 per cent), difficulties in marketing and low yield potential. Analytical assessment of the different food chain levels highlighted several opportunities for improving chilli production and benefits for small farmers. Chilli production and income could be improved through the development of improved varieties for pest resistance, yield potential and incorporation of consumers' preferred traits (freshness, more seeds, attractive colour, pungency). Judicious use of inputs (fertilisers and pesticides) would contribute significantly to reduced production costs. Furthermore, price and negotiating power could be improved through collaborative marketing, farm level chilli processing and development of direct market links and information networks.

This paper examines collective action as an option for addressing obstacles for smallholders linking to markets, specifically for marketing of underutilised tropical fruits. These are of importance for nutrition, cultural value and contribution to income and improved market chains will increase income and incentives for production to maintain diversity. The report includes a description of the conceptual framework for collective action. The report comprises three cases studies as examples of good marketing practices for biodiversity. These include: kokum in India; cowa in Thailand; and pomelo in Indonesia. The results briefly describe each case study including the crop and its production, the driver for the collective action, the structure and conduct, performance and biodiversity. The discussion focuses on the characteristics of collective action in practice, and in particular how they relate to each case study including collective action as a social process, transaction costs, improved market chains, networks for information change, social learnings and incentive, decision and investment issues. The authors also outline the factors that may limit the success of collective action and highlight that alternative strategies such as vertical integration may need to be considered.

This paper assesses whether supermarkets adversely affect traditional food retailers in traditional markets of Indonesia. The study methodology involved data collection from traders in treatment (supermarket within 5km) markets (n=249), traders in control markets (n=151) and in-depth interviews (n=37) with a range of additional stakeholders. The paper reports no significant effect of supermarkets on traditional markets in terms of profit and revenue, yet traditional traders experienced continued decline in their business. Discussion of the qualitative data provides explanatory information to support this result. This includes consumer preferences and perception of the alternative shopping experiences, preference for continuing existing long term business relationships, differing consumer segments, and the intense competitions between traditional food retailers and other traders and street vendors (66.2% of traders perceive other traders and street vendors as their main competitors). The paper outlines policy recommendations that would increase the competitiveness of the traditional markets including: improved traditional market infrastructure; improved market management practices; organisation/regulation of street vendors. The author does highlight the short term of the study and a longer term study may reveal additional findings.

This report briefly examines government intervention as an option for developing mango supply chains from disorganised and segmented to organised and integrated. The report includes a brief theoretical review of supply chain management and complex adaptive systems. Methodology included interviews with stakeholders over three time periods. The paper then reports on two case studies of government intervention in West Java and East Java including a description of the supply chains, the interventions and the responses to the intervention along the supply chain. In these cases, the government intervention focused on exclusion of the middlemen. The authors provide insights into the failure of these interventions. An alternative model to achieve self-organising supply chain formation is discussed based on theory and the learnings from the case studies. The authors highlight the need to recognise the self-organising characteristics of supply chains and consider these when designing interventions.

This study evaluates the benefits to smallholders and agribusinesses from participating in contract farming in Bali and West Nusa Tenggarra (NTB). Methodology involved surveying both contracted (n=150 in Bali and n=80 in NTB) and non-contracted farmers (n=150 in Bali and n=120 in NTB). Probit analysis was used to identify factors influencing smallholder contract participation. The report provides an initial summary of contract farming in agricultural development and specifically in Indonesia, as well as a brief characterisation of each region, their agricultural commodities and those that are currently contracted. The authors highlight the key differences between the two types of contracts studied: group-based seed rice production in Bali with similar contractor and non-contractor characteristics and contract participation influenced by irrigated land ownership and group membership; and individual-based broiler chicken production in NTB with significant differences between contractors and non-contractors. The benefits to smallholders from each type of contract are discussed. The authors outline considerations for contract development and recommend Indonesian policy makers explore mechanisms to expand these types of interactions.

Goats are a popular choice for rearing by farmers in upland areas because they can be cared for by women and children can consume the milk. However, there are several constraints to goat milk production, among them the limited availability of local forages for goat feed. This paper examines how locally available forages are used as feed for dairy goats by rural farmers in East Java's Malang district in order to determine the potential of goat rearing in this area. The research uses data gathered from surveys and interviews with 64 dairy goat households in six regions in the upland areas of Malang. The study found that type of dairy goats and feeds found in the upland areas is dependent on season, level of farmer education, land ownership and farming experience. It also found that the use of forages was dominantly legume tree in the wet season and tree leaf in the dry season. Furthermore, the use of crop wastes in the dry seasons is higher than in the wet seasons, which has an impact on the milk production.

This paper discusses the recent changes in cultivation of maize in Indonesia's South Sulawesi province. The authors present data to show the increases in area cultivated and in productivity of maize production in the region. Furthermore, they discuss how the pattern of maize varieties used in this province has changed in the last 15 years, namely from a wide use of local/white varieties (up to 40 per cent use in 1995), towards an increased use of open-pollinated superior varieties and hybrid maize varieties in the late 2000s. The paper then discusses the adoption of new technologies by farmers in the region and the reasons for such adoption, including the strong support and encouragement of the government and the use of a variety of dissemination tools including the use of media, direct communication, demonstrations and case studies. According to the authors, understanding of the local culture and politics, as well as farmer's needs in each particular region, are considered important for the success of adoption of new technologies.

Maize productivity in Indonesia is relatively low (3.66 t/ha), yet in some provinces it rises above 4.0 t/ha. This higher productivity is due to farmers' adoption of production technology, including the use of improved maize varieties. This paper describes the progress of the Indonesian Agency for Agricultural Research and Development's breeding program to develop several improved maize varieties in Indonesia. The research compares the characteristics and yield potential of nine open pollinated maize varieties (OPVs) and 13 hybrid maize varieties that have been released by the government since 1992. Findings show that B11-209 and Nei 9008—female parents of hybrids Bima-2 and Bima-3—gave better combining ability with Mr14 than Mr4 and could replace Mr4 as testers in the hybrid breeding program. The Modified Reciprocal Recurrent Selection breeding method effectively improved grain yield of the MSJ2 population. The authors conclude that OPVs are still needed, especially in areas outside Java with high soil acidity, low soil fertility and drought stress. Furthermore, development of quality protein maize varieties is needed to improve the low nutrition value of children in some parts of Indonesia, especially in drought prone areas.

A number of different policies have been implemented to enhance development of different parts of the Bali beef industry. However, information on the benefits is limited and therefore evaluation of the various policies is required to guide future policy development. This paper explores the benefits from cattle development in a multi-stage production representation of the Bali beef industry using equilibrium displacement modelling. The impact on various industry groups such as smallholders, processors, retailers and consumers, is estimated in terms of their welfare changes. The results demonstrate that for a one per cent exogenous shift in the relevant market (from productivity advances or quality improvements), improved productivity of Bali cattle production has the largest total benefits (Rp 3.02 billion, about A$ 0.6 million), over a time period of two to three years. Bali cattle producers receive substantial benefits (35 to 71 per cent of total returns) from any cost reduction or improved efficiency scenario. The authors conclude that this model seems appropriate for examining other types of research and development and policy scenarios, however further research would be needed in several areas.

This paper outlines the classification of 82 Indonesian mango cultivars based on morphological characters, RAPD markers (DNA) and a combination of both. Mango cultivars for classification were sourced from Cukur Gondang Collection Garden, East Java. Results, including coefficients of similarity, are presented and discussed for each method of classification: morphological, RAPD markers or the combination of both. The morphological assessment involved 92 morphological characteristics. Results of a cluster analysis provides some detail on the discerning characteristics for each cluster. The results also include a comparison of the clusters and grouping identified through each classification method. The author concludes that the molecular method of RAPD markers and morphological characteristics do not quantify or organise cultivars based on genetic diversity, equally, as the grouping based on RAPD markers produced clusters different to those identified by morphology. The report also concluded that there is wide diversity in Indonesian mango cultivars: 15-62% (morphology), 2-31% (RAPD), and 12-40% (combination of both markers).

While maize production in Indonesia continues to increase, the country remains a net importer of maize. This report details the maize value chain from producers through to processors and retailers, and identifies opportunities for future development activities for increased competitiveness and farmer income in Eastern Indonesia. Analysis was informed by interviews with key sectors of the maize value chain in West Nusa Tenggara, East Java and East Nusa Tenggara. Gender roles and environmental issues were also explored to ensure suggested changes to the value chain positively impact women and the environment. Value chain constraints identified include: lack of technical knowledge on crop management and post-harvest handling, limited knowledge of or access to improved maize seed varieties, lack of input credit to optimise maize returns per hectare, lack of facilities to effectively dry maize and monitor moisture content, and limited training and access to post harvest storage technologies. Market-based solutions and associated activities are suggested including farmer training and capacity building of value chain suppliers and service providers. The report highlights a number of areas for further research before any design or implementation of value chain interventions.

This paper examines the economic feasibility of best-bet feeding strategies to increase live weight gain of early weaned Bali calves to identify opportunities for increased profit above feed costs on-farm. The research evaluates 53 feeding strategies in 14 on-station experiments in Central Sulawesi, East Java, East Nusa Tenggara and West Nusa Tenggara. The best-bet feeding strategy at each site was implemented, monitored and adapted on-farm in villages for six months. Results show an increase in smallholder profits compared to prevailing practices in all but one village in East Nusa Tenggara where there was no difference. The highest profit above feed cost was achieved through supplementation of commonly utilized low quality feeds with feeds high in crude protein. The revenue over cost ranged from 2.5 to 7.5, with profitability from Rp. 1.1 to 2 million/head/six months. The paper concludes that there is considerable potential to improve the feeding management of weaned Bali calves and increase farmers' income by using locally available feed resources. Tree legumes provide the greatest potential to increase farm income and have not been fully utilized as a feed source for Bali cattle in Indonesia.

This paper reports on the 'ACIAR cassava project in Indonesia', where a farmer participatory approach was used in an effort to increase the productivity of cassava-based cropping systems via adoption of higher yielding varieties and improved cultural practices. The report commences with a brief history of cassava research and development efforts in Indonesia, before providing quite an extensive methodology section outlining the farmer participatory research trials that were conducted. Trials were conducted on both experimental stations by the project team, and on farmers' fields by farmers with project staff providing extension support. They focussed on soil fertility management, plant spacing and nitrogen fertilization for leaf production, varietal evaluation and improvement, and on-farm animal feeding. The paper contains a simple to understand flow chart of the farmer participatory model used, before outlining the project achievements against the project objectives. Data obtained during the trials is presented in numerous tables with some analysis of the results. Conclusions for cassava in the trial areas are presented, along with some recommendations for future research. The authors accurately conclude that a longer timeframe is required to fully determine the clear impacts from projects delivering technology transfer.

This paper reports on three experiments evaluating Japanese tomato varieties for use in Indonesia. The experiments evaluate these varieties based on yield comparisons with the standard Indonesian variety, fruit characteristics for fresh and processing and seedling growth using three low cost, locally sourced seedling raising media. Results of each experiment are reported and discussed separately. The paper details the yield differences and summarises fruit characteristics including discussion of suitability for fresh or processing sectors. The experiments indicate the need for improved root knot nematode resistance in the Japanese varieties. The authors discuss options for improving productivity of Japanese varieties such as improved seedling preparation through good seedling media and the impacts of the different seedling media on seedling characteristics and yield. The paper does not make any recommendations or draw any conclusions from this work.

Small-scale beef cattle production in East Java, Indonesia, is mostly undertaken to generate household income to meet current farm-household needs. This article presents research undertaken to understand the factors affecting the prices, hence the incomes, received by small-scale cattle producers in East Java. Research was conducted in two sites (one irrigated lowland and one rain-fed upland) in 2010-11, involving monthly monitoring with 184 farmers. Data was recorded for each of the 353 cattle sold during the two-year period. Cattle were sold in the village to local or district traders. The farm-gate price was regressed on six variables—liveweight, body condition score, cattle breed, age, reason for selling, and site. The age variable was omitted in the final model to avoid multi-collinearity. The estimated equation was significant and provided a good fit of the data (R2 = 0.77). The coefficients for all variables were positive and significant at the 5% level. The article concludes that buyer preferences and requirements are efficiently transmitted through traders to small-scale producers and expressed in farm-gate prices.

One of the major constraints facing crop production in developing countries is a lack of low-cost, quality seed. In this paper, Fuglie et al. present a model of the market for seed, in which clean seed is treated as a capital good providing benefits over several seasons. To determine the farm demand for clean seed, they then apply this model to potato seed in Indonesia. The research uses data gathered from a survey of 182 potato farmers in the major potato growing areas of the country. Findings show that Indonesian potato farmers are well aware of the value of quality seed in potato production, but the high cost (three to four times the price of seed purchased through the informal system) remains a major constraint. Nevertheless, marginal returns to disease-free seed appear to significantly exceed marginal costs, indicating that improving supply of quality seed will contribute strongly to productivity growth in potato. The authors discuss several policy options to encourage supply and utilization of quality potato seed, asserting that the potato seed system cannot be isolated from support for potato breeding and crop improvement generally.

In Indonesia, chillies are a priority crop commonly produced by smallholders and, like many other cash crops, several farmer-trader issues are emerging in chilli supply chains. Current literature suggests that improving relationship quality among food chain actors enhances efficiency. This paper contributes to this literature by examining chilli farmer's perceptions of relationship quality with their buyers, using trust, satisfaction and commitment as variables. The authors use data from a survey of 602 chilli farmers selling to the traditional market channel or supermarket channel in West Java. Chilli farmers were categorized into four clusters, with differing perceptions on relationship quality, price satisfaction and chilli production characteristics. The differences across clusters suggest that targeted strategies are required to optimize farmer-trader relationships. The main limitation of the article is that the study was restricted to farmers perspectives only, thus the authors indicate that further research needs to be undertaken that measures buyers perspectives in order to develop a more in-depth understanding of farmer-buyer relationships in chilli supply chains.

A significant constraint to shallot production is damage by the onion caterpillar (Spodoptera exigua) which can cause yield losses of 45-57%. This study assesses farmer knowledge and effectiveness of insecticides for S. exigua control in shallots in West Java and Central Java. Data was sourced via group discussions and individual interviews (n=100) and analysed using descriptive statistical method and content analysis. Respondent characteristics are briefly reported. The discussion encompasses farmer perceptions of shallot pests, knowledge of pesticide formulations, sources of pesticide information and details farmer pest control strategies. The report identifies that 60% of pesticides used are not government approved and that control strategies are based on short interval (1-2 days), high concentration (150-200% of recommendation) sprays mixes of 2-6 insecticides. The author discusses resistance implications and potential synergistic, antagonistic or neutral impact of spray mixes and the effectiveness of farmer control strategies as indicated by crop damage. Further research areas are summarised as: confirmation of S. mauritia pest status; development of an effective information dissemination system; control options that comprise effective control; ovicidal activity; and identification of synergistic insecticide mixtures.

This report presents the findings of an ACIAR-funded project that aimed to develop understanding and insight of the goat supply chain in South Sulawesi and identify possible interventions that would improve smallholder and supply chain profitability. One of the main findings was that an iodine deficiency existed in the diet of goats, which was overcome by applying Providon solution to the skin of goats. The project also identified the need among goat producers to regularly weigh their animals for breeding, husbandry and marketing purposes. This was overcome by developing a cheap and practical tool to estimate the liveweight of goats. A key finding of the project that is particularly relevant for those considering investment in the goat sector is that there is demand for goat meat in Indonesia and an opportunity to improve the supply chain. In addition to consumer ignorance or misinformation about the benefits of eating goat meat, this means that a better understanding of the goat meat supply chain and education of goat meat consumers across Indonesia should result in greater demand for goat meat and improvements in the supply of goats from farmers to consumers.

Cashews are a major crop throughout eastern Indonesia, with an estimated 300,000 smallholders involved in the production. However, a significant proportion of these smallholders are at or below the poverty line. This report outlines—from a supply chain approach—potential strategies to improve the incomes of smallholder cashew farmers in eastern Indonesia as part of a supply chain. The proposed strategies cover the areas of processing, agronomy, variety research, pests and disease, nutrition and soil management, and intercropping. The authors note that successful implementation of the proposed strategies requires strong involvement from all actors in the supply chain.

This case study details a range of interventions implemented to improve cashew nut production in Flores and contribute to the enhancing the overall cashew nut value chain. The report summarises the key constraints to the value chain, such as no direct linkages and international value adding, poor productivity due to traditional farming methods, and lack of inputs and technology. It then outlines a number of considerations and processes in implementing four interventions to address these constraints. Interventions achieved the following value chain improvements: development of organic cashew product through certification of smallholders, 40 per cent increase in productivity per tree, 33 per cent increase in per kg price with increased annual cashew income from 59 to 69 per cent, local farmer and private sector managed processing units for value adding, branding of Flores cashews, and stimulation of local government and private sector support. The report critically evaluates the chosen interventions and the methods of implementation, identifying successes as well as areas where the project could have benefited from alternatives.

This paper explores the implications for value chain structures within smallholder coffee systems across Indonesia arising from the establishment of externally authored environmental and social compliance systems. The paper discusses their implications, and sometimes contradictions, thereby highlighting the complexities of applying global ethics locally. These demands are pivotally changing the incentive structures for various value chain participants, leading to changing business strategies and the emergence of new institutional forms. Certain organizations and actors are already emerging as key beneficiaries of these shifting ''rules of the game,'' including producer cooperatives and multinational trading companies. Key findings from this analysis include: (i) the prioritisation of idealized forms of farmer organisation (such as cooperatives) over traditional market-based trade networks; (ii) consolidation among a limited number of exporting firms and the upstream penetration of multinational trading firms; and (iii) trends toward contract farming-style arrangements between multinational coffee companies and producers leading to ''value chain enclosure'' and ''farmer capture.'' Finally, the ability of lead actors to ''govern'' the value chain by specifying compliance requirements across rural Indonesia is changing the relative profitability of various institutional arrangements in the coffee regions of Indonesia.

This paper provides a useful overview of government policies and regulations relating to the seed industry covering the early stage of the formal seed industry, seed trade, seed certification, crop varieties protection and seed producer's registration. Seed policies are generally renewed by the government along with progress in the seed industry. The paper also assesses the conduct of the National Seed Agency and its related institutions in controlling production and marketing of corn seed in East Java. The National Seed Agency is one of four government institutions dealing with national policies on seed industry and was set up specifically to control seed production and distribution among seed producers in Indonesia. One of the major challenges highlighted by the author is the open sale of uncertified hybrid corn seed in several regencies in East Java, which is punishable under the Act on Crops Practice 12/1992. However, the government has not taken any action to implement the law. The author thus notes the need for government to implement law enforcement to protect both producers and consumers.

The demand for cassava has increased significantly in the past 40 years. Area harvested has however declined, but yields have more than doubled in this time. This paper commences with a summary of cassava production in Indonesia since its introduction in the 18th century, the initial development of exports and development of cassava in dried forms as a means of addressing food scarcity. The paper spends a small amount of time considering the consequences of the development of the cassava starch industry, and significantly more time on hydrogen cyanide toxicity, where it gets quite scientific. The paper then moves into a discussion about agronomic aspects of cassava production and varieties, and the expansion of cassava growing in Indonesia. It touches on the management of waste and reduction of impact on the environment. A number of general conclusions are reached by the authors, but no recommendations for future research are made. A reasonable understanding of agronomics and chemical terminology would be recommended to fully appreciate the content of the paper.

This study examines the impact of increasing supermarket presence and their procurement system on horticulture supply chains (using tomato in West Java as a case study) and on farmers. Methodology involved key informant interviews, farmer field surveys (n=600), stakeholder focus groups and participatory rural appraisals (n=8). The report briefly outlines changes in food retailing in Indonesia and the development of the supermarket sector and highlights the dominance of imports in supermarket sales. Supermarket procurement systems and supply chain relationships with wholesalers and farmers are also discussed including deficiencies in traditional supply chains and preferences for alternative supply channels. The report examines the determinants and effects of farmer participation in different market channels, including a value chain analysis, and involving descriptive and econometric analyses which ranks the different market channels and details variations in farmer retail price share. The author concludes with discussion of the issues and challenges, relating to supermarket development. Policy interventions discussed in the report can be summarised as: agricultural support services; rural producer organisations; rural infrastructure; access to financial services; market intelligence; public product standards; and land rental markets.

Despite various activities promoting improved water resource management and effective water use to produce high value vegetables, adoption has been limited. This study examined the economic and social constraints influencing farmer's non-adoption behaviour and key research areas to understand this behaviour. Information was obtained via desktop review and semi-structured interviews with farmers in East Nusa Tenggara and West Nusa Tenggara followed by a stakeholder workshop to validate findings. The report details constraints to improved water management in relation to technology adoption, market engagement, management of water infrastructure assets and social issues in water management. These include lack of capital and credit access, market price risk, production risks, inadequate incentives for water infrastructure maintenance, social attitude and gender factors, transportation and logistics, problematic extension and knowledge transfer, inadequate property rights structure and institutional problems in water management, labour and land constraints. The author outlines key areas for investigation including options for water infrastructure asset management; managing risk and uncertainty in high value crops; market price responses to changed supplies; and investigating social attitudes and perceptions to market engagement and technology adoption.

This report presents a sector profile and value chain analysis of the shallot industry in West Nusa Tenggara, identifying potential areas for SADI program support. The research shows that shallots are a profitable but potentially high risk niche crop in some parts of the province, particularly Bima. Apart from assisting with the problems of financing the relatively high value of inputs, such as seed, fertiliser, water, weed and pest control, the SADI program could seek to research seed varieties and the most economical way to produce propagation materials (bulbs) locally, potentially saving significantly on input costs and improving yields and bulb quality. The analysis also shows that there is potential to better link production with markets elsewhere in Indonesia. However, further research is required to explore possible linkages between end users or processors (in Java, Kalimantan and Makassar) and cooperative groups, which could be developed to improve marketing, buying and financial service activities.

An export tax was introduced on Indonesian cocoa beans in 2010 to guarantee domestic supply for processing. This reduced cocoa bean exports by 51.4 per cent and increased processed cocoa exports by between 11.3 and 224 per cent. To assess the impact of this export tax on cocoa farmers and the supply chain, surveys were conducted with 60 farmers in South Sulawesi and various supply chain participants. A qualitative approach was used to analyse the cocoa supply chain from farmers to exporters or processors, and quantitative analysis for analysing the marketing system, efficiency analysis and price linkage. Results indicate that farmers' price is determined by the international price due to their higher bargaining power. It is the exporter that has a reduced margin or price differential following increased processing capacity and competition between exporters and processors for available beans. The study identified three marketing channels: farmers selling wet cocoa beans for cocoa processing; farmer's groups fermenting cocoa beans and then selling as providing the highest return to farmers; and farmer's selling dried beans to local traders.

This report presents findings from a project aiming to help smallholder farmers improve cattle production in eastern Indonesia by introducing forages into their cropping systems. It identified several factors constraining livestock production in smallholder farming systems, and found that most technologies needed to address the constraints are already available in Indonesia or elsewhere, but have not yet been adopted by local farmers. The report describes the merits of combining the principles and tools of farming systems analysis and farmer participation, where an extensive benchmarking process to identify constraints to livestock production and potential strategies to address them are shared with farmers to develop a shortlist of feasible strategies for on-farm trialling. Based on feedback from farmers and results from monitoring on-farm trials the approach was deemed successful. The pathways to adoption of livestock improvement strategies varied by region and technology. The initial focus was to address forage supply and quality constraints through modest plantings of selected forages. The confidence and trust arising from successful adoption of this comparatively simple technology was used as an entry point for more complex animal management strategies requiring long-term planning and investment.

This report describes a collaboration between the NGO VECO, the leading global cocoa supplier Armajaro, and West Sulawesi farmers to develop direct market linkages and build on previous development work. The report briefly outlines the cocoa industry and the local cocoa chain and identifies key partners, their roles and activities. Testimonials from stakeholders provide comment on the process, benefits and challenges of the program. Benefits to farmers include improved production (up to 750kg/ha compared with an average of 500kg/ha, but potential for significant growth up to 2000kg/ha), better prices and income, terms and access to market and quality information. Sixty-seven farmer groups have qualified for UTZ certification providing another market opportunity. The report illustrates that collaborative programs can facilitate opportunities for traceability, production and quality improvements and that collective selling is a viable income source for organised farmer groups with improved productivity and quality. The report highlights the need for farmer organisations to become stronger and more organised at national and local levels to improve their bargaining capacity.

Bali cattle is one of the four existing indigenous cattle breeds in Indonesia. This article reviews cattle characteristics and husbandry methods in the country with a special focus on the importance of Bali cattle. The study shows that indigenous cattle are an important and integral component of the small landholder cattle production system, which is essentially 'organic' in nature and the most sustainable system. Farmers prefer indigenous cattle because they are less demanding and less prone to problems usually associated with most of the 'improved' and/or crossbred cattle. Ecological or organic farming is seen as an alternative to chemical intensive agriculture. The authors thus highlight the importance of developing indigenous technologies for ecological and economical farming methods. They suggest that policies reoriented towards maintaining the indigenous Bali breed and improving their efficiency, not through external genetic intervention, but through within breed genetic improvement are required, as well as effectively harnessing locally available resources. The study concludes that Bali cattle ought to be considered the most suitable indigenous cattle breed for low-input, high stress production systems still practised by millions of families in Indonesia.

This study details the changes in Indonesian food consumption patterns and growth in modern food retailing, including retail chains, packaged foods and imports. The study was informed by a desktop analysis of previous literature, previously collected market information and trade data and interviews conducted by the authors. It provides a brief background on Indonesia and its agricultural trade sector then details changing dietary patterns in Indonesia, both traditional and modern food retailing systems and the developmental opportunities and constraints for modern food retailing. Between 1999 and 2009 modern food retailer sales increased from US$1.5 billion to over US$5.6 billion and their share of total retail food sales rose from 5 to 11 percent. This trend is expected to continue and the report outlines factors that may drive consumers towards the efficiencies (refrigeration, air conditioning, quality assurance) of modern food retailers. The report highlights the Government regulations constraining modern retail food supply chains in procuring products both internationally and domestically and in obtaining sites for expansion. The importance of changes in Indonesia's retail food sector to future import growth is discussed, with particular reference to the United States.

Development of mango hybrids is one strategy to improve mango quality to a level suitable for export markets, however, the duration of the juvenile phase is currently an obstacle. This paper outlines the use of the plant growth regulator, Paclobutrazol, to induce flowering and also assesses the impact on yield. The research involved a randomised block design with two levels of Paclobutrazol treatment and 20 accessions of mango hybrid. Results are presented and discussed based on the impact on induction of flowering and yield. Induction of flowering results are discussed in terms of various characteristics such as number of flowering plans and duration of appearance of flowers, number of flowers per plant, number of peduncles, width and length of inflorescence. Yield was presented in terms of number of fruit per plant, number of fruit harvested, weight of harvested fruit and yield. The authors conclude that Paclobutrazol significantly induced flowering and improved yield, however, yield appeared to be more affected by genetics.

Given a high unit price, substantial demand for specialty coffee and Indonesia's low international market share, there is scope for expansion of Indonesian Arabica coffee exports. This report summarises the key factors that impact on the competitiveness of the Arabica coffee industry in Indonesia and prioritises areas for intervention. Field visits and interviews with value chain participants informed the analysis. The report examines three scenarios for expanding production and farm income i) increasing on-farm production and yield rate, ii) increasing area of mature trees, iii) a combination of i) and ii). Three coffee farms from Northern Sumatra are profiled in an integrated value chain analysis covering farmers to exporters. On-farm production limitations are identified as well as market and value chain constraints. The author highlights the lack of extension services for on farm technical support and the need for an overarching industry organisation representing stakeholders along the farm to export supply chain to address policy and market based issues.

This report assesses the effectiveness of the PRIMA project in improving cocoa quality and the innovative approach used in establishing a quality driven supply chain with direct benefits to South Sulawesi smallholders. Interviews and questionnaires with a range of industry participants informed the report. The core component of the report details PRIMA project activities and how effective they were. Key areas where the PRIMA project was successful were: farmer organisation and the development of a quality driven supply chain model with direct market links between farmers, processor and global manufacturer; participatory research and an intensive extension approach; and advocacy of modified harvesting, pruning, sanitation and fertilization as fundamental to good farming practices with a 24 per cent increase in yield. Limitations of project activities are highlighted, particularly in relation to the research component. The authors note three key findings from the PRIMA project that would be beneficial to future development programs, namely technology transfer to address social and technical barriers to adoption, provision of a dedicated cocoa research presence and farmer group empowerment for technology transfer and improved marketing opportunities.

Etawah crossbred dairy goats are easy to maintain and are capable of utilising the leaves of various food crops, legumes and crop wastes as feed. This paper explores the application of an integrated business model of Etawah crossbred dairy goats with cocoa through utilization of estate cocoa waste as goat feed in East Java. Research was conducted with 25 farmers in two villages in the highlands of Ngawi district, over a one year period in 2009. The research reveals that the most widely applied feeding approach that integrated cocoa was one that used field grasses (20 per cent), waste of food crops (15 per cent), leaves of legume crops (25 per cent) and pod cocoa meal molasses block (40 per cent). This composition produced a good range of weight gain and milk production, with an average of 100-125g/head/day and 1.00-1.25 litres/head/day, respectively. These levels are similar to those reported in another study (Riyanto et al., 2007), which examined the application of integrated farming systems through the utilization of local agricultural waste.

In this article, Cahyadi et al. present the findings of a study on herd dynamics of smallholder cattle producers in the two major agro-ecosystems (irrigated lowland and rain-fed upland) in East Java. The research aims to better understand the capacity of smallholder cattle producers in order to increase their production and income in line with government targets. A total of 184 farmers participated in the study in 2010. Their cattle were monitored on a monthly basis to record vital statistics, as well as transfer and sales-related data. The findings reveal that the number of cattle in the lowland site increased by 7 per cent and decreased by 2 per cent in the upland site—levels that do not support ambitious growth targets. In conclusion, the authors assert that reproductive performance, cattle numbers and growth rates could improve with greater use of natural mating, better coordination of mating with available feed supplies, and targeted use of legume-feeds. However, they acknowledge it may be difficult to achieve these productivity gains given the resource constraints and market signals experienced by farmers.

This paper explores the development of livestock production in Indonesia, with a focus on issues of autonomy. It maintains that the effort to develop livestock production is strongly related to decisions made by institutions in various fields and sectors in a given area or region. The opportunity to develop animal production results from interactions between commodity, sectoral and location factors as well as between the proper use of human resources and related factors in development such as technology, socioeconomic conditions and variations in ecosystems within a particular area. The author claims that the partial development approach that has been employed in livestock development in Indonesia so far has widened socio-economic gaps between farming communities, and has contributed to the existing institutional competition and institutional imbalance. He argues that the development of livestock production should be sustained by appropriate policy, infrastructure, capital and investment, appropriate technology and the participation of stakeholders. The author suggests that the direction and objectives of livestock industry development should be guided by a national initiative in the form of a macro-policy to be adjusted and implemented at the local level.

Limited information exists about the growth of young Bali calves under local feeding strategies which are likely to be adopted by farmers. In this article, the authors examine a range of diets designed to increase the growth rate of young Bali cattle and develop practical feeding strategies to complement weaning in order to improve cattle production systems of smallholder farmers in Central Sulawesi. Three experiments were conducted to determine liveweight gain and feed and water intake of weaned Bali cattle offered a range of feed types. In each experiment, 18 weaned male Bali cattle were allocated to three treatment groups in a completely randomised block design, with six animals per treatment. The results show that the growth of weaned Bali calves could be substantially increased from ~0.1-0.2 kg/day on various forage sources in the region to over 0.4 kg/day with the addition of locally available protein/energy concentrates or gliricidia without depleting available feed resources. The authors conclude that increases of this order would likely have a major impact on the turnover of cattle and increase cash flows for smallholder operations across eastern Indonesia.

The demand for maize as food and feed in Indonesia has been steadily increasing. Total national maize production has grown at 4.07 per cent per annum in the last three decades, thanks mainly to the adoption of improved production technologies, particularly hybrid seed. This high production, however, still fails to meet domestic demand and has caused a rapid increase in the net import of maize. This study presents the maize production systems in four major maize-producing provinces in Indonesia: Lampung, East Java, West Nusa Tenggara and South Sulawesi. It identifies important productivity constraints faced by maize farmers, including low grain prices during harvest; high input prices; large distances between maize production areas, feed mills and seed industries; lack of promotion of local improved maize varieties (OPVs and hybrids) by government research centres; and lack of farmer capital. The authors propose that farmers, the Government of Indonesia, and private companies should be encouraged to develop appropriate technology and policies, such as tariffs and credit systems, to overcome some of these constraints.

In this paper, the authors describe the successful implementation of an integrated village management system to improve reproductive efficiency in beef cattle production. They also review the results of a range of studies conducted to develop feeding strategies to increase growth of early weaned Bali cattle across eastern Indonesia, as well as the potential use of crop residues, including rice straw, as a basal diet for reproducing females. To support the Indonesian government's proposed increase in cattle numbers, the authors conclude that a greater quantity of feed resources is needed. This requires a change in feeding management where early weaned calves are preferentially fed less abundant high quality materials at a fixed proportion of live weight, while lower quality materials and crop residues are directed to non-lactating cows for maintenance of body condition. The authors propose that the use of crop residues as a basal feed resource for non-lactating cows combined with early weaning, new forages and strategic supplementation of early weaned calves have the potential to increase cattle numbers and the efficiency of cattle production systems across Indonesia.

This report provides a very brief overview of Indonesian mango production and more specifically that of East Java. The information presented encompasses export potential, extension prospects, marketing of East Java mango and problems with extension of the mango industry in East Java. The discussion in these sections includes highlighting limitations to current mango production and identification of opportunities to expand and develop production. The report identifies East Java as having potential for further development and expansion of the mango industry in Indonesia. Provinces outside of Java with expansion opportunities are also outlined. The report identifies key areas for intervention as: government involvement in preparing complete packing houses in some production centres to handle and control fruit quality; provision of low interest credit for improved management practices; and increasing market linkages for export.

Despite growing recognition of the importance of collaborative relationships in facilitating exchange in the fresh produce industry, few studies have empirically sought to explore the nature of trading relationships between market intermediaries. This paper contributes to this literature by exploring the prevailing trading practices and activities and the key dimensions of long-term buyer-seller relationships, namely trust, power-dependence and satisfaction. The authors use data from interviews conducted with 53 collectors, 12 traders and 10 wholesalers in Probolinggo, Malang and Jakarta. From this, they determine that a trusting relationship enables market intermediaries to profit from the Manalagi mango supply chain in a way that would not be possible individually. They found that intermediaries gain a certain level of risk sharing and improved access to markets and information, and display some trust and satisfaction in their relationships. However, the authors emphasise the importance of improvements in operational effectiveness to reduce cost and increase value, including better post-harvest handling practices and improvements in infrastructure and logistics to reduce product losses.

This article describes and analyses the marketing practices and constraints of beef cattle producers in lowland and upland sites in East Java as part of a study to improve the reproductive performance of cows and the performance of fattening cattle in low input systems in Indonesia. The research uses data gathered from a survey of 184 smallholder cattle producers and 30 cattle traders in 2010. The study found that most farmers sold to village collectors, who mostly paid in cash. Subsequent marketing costs and risks were therefore borne by the traders. While some farmers used a regular trader, others varied their choice depending mainly on the price offered. In general, prices appeared to be competitively determined. There was no obvious difference between upland and lowland locations, suggesting a well-integrated regional market. The authors conclude that the subsequent movement of cattle to fattening operations and to slaughterhouses will be a crucial aspect of future research.

Increased beef demand and prices could increase smallholder cash flow and production if feed quantity and quality limitations could be addressed. This project assessed the potential use of cocoa by-products as a cattle feed and various forage and tree legumes in managed grazing systems in South East Sulawesi (Sultra). Methodology involved laboratory, research facility and on farm trials. Results indicate cocoa pods could successfully be fed to Bali cattle (10-15g DM/kg live weight/d) while contributing to cocoa pod borer management and using simple low-cost processing for storage. Gliricidia and Sesbania tree legumes provide additional stock feed options. Key recommendations include the introduction of cheap cocoa pod choppers and extension of cocoa pods as a feed source. The authors suggest several areas for further investigation, including assessment of forage legumes, which was limited by unfavourable climatic conditions in the current study, the role of Aspergillus niger in improving low quality feedstuffs and the most palatable form of processed cocoa pods. The project contributed to capacity building and developing research linkages for future ruminant nutrition research.

This report details the outcomes of work undertaken in West Java, Central Java, West Nusa Tenggara and South Sulawesi to develop potato and cabbage integrated crop management systems, develop and improve farmer access to quality potato seed and build capacity for adaptive research and development. The report details the results from surveys of 80 potato and 50 cabbage crops covering crop agronomy, yield, economics, post-harvest management and potato seed supply, source and quality. It outlines the constraints to potato and cabbage production, with low soil pH being the major constraint. A modified farmer field school participatory technology transfer process facilitated farmer testing of a range of crop management techniques (potato late blight and clubroot management, liming), which is discussed in the report. Soil testing identified the Sembalun Valley as free of potato cyst nematode (PCN) for the potential development of a partial PCN free seed supply using seed imported from Australia. The impact of the project was assessed through farmer surveys, which identified a number of production, financial, environmental, social and gender impacts.

To secure quality and quantity of agricultural products in the face of rising global demand, private companies are increasingly developing and nurturing long-term relationships with producers and their organizations. This case study describes how cocoa traders and manufacturers on the island of Flores are investing in producer organizations to ensure quality, sustainability and future supply, and ultimately their own survival. It provides a useful overview of the cocoa supply chain on Flores and then details how the efforts of P.T. Mars to secure their supply of cocoa has resulted in sustainable changes in the Flores cocoa chains. This includes improved organizational and marketing skills of farmers, increased resilience among farmer's organizations to cope and adapt to new situations, strengthened skills among farmers, and increased potential for collaboration and coordination among actors. Given the announcement by Mars Inc. that by 2020 all their cocoa beans would be from sources certified as sustainable, this approach presents a new and growing market opportunity for farmers.

This report provides a brief overview of pig production in Indonesia, in particular its significance in terms of pig exports and the predominance of smallholders. Government focus has been on both larger scale commercial production as well as significant support for smallholders through research and development, extension services, cooperative development and private sector provision of goods and services. The report provides details on investment priorities for the Indonesian pig industry. These include genetics (breeding programs and production potential), nutrition (feed ingredients), animal health (key diseases), housing and environment (pig housing and effluent considerations), product development and quality (impact of consumer demand and trends), reproduction (litter size), socio economics and technology transfer (smallholder production and extension approaches). The authors conclude that development of the Indonesian pig industry requires a research focus on environmental factors (encompassing climatic, structural, health, nutrition, cultural and social aspects) and socio economics and technology transfer to provide necessary support to improve smallholder production systems.

Traditional Indonesian shallot production is based on seed bulbs but True Seed Shallots (TSS) could improve competitiveness of the industry. This study assesses numerous factors such as, seed raising mixtures, sowing depth and furrow fill, productivity comparison of TSS cultivars and seed bulb cultivars, plant density and nitrogen fertilisation, for their impact on shallot growth and production. Each experiment is reported on and discussed separately. The report discusses the impact of these different factors on a range of shallot characteristics such as emergence, growing period, yield, bulb size, bulb colour and storage quality. The results lead the authors to identify areas for additional research such as the impact of nitrogen fertiliser on storage quality of bulbs and the mechanism through which stable manure improves seedling emergence. The authors conclude that TSS could be a viable option for improving the competitiveness of Indonesia's shallot production. TSS yield's averaged 70 and 113% higher than the seed bulb cultivar 'Bima curut' but exhibited a 2-3 week longer growing period. The report discusses optimal nitrogen fertiliser rates and plant densities for the TSS and seed bulb cultivars.

This report reviews previous agroforestry, forage and livestock projects in eastern Indonesia to assess the potential for integrated timber-forage-livestock agroforestry systems to improve the incomes of smallholder farmers in West Timor. It identifies strategies for developing more acceptable systems, proposes methods for their implementation and provides an assessment and analysis of the constraints to adoption of research results. The scoping study included field investigation and a social survey in West Timor in 2007. Findings reveal that the major barriers constraining the adoption of agroforestry programs are physical, social, institutional and economic in nature, including water availability, limited understanding of farmer's decision making processes, labour shortages, low household capital, and regulatory frameworks and policies inhibiting beneficial programs. Furthermore, farmers were found to be reluctant to make long-term investments. The study proposes a timber, forage, livestock agroforestry approach as a strategy for enhancing the uptake of new technology—a flexible approach that allows for the cyclical nature of adoption. Success will depend on the extent to which biophysical and socio-cultural aspects are integrated into the approach.

This report compares and contrasts the potential for use of a public private partnership approach to solve the problems of low productivity and inadequate smallholder income in the beef cattle and cocoa industries in eastern Indonesia. Overall, the study found that the potential for improvement of productivity in the beef industry—in order to reduce import dependence and meet market demand—appears much lower than the potential for success in improving profitability and sustainability in the cocoa industry by improving yields and quality. Cocoa provides a good model for reform and productivity improvement in high value cropping by smallholders in partnership with Government and the private sector in Indonesia. However, the solutions to the multiple problems of production, product quality, trade and export, research and extension require an approach involving the whole supply chain. The report outlines a management structure for public private partnership involving an industry wide Commission and Secretariat composed of all stakeholders.

The growth of international specialty coffee markets has increased the demand for high-quality coffee production at origin, offering opportunities for smallholders to engage in product upgrading and potentially increase the farm-gate price of their coffee. This paper examines smallholder farmer engagement in specialty coffee production across the islands of Sulawesi and Flores. The study integrates global value chain analysis with a livelihoods approach to address the critical linkages between quality upgrading in the value chain and farm livelihood strategies, asking the question whether or not quality upgrading directly contributes to improved livelihood outcomes without further institutional support. A key finding from this research is that distinct livelihood strategies affect both the willingness of farmers to participate in value chain upgrading as well as their potential to gain tangible benefits from enhanced value chain integration. The authors suggest that government interventions should no longer focus on areas of market failure or the provision of public goods, but instead areas of rural development not being provided through value chains.

This study identifies potential business partners and investment opportunities for the IFC to consider in future development of the horticulture sector. The report details consumer, distribution and retails trends, horticultural production, exports and imports, processed horticultural products and investment trends and constraints. The report also profiles East Java, South Sulawesi, North Sumatra, Lampung and Bali encompassing regional investment, and constraints and opportunities for future development. Methodology involved a literature review, collation and analysis of secondary information from a range of horticulture networks, and 20 interviews with key supply chain stakeholders such as fresh produce suppliers, importers, retailers, processors, government and foreign embassies. Regional analysis and profiling involved 31 regional visits and interviews. The author identifies opportunities for development of Indonesian horticulture in four key areas: value added produce for high value markets; plantation farming; farmer trader retailer partnerships with associated investment in facilities and support in the areas of technical information, finance access and market intelligence; linking investors to take advantage of Indonesia's investment appeal. The report also outlines Government regulations impacting on export, import and investment.

With increasing population density and subsequent increases in fishing pressure, seaweed farming is an alternative income source for coastal villages traditionally reliant on artisanal fisheries. This study is a component of a larger thesis and investigates the impact of seaweed farming on the economy of a traditional fishing village in South Sulawesi. Data was obtained through random semi-structured interviews (n=31) with households. The study results encompass basic demographic data, farming system information (farm establishment, seaweed farming practices, harvest and marketing, contribution to household income) and farmer motivations, satisfaction and future hopes. Income from seaweed is reportedly 81 per cent of household income. Results are discussed in terms of economic activities and effort, seaweed culture and fishing problems, market problems and income, satisfaction with seaweed farming and fisheries and the future. The author makes several recommendations to maintain or improve farmer income: economic and productivity opportunities should focus on addressing poor post-harvest processing practices for improved crop quality market price; further development should consider market access and environmental suitability; and community development plans should consider alternative sources of income to buffer against significant fluctuations in seaweed prices.

Strong international demand for specialty coffee from the District of Tana Toraja, South Sulawesi, provides significant opportunities to improve rural incomes. This report provides an overview of the Sulawesi specialty coffee industry including key coffee producing districts, international markets for Sulawesi coffee, geographical identities and certified coffees. The authors detail factors of significance to any future development of the Sulawesi and particularly the Toraja coffee industries. These range from the comparatively very low yields of Toraja coffee (150-200kgGBE/ha) through to certified coffee, processing and cup quality, geographical authenticity, post harvesting processing and value adding, coffee varieties, pest and disease assessments and management, farmer organisation, market risks and price and value chain analysis. This information was based on discussions with various organisations and individuals involved in the Sulawesi coffee industry. The study recommends five activities for development of the Sulawesi coffee industry. These include industry wide partnership, socioeconomic research on farmer decision making processes, an effective extension service promoting sustainable management, improved understanding of the physical quality of Sulawesi coffee, and establishment of regional branding and geographical identities.

In this paper, Priyanti et al. examine the nature and potential of small-scale cattle production in East Java, with a particular focus on the relation between crop and cattle production. A study was carried out in 2010 with 194 cattle producers across two sites (irrigated lowlands and rain-fed uplands) to explore constraints facing cattle producers in these environments and potential means to enhance their production systems and incomes. In particular, the paper focuses on the issue of feed supply and the local market that has emerged for agricultural by-products (rice straw, maize stover, and legume residues) and planted forage grasses—a market supply chain linking crop producers and cattle producers in the lowlands and cooperative arrangements for importing feed into the less productive uplands. The research shows that intensive cattle production can provide a viable pathway out of poverty, even for resource-poor households.

This report examines the cattle marketing chain in Bali and Lombok and describes the role of its various stakeholders. It also identifies the role that farmer groups play in assisting smallholders to link to the market chain, and the characteristics of farmer groups and their leaders that result in greater access to markets. The research uses a mix of qualitative and quantitative data collection methods, the latter involving two multiple regression analyses. The study provides new information about cattle marketing chains in Bali and Lombok, factors that influence a cattle group's ability to support smallholders in linking to markets, and factors influencing smallholders' choices of where to sell. The findings have important implications for the way private and public investors form and manage smallholder cattle groups. Policymakers are faced with a choice. If they are distributing cattle via groups to improve cattle productivity and industry efficiency, they will need to form and foster groups and group leaders in a different way than if they are distributing cattle to improve short-term smallholder welfare.

Early weaning of Bali calves at six months of age increases herd reproductive efficiency and offers beef smallholders an opportunity to increase productivity and cash flow. This report assesses numerous feeding strategies aimed at increasing the growth rate of early weaned Bali calves in Sulawesi Tengah, East Java, West Nusa Tenggara and East Nusa Tenggara. Results demonstrate that simple feeding strategies available to farmers could increase growth rates from 0.1-0.2kg/d to over 0.4kg/d by including high protein feeds such a leucaena, sesbania or copra meal. The economic impacts of enhanced productivity and social implications from reduced labour inputs and increased cash flow are discussed. Farmer involvement in research activities proved beneficial in facilitating adoption. The authors identify several areas for future work relating to management of feed supplies, assessment of new forages, low input feeding strategies, growth of early weaned Bali calves and an extension program highlighting the importance of nutrition. The report also discusses different strategies for increasing microbial crude protein, and reports on capacity building of Indonesian scientists through integration of Australian and Indonesian research groups.

Cashew is a major source of income for most farmers on the island of Flores. This article details the experience of developing organic cashew nut production in four villages in Flores based on a joint project between VECO Indonesia and Swisscontact. The project aimed to help farmers optimize the potential for cashew nuts through organic certification while maintaining a low input system of production. The article describes how the two international NGOs collaborated with two Indonesian NGOs—Bangwita and YMTM—to enhance the capacity of selected farmers' groups to add value to their produce. Organic certification was viewed not only as a means of securing better markets, but also as a means to improve product quality in the long term. As a result of the project, all four participating farmers' groups secured international organic certification. Further achievements include farmer's enhanced understanding of the certification process and required documentation, as well as sustainable land management practices. The author notes that the process of linking to the market, however, remains a challenge.

This paper reviews the current status of Bali cattle in Indonesia based on national and regional statistical records and research and subjective information from government and university officers and farming groups in the regions where Bali cattle are produced. The research found that Bali cattle are the predominant beef cattle in the Eastern Islands of Indonesia, amounting to around 80 per cent of the total 2.95 million Bali cattle in the country. Overall numbers have declined in three of the last four years, which is believed to be a long-term trend. The annual calving rate was found to be a moderate 52-67 per cent, but calf mortality varied from 8 to 48 per cent, which is very high. The paper concludes that there are opportunities for improving the declining population of Bali cattle by applying strategies that reduce calf mortalities, reduce the slaughter of productive cows, prepare and retain appropriate bulls in the herd, and improve the genetic base towards animals that grow and survive better than at present.

Demand for soybean in Indonesia currently exceeds supply. Based on a review of recent literature, Susilowati et al. analyse the decline in Indonesia's soybean and discuss efforts to ensure its future supply. Among the solutions proposed in this review are increasing production and substitution power (on imports) of domestic soybeans through rules and mechanisms of control over the existing trade system, and increasing the role of trade agencies and/or cooperatives such as KOPTI in the trade system. The authors highlight the important role of KOPTI in the soybean supply chain, but note the need for it to become more resilient to market conditions. Given the limited understanding of the institutional aspects and resilience of its businesses, further research is required to suggest practical solutions to strengthen KOPTI's role in the supply of soybean. While the scope of this literature review is limited, it presents a useful overview of key studies (mostly in Bahasa) on soybean in Indonesia, which is useful for practitioners engaged in value chain research on this important protein-rich commodity.

This paper assesses the economic performance of mungbean in relation to productivity of the existing mungbean cultivar (Fore Belu) and management practices of local farmers. The research reveals that average mungbean productivity in the sample villages is 0.35 ton/ha, well below the national average of 0.75 ton/ha. This is largely due to local farmers using the low-yield Fore Belu cultivar. It also shows that the Sriti cultivar produces the highest gross margin compared to other varieties. According to the authors, several issues need to be addressed to improve the productivity and profitability of mungbean growers in West Timor, namely timely access to good quality seed, improvement of varieties and management practices, production costs and industry partnership. Limited availability of seed at the time of planting (wet season) is highlighted as a major concern and attributed to the fact that the largest part of production is consumed and sold to earn cash income during the harvest season. While this research provides valuable insights into the crucial issues surrounding productivity improvements, it does not indicate the types of solutions required to address them, which is restrictive given the limited literature on this commodity.

This paper examines factors that influence Indonesian cocoa exports and uses an econometric model to assess potential policy impacts. Results identified export price, cocoa production growth, exchange rate and time trend as significant influences on cocoa exports (R2 = 0.9473). The author concluded that a fertiliser price subsidy could be expected to increase Indonesia cocoa exports and production for cocoa smallholders. Simulating a 15 per cent fertiliser price subsidy resulted in increased cocoa production (0.38-8.3 per cent) in three out of the four regions included in the study and increased national production (1.93 per cent) and exports (1 per cent). Simulating an export tax of 5 per cent identified possible price transmission impacts on the domestic cocoa price that resulted in a reduction in Indonesian cocoa production and a decline in cocoa exports. The author recommends a devaluation policy as an alternative to an export tax policy to avoid any negative impacts on cocoa production, cocoa exports and smallholder welfare. These findings support previous assessments of similar policies on corn, cocoa and palm oil.

This paper assesses the impact of integrated pest management (IPM) training on the economics of pest management decision making and discusses the mechanisms of reduced insecticides associated with IPM training. Background information outlines IPM and pesticide use and the concept of an economic threshold for pest control. Data on soybeans during 1990-1998 was collected from provincial agricultural agencies and analysed using an econometric analysis. Results include a discussion of the extent to which the model explains the variability in pest attack and pesticide use and details relationships with other variables. The paper highlights that pesticide use decreased as IPM training increased and discusses this in terms of changes in farmer expectations for yield loss and increasing acceptable levels of pest attack up to a point i.e. the economic threshold. The authors outline policy implications and some considerations for continued dissemination of IPM training given its success in influencing farmer's strategic thinking and develop economical plant protection.

In this article, the authors explore how the coffee processing method can influence coffee cup taste by evaluating three commercial coffee processing methods—full-washed, wet-hulled and pulped-natural—in use in the Indonesian specialty coffee origin of “Bajawa” on the island of Flores. Specifically, the research attempts to determine whether pulped-natural processing creates inherently lower quality coffee, while at the same time considering the environmental, resource and financial constraints of the Flores farm system. Sixty-seven coffee tasters in Australia, Indonesia and the USA tested composite samples by using blind cupping, comparative preference testing methodology. The results show a clear preference for pulped-natural processing (often considered an inferior method in Indonesia), indicating that processing method does influence coffee cup taste. The demonstrated quality results, coupled with low water use, low waste output and minimal processing equipment requirement indicates that pulped-natural processing in the Flores coffee industry warrants further investigation. This research also highlights the importance of considering traditional practices and local conditions along with market requirements when making recommendations for coffee value adding and quality improvement.

In recent years, domestic maize demand for food and feed industries in Indonesia has grown faster than production. This paper reviews the past and current status and the future prospect of maize in Indonesia based on time series data from the last 41 years. The research shows that over the last four decades, consumption of maize has changed structurally from direct food to feed and food industries. Demand from both industries began to increase, and after 1975, maize production could not meet the growing demand for maize, which led Indonesia to import maize from other countries. Current production is said to be 'levelling-off', while demand continues to grow. The authors therefore propose that without future intervention, Indonesia is likely to have an increasing maize deficit. The authors suggest several policy interventions to reduce Indonesia's dependency on maize imports, namely intensive promotion of high yield seed varieties, development of a fair partnership between seed growers, seed companies, maize farmers, feed millers and food factories, helping farmers with subsidized and simple credit, and strengthening farmers groups to improve their bargaining position.

The productivity of maize on Timor Island (<2.5 tonnes/ha) is significantly lower than that at the national level (>3.5 tonnes/ha) due to a combination of agronomic, climatic, edaphic and social-related factors. This study explores the availability of production and marketing of local maize in Kupang and Timor Tengah Selatan districts by analysing maize availability (quantity, quality and seasonality), prices, and local markets (suppliers, supply and demand behaviour and distribution systems). The study uses data from a survey of 49 farmers, collectors, retailers and inter-island traders, as well as secondary sources. In general, farmers were found to be in a weak bargaining position in the value chain, isolated from market information and mechanisms related to their commodity. Based on the survey findings, the study recommends that extension services are improved to provide better information to farmers on how to produce quality maize and improve storage facilities and marketing efficiency. Further, it suggests that marketing and technology strategies are improved using participatory approaches. The study calls for further investigation into the establishment of maize farmer cooperatives to support collective marketing, bulk purchasing of inputs and access to credit and information.

This value chain analysis is an Annex of a larger report examining supermarket development in Indonesia. The analysis encompasses production in West Java through to retailers in Jakarta and reports on five main market chains: farmer-specialised wholesaler-supermarket; farmer-farmer group-specialised wholesaler-supermarket; farmer-traditional wholesaler-traditional wholesale market-traditional retailer; farmer-traditional wholesaler-specialised wholesaler-supermarket; and farmer-collector-traditional wholesaler-traditional wholesale market-traditional retailer. The role and function of each value chain participant is outlined. The report also contains a comparison of the five value chains in terms of the value added with the supply chains to supermarkets adding the most value (35-57%). The value chain analysis report also includes a summary of the econometric analysis (undertaken in another section of the larger report) comparing the share of the consumer price captured by farmers. The farmer group captured the highest share of consumer price (30%).

This paper details a field survey conducted in three dairy cattle production centres (Malang, Kediri, and Blitar) of East Java on the use of cassava pulp as feed. The authors found a very high usage of cassava pulp as additional feed for dairy cows, particularly in the dry season when a large supply of the pulp was available. The report identifies a number of advantages identified by farmers of feeding cassava pulp to dairy cattle, including improving palatability of concentrate feed and increasing milk yield. It also notes that incorporating cassava pulp into feed does slightly decrease milk fat content. The authors discuss their findings with respect to the use of the pulp, regardless of its quality or hydrogen cyanide content. The report outlines and briefly discusses the cassava pulp supply chain and price differences between wet and dry pulp. The paper is reasonably well laid out and easy to read, however the conclusion reached by the author is somewhat simplistic - that cassava has the potential to be an important feedstuff, and the most limiting factor is supply. It assumes that increasing the supply of cassava will result in increased used of the by-products by cattle farmers to supplement feed.

This study reports on the effects of different growing practices and aspects on True Seed Shallot (TSS) production in Java. The study comprises a range of experiments which are listed in the introduction. These encompass early sowing and transplanting, optimal nitrogen fertilisation, optimal plant density, seed efficiency, optimal age and nitrogen status of nursery, TSS under insect nets and bulb storage quality. Each experiment is briefly reported in a separate section and comprises methodology, results and discussion. Some detail is provided in cultivar comparisons of optimal plant density, cultivar responses to nitrogen rates and comparisons of yield and grade. The authors list and briefly elucidate the conclusions from this suite of experiments: TSS cultivars with improved storability provide better opportunities for TSS; seed treatments did not improve seed efficiency but there is some detail on the impact of furrow fill and beds versus trays on seed efficiency; lack of Spodoptera during the experimental period limited accurate assessment of insect nets and there was no detectable impact of age of seedling transplants and nursery nitrogen status on seedling survival or growth.

This paper examines opposing land use strategies in cacao agroforestry in Sulawesi by using data on species richness of nine plant and animal taxa, six related ecosystem functions, and socioeconomic drivers of agroforestry expansion. Data was collected around Toro village in the Kulawi valley in four forest and 12 agroforestry plots. Findings reveal that transformation from near-primary forest to agroforestry had little effect on overall species richness, but reduced plant biomass and carbon storage by around 75 per cent and species richness of forest-using species by around 60 per cent. In contrast, increased land use intensity in cacao agroforestry, coupled with a reduction in shade tree cover from 80 to 40 per cent, caused only minor quantitative changes in biodiversity and maintained high levels of ecosystem functioning while doubling farmers' net income. However, unshaded systems further increased income by around 40 per cent, implying that current economic incentives and cultural preferences for new intensification practices put shaded systems at risk. The authors conclude that low-shade agroforestry provides the best compromise between economic forces and ecological needs. Certification schemes for shade-grown crops may provide a market-based mechanism to slow down current intensification trends.

The establishment of new and interactive models for knowledge transfer in the cocoa industry requires an understanding of current farmer engagement. This study focused on understanding the social context of farmer engagement in Sulawesi. Results are based on interviews with a range of stakeholders and cocoa industry associated organisations over a 12 day period. The information is a high level overview as was intended given the short time frame of the field work. The report summarises previous extension approaches and the outcomes of these programs (e.g. SUCCESS, AMARTA, Mars Inc, GERNAS and BPTP, VECO, Swisscontact and Cocoa Sustainability Partnership). The study proposes the use of a new participatory model for farmer driven innovation rather than a traditional top down process of extension. The core characteristics of this model include: be farmer driven/responsive, be interactive and consultative, encourage farmer experimentation/innovation, have multidirectional communication flows, and have multiple sites of learning and knowledge transfer. The authors conclude with a suggested process for the project design.

Cropping intensity of rice in lowlands in Indonesia is decreasing, presenting an opportunity to increase cropping intensity by planting maize. In this paper, Fadhly et al. suggest that in order to increase maize production, which does not meet the current demand for feed in Indonesia, maize cropping systems could be shifted to lowlands by promoting increased cropping intensity using rice-rice-maize, rice-maize-maize or rice-maize-fallow cropping patterns. Lowland areas planting rice once or twice per year are 2,832,816 and 4,558,568 ha, respectively, across Java, Sumatra, Bali and Nusa Tenggara, Kalimantan and the Sulawesi Islands. Planting maize after rice has been shown to provide high profits for farmers because maize prices tend to increase at that time to their highest level. High yield obtained by planting hybrid varieties, along with high prices, are resulting in the annual expansion of maize areas in the lowlands. The authors note, however, that irrigation is an important factor in maize farming on lowlands. Farmers generally use drilled wells and irrigate their maize crops by using engine pumps, but drainage must be prepared to avoid excess water due to unpredictable rains.

Beef production is a major industry in East Nusa Tenggara (NTT) and, given the high rate of poverty, future development of the industry has the potential to significantly contribute to poverty reduction. This report outlines the potential of the NTT beef industry, the main value chain issues and options for possible interventions to improve smallholder returns. The author details numerous opportunities for improved productivity and development of the beef industry given the strong demand for NTT beef, established trading systems and the potential for expansion of grazing land area. Opportunities include increasing farmer knowledge and access to inputs for improved forage production and/or the development of integrated cropping systems, development of a strategic breeding program, access to weighing stations, improved access to finance, training and extension services, and management of sustainable slaughter rates. The author makes recommendations for additional research to further assess some of the value chain issues, social structure impacts on production and trading, market opportunities and the feasibility of investment and intervention options.

This report identifies the constraints and growth opportunities for the Indonesian cocoa value chain and proposes potential solutions to these constraints for future investment in cocoa. A desktop analysis provided information on both the global and Indonesia cocoa value chain. Interviews with key value chain participants informed the rest of the analysis, while focus groups were held to validate initial findings. The authors propose three key areas to address growth constraints: increasing productivity, improving quality and increased investments for local value addition. A range of proposed solutions are listed relating to adoption of knowledge and technology, direct marketing and transparency, mechanisms to ensure quality standards, availability of credit and financial services throughout the value chain. Time constraints limited the extent to which these solutions were developed. The authors highlight the need to improve cocoa productivity and quality to maintain and increase global trade and investment in Indonesian cocoa. A series of appendices contain significant detail on the scope of the project, the roles and interaction of value chain participants, the shortlisting process, illustrative analysis of potential solutions and existing cocoa industry investment.

This study explores the feasibility of weather index insurance (WII) in providing cost-effective risk management benefits to rural people for coping with catastrophic events. It uses a case study on drought coverage for maize production in three provinces in eastern Indonesia: East Java, West Nusa Tenggara and East Lombok. Prototype WII contracts were developed for selected areas within these provinces. The contracts were found to provide appropriate coverage for crop losses resulting from rainfall deficit, but the estimated premiums for farmers would be expensive. An initial estimation suggests that coupling WII with credit from formal financial institutions could reduce the cost of borrowing for farmers. However, the actual economic or commercial feasibility of WII products can only be made after substantial test marketing of these products demonstrates their attractiveness. The study concludes that WII may offer a promising approach to insuring maize production in Indonesia, but the instrument is likely to apply only to specific crops in specific areas. WII should not be considered a universal solution for lowering the risk of agricultural production across the whole country.