The increasing role of modern retail markets and supermarkets provides an opportunity for the Indonesian fruit and vegetable sector if supply chain issues can be resolved. This study discusses the multi-layer distribution system as it applies to the Indonesian fruit and vegetable sector and proposes more effective and efficient options. The paper outlines the advantages and weaknesses of multi-layer distribution channels. Despite being advantageous in marketing small farmers' products and providing employment opportunities as intermediaries there are various disadvantages. The long distribution channel increases risk of quality reduction and costs to maintain quality, higher transaction costs, inadequate technical requirements and limited information flow and asymmetry. Alternative systems proposed by the author include contract farming and direct collaboration with modern-supply-chain players; repositioning of existing cooperative networks to be business focused and self-reliant; creating producer organisations to achieve associated benefits (stronger bargaining position, reduced transaction costs and lobbying capacity); integrating consumer-oriented policies in all supply channels so that Indonesia can produce consumer preferred products rather than turning to imports; and creating a favourable political situation through redesign of policies.
Boosting productivity of rice and maize in rice-maize cropping systems requires efficient fertilizer management to improve the nutrition status of the soil. However, fertilizer rates for rice-maize cropping systems are conventionally calculated separately for each commodity regardless of the fertilizer residue of the preceding crop. This paper explores the impact of balancing and phasing nutrients for both crops on crop yields. It is based on an experiment conducted at the ICERI experimental farm in Maros during 2007. The experiment used a randomized block design with four replications of NPKS fertilizer in a rice-maize rotation. The findings show that the highest yield of both rice (5.01 t ha-1) and maize (8.30 t ha-1) were obtained by using a combination of four fertilizers (600 kg ha-1 urea, 200 kg ha-1 SP 36, 200 ha-1KCl and 100 kg ha-1 ZA) in equal proportions—50 per cent for rice and 50 per cent for maize. This finding suggests that fertilizer use efficiency and productivity of a rice-maize cropping system in the rainfed lowlands of Indonesia would be optimized if the fertilizer dosage was appropriately apportioned to the two crops.
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 article presents the findings of a study to help farmers develop optimal potato yields in the Sembalun Highlands—an isolated area of West Nusa Tenggara province without specialist potato support services. The author's assumption was that utilizing a less costly potato system would increase the ability of small farmers to take up potato production. The research was carried out in six farmers' fields involving six farmer-initiated learning groups, who compared the use of superphosphate with local compost. The results show that there was no significant difference in yields using 300 and 600 kg/ha of superphosphate, which produced 33.0 and 33.1 t/ha, respectively. Likewise, there was no significant difference in yield using compost treatments at 3,000kg/ha and 5,000 kg/ha, resulting in 33.0 and 32.7 t/ha, respectively. As a result, farmers can reduce costs and increase income by improving efficiency in input use. An added benefit of this research is the capacity building of local farmers and extension workers, who are now equipped to plan and coordinate simple potato experiments.
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.
In 2010, the Indonesian government introduced a 15 per cent export tax on cocoa beans to promote investments in downstream value-added activities. This paper examines the impact of this tax on domestic welfare and whether the government has imposed optimal taxes on cocoa beans. The research uses a partial equilibrium approach to analyse effects of policy by upstream sectors on downstream cocoa manufacturing. It also presents econometric estimates of import demand and export supply elasticity. The findings demonstrate some positive effects of export taxes, including diversion of some cocoa crop to domestic use. However, this results in significant losses to cocoa bean producers and does little to encourage the development of a downstream processing industry, the stated objective of the policy. The findings also show evidence of interdependence between the policies of major cocoa exporting countries. The authors acknowledge that due to limited available data, better econometric techniques do not necessarily lead to improved robustness of estimates of elasticity. This could significantly affect estimates of optimal export taxes and, therefore, analysis of welfare effects.