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.
Recent high coffee prices, due to a combination of rising demand in emerging markets and declining production outside of Brazil and Vietnam, have sparked concerns over the long-term supply of coffee beans. This paper evaluates the potential for expanding production from Indonesia—currently the world's third largest producer—to play a significant role in meeting predicted global demand. The research examines this possibility through a socio-economic assessment of coffee-based livelihoods in Indonesia. The research is based on a survey of household livelihood strategies across Sulawesi and Flores in 2008, and a series of stakeholder interviews with farmers, traders, NGOs and government officials. The findings show that coffee production retains an important function as a de facto social safety net for many impoverished rural households. However, few poor households are choosing coffee production as a viable pathway out of poverty. The author concludes that broader processes of industrialisation and economic development in Indonesia appear to be working against the possibility of Indonesia significantly increasing coffee production in the foreseeable future.
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%).
Traditionally, there has been no incentive for mango farmers to improve productivity and quality due to a weak bargaining position. This report analyses a transparent margin system (based on a collaborative partnership between the market supplier and a farmer group in Central Java) for enhanced smallholder involvement in the market chain. Methodology included interviews and focus group discussions with key market chain stakeholders, examination of farm to retail market marketing channels and cost benefit analysis of the supplier/farmer group partnership. The report contains an overview of the mango market and characterisation and analysis of the transparent margin system. Key observations of this system are that it provides farmer access to a modern market supply chain; farmer's market position enables contract based negotiation; necessitates farmer organisation for quality and supply continuity; and relies on farmer willingness and trust to make changes and reap benefits (higher price, guaranteed market, access to faster payment and market information). Replication of this system is achievable by providing incentives to the supplier. The report outlines policy considerations to assist in future replication.
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 report covers cacao production, how cacao farmers acquire, utilise and transfer technical knowledge as well as providing an understanding of the global cacao value chain. Information was obtained through interviews with farmers (n=50) and additional value chain actors. The primary knowledge transfer pathways identified are through family, friends and neighbours. Trainee programs are recognised as an important tool with the following key areas for technology transfer: management options for cocoa pod borer, grafting and cutting techniques, improved understanding of the importance of cacao fermentation and drying. The report identifies additional suggestions to achieve improvements in the cacao value chain such as farmer cooperatives. These provide for direct marketing from cooperatives to buyers, are supported with technology and technical information and also provide a conduit for training.
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.
Traceability has become a major issue in cocoa supply chains due to the hazardous contaminants that can infect raw materials or processed products. In Indonesia, traceability in cocoa supply chains is still limited and faces several difficulties in implementation, including lack of technology and a limited legal framework to enforce it. This paper presents an overview of traceability in Indonesia and proposes a conceptual framework on how Indonesia could conduct traceability in cocoa supply chains. The authors use an approach proposed by Schwägele (2005), which divides traceability into two parts: tracking and tracing. Tracking focuses on following the movement of goods downstream as far as the consumer. The authors propose that growers track the transmission of prices along the supply chain to measure the economic performance of the chain. Tracing involves the flow and openness of information, which (once determined) can be a useful tool to monitor sustainability performances. The authors conclude that implementing traceability in the cocoa supply chain is not likely to present a financial burden since it is estimated to cost only three per cent of the retail chocolate price.
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.
Cassava roots in Indonesia are being used for food, feed and industrial purposes, which includes products such as chips/gaplek, flour, starch, and sweeteners such as high-fructose syrup, dextrose, maltose and sorbitol. The new utilization of cassava roots focuses on the new demand for fuel-ethanol. This paper explores the traditional uses of cassava roots in some detail, including their decline due to decreasing production of cassava, before moving to discuss use of cassava roots for fuel grade ethanol (FGE) and the extent cassava production will need to increase in Indonesia if it is to meet future demand for food, feed, traditional industries and FGE. By 2025, it is projected that a total requirement of 67.2 million tonnes of cassava root will be required, which is over three times the current level of production. The report concludes with some discussion on where the FGE industries might need to be located if they were to rely significantly on cassava roots as a fuel source, the suitability of planting windows and capital requirements for a FGE factory suitable for processing cassava roots. The paper follows a logical flow and is easy to read. A greater level of analysis is required for any significant development to occur.