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.
This report explores the potential for cassava production in East Nusa Tenggara (NTT) province in response to a proposed project to grow and export cassava chip for further processing into bio-ethanol in China. Initial field research found the region to be well suited to growing cassava with large areas of arable land and cassava yields comparable to other regions of Indonesia. However, the authors note that further work is required to understand whether NTT has comparative advantage in cassava production and whether there is a risk to smallholders given that the major buyer could reduce future buying operations. Developing an area of cassava production in Flores was shown to be of particular interest due to the potential smallholder benefits of developing integrated farming systems where cassava is used as a source of cash income and as a valuable feed source for cattle fattening. This approach would also allow smallholders to diversify risk away from only one or two agricultural products. The report concludes with a number of recommendations.
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 presents a sector profile and value chain analysis of the coffee industry in East Nusa Tenggara, identifying the potential for improved smallholder coffee returns. The research shows that coffee in this region has considerable potential, not least because of its natural low acidity and high body flavour derived from its soil and climate. Other factors contributing to its potential include low inputs in current production practices, reduced pests and diseases in mountain climates in some areas, large areas of undeveloped land that could be used for coffee production, and a favourable short to medium term price outlook for mild flavoured coffee styles. The analysis also shows potential for lifting smallholder returns by improving post-harvest fermentation practices and working with existing buying groups. The report provides a number of recommendations aimed at improving smallholder returns through long-term technical assistance.
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.
Chilli is one of the main vegetables grown in Indonesia, with production increasing at an average rate of 20 per cent per year. This report presents the findings of a value chain analysis of the chilli industry in South Sulawesi, which was undertaken to determine market demand issues facing the vegetable industry in eastern Indonesia. The findings reveal that supply to supermarket gives the highest return to farmers, while the lowest value chain is the channel to traditional markets. Major issues facing the chilli market in South Sulawesi include low input and productivity, how to benefit from opportunities for value adding on the farm, lack of post-harvest or cold chain management, access to market development opportunities, and weak farmer bargaining power. The authors suggest there is a need to link smallholders to more dynamic markets such as channels to modern retailers and the food processing industry. They further suggest that farmers could benefit from technical assistance on efficient cultivation technology to increase productivity and the application of post-harvest handling.
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.
This paper studied the relationship between tree age, nutrient dynamics and cocoa yield to determine which resources may limit cocoa yield. The study involved surveys of 14 cocoa agroforests in Central Sulawesi, including soil characterisation and analysis, and pod sampling for yield estimates, bean weight and carbon/nutrient analysis. Soil carbon nutrient levels did not change over the timeframes of 8 and 15 years and there was no relationship between soil carbon/nutrient levels and bean weight or carbon/nutrient levels. Phosphorus was the most limited nutrient in cocoa yield and the authors suggest phosphorus fertiliser applications and liming to increase phosphorus availability. The authors conclude that cocoa-gliricidia agroforests are only sustainable in the immediate future. The paper suggests investigating alternative species of shade trees to gliricidia, such as cashew nuts or macadamias that do are not shallow rooted like cocoa and are therefore not going to compete with cocoa for nutrients in the same soil strata. The authors comment on the benefits of using a chrono-sequence as a research tool but also highlight its limitations.