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.
The Bali government has introduced three beef cattle development schemes in recent decades to increase the income of smallholder farmers by improving their productivity and to support high quality beef production through improved technology. These schemes are the Beef NES scheme (conducted under a contract farming system between farmers and finance providers), the Food Safety Credit scheme (providing subsidised credit to farmers) and the Food Safety Project (a cooperative-type arrangement under government credit). This paper assesses the impact of these schemes on farm performance and identifies constraints and opportunities for improving the performance of smallholder beef production in Bali. A gross margin analysis of these schemes is conducted to compare profitability. The findings show that the Food Safety Project provides the highest gross margin to farmers and can potentially improve the quality of Bali beef. However, expansion of the scheme depends on the ability of government to continue providing the grant, while opportunities for improving meat quality rely on the ability of farmers to follow better feeding strategies. The authors suggest further analysis is carried out to measure welfare changes among producers.
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 covers a preliminary phase of a larger study to develop seaweed farmer groups as preferred exporter and processor suppliers. Informal interviews were conducted with farmers, collectors and exporters in Gorontalo. This report briefly outlines seaweed production and the Gorontalo value chain. A brief outline of observations and conclusions identifies that: there are large areas suitable and underutilised for seaplant farming; that any development of the post-harvest sector needs to include improved production to ensure year round availability for processing; only basic agronomy practices are implemented; there is a reliance on one cultivar; there is a lack of financing options and accurate market information at the farmer and local collector level and a dependence on support from exporters and processors for development of seaplant farming. The author lists several interventions including: development of local nurseries and farmer financing programs; improvements in agronomic practices, cultivar selection and post-harvest treatment systems; farmer cooperatives to value add and operate with other value chain participants; linking farmer enterprises with progressive and supportive enterprises at subsequent value chain levels, domestically and globally.
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.