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.

The extreme volatility of Indonesian chili prices has been a focus of government and public concern. This paper examines whether monthly chili prices over a 10-year period (2000 to 2009) for five cities on Java Island can be estimated with sufficient accuracy to make it economically feasible to build a short term storage activity into the chili marketing system. The findings show that in all locations prices respond to the previous month's price or relative prices.

In this paper, Webb et al. examine the trading practices of market intermediaries in the Indonesian chili market and how they affect the transmission of chili market information through their effect on prices. The research involves a series of structured interviews with chili traders and wholesalers to investigate five potential impediments to an efficient market: market structure impediments to competition; lack of scale economies; market intermediary value-added functions; post-harvest losses; and price risk premiums.

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.

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.

In this paper, the authors explore the level of market integration among regional vegetable markets in Indonesia and the movement of prices at the producer and wholesale market levels. Studying price integration among regions is important in order to increase the marketing efficiency of vegetables in the country. The main vegetables included in the study are shallots, large red chilli, potatoes, cabbage and tomatoes. The research uses secondary time-series data from 2001 to 2008 and analyses variables and integration using co-integration analyses.