Kesempatan Pengembangan
Agribisnis Indonesia
Bagian Timur (EI-ADO) - Poultry

An analysis of contract farming in East Java, Bali and Lombok, Indonesia

sudo — Mon, 09 Feb 2015 08:51:54 +0000

SimmonsEtAl(2005)AnalysisContractFarmingEastJavaBaliLombok.pdf

This paper examines the impacts of contract farming on its smallholder participants in East Java, Bali and West Nusa Tengarra (NTB). Three contracts were selected for detailed analysis: seed corn in East Java; seed rice in Bali; and broiler chickens in NTB. The analysis was informed through key informant interviews and household surveys. The report includes a review of contract farming and detailed description and analysis of the three selected contracts. Analysis results are discussed in terms of the factors that impact on smallholder participation in contract farming and the effects of contract farming on gross margins and farm employment. Smallholder age, education and participation in farm groups are identified as key factors influencing smallholder contract participation. The authors highlight the importance of local conditions and technical considerations in evaluating smallholder participation and the impacts of different contracts. Of the contracts studied the seed rice contract did not increase returns to capital. Contract benefits to smallholders are detailed including access to markets, credit or inputs and reduced smallholder risk. The authors conclude with how each contract contributes to smallholder welfare.

Publication Date:

2005

Author:

Simmons P., Winters P. and Patrick I. Agricultural Economics 33(3), 513-525.

Journal:

Agricultural Economics 33(3), 513-525

Keywords:

Commodity:

Contract farming in Indonesia: smallholders and agribusiness working together

sudo — Mon, 09 Feb 2015 08:51:54 +0000

Patrick(2004)ContractFarmingIndo_UNE.pdf

This study evaluates the benefits to smallholders and agribusinesses from participating in contract farming in Bali and West Nusa Tenggarra (NTB). Methodology involved surveying both contracted (n=150 in Bali and n=80 in NTB) and non-contracted farmers (n=150 in Bali and n=120 in NTB). Probit analysis was used to identify factors influencing smallholder contract participation. The report provides an initial summary of contract farming in agricultural development and specifically in Indonesia, as well as a brief characterisation of each region, their agricultural commodities and those that are currently contracted. The authors highlight the key differences between the two types of contracts studied: group-based seed rice production in Bali with similar contractor and non-contractor characteristics and contract participation influenced by irrigated land ownership and group membership; and individual-based broiler chicken production in NTB with significant differences between contractors and non-contractors. The benefits to smallholders from each type of contract are discussed. The authors outline considerations for contract development and recommend Indonesian policy makers explore mechanisms to expand these types of interactions.

Publication Date:

2004

Author:

Patrick I. (ed)

Publisher:

ACIAR Technical Reports No. 54. Australian Centre for International Agricultural Research

Keywords: