This article examines feeding management practices of smallholder producers at two sites in East Java—lowland and upland—in order to assess the potential for improving beef cattle production based on the availability of local feed resources. The research uses data gathered from a survey of 184 farmers in 2010, focusing on household and farm characteristics, cattle numbers, cropping patterns, and feeding practices, especially with regard to rice straw. The findings show that lowland and upland cattle production systems varied, reflecting the different agro-ecological and socio-economic characteristics of the two study sites. The high importance of rice straw as a source of feed was evident in both sites. Most of this feed was obtained from other farms, either directly or by purchase. Greater scarcity of this resource in the upland site means that farmers travelled longer distances and incurred a higher total cost to obtain their supply. Rice straw was dried for 3-4 days and stored in the lofts of cattle sheds. Planted grasses and legumes were also fed to cattle, but there appears to be potential to increase their production and utilization, especially shrub legumes.
This paper presents key findings from a research, development and extension program conducted between 2001 and 2009 in six villages in South Sulawesi and Central Lombok to develop and test a participatory, farming systems approach for evaluating and increasing the adoption of strategies for improving Bali cattle production in the smallholder farming systems of Eastern Indonesia. A whole farm model, called Integrated Analysis Tool, was developed to capture the particular features of Eastern Indonesian smallholder farming systems, including Bali Cattle feed responses, local feed types and management practices. Smallholders actively participated in every step of the process from benchmarking, identification of cattle production constraints and opportunities, the selection and field testing of best-bet strategies and the extension of technologies to other households. This research approach resulted in sustained adoption of a package of best-bet technologies by the 30 participating smallholder households with an intention to continue these practices into the future. It further resulted in positive production, social and economic impacts, as well as significant adoption/adaption of the livestock improvement technologies by other households exposed to the practices.
This report identifies intervention opportunities to strengthen the performance of the vegetable sub-sector in Eastern Indonesia. The research is based on field observations, interviews with value chain participants and consultation with other stakeholders in West Java, East Java, Central Java, Bali, South Sulawesi and North Sumatra. The report contains a summary of the vegetable sub-sector and an outline of private and public sector roles. Critical problems and constraints limiting the vegetable sub-sectors performance were summarised as: disorganised seed industry; excessive pesticide residues increasing production costs and threatening markets; neglect of wet markets including transport and handling, health and sanitation, food safety concerns and market waste; limited relationships between farmers and supermarket wholesalers; lack of awareness and access to market intelligence; reduction in suitable vegetable producing land; lack of marketing technology e.g. packaging; and globalisation resulting in reduced production of certain vegetables. The report suggests various interventions, among them seed industry development, improved farmer buyer contracts, a pesticide focused extension program, marketplace design, market development, packaging and waste management options. It also includes location specific considerations where necessary.
While the demand for specialty coffee in Indonesia is high, the industry is constrained by its inability to increase production. This study assesses the trade and marketing practices of Indonesian specialty coffee through interviews with different value chain actors— exporters, farmer associations and cooperatives, processors, traders and government representatives—in the provinces of South Sulawesi, North Sumatra, Aceh and Bali. The research identifies a number of key constraints to increasing productivity including lack of coffee traceability, limited on-farm drying and pulping facilities, lack of control of coffee berry borer, and an inefficient coffee representative body. The author makes four key recommendations, namely a proposed intervention on Flores to improve agronomic practices and develop organic coffee; restoring Arabica coffee to tsunami abandoned acreage (>20 per cent) and expanding farmers drying capacity and pulping ability; the use of Broca traps to immediately improve production and quality of Robusta and low altitude Arabica coffees affected by coffee borer; and development of direct market linkages. The report notes that activities addressing some of these recommendations are already underway.
Aquaculture is an important contributor to the Indonesian economy and has considerable potential for expansion. This publication presents the findings of a review and SWOT analysis of aquaculture development in Indonesia, and discusses the possible approaches to support its sustainable development. The authors suggest that a combination of strategies (intensification and production segmentation, areal expansion, and production diversification) is necessary to meet the Government's vision to become the world's leading aquaculture producer by 2015. A critical issue identified in the analysis is the need for improved coordination and linking of industry development efforts, such as coordination across government levels, consistent implementation of regulations, and linking of research, development, extension and training activities. The paper also highlights that 95 percent of aquaculture farms in Indonesia are smallholdings, which the authors argue could be negatively impacted by the promotion of large-scale aquaculture and changing international market requirements, unless policy development specifically addresses the issue.
Many Indonesian companies are not adequately prepared to compete in a global free trade market because of their low level of competitiveness. In this article, Ibrahim and Zailani examine the supply chain implementation in Indonesia's coffee industry and the specific issues that it faces in competing in a global market. Among them is the excess in supply and production in recent years—an effect of the global economic crisis—that has led to unemployment, retrenchment of workers and a reduction in production activities to save or reduce operational costs and to minimize loss in profits. A further challenge is the low quality of Indonesia's coffee, which results in relatively low prices on the international market. This is primarily caused by the poor and inefficient production process. The authors conclude that for Indonesia to increase efficiency and cost productivity in its coffee supply chains to face the challenges of globalization and the opening up of its own economy to global players, it needs to implement (and maintain) a well-structured global supply chain. This will require, first and foremost, the development of an integrated global supply chain infrastructure.
This report details a value chain analysis to identify opportunities to improve the competitiveness of the aquaculture sector. Methodology involved interviews with value chain members in Bali, Nusa Tenggara Timur, Aceh, Sumatra Utara, Sumatra Selatan, Java Barat and Jakarta as well as government officials and desk top research. The report details the marine, shrimp and freshwater aquaculture value chains in Indonesia incorporating market demand, value chain participants, input supply, production technology, trading, processing and consumers and the key constraints and potential solutions for each value chain. The authors identify three target subsectors for intervention based on comparative advantages and their potential to increase Indonesia's competitiveness. These are summarised as: development of grouper grow-out production system and markets; development of value adding processes, cold chain and supermarket linkages for freshwater aquaculture in Jakarta; and development of Indonesian shrimp branding globally based on best aquaculture practices to meet international consumer demands for food safety and traceability. Key steps required to implement the suggested interventions are also listed.
The competitive advantage of Indonesian cocoa production has been threatened by poor and inconsistent quality. This report includes a desktop analysis to identify the key issues impacting on the cocoa value chain and details proposed interventions to benefit cocoa production, quality and smallholder income. Field visits were undertaken to identify the issues facing smallholders and potential collaborators for intervention. The following key interventions were recommended: farmer training programs in pest and disease management and post-harvest handling and quality issues with a training target of 20 000 farmers over 3 years within the provinces of South, Southeast and West Sulawesi; and establishment of a price premium paid to smallholders for export grade cocoa through direct market linkages and partnership with a key exporter and US based cocoa bean processor. The report also summarises potential areas for leveraging and collaboration with various cocoa stakeholders as well as various training delivery mechanisms. The authors detail guidelines for implementation of the recommended cocoa interventions.
This report presents the findings of a rapid assessment of the beef value chain in seven provinces in Indonesia. Data was collected through interviews with key stakeholders in the public and private sectors at all levels of the value chain. The findings reveal that the productivity of the beef breeding herd in Indonesia is low compared to other meat exporting countries in the region. Critical impediments found were crowded market channels, high inter-regional transport costs, under-utilization of renovated slaughter houses, and a decline in the number of wet markets in cities due to expansion of larger supermarkets. The report suggests that improving the efficiency of the beef industry through better integration and vertical coordination within the beef value chain should be an overarching goal of USAID's support to the livestock sector in Indonesia. It further proposes a focus on Bali cattle, as an opportunity to focus on a breed unique to Indonesia and for potential spillover affects to other breeds and the entire beef value chain in Indonesia.
While many forages suitable for improving livestock production in mixed crop-livestock systems in the tropics have been identified, their adoption has been limited. Before farmers will introduce new forages into their farming system an important prerequisite is that the change will be considered profitable, will have an acceptable level of risk and will not interfere with food security. This paper describes a whole farm systems approach used to identify the benefits of new forages to improve Bali cattle production in the smallholder mixed crop-livestock systems of eastern Indonesia. Data collection took place with farmers, village heads and extension staff in four villages in Sulawesi and Sumbawa. Preliminary analyses indicate that retaining residue from grain legume crops, growing tree legumes as living fences or hedgerows, and elephant grass all contribute to increased animal production by reducing annual forage deficit. This, in turn, decreases labour requirements in the late dry season as fodder does not have to be obtained from long distances. These findings suggest that substantial improvements can be made to farm profitability and family welfare from within the resources and constraints of current farming practices.
The paper examines the adoption of site-specific nutrient management (SSNM) by maize farmers in North Sumatra and its impact on production and farmers' income. The SSNM introduced to farmers was recommended by a study conducted in the region in 2004-2007: 160 kg ha-1 N, 72 kg ha-1 P2O5 and 90 kg ha-1 K2O. The study also disseminated a new high-yielding variety of maize together with recommendations for planting density and the number of seeds per hole. Research was carried out in five sites in Tigabinanga sub-district—a dryland farming region located 600-700m above mean sea level. Thirty-two per cent of farmers followed the fertilizer recommendations, which saw an 11.49 per cent increase in production (9,353 t ha-1) compared to traditional farmer practices (8,278 t ha-1). Farmers' income increased by 17.13 per cent from Rp. 9,563.840 to Rp. 11,541.340. Due to labour constraints, farmers did not follow all the recommend practices. However, the authors note that this could be solved by introducing seed planters, as well as fertilizer applicators to minimize labour costs. This research contributes to identifying suitable technologies and practices that can increase farmer productivity and labour efficiency.
This article presents the findings of a study that introduces community-based seed production of new open-pollenated maize varieties that are suited to the local environment, as well as the sociological conditions and farmer's preferences, in East Nusa Tenggara. It aims to accelerate distribution of these high quality seeds in sufficient quantities and at affordable prices in order to increase maize productivity for farmers. Experiments were conducted over a two year period in one village in Kupang district, recording grain yield, return:cost ratio, income generation, rate of distribution, and farmer's responses to the new varieties. Results show that the new variety of seed introduced by community-based seed production was well adopted by local farmers and sold at acceptable prices. Seed growers received a benefit of Rp 10,476,000ha-1 at a return:cost ratio of 2:9. The authors conclude that community-based seed production is suitable for extension to other villages where farmers have difficulty accessing high-yield seed varieties that are suited to both their agroclimatic zone and personal preferences.
One of the major constraints to improving livestock production of Bali cattle is the quantity and quality of available animal feed. Improving feed quality by introducing higher quality forages can go a long way towards removing some of those constraints. This report provides an overview and analysis of six ACIAR-funded forage research projects in Indonesia, focused on increasing the adoption of productivity-improving technologies to enhance the incomes and livelihoods of crop-livestock smallholders in eastern Indonesia. Given that adoption of technologies by farmers is still at any early stage, analysis focused on what might happen and why. The findings demonstrate observable gains in livestock performance and a high degree of interest and enthusiasm among best-bet and scale-out farmers. However, the author notes the difficulty in making assessments of future adoption when a key factor is the nature and level of future institutional support.
This study encompasses profiling of the Edamame supply chain management, analysis of value adding and performance at each part of the supply chain and concludes with recommendations to improve performance of the supply chain. The report includes a generalist literature review focusing on management, performance and added value analyses of perishable product supply chains and specifically outlining Edamame characteristics and production data. Primary data was sourced through in- depth interviews with supply chain participants and secondary data from a desktop analysis. The paper outlines the Edamame supply chain roles and responsibilities, mechanism of interactions and risk profiles. Case study analysis of a West Java Edamame supply chain was discussed in terms of added value to farmers, processors and retailers. The supply chain processor, received the highest added value (24% for packaged, 28% for unsorted Edamame), approximately 50% of farmer groups had negative added values and retailers received 10-20% added value. Performance analysis of suppliers compared farmer financial (revenue and production costs) and operational (quantity, quality and on-time delivery) performance. There was also discussion of the managerial implications to improve supply chain responsiveness and efficiency.
Indonesia produces a range of agricultural products with quality reputations based on geographical origin. This report outlines the establishment of geographical indication (GI) for the protection of Kintamani Bali Arabica coffee and implementation considerations for GI systems. It includes background information on GI systems under Indonesian law, characterisation of the Kintamani Bali region and production and quality requirements. Information was collected via desktop study and interviews with various stakeholders in the Kintamani Bali Arabica coffee value chain. Establishment of a GI system requires numerous stakeholders which are detailed in this report along with their roles and the organisation required. An impact analysis encompassing a range of factors such as economic and social impacts, capacity building requirements, successes and opportunities, strengths and limitations is discussed. This program has resulted in: improved farmer understanding of the importance of taste quality and the management practices to achieve it and a collaborative focus by supply chain stakeholders on improving quality. Stakeholder expectations are for sustained premium quality, improved coffee farmer livelihoods, environmental benefits from improved management and greater market opportunities.
This paper examines the problem of aflatoxin in Indonesian peanuts and discusses potential initiatives to minimize contamination at pre and postharvest stages. The research uses data from 62 farmers, penebas, collectors, processors and retailers in Pati Regency, Central Java, during the wet and dry seasons in 2002. The findings revealed that the highest percentages of samples infected by Aspergillus flavus (100 per cent in both seasons) and contaminated by aflatoxin (2-124 and <4-342 ppb during wet and dry seasons, respectively) were found in raw kernels of peanuts collected from retailers in traditional markets. It found that pre and postharvest handling methods prior to peanuts being delivered to retailers (especially at the retailer level in traditional markets) severely impact on aflatoxin contamination levels in the Indonesian food chain. The authors present a number of pre and postharvest practices to help minimize aflatoxin contamination in Indonesian peanuts. Critical to further development of this work is a concentrated effort to monitor postharvest handling methods by farmers, collectors and retailers in traditional markets and identify the critical control points for potential changes needed in their procedures.
Maize is an important commodity in Nusa Tenggara Barat province as it has a strategic role in meeting the food needs of the people and the demand of feed industries in the region. However, raising productivity to meet the growing demand for maize requires the use of hybrids with high yield potential. This paper examines the potential yield of hybrids of harapan grown in dryland agro-ecosystems. Research was carried out in Perigi village—the centre of dryland maize production—in Suela subdistrict of Lombok Timur during the 2005/2006 rainy season. Fourteen hybrids were tested using a randomized complete block design with four replications. The tested hybrids were relatively similar in plant height and ear length. For control purposes, Bima-1 and BISI-2 hybrids were also used. The findings reveal that of the 14 tested hybrids, six were higher yielding than the controls, including Nei92002/Mr4 (9.22 t ha-1), Mr4/B11-209 (8.95 t ha-1), G193/Mr4 (8.53 t ha-1) and B11-136/Mr14 (8.30 t ha-1). Despite these encouraging results, the authors note that these hybrids need to be tested further for wider adaptation before they are released commercially.
Maize yields in West Timor average around 2 t/ha, but have the potential to reach more than 4 t/ha with improved varieties, agronomy and nutrition. This paper explores the agronomic and physical characteristics of West Timor's landrace maize and production systems to determine the best approach for improving maize production and yield in West Timor. The research trials five maize varieties—three West Timor landrace populations and two open pollinated varieties—and grows them in the villages of Benlutu and Mnelalete in East Nusa Tenggara. The study used a spilt plot experimental design with three replications. The findings demonstrated wider variability in yield and agronomic performance of landrace maize with regard to seedling emergence, plant and ear height compared to certified improved open pollinated varieties. This crop-stand variability is probably due to low seed viability resulting from poor storage conditions, variable seasonal climatic conditions and/or high genetic variability within the landrace populations. The authors affirm that the impact of genetic variability and the enhancement of agronomic management of landrace maize will be investigated in future research.
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.
This paper examines the characteristics of small-scale seaweed farming in South Sulawesi, assesses the role of middlemen in supporting seaweed production and marketing, and details the pattern of the local seaweed procurement chain. The research uses data gathered through interviews and focus group discussions with 220 seaweed farmers, as well as traders and middlemen, in Takalar and Jeneponto districts. The findings revealed that seaweed farmers tend to be involved in both seaweed farming (mostly Eucheuma cottonii) and capture fisheries, yet seaweed farming is the main source of household income. Middlemen were found to play a crucial role in production and marketing, in particular through provision of financial capital and collection or purchase of dried seaweed. While this research highlights the growing dependence of many fishing communities on seaweed farming and the importance of middlemen, it also points to potential concerns. Among them is the unclear definition of farm ownership leading to conflicting claims among interested parties—an important issue that will require concerted government intervention. The authors also note the need for ecological research to assess the environmental impact of intensive seaweed farming.
This working paper uses a multi-market model to assess ex ante the impact of yield increases for maize, soybean and cassava on cropping patterns, producer and consumer prices, household income and other variables related to maize policy. The findings reveal that raising maize yields alone reduces imports and has generally small but positive effects on output, consumption, income and purchasing power. Raising the yields of all three commodities stimulates production of these crops and reduces imports in particular of maize and cassava but not of soybeans. Rice imports also fall strongly, while household welfare is positively affected but only by a small margin. The authors also assess the impact of removing rice tariffs in each scenario, but admit that this would be politically risky and thus unlikely. The main limitation of this study is that it is not able to capture the wider impacts of wage and labour changes as would be the case with a CGE model. Therefore, information on welfare changes based on household income and expenditure should only be treated as data specific to the model. Overall, this assessment is an important contribution to the literature as it helps to shape the policy debate on agricultural reform alternatives.
In this paper, the author presents a useful overview and analysis of aquaculture practices and farming systems in Indonesia, with a particular focus on aquaculture feed and feeding. Notable is the fact that Indonesia uses a relatively small proportion of the area that is available and/or suitable for aquaculture (4.5 million hectares of more than 11.8 million hectares available), which together with the intensification of culture practices provides an opportunity for rapid growth of the sector. To meet the demand, the author maintains that the aquafeed industry needs to prepare itself appropriately, find alternatives to minimize the fishmeal content in aquafeeds and urgently address the high feed demand of L.vannamei (Pacific white shrimp). The author also makes recommendations around environmental issues, which are receiving increased prominence in aquaculture sector research. One suggestion is for a more cost effective feed to be developed to improve efficiency and reduce environmental impacts. Greater consumer awareness of food safety issues requires the feed industry to pay greater attention to traceability of feed materials and feed processing technology.
This paper reviews the impact of Indonesian Government regulations on organic food supply chains and provides recommendations to assist in further development of these chains. It encompasses the marketing system for organic produce and consumer perceptions of organic food. The bulk of the discussion relates to the regulations associated with organic food and how these affect organic food supply chains. The paper outlines the regulations that organic food is subject to in relation to production, labelling, processing and food safety. A list of constraints to organic supply chains are identified by the author as high certification costs, limited locally produced organic food, inability for smallholders to sell organically produced food as organic, fraudulent organic certifications, unproven claims of organic status. Recommended actions to address these constraints are listed and focused on training in organic farming systems, grower group organisation, subsidies for certification and inspections to ensure compliance.
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. For Jakarta and Bandung, prices also respond to chili production levels in other key production areas, as well as seasonal fluctuations for Ramadan and October. Results also show that traders implementing a one-month cold storage strategy using forecasted prices could generate annual returns of 25 per cent over the cost of storage. The authors conclude that if the use of cold storage was more widespread, they would expect to see less volatile price movements in the fresh chili market. This would lead to lower risk premiums for traders and other middlemen and ultimately narrower farm-retail price spreads and a more efficient market for chilies. However, further research is needed to explore why cold storage is not being used more widely.
This report details the development of a Flores cocoa farmer decision taking model using systems thinking, in particular systems dynamics and the creation of a management flight simulator. The model is based on understanding the key elements in cocoa farmer decision taking and who farmers listen to. Each chapter of the report represents a step in system dynamics methodology as the model is developed and tested. The systems decision taking model is used to simulate the potential impacts of proposed interventions for the Flores cocoa value chain. The results indicate that improvements in the cocoa value chain are likely to be short-term unless the core problem of lack of farmer knowledge is addressed, rather than the specific constraints dealt with by each intervention. An alternative strategy to improve farmer knowledge is suggested and model results indicate this has a long-term benefit on income and productivity. Based on a critical analysis of system dynamics in international development, the author recommends using this methodology to test interventions prior to implementation.
This report summarises the conceptual framework of an industry development plan to improve seafood smallholder welfare. It identifies the opportunities and constraints to growth of the South East Sulawesi seafood value chain as variability in supply chain characteristics across locations and products, disproportion in the share of through chain value, lack of post-harvest value adding, high costs and limited capital, technical knowledge and market access. The authors provides recommendations for an industry development plan including a 3-5 year pilot to trial market chain strategies through concurrent case studies on seaweed, grouper, lobster, sea cucumber, abalone and pearl oyster supply chains. Recommendations also highlight what these case studies should feature such as development of village-based associations (farmers, fishers and local traders), value chain champions, regional marketing and investment strategies, a communication system for market intelligence, a technical advisory group for research, development and extension, a draft management plan and development and demonstration of better management practices.
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.
This article presents an overview of a management system that was established to monitor Bali cattle performance on the islands of Lombok and Sumbawa. Research was carried out over a three-year period in two villages on each island—one village adopting new management and the other retaining prevailing management. The primary components of new management were: controlled seasonal natural mating using a selected bull, calf weaning at 5-6 months of age and managing weaner diets. Data collected included diary, pedigree, growth, mating management and outcome, ownership, health, diet, commodity use and weather. All data was linked to a unique animal number and was replicated in village and office books. A technical officer on each island supported all aspects of the village beef business at both villages, and the officers were in turn supported by a scientist. Overall, the monitoring system was very effective in providing a full data set for village cattle production and demonstrated high reproductive capacity of Bali cattle. However, the success of the system was highly dependent on the dedication and skills of the technical officers.
This case study presents the research and outcomes of three ACIAR-funded projects to improve Bali cattle production for smallholders in eastern Indonesia. The projects—conducted between 2001 and 2008—developed and tested an approach that combined the principles of participatory, on-farm engagement with farmers, and farming systems analysis and modelling. Their main purpose was to encourage the uptake of technologies that improve the productivity and welfare of smallholder households. Trials of the different options were conducted over a two-year period, involving 40 selected households from four sites in eastern Indonesia. The case study demonstrates how the uptake of these technologies is starting to bring substantial benefits to the smallholders, their families and communities such as increased forage and livestock production, labour savings, and increased family income. The tools, knowledge and skills developed through this work are now being utilized for other projects aiming to generate wide-scale adoption of new farming practices, increased beef production and improved farmer welfare in eastern Indonesia.
The low weight of Bali cattle for sale was a major issue related to smallholder farmer poverty and an impediment to the development of a cattle industry in eastern Indonesia. An ACIAR-funded research team established that the low weight was due to poor management, particularly nutrition, which led to low reproductive efficiency, and poor survival and growth of the calf. The research team worked with villagers to introduce a simple management system aimed at increasing pregnancy rates in lactating cows, reducing calf mortality, reducing the bull cost per calf, and increasing average post-weaning growth rates and survival. These strategies aimed to minimise costs, increase turn-off rates, reduce average turn-off age and increase net financial returns. This case study outlines the approach taken to develop an integrated management system for Bali cattle, with emphasis on both successes and failures.
This article explores the degree to which diversification to non-farm activities, productivity improvements for identical crops (in this case coffee) and crop switching (from coffee to cocoa) are driving income dynamics in Central Sulawesi, Indonesia. Using a household panel data set for Central Sulawesi collected in 2001, 2004 and 2006, the authors find that the growth in and level of rural incomes in the post-crisis period can be explained by a common set of factors, including an increase in non-agricultural household incomes, a shift in cropping patterns and more favourable commodity prices for cocoa. While many households derived part of their incomes from non-agricultural activities, significant entrance barriers for poorer households to become engaged in profitable non-agricultural activities remain. Moreover, incomes from agriculture still constitute the financial backbone of rural households. Income growth among poor households can be primarily attributed to increases in agricultural self-employed income while richer households also benefited from strong increases in non-agricultural incomes. The basic income relationships obtained from this study can be found all over rural Indonesia.
This paper reviews cassava research in Indonesia prior to 2000 and presents the key achievements in farmer adoption of new technologies to increase cassava yields and income. The improved practices the authors examine include land preparation, erosion control, planting material, plant growth management through plant population and spacing, planting time, weed control, cropping systems and fertilization. The research highlights that cassava planting time is affected by cropping system, soil type and water availability. Planting cassava on medium to light textured soils can be done from the beginning to the end of the rainy season without significant effects on root yield when plants are harvested at 8-12 months, since water availability of 35-60 mm/10 days could be maintained during the first five months. It outlines the optimum plant population for monoculture cassava using non-, late- or branching varieties on poor and better soils: 12,000-14,000, 10,000 and 10,000 plants/ha, respectively. Intercropping systems of cassava with upland rice and other secondary food crops increased Land Equivalent Ration to 1.59, increased net income by 15 per cent, reduced soil erosion by 20 per cent and resulted in a B/C ratio of about 2.80.
Forty-six coffee companies in Indonesia have currently been certified, producing a total of 47,000 tons of certified coffee per year. This paper examines the challenges of sustainable farming system certification for coffee in Indonesia. Coffee companies were found to engage in coffee certification for a number of reasons, namely as a marketing tool, to reduce risk when prices fluctuate, to make it easier to gather coffee beans from farmers, and to receive a price premium. Among the main challenges highlighted for certification is that smallholders do not fully understand the intention and objective of certification programs, which leads to confusion in responding to complex certification criteria and indicators. The research highlights the differences in implementation of certification programs for smallholders and private and government estates. Certification for smallholders is usually conducted by traders and exporters, while for coffee estates it is conducted by plantation owners. Coffee farmers have no capability to hold certification due to constraints in cost, knowledge, networking and marketing. The authors point to the need for efficient sustainable coffee certification in Indonesia—as well as other ASEAN countries—that is cost effective and globally acceptable.
In this article, Mahendri et al. describe and analyse the movement of beef cattle from small-scale producers to consumers in East Java, the province with the highest share of cattle population in Indonesia and a large proportion of beef consumers. Research was carried out in five districts in 2010-11, involving small-scale producers, cattle growers, traders, butchers, and representatives from traditional district markets, slaughterhouses and supermarkets. The findings show that the beef marketing chain from small-scale producers to consumers in East Java is reasonably competitive and efficient, with many actors at each stage. The authors conclude that the facilitating role of Government in support of infrastructure (roads, market facilities and slaughterhouses) is important, in addition to regulation of meat quality, however further intervention in the market is probably not warranted. Commercial feedlots, inter-provincial trade and port were not included in this research. The authors acknowledge that an understanding of the marketing system and its constraints will be an important aspect of ongoing research into improving the productivity and livelihoods of small-scale producers.
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. Key constraints identified by farmers were insect and pest losses (up to 63 per cent), difficulties in marketing and low yield potential. Analytical assessment of the different food chain levels highlighted several opportunities for improving chilli production and benefits for small farmers. Chilli production and income could be improved through the development of improved varieties for pest resistance, yield potential and incorporation of consumers' preferred traits (freshness, more seeds, attractive colour, pungency). Judicious use of inputs (fertilisers and pesticides) would contribute significantly to reduced production costs. Furthermore, price and negotiating power could be improved through collaborative marketing, farm level chilli processing and development of direct market links and information networks.
The authors, researchers at the University of Mataram, examine the current conditions of livestock production systems in Lombok and Sumbawa to aid understanding of farmers' ability to adapt to changes in land use, socio-economic and agro-climatic conditions. They look specifically at the distribution and richness of species in different ecological sub-regions, as well as dynamics, drivers of change and potential future impacts. The research determines that the different biophysical, demographic and socio-economic conditions of Lombok and Sumbawa result in distinct livestock production systems. Nevertheless, land available for livestock production is rapidly declining in both locations and many farmers are yet to evolve from free grazing to the productive cut and carry system. If the capacity of farmers to respond to changes in the ecosystem and socio-economic conditions do not improve, livestock populations may decline in the near future. The researchers suggest that adaptation strategies should therefore be developed by drawing on existing best practices and empirical experience from similar conditions, and utilizing local knowledge.
This paper examines collective action as an option for addressing obstacles for smallholders linking to markets, specifically for marketing of underutilised tropical fruits. These are of importance for nutrition, cultural value and contribution to income and improved market chains will increase income and incentives for production to maintain diversity. The report includes a description of the conceptual framework for collective action. The report comprises three cases studies as examples of good marketing practices for biodiversity. These include: kokum in India; cowa in Thailand; and pomelo in Indonesia. The results briefly describe each case study including the crop and its production, the driver for the collective action, the structure and conduct, performance and biodiversity. The discussion focuses on the characteristics of collective action in practice, and in particular how they relate to each case study including collective action as a social process, transaction costs, improved market chains, networks for information change, social learnings and incentive, decision and investment issues. The authors also outline the factors that may limit the success of collective action and highlight that alternative strategies such as vertical integration may need to be considered.
The high prices of new maize seed varieties in Indonesia has prevented some farmers, especially those in remote areas, from accessing high quality seed to increase their yields. This study aimed to accelerate the distribution of new high yield varieties by establishing community-based seed production systems at the village level to produce and provide high quality seed at an affordable price for farmers. Research was carried out in South Sulawesi and West Nusa Tenggara provinces between 2002 and 2004. Several seed varieties were tried and tested by farmers to first establish their preference based on local needs and conditions. Farmers in both locations preferred the Lamuru variety, which they began producing and distributing at both the community level and to nearby provinces. Results confirm that the local seed growers were able to produce high quality seed and disseminate them to local farmers. In South Sulawesi, for example, seed sold by local growers increased from 57 tons in 2003 to 92.5 tons in 2004. The authors therefore conclude that establishing community-based seed production systems can lead to accelerated distribution of new high-yielding seed varieties.
This paper assesses whether supermarkets adversely affect traditional food retailers in traditional markets of Indonesia. The study methodology involved data collection from traders in treatment (supermarket within 5km) markets (n=249), traders in control markets (n=151) and in-depth interviews (n=37) with a range of additional stakeholders. The paper reports no significant effect of supermarkets on traditional markets in terms of profit and revenue, yet traditional traders experienced continued decline in their business. Discussion of the qualitative data provides explanatory information to support this result. This includes consumer preferences and perception of the alternative shopping experiences, preference for continuing existing long term business relationships, differing consumer segments, and the intense competitions between traditional food retailers and other traders and street vendors (66.2% of traders perceive other traders and street vendors as their main competitors). The paper outlines policy recommendations that would increase the competitiveness of the traditional markets including: improved traditional market infrastructure; improved market management practices; organisation/regulation of street vendors. The author does highlight the short term of the study and a longer term study may reveal additional findings.
This report provides a useful overview of the cattle and goat sectors in Indonesia, as well as the key government policies affecting them. One interesting remark in the report is that local farmers have more readily adapted to goat farming compared to cattle farming, largely due to the relatively lower cost of entry and the simpler management of goat farms. This is a supporting factor for increased investment in the sector. Furthermore, given that most goat farmers have learned the trade from family members, it is fairly easy to achieve natural growth in goat farming with minimal direct assistance from government. Based on government projections for growth in the beef and goat sectors, the report highlights that by 2014 the Indonesian market will have a demand for 3.6 million head of beef cattle and 4.6 million head of goats. If the government's programmes to increase the beef and goat populations are successful, this will still result in a shortfall of around 420,000 head of cattle and 1.2 million head of goats. This indicates that opportunities to expand production to meet demand are still high.
This report briefly examines government intervention as an option for developing mango supply chains from disorganised and segmented to organised and integrated. The report includes a brief theoretical review of supply chain management and complex adaptive systems. Methodology included interviews with stakeholders over three time periods. The paper then reports on two case studies of government intervention in West Java and East Java including a description of the supply chains, the interventions and the responses to the intervention along the supply chain. In these cases, the government intervention focused on exclusion of the middlemen. The authors provide insights into the failure of these interventions. An alternative model to achieve self-organising supply chain formation is discussed based on theory and the learnings from the case studies. The authors highlight the need to recognise the self-organising characteristics of supply chains and consider these when designing interventions.
This paper explores the experience of contract farming between Garuda Food—represented locally by PT Bumi Mekar Tani—and peanut smallholders in West Nusa Tenggara. The research uses data gathered from a survey of 713 smallholders (contract and non-contract farmers) from 72 farmers groups in seven peanut growing districts, as well as semi-structured interviews with key stakeholders. Overall, the findings suggest that the contract farming has a positive effect on the peanut sector, improving contract farmer's incomes, generating employment, and improving the quality of conditions in the peanut sector, including price determination. The program has also increased farmer's access to credit, and strengthened social capital and learning between members. However, weaknesses in the program need to be addressed, including the unbalanced contractual relationship between firm and farmers, unclear risk management for farmers, and social impacts on labour and gender (peanuts used to be the domain of women). The paper provides useful insights on the actual experiences of contract farmers to complement existing research on the economic impacts of the model.
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.
This report outlines global cashew market trends to inform planning for future Indonesian cashew programs. The report discusses global cashew trade including nut production, in shell cashew trade, cashew kernel supply, global cashew kernel imports and kernel prices. Drivers and trends in the global food market with potential impacts on cashew are outlined including, demographics and economic growth, prices and substitutions, national regulatory issues, private and ethical standards relating to hygiene and social and environmental responsibility, healthy eating choices and options for innovation. The report summarises kernel grades, certification requirements, value adding and innovation options for major import markets including, the US, Europe, Eastern Europe, Middle East, Japan and Australia. The limited methodology provided in the report indicates that the information on cashew import markets was sourced through stakeholder interviews. The report includes some discussion of by-products and alternative uses of cashew products such as cashew apple and cashew nut shell liquid. In concluding, the authors list key points based on the opportunities for suppliers in various regional markets, key production and consumption trends, regulatory issues and food grading standards and options for value adding.
Goats are a popular choice for rearing by farmers in upland areas because they can be cared for by women and children can consume the milk. However, there are several constraints to goat milk production, among them the limited availability of local forages for goat feed. This paper examines how locally available forages are used as feed for dairy goats by rural farmers in East Java's Malang district in order to determine the potential of goat rearing in this area. The research uses data gathered from surveys and interviews with 64 dairy goat households in six regions in the upland areas of Malang. The study found that type of dairy goats and feeds found in the upland areas is dependent on season, level of farmer education, land ownership and farming experience. It also found that the use of forages was dominantly legume tree in the wet season and tree leaf in the dry season. Furthermore, the use of crop wastes in the dry seasons is higher than in the wet seasons, which has an impact on the milk production.
The population of goats in Indonesia has increased gradually at an average rate of 4.6 per cent in the last 10 years, from 12 million in 2000 to 16.8 million in 2010, involving 3.5 million households. The goats are spread throughout 33 provinces with the highest population of goats in Central Java, East Java and West Java. This paper briefly discusses the potential for development of goat and goat milk production in Indonesia. Production of goats offers good business opportunities in Indonesia because they are very well-adapted to the tropical environment and require low investments. Farmers usually rear a few animals without intensive management, as a living bank for emergencies and expenses and as a source of fertiliser for crops. Goats are usually reared to produce meat and milk. The authors highlight that there are also a few promising businesses indicating that producing and selling goats milk is possible and profitable. There is a deficit of fresh milk supply in Indonesia that could be filled with goats milk if goat's milk is better marketed.
This paper discusses the recent changes in cultivation of maize in Indonesia's South Sulawesi province. The authors present data to show the increases in area cultivated and in productivity of maize production in the region. Furthermore, they discuss how the pattern of maize varieties used in this province has changed in the last 15 years, namely from a wide use of local/white varieties (up to 40 per cent use in 1995), towards an increased use of open-pollinated superior varieties and hybrid maize varieties in the late 2000s. The paper then discusses the adoption of new technologies by farmers in the region and the reasons for such adoption, including the strong support and encouragement of the government and the use of a variety of dissemination tools including the use of media, direct communication, demonstrations and case studies. According to the authors, understanding of the local culture and politics, as well as farmer's needs in each particular region, are considered important for the success of adoption of new technologies.
In this paper, the authors explore the effectiveness of the Manalagi mango supply chain in Indonesia using gap, price margin and relationship analyses. Price margin analysis revealed significant transportation costs and fruit sometimes reaching the wholesale market in inferior condition due to delays since harvesting because of transportation problems. The authors thus highlight that improvements in transportation infrastructure are important to reduce produce losses and increase value in the chains. Gap analysis showed several quality dimensions which could be explored to add more value in the supply chain in the form of quality, timeliness, food safety and labour standards in production and marketing. At the same time, relationship analysis highlighted the need for more effective communication between and within all chain participants. The authors note that barriers to achieving greater coordination include lack of mutual trust by chain participants and lack of an acceptable governance system with fair sharing of risk and rewards in the value chain. Achieving effective alignment among all participants in the value chain is an important factor in developing an effective supply chain.
Maize productivity in Indonesia is relatively low (3.66 t/ha), yet in some provinces it rises above 4.0 t/ha. This higher productivity is due to farmers' adoption of production technology, including the use of improved maize varieties. This paper describes the progress of the Indonesian Agency for Agricultural Research and Development's breeding program to develop several improved maize varieties in Indonesia. The research compares the characteristics and yield potential of nine open pollinated maize varieties (OPVs) and 13 hybrid maize varieties that have been released by the government since 1992. Findings show that B11-209 and Nei 9008—female parents of hybrids Bima-2 and Bima-3—gave better combining ability with Mr14 than Mr4 and could replace Mr4 as testers in the hybrid breeding program. The Modified Reciprocal Recurrent Selection breeding method effectively improved grain yield of the MSJ2 population. The authors conclude that OPVs are still needed, especially in areas outside Java with high soil acidity, low soil fertility and drought stress. Furthermore, development of quality protein maize varieties is needed to improve the low nutrition value of children in some parts of Indonesia, especially in drought prone areas.
This paper presents the findings of a study on two quality protein maize (QPM) varieties— Srikandi putih-1 (white kernels - for food) and Srikandi kuning-1 (yellow kernels - for animal feed). The research was based on two sets of experiments that were compared with the normal check varieties—22 populations of yellow QPM and 10 populations of white QPM. Each set used a randomized complete block design with three replications in 11 locations of central maize areas in Indonesia during 2002 and 2003. The stability model showed that genotype and environment interaction was significant for grain yield. The potential grain yield for Srikandi putih-1 was 7.91 t/ha or 13.4 per cent higher than the normal maize. Grain yield of Srikandi kuning-1 was 7.92 t/ha or 2 per cent higher than normal maize check variety Bisma. The white and yellow QPM varieties possessed lysine concentration of 0.36 per cent and 0.45 per cent and tryptophan concentration of 0.07 per cent and 0.085 per cent, respectively. Both maize varieties were subsequently released in 2004 as the first national QPM varieties.
A number of different policies have been implemented to enhance development of different parts of the Bali beef industry. However, information on the benefits is limited and therefore evaluation of the various policies is required to guide future policy development. This paper explores the benefits from cattle development in a multi-stage production representation of the Bali beef industry using equilibrium displacement modelling. The impact on various industry groups such as smallholders, processors, retailers and consumers, is estimated in terms of their welfare changes. The results demonstrate that for a one per cent exogenous shift in the relevant market (from productivity advances or quality improvements), improved productivity of Bali cattle production has the largest total benefits (Rp 3.02 billion, about A$ 0.6 million), over a time period of two to three years. Bali cattle producers receive substantial benefits (35 to 71 per cent of total returns) from any cost reduction or improved efficiency scenario. The authors conclude that this model seems appropriate for examining other types of research and development and policy scenarios, however further research would be needed in several areas.
This paper outlines the classification of 82 Indonesian mango cultivars based on morphological characters, RAPD markers (DNA) and a combination of both. Mango cultivars for classification were sourced from Cukur Gondang Collection Garden, East Java. Results, including coefficients of similarity, are presented and discussed for each method of classification: morphological, RAPD markers or the combination of both. The morphological assessment involved 92 morphological characteristics. Results of a cluster analysis provides some detail on the discerning characteristics for each cluster. The results also include a comparison of the clusters and grouping identified through each classification method. The author concludes that the molecular method of RAPD markers and morphological characteristics do not quantify or organise cultivars based on genetic diversity, equally, as the grouping based on RAPD markers produced clusters different to those identified by morphology. The report also concluded that there is wide diversity in Indonesian mango cultivars: 15-62% (morphology), 2-31% (RAPD), and 12-40% (combination of both markers).
This paper outlines the classification of 82 Indonesian mango cultivars based on morphological characters, RAPD markers (DNA) and a combination of both. Mango cultivars for classification were sourced from Cukur Gondang Collection Garden, East Java. Results, including coefficients of similarity, are presented and discussed for each method of classification: morphological, RAPD markers or the combination of both. The morphological assessment involved 92 morphological characteristics. Results of a cluster analysis provides some detail on the discerning characteristics for each cluster. The results also include a comparison of the clusters and grouping identified through each classification method. The author concludes that the molecular method of RAPD markers and morphological characteristics do not quantify or organise cultivars based on genetic diversity, equally, as the grouping based on RAPD markers produced clusters different to those identified by morphology. The report also concluded that there is wide diversity in Indonesian mango cultivars: 15-62% (morphology), 2-31% (RAPD), and 12-40% (combination of both markers).
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. This was followed by an analysis of vertical price transmission using monthly data for farm, wholesale and retail prices in the Kediri district of East Java. Results show a competitive market environment, only small post-harvest losses, and no stockholding at any level of the marketing chain. They also reveal that price margins in East Java are positively and statistically related to farm price levels. The authors propose two policy options to address the price volatility—imports of fresh chillies from other countries or government subsidized investment in cold storage facilities to reduce the amplitude of price fluctuations and give farmers more time to respond to tight market conditions.
While maize production in Indonesia continues to increase, the country remains a net importer of maize. This report details the maize value chain from producers through to processors and retailers, and identifies opportunities for future development activities for increased competitiveness and farmer income in Eastern Indonesia. Analysis was informed by interviews with key sectors of the maize value chain in West Nusa Tenggara, East Java and East Nusa Tenggara. Gender roles and environmental issues were also explored to ensure suggested changes to the value chain positively impact women and the environment. Value chain constraints identified include: lack of technical knowledge on crop management and post-harvest handling, limited knowledge of or access to improved maize seed varieties, lack of input credit to optimise maize returns per hectare, lack of facilities to effectively dry maize and monitor moisture content, and limited training and access to post harvest storage technologies. Market-based solutions and associated activities are suggested including farmer training and capacity building of value chain suppliers and service providers. The report highlights a number of areas for further research before any design or implementation of value chain interventions.
This study provides a detailed characterisation and analysis of the mango value chain in Situbondo, East Java, and North Lombok, Nusa Tenggara Barat and identification of potential pro-poor interventions, with an emphasis on private sector involvement. The study was guided by the M4P framework and involved a review of existing knowledge and collection of primary data through focus group discussions with farmers and traders, individual semi-structured interviews with value chain stakeholders, direct observation methods during field visits to villages, enterprise facilities, markets and modern retail outlets, and a structured questionnaire to collect farm price and cost data. Proposed interventions focus on enabling off-season production, development of exports and upstream quality chains. The report also discusses strategies for these points of intervention. Key findings are reported against three areas: poverty, gender and environment and outline the impacts of value chain interventions. The authors conclude with a summary of key research gaps encompassing export development, farm technologies, varieties, processing, value chain margins, price incentives for quality investment, business models of wholesalers and exporters and production data gaps.
This paper examines the economic feasibility of best-bet feeding strategies to increase live weight gain of early weaned Bali calves to identify opportunities for increased profit above feed costs on-farm. The research evaluates 53 feeding strategies in 14 on-station experiments in Central Sulawesi, East Java, East Nusa Tenggara and West Nusa Tenggara. The best-bet feeding strategy at each site was implemented, monitored and adapted on-farm in villages for six months. Results show an increase in smallholder profits compared to prevailing practices in all but one village in East Nusa Tenggara where there was no difference. The highest profit above feed cost was achieved through supplementation of commonly utilized low quality feeds with feeds high in crude protein. The revenue over cost ranged from 2.5 to 7.5, with profitability from Rp. 1.1 to 2 million/head/six months. The paper concludes that there is considerable potential to improve the feeding management of weaned Bali calves and increase farmers' income by using locally available feed resources. Tree legumes provide the greatest potential to increase farm income and have not been fully utilized as a feed source for Bali cattle in Indonesia.
Lampung is the primary cassava producing region in Indonesia, yet the province regularly experiences prolonged dry periods. This study examines drought tolerance for varietal selection prior to distribution, assessing the potential impact of drought (two or more months of <100mm rainfall) on root yield, starch yield and content in five selected varieties. Trial design comprised a 0.1ha plot of each variety (no replication) with sub-plots of staggered planting dates to impose dry periods at different growth stages. Results found no varietal difference in root yields in the absence of a dry period. However, root yields were reduced between 14.88t/ha and 20.11t/ha with exposure to a dry period. CMR30-56-1 was ranked the most drought tolerant and Adira 4 the least drought tolerant. Starch yields were reduced by 50 per cent when subject to a dry period and yield reductions increased with length of the dry period. Dry conditions between the third and eighth month after planting had the greatest impact on yield suggesting that rain during this period is critical for root bulking. Effects on starch content were also assessed as starch content is a price determinant for fresh cassava. Dry periods reduced starch content, but to a lesser extent, one to three months before harvest.
Mango has potential as a significant horticultural industry in Indonesia but it has a limited shelf life. Freezing is an option for improving the shelf life of mango. This paper assesses different periods of immersion in liquid nitrogen and different storage periods on a range of chemical characteristics of mango. The experiment was based on a factorial completely randomised design with four immersion and four storage periods. The paper presents and discusses results in terms of the following characteristics: vitamin C content; total acid and pH; total soluble solids, brightness, sensoric quality (taste, colour, flavour and appearance) and microbial analysis. The discussion encompasses how the immersion and storage time treatments influence each of these characteristics. The authors concluded that immersion for 40 seconds in liquid nitrogen gave the best quality when stored for three months and detail the results for each of the assessed characteristics.
This paper reports on the 'ACIAR cassava project in Indonesia', where a farmer participatory approach was used in an effort to increase the productivity of cassava-based cropping systems via adoption of higher yielding varieties and improved cultural practices. The report commences with a brief history of cassava research and development efforts in Indonesia, before providing quite an extensive methodology section outlining the farmer participatory research trials that were conducted. Trials were conducted on both experimental stations by the project team, and on farmers' fields by farmers with project staff providing extension support. They focussed on soil fertility management, plant spacing and nitrogen fertilization for leaf production, varietal evaluation and improvement, and on-farm animal feeding. The paper contains a simple to understand flow chart of the farmer participatory model used, before outlining the project achievements against the project objectives. Data obtained during the trials is presented in numerous tables with some analysis of the results. Conclusions for cassava in the trial areas are presented, along with some recommendations for future research. The authors accurately conclude that a longer timeframe is required to fully determine the clear impacts from projects delivering technology transfer.
Coffee is one of the most important agricultural commodities for Indonesia either as an income source for millions of farming households or for foreign exchange earnings. The country produces a number of specialty coffees from different geographical origins having a distinctive cup taste profile. This paper provides an overview of the experience of Indonesia in establishing a geographical indication (GI) protection system from the starting point to the present progress. It draws on a pilot project that successfully implemented the GI protection system for Arabica coffee in the Kintamani highlands of Bali, which led to the first GI protection certificate for Kintamani Bali Arabica coffee being issued by the Directorate General for Intellectual Property Rights. One of the benefits of GI certification that the author notes in his overview is the increased price of Arabica coffee produced by farmers, which rose from around US$0.70 per kg to around US$3.10 per kg, resulting in an increase in farmer's income. According to the author, implementation of GI protection in Indonesia is moving forward gradually, with new applications from several origin products.
This paper reports on three experiments evaluating Japanese tomato varieties for use in Indonesia. The experiments evaluate these varieties based on yield comparisons with the standard Indonesian variety, fruit characteristics for fresh and processing and seedling growth using three low cost, locally sourced seedling raising media. Results of each experiment are reported and discussed separately. The paper details the yield differences and summarises fruit characteristics including discussion of suitability for fresh or processing sectors. The experiments indicate the need for improved root knot nematode resistance in the Japanese varieties. The authors discuss options for improving productivity of Japanese varieties such as improved seedling preparation through good seedling media and the impacts of the different seedling media on seedling characteristics and yield. The paper does not make any recommendations or draw any conclusions from this work.
This study assesses contract farming in East Java and reports on the possibility of contract farming as a mechanism for improving the economic situation of smallholders. Study methodology involved the observation and survey of existing contract farming operations in East Java and desktop analysis. The study provides background information on contract farming frameworks and reports that contract farming was found in 57% of East Java's regencies/municipalities. It identified three models of contract farming in East Java: the informal model; the intermediary model; and the multipartite model, and provides details on the characteristics of each of these. The study highlights the need for further assessment, including a comparative study of all contract farming types in East Java with consideration of the positive and negative aspects on the local communities. The report also outlines the characteristics of different contract agreements.
Small-scale beef cattle production in East Java, Indonesia, is mostly undertaken to generate household income to meet current farm-household needs. This article presents research undertaken to understand the factors affecting the prices, hence the incomes, received by small-scale cattle producers in East Java. Research was conducted in two sites (one irrigated lowland and one rain-fed upland) in 2010-11, involving monthly monitoring with 184 farmers. Data was recorded for each of the 353 cattle sold during the two-year period. Cattle were sold in the village to local or district traders. The farm-gate price was regressed on six variables—liveweight, body condition score, cattle breed, age, reason for selling, and site. The age variable was omitted in the final model to avoid multi-collinearity. The estimated equation was significant and provided a good fit of the data (R2 = 0.77). The coefficients for all variables were positive and significant at the 5% level. The article concludes that buyer preferences and requirements are efficiently transmitted through traders to small-scale producers and expressed in farm-gate prices.
This article explores the factors that affect a farmer's decision to purchase seed potato in East Java. The research draws on a survey of 209 farmers from three central production areas: Pasuruan, Probolinggo and Batu Malang. Farmers were asked to rate the importance of 34 variables believed to influence a farmer's decision to purchase seed potatoes. The results reveal that the availability of seed at planting time, along with the availability of resources such as land and labour, are the most important factors influencing farmers' decisions to purchase seed. The lack of good quality seed available at planting time means that farmers are often forced to plant whatever seed is available. As a result, farmers typically use their own seed—retaining around 15-20 per cent from the previous harvest—until it degenerates. Only then do farmers tend to purchase improved seed. Given that demand for potato seed in Indonesia outstrips supply, potato farmers still rely heavily on high quality imported seed. However, the high cost of imported seed means that most farmers buy seed from their local supplier that has been multiplied several times.
One of the major constraints facing crop production in developing countries is a lack of low-cost, quality seed. In this paper, Fuglie et al. present a model of the market for seed, in which clean seed is treated as a capital good providing benefits over several seasons. To determine the farm demand for clean seed, they then apply this model to potato seed in Indonesia. The research uses data gathered from a survey of 182 potato farmers in the major potato growing areas of the country. Findings show that Indonesian potato farmers are well aware of the value of quality seed in potato production, but the high cost (three to four times the price of seed purchased through the informal system) remains a major constraint. Nevertheless, marginal returns to disease-free seed appear to significantly exceed marginal costs, indicating that improving supply of quality seed will contribute strongly to productivity growth in potato. The authors discuss several policy options to encourage supply and utilization of quality potato seed, asserting that the potato seed system cannot be isolated from support for potato breeding and crop improvement generally.
This report presents the details of a case study exploring livelihood patterns of farmer households and linkages with the production and marketing of cashew nuts on the island of Flores. It aimed to understand and identify livelihood constraints in order to fully understand and monitor the impact of a Swisscontact/VECO-Indonesia pilot project on certification and processing of organic cashew nuts in Flores. The study used the Sustainable Livelihoods Approach (developed by DFID) to analyse complex livelihood patterns in four villages in Central and Eastern Flores. The study revealed that the livelihood strategies of farmers in the target areas were highly diverse and led to different levels of vulnerability, largely caused by 'seasonal stress'—a term referring to periods of low income and food availability. Furthermore, cashew nuts were found to be the most important source of income for between 25-70 per cent of households in the surveyed villages, showing strong linkages between production and marketing of cashew nuts and farmer livelihoods. The report concludes with a set of recommendations in relation to livelihoods, marketing and the pilot project on certification of organic cashew nuts.
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. The authors use data from a survey of 602 chilli farmers selling to the traditional market channel or supermarket channel in West Java. Chilli farmers were categorized into four clusters, with differing perceptions on relationship quality, price satisfaction and chilli production characteristics. The differences across clusters suggest that targeted strategies are required to optimize farmer-trader relationships. The main limitation of the article is that the study was restricted to farmers perspectives only, thus the authors indicate that further research needs to be undertaken that measures buyers perspectives in order to develop a more in-depth understanding of farmer-buyer relationships in chilli supply chains.
This study uses maize to examine the potential for increasing the income of coarse grain, pulse, root and tuber farmers and employment in East Java. The study focuses on the development of industrial linkages and market opportunities (feed, alcohol, starch and corn oil). Four surveys were conducted: a survey of village officials to identify a case study village; a household survey (n= 81) for socio economics; a household income survey (n=34) and a market survey (n=102). The report explores the maize market structure, the development of agribusiness and impacts on the maize market, maize quality as being critical for the development of industrial linkages, access to credit, and characteristics of the rural financial market. The author provides details on various considerations to improve farmer incomes, including development of agribusiness (improved quality and marketing, access to credit, implementation of local drying facilities), access to investment capital and standardisation of financial commodities, standardisation of maize product markets, improved access to accurate market information, development of mutual linkages between farmers, traders and agribusiness, and maintenance of land fertility.
A significant constraint to shallot production is damage by the onion caterpillar (Spodoptera exigua) which can cause yield losses of 45-57%. This study assesses farmer knowledge and effectiveness of insecticides for S. exigua control in shallots in West Java and Central Java. Data was sourced via group discussions and individual interviews (n=100) and analysed using descriptive statistical method and content analysis. Respondent characteristics are briefly reported. The discussion encompasses farmer perceptions of shallot pests, knowledge of pesticide formulations, sources of pesticide information and details farmer pest control strategies. The report identifies that 60% of pesticides used are not government approved and that control strategies are based on short interval (1-2 days), high concentration (150-200% of recommendation) sprays mixes of 2-6 insecticides. The author discusses resistance implications and potential synergistic, antagonistic or neutral impact of spray mixes and the effectiveness of farmer control strategies as indicated by crop damage. Further research areas are summarised as: confirmation of S. mauritia pest status; development of an effective information dissemination system; control options that comprise effective control; ovicidal activity; and identification of synergistic insecticide mixtures.
In this article, Da Silva and Murdolelono assess the feasibility of new maize cultivation technology in enhancing maize productivity, farmer income and food security among farming households in East Nusa Tenggara. The authors use data gathered through an experiment with 30 farmers in South Timor Tengah district during the 2007/08 rainy season. The new technologies were the open-pollenated maize variety Srikandi and recommendations on fertilizers and plant spacing. The results demonstrate that the applied maize technology increased productivity to 3.4 t ha-1 compared to 1.7 t ha-1 using existing farmer practices. Farmer's income was also found to have increased significantly, from Rp 2.4 million to Rp 4.8 million. Farmers responded positively to the Srikandi maize because it gave them higher productivity and enabled an earlier harvest (by 20 days) than their local variety. The authors thus conclude that the new maize technology is worth disseminating on a wider scale in East Nusa Tenggara.
This report contains a detailed characterisation and analysis of individual legume (soybean, peanut and mungbean) value chains in West Nusa Tenggara, East Java and East Nusa Tenggara and makes recommendations on development opportunities, possible partners and future research. Based on the M4P framework, the study involved primary information collected through value chain and field visits, as well as secondary information. Market-based solutions (MBS) were identified to address constraints as well as providers to partner in implementing MBS e.g. tofu and tempeh processors, snack food, seed and input supply companies, retailers, wholesalers and traders. Key pro-poor value chain development opportunities include MBS's; collaboration with Government support agencies; and illustrative project facilitation activities to support MBS. The report lists research areas to be addressed prior to designing any development program including those common to soybeans, mungbeans and peanuts as well as specific to each legume. Poverty, gender roles and environment are also discussed. The authors outline several areas for potential development for each legume crop.
This report presents the findings of an ACIAR-funded project that aimed to develop understanding and insight of the goat supply chain in South Sulawesi and identify possible interventions that would improve smallholder and supply chain profitability. One of the main findings was that an iodine deficiency existed in the diet of goats, which was overcome by applying Providon solution to the skin of goats. The project also identified the need among goat producers to regularly weigh their animals for breeding, husbandry and marketing purposes. This was overcome by developing a cheap and practical tool to estimate the liveweight of goats. A key finding of the project that is particularly relevant for those considering investment in the goat sector is that there is demand for goat meat in Indonesia and an opportunity to improve the supply chain. In addition to consumer ignorance or misinformation about the benefits of eating goat meat, this means that a better understanding of the goat meat supply chain and education of goat meat consumers across Indonesia should result in greater demand for goat meat and improvements in the supply of goats from farmers to consumers.
This program focused on improving the quantity and quality of smallholder cocoa production in Sulawesi, West Papua, North Sumatra and Bali as well as strengthening global cocoa value chain partnerships. Monitoring and evaluation data was collected through the program as well as through independent research and evaluations. The program had six categories of activity: Farmer Field Schools (FFS), Farmer Organisation, Communications Initiative, Farming as a Business, Side-grafting and Bio-control. The report outlines methodology and implementation, baseline data and evaluation for each of these activity categories. Cocoa pod borer management, particularly PsPSP, was a core part of the program. The program directly trained 100 000 farmers, and reached 270 000 indirectly through media. Results indicate improved pest management practices for trained farmers compared with untrained and improved production and estimated income of US$435/ha/year. Key challenges for the cocoa industry were highlighted as continued development of effective technology and training service provisions, and development of farm based incentives for improved cocoa quality.
Cashews are a major crop throughout eastern Indonesia, with an estimated 300,000 smallholders involved in the production. However, a significant proportion of these smallholders are at or below the poverty line. This report outlines—from a supply chain approach—potential strategies to improve the incomes of smallholder cashew farmers in eastern Indonesia as part of a supply chain. The proposed strategies cover the areas of processing, agronomy, variety research, pests and disease, nutrition and soil management, and intercropping. The authors note that successful implementation of the proposed strategies requires strong involvement from all actors in the supply chain.
This report presents the findings of a scoping study to examine ways to increase the income of mango smallholders in eastern Indonesia as part of a supply chain. The analysis focused on researching issues in profitable supply chains, rather than identifying technical constraints. The findings reveal that current markets are heavily supplied with the Harumanis mango variety with little opportunity to develop new market opportunities in either export or out of season markets in other areas of Indonesia. The study also shows that it is possible to extend the mango season through early flowering, resulting in a longer season for the same production and thus increasing prices for farmers. Furthermore, there are good out of season export opportunities for the Gedung gunci variety, however national capacity needs to be built to develop access protocols in government. A full assessment of export issues and opportunities would also need to take place. Appropriate production technologies such as bagging and post-harvest fruit fly treatments could also improve quality, especially in the context of developing export capability.
This case study details a range of interventions implemented to improve cashew nut production in Flores and contribute to the enhancing the overall cashew nut value chain. The report summarises the key constraints to the value chain, such as no direct linkages and international value adding, poor productivity due to traditional farming methods, and lack of inputs and technology. It then outlines a number of considerations and processes in implementing four interventions to address these constraints. Interventions achieved the following value chain improvements: development of organic cashew product through certification of smallholders, 40 per cent increase in productivity per tree, 33 per cent increase in per kg price with increased annual cashew income from 59 to 69 per cent, local farmer and private sector managed processing units for value adding, branding of Flores cashews, and stimulation of local government and private sector support. The report critically evaluates the chosen interventions and the methods of implementation, identifying successes as well as areas where the project could have benefited from alternatives.
This paper discusses the institutional settings along the cocoa supply chain in Sulawesi. It explains how the Indonesian cocoa sector has seen rapid expansion under free-market conditions, followed by declining profitability due to pest infestations compounded by market imperfections. The complex needs of farmers in the face of pests and disease, sustainability concerns and quality decline are not being satisfied by informal mechanisms that facilitated earlier expansion. The author claims that the government has, for the most part, been a passive actor throughout these developments. Development agencies, international and national industry actors and national policymakers are now operating to sustain farm profits and prevent serious sectoral decline. The options being discussed among Indonesian cocoa stakeholders are directed largely towards serving downstream industrial interests rather than sustaining farm profits. However, the primary challenge for government intervention is to incorporate local informal institutions within national policy and to exploit benefits being offered by globally coordinated development initiatives. The author argues that state-led intervention alone is unlikely to result in the necessary improvements; rather what is needed is to effectively—and equitably—enrol smallholders within a globally coordinated array of institutional settings.
This paper explores the implications for value chain structures within smallholder coffee systems across Indonesia arising from the establishment of externally authored environmental and social compliance systems. The paper discusses their implications, and sometimes contradictions, thereby highlighting the complexities of applying global ethics locally. These demands are pivotally changing the incentive structures for various value chain participants, leading to changing business strategies and the emergence of new institutional forms. Certain organizations and actors are already emerging as key beneficiaries of these shifting ''rules of the game,'' including producer cooperatives and multinational trading companies. Key findings from this analysis include: (i) the prioritisation of idealized forms of farmer organisation (such as cooperatives) over traditional market-based trade networks; (ii) consolidation among a limited number of exporting firms and the upstream penetration of multinational trading firms; and (iii) trends toward contract farming-style arrangements between multinational coffee companies and producers leading to ''value chain enclosure'' and ''farmer capture.'' Finally, the ability of lead actors to ''govern'' the value chain by specifying compliance requirements across rural Indonesia is changing the relative profitability of various institutional arrangements in the coffee regions of Indonesia.
Sustainability perspectives and long-term consequences of coffee practices on natural ecosystems and social-economic dimensions of the livelihood sector have been widely discussed in the literature. This paper contributes to this literature by examining the links between global sustainability regulation in agricultural trade and coffee supply chains by reviewing the economics of coffee-producing regions in Lampung Province, Indonesia. The case study demonstrates that sustainability regulation of global environmental practices in the coffee industry, which characterize most global initiatives, has somehow restructured the supply chain in producing countries. Recent global sustainability standards require adequate organizational capacity of coffee-farmer groups and rural cooperatives involved in the supply chain. As a result, the author recommends policy integration between bottom-up initiatives at farm level or institutional changes in supply-chain organizations, and top-down sustainability standards set by the private sector and non-government organizations to achieve better environmental governance in the coffee sector.
This paper provides a useful overview of government policies and regulations relating to the seed industry covering the early stage of the formal seed industry, seed trade, seed certification, crop varieties protection and seed producer's registration. Seed policies are generally renewed by the government along with progress in the seed industry. The paper also assesses the conduct of the National Seed Agency and its related institutions in controlling production and marketing of corn seed in East Java. The National Seed Agency is one of four government institutions dealing with national policies on seed industry and was set up specifically to control seed production and distribution among seed producers in Indonesia. One of the major challenges highlighted by the author is the open sale of uncertified hybrid corn seed in several regencies in East Java, which is punishable under the Act on Crops Practice 12/1992. However, the government has not taken any action to implement the law. The author thus notes the need for government to implement law enforcement to protect both producers and consumers.
This study examined the effects of fertiliser, mulch, cultivation and time of sowing on the growth and yield of peanut, mungbean and soybean following rainfed lowland rice. The study involved research stations or farm field experiments in East Java and Sulawesi. Trial design was a randomised incomplete block with four replicates and treatments applied as an incomplete factorial combination. The results indicated that mulch did not improve yield except in drier areas due to water conservation effects, and fertiliser application improved legume yield (the magnitude of which varied between site, crop and season) where water availability was not limiting indicating that residual fertiliser following rice is inadequate. It further demonstrated that tillage could partially alleviate the adverse soil physical condition induced during the rice phase and increased peanut yield possibly due to soil structure benefits on pod development. The authors concluded that correct timing of crop establishment was the most important factor for post-rice grain legume production then soil water availability. Sowing immediately after rice harvest in the rainy season will ensure high establishment rates and yield.
The demand for cassava has increased significantly in the past 40 years. Area harvested has however declined, but yields have more than doubled in this time. This paper commences with a summary of cassava production in Indonesia since its introduction in the 18th century, the initial development of exports and development of cassava in dried forms as a means of addressing food scarcity. The paper spends a small amount of time considering the consequences of the development of the cassava starch industry, and significantly more time on hydrogen cyanide toxicity, where it gets quite scientific. The paper then moves into a discussion about agronomic aspects of cassava production and varieties, and the expansion of cassava growing in Indonesia. It touches on the management of waste and reduction of impact on the environment. A number of general conclusions are reached by the authors, but no recommendations for future research are made. A reasonable understanding of agronomics and chemical terminology would be recommended to fully appreciate the content of the paper.
This study examines the impact of increasing supermarket presence and their procurement system on horticulture supply chains (using tomato in West Java as a case study) and on farmers. Methodology involved key informant interviews, farmer field surveys (n=600), stakeholder focus groups and participatory rural appraisals (n=8). The report briefly outlines changes in food retailing in Indonesia and the development of the supermarket sector and highlights the dominance of imports in supermarket sales. Supermarket procurement systems and supply chain relationships with wholesalers and farmers are also discussed including deficiencies in traditional supply chains and preferences for alternative supply channels. The report examines the determinants and effects of farmer participation in different market channels, including a value chain analysis, and involving descriptive and econometric analyses which ranks the different market channels and details variations in farmer retail price share. The author concludes with discussion of the issues and challenges, relating to supermarket development. Policy interventions discussed in the report can be summarised as: agricultural support services; rural producer organisations; rural infrastructure; access to financial services; market intelligence; public product standards; and land rental markets.
Indonesia's specialty coffees have distinct and unique taste profiles based on their geographic origin. This paper assesses the impact of three processing methods (wet processed dry hulling (WPDH), wet processed wet hulling (WPWH) or pulped natural (PN)) on the cup profiles of three dominant Flores Arabica varieties ('Juria' (Typica type), S 795 and Hybrid of Timor (HdT)). Dominant varieties were identified through surveys of Arabica coffee farms in the Flores highland area of Ngada Bajawa. Cup profiles were assessed by 44 domestic and international taste panellists and evaluated fragrance and aroma, flavour, acidity, body, after taste, balance and overall preference. S 795 had the preferred cup profile with excellent balance of fragrance and aroma, flavour, acidity, and body with strong sweet tones. Processing method did not have a significant effect on the cup taste profile of S 795. Wet Processed Wet Hulling resulted in improved taste components for HdT. The local variety Juria had lower cup profiles than S 795 and HdT with the best cup profile achieved through Pulped Natural processing.
Despite various activities promoting improved water resource management and effective water use to produce high value vegetables, adoption has been limited. This study examined the economic and social constraints influencing farmer's non-adoption behaviour and key research areas to understand this behaviour. Information was obtained via desktop review and semi-structured interviews with farmers in East Nusa Tenggara and West Nusa Tenggara followed by a stakeholder workshop to validate findings. The report details constraints to improved water management in relation to technology adoption, market engagement, management of water infrastructure assets and social issues in water management. These include lack of capital and credit access, market price risk, production risks, inadequate incentives for water infrastructure maintenance, social attitude and gender factors, transportation and logistics, problematic extension and knowledge transfer, inadequate property rights structure and institutional problems in water management, labour and land constraints. The author outlines key areas for investigation including options for water infrastructure asset management; managing risk and uncertainty in high value crops; market price responses to changed supplies; and investigating social attitudes and perceptions to market engagement and technology adoption.
This report presents a value chain analysis of the peanut industry in West Nusa Tenggara. It shows that peanuts have a ready market in Indonesia but seasonal peaks in supply and lack of local ability to adequately dry, process and store peanuts limits smallholder earning potential. Research is required on improved seed varieties and best operational practices including cultivation versus direct planting, irrigation, fertiliser, weed and pest control. Cash flow problems with inputs (after the rice harvest) could be reduced or eliminated with farmer business management training. Cooperative groups of farmers would provide the potential to develop access to finance, processing, storage and markets. Garuda foods have established a processing facility in Lombok and seek a greater supply of quality peanuts, presenting an opportunity for SADI to assist farm groups to link with Garuda and develop their cooperative activities with an assured market. While improvements within the value chain have the potential to improve net profits for farmers, the analysis shows that understanding of farmer's overall annual farming operation, family and community needs is required for interventions to be adopted and contribute to overall improvements in smallholder income and welfare.
This report presents a sector profile and value chain analysis of the shallot industry in West Nusa Tenggara, identifying potential areas for SADI program support. The research shows that shallots are a profitable but potentially high risk niche crop in some parts of the province, particularly Bima. Apart from assisting with the problems of financing the relatively high value of inputs, such as seed, fertiliser, water, weed and pest control, the SADI program could seek to research seed varieties and the most economical way to produce propagation materials (bulbs) locally, potentially saving significantly on input costs and improving yields and bulb quality. The analysis also shows that there is potential to better link production with markets elsewhere in Indonesia. However, further research is required to explore possible linkages between end users or processors (in Java, Kalimantan and Makassar) and cooperative groups, which could be developed to improve marketing, buying and financial service activities.
In this report, Dipokusumo et al. examine the impacts of government policy on the profitability of wetland and dryland soybean in West Nusa Tenggara and the extent to which the province has a comparative advantage in soybean production. The research uses data collected through interviews with 90 soybean farmers, as well as policymakers, end users, extension agents and traders, in the districts of Central Lombok, Sumbawa and Bima. It uses the Policy Analysis Matrix as a data analysis tool. Findings show positive profits at both private and social prices, meaning that farmers have an incentive to grow soybeans under the current (no tariff) policy regime. Positive social profits indicate that soybeans also have a comparative advantage in West Nusa farming systems. Under these conditions there is no reason to distort prices in an effort to increase land devoted to soybeans. The authors suggest that government intervention should instead focus on improved extension services and better research programs that would lead to more productive soybean varieties. This type of research is important as it reinforces the need for Indonesia to promote agricultural production in order to avoid becoming dependent on foreign markets.
An export tax was introduced on Indonesian cocoa beans in 2010 to guarantee domestic supply for processing. This reduced cocoa bean exports by 51.4 per cent and increased processed cocoa exports by between 11.3 and 224 per cent. To assess the impact of this export tax on cocoa farmers and the supply chain, surveys were conducted with 60 farmers in South Sulawesi and various supply chain participants. A qualitative approach was used to analyse the cocoa supply chain from farmers to exporters or processors, and quantitative analysis for analysing the marketing system, efficiency analysis and price linkage. Results indicate that farmers' price is determined by the international price due to their higher bargaining power. It is the exporter that has a reduced margin or price differential following increased processing capacity and competition between exporters and processors for available beans. The study identified three marketing channels: farmers selling wet cocoa beans for cocoa processing; farmer's groups fermenting cocoa beans and then selling as providing the highest return to farmers; and farmer's selling dried beans to local traders.
Cashew is an increasingly important export commodity for Indonesia. In this article, the authors use data obtained from primary and secondary sources to examine the competitiveness and efficiency of monoculture and intercropping systems of cashew production in West Nusa Tenggara province, and the likely impacts of selected scenarios of anticipated policy changes on the competitiveness of these two systems. This research uses the Policy Analysis Matrix as a data analysis tool. The research shows that both cashew systems are strongly competitive and efficient in resource use due to generation of high positive private and social profits. On this basis, the authors propose that policy makers consider the expansion of cashew plantations as one of the best options to improve smallholders' incomes, particularly smallholders living in dry land areas. They further suggest that emphasis should be placed on expanding the intercropping cashew system, given that intercropping cashews with corn leads to higher productivity of cashews and significantly higher private and social profits for cashew farmers.
This paper presents the experiences of using farmer participatory research to develop and transfer cassava production technologies to maintain soil productivity, reduce erosion and increase farmers' incomes. The research was conducted over a five year period in two districts of East Java: Blitar and Malang. A Rapid Rural Appraisal was initially used, in which farmers identified problems and proposed potential solutions. The results demonstrate that farmers understood low crop productivity was partly due to improper land management and they knew how to implement soil conservation practices. However, they did not adopt the technology properly because it was too costly and complicated. When farmers became aware that this was not the case, they developed demonstration plots to test some of the technologies, including erosion control practices, fertilizer application and the introduction of new cassava varieties. During the course of the project, the number of farmers adopting the soil conservation practices in their own fields significantly increased. The study found that the farmer participatory research approach increased the self-confidence of farmers, motivated them to actively obtain new knowledge about technologies and increased their willingness and ability to try them.
This report presents findings from a project aiming to help smallholder farmers improve cattle production in eastern Indonesia by introducing forages into their cropping systems. It identified several factors constraining livestock production in smallholder farming systems, and found that most technologies needed to address the constraints are already available in Indonesia or elsewhere, but have not yet been adopted by local farmers. The report describes the merits of combining the principles and tools of farming systems analysis and farmer participation, where an extensive benchmarking process to identify constraints to livestock production and potential strategies to address them are shared with farmers to develop a shortlist of feasible strategies for on-farm trialling. Based on feedback from farmers and results from monitoring on-farm trials the approach was deemed successful. The pathways to adoption of livestock improvement strategies varied by region and technology. The initial focus was to address forage supply and quality constraints through modest plantings of selected forages. The confidence and trust arising from successful adoption of this comparatively simple technology was used as an entry point for more complex animal management strategies requiring long-term planning and investment.
This study identifies sustainability and competitiveness issues in the value chains of the following key Indonesian export commodities; cocoa, coffee, mango, cashew, tea and rubber. Methodology included desk top analysis and interviews with development and research stakeholders. Each commodity is described in a separate section and includes discussion of the issues relating to sustainability and competitiveness and opportunities to address these. The report highlights specific issues unique to each commodity and generic issues such as low smallholder productivity and access to improved farming practices and technology through to inefficient value chains and challenges in complying with national sustainability policy and international corporate environmental governance. The authors summarise the current policy and operating environment and provide policy recommendations to improve sustainability and competitiveness of these value chains into the future. These include: integrated horticulture development in upland areas for mango; farm production and added value creation for cashew; combining clonal based development and forest protection in rubber; revitalisation of the tea production and marketing system; expanding cocoa somatic embryogenesis technology seedling and sustainability based certification; and improving the mechanism of coffee certification schemes.
This report describes a collaboration between the NGO VECO, the leading global cocoa supplier Armajaro, and West Sulawesi farmers to develop direct market linkages and build on previous development work. The report briefly outlines the cocoa industry and the local cocoa chain and identifies key partners, their roles and activities. Testimonials from stakeholders provide comment on the process, benefits and challenges of the program. Benefits to farmers include improved production (up to 750kg/ha compared with an average of 500kg/ha, but potential for significant growth up to 2000kg/ha), better prices and income, terms and access to market and quality information. Sixty-seven farmer groups have qualified for UTZ certification providing another market opportunity. The report illustrates that collaborative programs can facilitate opportunities for traceability, production and quality improvements and that collective selling is a viable income source for organised farmer groups with improved productivity and quality. The report highlights the need for farmer organisations to become stronger and more organised at national and local levels to improve their bargaining capacity.
Bali cattle is one of the four existing indigenous cattle breeds in Indonesia. This article reviews cattle characteristics and husbandry methods in the country with a special focus on the importance of Bali cattle. The study shows that indigenous cattle are an important and integral component of the small landholder cattle production system, which is essentially 'organic' in nature and the most sustainable system. Farmers prefer indigenous cattle because they are less demanding and less prone to problems usually associated with most of the 'improved' and/or crossbred cattle. Ecological or organic farming is seen as an alternative to chemical intensive agriculture. The authors thus highlight the importance of developing indigenous technologies for ecological and economical farming methods. They suggest that policies reoriented towards maintaining the indigenous Bali breed and improving their efficiency, not through external genetic intervention, but through within breed genetic improvement are required, as well as effectively harnessing locally available resources. The study concludes that Bali cattle ought to be considered the most suitable indigenous cattle breed for low-input, high stress production systems still practised by millions of families in Indonesia.
Despite numerous initiatives to address Indonesia's inconsistent and poor cocoa quality, adoption of improved production and post-harvest practices has been limited. This study examines the influence of value chain governance and quality based incentives. The report includes a brief overview of the Indonesian cocoa value chain from producers to international trading and the enabling market. Analysis of the risks and incentives for improved cocoa quality concluded that incentives are either non-existent or not sufficient, but provided some considerations for future development practitioners. Incentives for processors to improve quality and consistency are not yet sufficient for transformation of their procurement operations and a strong cost benefit would need to be realised before they made any commitment to invest. Given strong competition, numerous market channels and the lack of quality price differential there is little incentive for farmers to improve production and post-harvest practices. Even given sufficient incentive, farmers must have the capacity to access and adopt improved practices. The report emphasizes that understanding the risks and incentives at all levels of the value chain is critical in deciding program interventions.
This study details the changes in Indonesian food consumption patterns and growth in modern food retailing, including retail chains, packaged foods and imports. The study was informed by a desktop analysis of previous literature, previously collected market information and trade data and interviews conducted by the authors. It provides a brief background on Indonesia and its agricultural trade sector then details changing dietary patterns in Indonesia, both traditional and modern food retailing systems and the developmental opportunities and constraints for modern food retailing. Between 1999 and 2009 modern food retailer sales increased from US$1.5 billion to over US$5.6 billion and their share of total retail food sales rose from 5 to 11 percent. This trend is expected to continue and the report outlines factors that may drive consumers towards the efficiencies (refrigeration, air conditioning, quality assurance) of modern food retailers. The report highlights the Government regulations constraining modern retail food supply chains in procuring products both internationally and domestically and in obtaining sites for expansion. The importance of changes in Indonesia's retail food sector to future import growth is discussed, with particular reference to the United States.
Similar to Jaeger's 2007 report, this paper commences with a very good overview of the global cashew situation and moves from there into detail on the Indonesian cashew industry. Information presented is logical in its flow and well-constructed graphs and tables support the information presented. These two sections set the scene well for the analysis presented around Indonesia as a competitor in the global cashew trade. The analysis does a good job in assessing whether there is a market for Indonesian cashew. The authors review factors such as quality and price, seasonality and timing of the crop, costs and margins, production, geography and value adding from shelling to arrive at conclusions around the prospects for cashew in Indonesia. The prospects presented are sound, as are the challenges the sector faces if it is going to achieve such yield and planting increases that are suggested as possible. The report concludes with three recommendations of merit, being one producer, one shelling and one support initiative. Overall the report is easy to read and provides a very solid understanding of the sector.
Development of mango hybrids is one strategy to improve mango quality to a level suitable for export markets, however, the duration of the juvenile phase is currently an obstacle. This paper outlines the use of the plant growth regulator, Paclobutrazol, to induce flowering and also assesses the impact on yield. The research involved a randomised block design with two levels of Paclobutrazol treatment and 20 accessions of mango hybrid. Results are presented and discussed based on the impact on induction of flowering and yield. Induction of flowering results are discussed in terms of various characteristics such as number of flowering plans and duration of appearance of flowers, number of flowers per plant, number of peduncles, width and length of inflorescence. Yield was presented in terms of number of fruit per plant, number of fruit harvested, weight of harvested fruit and yield. The authors conclude that Paclobutrazol significantly induced flowering and improved yield, however, yield appeared to be more affected by genetics.
This paper examines the use of geographical identities as a specific tool for value-adding in agricultural produce, presenting the case of specialty coffee production in South Sulawesi, Indonesia. The study is based on ethnographic research in 21 villages of four major coffee producing districts in 2002 to 2003, with follow up visits in 2005 and 2006. The paper reveals that the potential for producer-driven geographical indications compete with corporate-driven quality constructions, where the later are able to appropriate place-related quality associations by using trademarks, vertical integration and tightly coordinated supply chain controls. An emergent politic of quality governance and ownership in global commodity chains reveals the highly restricted institutional terrain within which growers of specialty coffee might attempt to retain a higher share of the economic rent associated with quality production.
Given a high unit price, substantial demand for specialty coffee and Indonesia's low international market share, there is scope for expansion of Indonesian Arabica coffee exports. This report summarises the key factors that impact on the competitiveness of the Arabica coffee industry in Indonesia and prioritises areas for intervention. Field visits and interviews with value chain participants informed the analysis. The report examines three scenarios for expanding production and farm income i) increasing on-farm production and yield rate, ii) increasing area of mature trees, iii) a combination of i) and ii). Three coffee farms from Northern Sumatra are profiled in an integrated value chain analysis covering farmers to exporters. On-farm production limitations are identified as well as market and value chain constraints. The author highlights the lack of extension services for on farm technical support and the need for an overarching industry organisation representing stakeholders along the farm to export supply chain to address policy and market based issues.
This report identifies legumes for use in maize and upland rice-based systems of East Nusa Tenggara and contains additional information on biomass and seed production, agronomy (sowing, configuration, pests, weeds, disease) and benefits from legume use. The report details the characteristics and performance of seven herbaceous legumes (Clitoria ternatea, Centrosema pascuorum, Lablab purpureus, Stylosanthes seabrana, Stylosanthes guianensis, Macroptilium bracteatum, Centrosema molle) including suitability to local climatic conditions and as a cattle feed, evaluated in on-farm and research station trials. The report contains numerous farmer case studies, documenting the use of herbaceous legumes in cereal and cattle systems. Benefits include production of significant biomass; provision of alternative high-N forage to supplement other feed sources e.g. tree legumes; direct incorporation into cropping systems based on maize and rice either as a relay or rotation; contribution of N to the cropping system through nitrogen fixation if not removed for hay; and utilisation of residual stored soil moisture. The report highlights aspects of the system that impact on farmer adoption and notes that continued farmer support is critical for successful adoption.
This report assesses the effectiveness of the PRIMA project in improving cocoa quality and the innovative approach used in establishing a quality driven supply chain with direct benefits to South Sulawesi smallholders. Interviews and questionnaires with a range of industry participants informed the report. The core component of the report details PRIMA project activities and how effective they were. Key areas where the PRIMA project was successful were: farmer organisation and the development of a quality driven supply chain model with direct market links between farmers, processor and global manufacturer; participatory research and an intensive extension approach; and advocacy of modified harvesting, pruning, sanitation and fertilization as fundamental to good farming practices with a 24 per cent increase in yield. Limitations of project activities are highlighted, particularly in relation to the research component. The authors note three key findings from the PRIMA project that would be beneficial to future development programs, namely technology transfer to address social and technical barriers to adoption, provision of a dedicated cocoa research presence and farmer group empowerment for technology transfer and improved marketing opportunities.
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. While results from the analyses vary as to whether producer prices do integrate with the reference market, they both indicate that the large red chilli commodity should receive more attention as market efficiency has not yet been reached. The authors suggest that government intervention, especially in the form of pricing policies, is needed both at the producer and consumer level to stabilize vegetable prices in Indonesia. However, the success of this intervention depends heavily on government's understanding of price transmission in the vegetable market. This research makes a solid contribution to this end.
Etawah crossbred dairy goats are easy to maintain and are capable of utilising the leaves of various food crops, legumes and crop wastes as feed. This paper explores the application of an integrated business model of Etawah crossbred dairy goats with cocoa through utilization of estate cocoa waste as goat feed in East Java. Research was conducted with 25 farmers in two villages in the highlands of Ngawi district, over a one year period in 2009. The research reveals that the most widely applied feeding approach that integrated cocoa was one that used field grasses (20 per cent), waste of food crops (15 per cent), leaves of legume crops (25 per cent) and pod cocoa meal molasses block (40 per cent). This composition produced a good range of weight gain and milk production, with an average of 100-125g/head/day and 1.00-1.25 litres/head/day, respectively. These levels are similar to those reported in another study (Riyanto et al., 2007), which examined the application of integrated farming systems through the utilization of local agricultural waste.
In East Java, goat milk has not been fully utilized due to the lack of milk processing equipment at farm level. As a result, almost all milk produced has been for the consumption of the kids. In this paper, Anam et al. examine the effect of introducing milk pasteurization, simple cup-sealer equipment and training of Etawah crossbred goat farmers on the production of pasteurized goat milk in East Java. Farmers also received capacity building to produce dairy products from the goat milk. The research involved 25 farmers in Ngambe district, with a total of 70 heads of Etawah crossbred goats. The findings showed that all participants were able to use the milk pasteurization equipment and the cup sealer, but only 25 per cent of participants could make dairy products. After training, however, the goat farmers were capable of making dairy products from the goat milk, which enabled them to create new businesses.
In this article, Cahyadi et al. present the findings of a study on herd dynamics of smallholder cattle producers in the two major agro-ecosystems (irrigated lowland and rain-fed upland) in East Java. The research aims to better understand the capacity of smallholder cattle producers in order to increase their production and income in line with government targets. A total of 184 farmers participated in the study in 2010. Their cattle were monitored on a monthly basis to record vital statistics, as well as transfer and sales-related data. The findings reveal that the number of cattle in the lowland site increased by 7 per cent and decreased by 2 per cent in the upland site—levels that do not support ambitious growth targets. In conclusion, the authors assert that reproductive performance, cattle numbers and growth rates could improve with greater use of natural mating, better coordination of mating with available feed supplies, and targeted use of legume-feeds. However, they acknowledge it may be difficult to achieve these productivity gains given the resource constraints and market signals experienced by farmers.
Cocoa smallholders generally have limited contact with markets, leading to little awareness of product suitability, quality or choice of crop. This paper examines the characteristics of cocoa industries in Indonesia and Papua New Guinea, discusses key issues for improvement and sustainability of the industries, and describes research and development initiatives aimed at improving smallholder incomes. For Indonesia, the paper explores the Sulawesi cocoa industry. It illustrates the efficiency of the supply chain, noting the large share (70 per cent) of the selling price that cocoa farmers receive. There are few intermediary collectors and traders, who make relatively low profits. However, there is room for quality improvement, which could be overcome through introducing differential pricing, and reducing farmers' losses through improved integrated pest management. The authors note that programs to support the cocoa industry have many elements critical to sustainability: a well-identified market, and strategies to reduce losses and improve productivity. The challenge will be to foster wide adoption of improved cultivars, encourage adherence to control measures recommended for pod borer and diseases, and link farmers to manufacturers to enable adequate income improvements to cover increased costs of management.
The islands of Sulawesi and Flores are among the key Arabica coffee producing regions of Indonesia. In this paper, Hartatri et al. explore the effect of livelihood strategies on decision making processes of smallholder coffee farmers in South Sulawesi and Flores and how they affect farmer engagement with the growing specialty coffee market. The author's assumption is that the way coffee production is inserted within social and agro-ecological systems will affect the willingness of farmers to engage in quality upgrading initiatives. The research uses data gathered from interviews with 803 smallholder households engaged in coffee production in six districts. Preliminary findings show that there are different roles of coffee in smallholder farmers' livelihood strategies across the region. They also suggest that income from coffee is highly variable. The findings indicate a need to tailor interventions that consider varying smallholder farmers' livelihood strategies in order for smallholder farmers to fully benefit from the upgrading of coffee quality in value chains.
This paper explores the development of livestock production in Indonesia, with a focus on issues of autonomy. It maintains that the effort to develop livestock production is strongly related to decisions made by institutions in various fields and sectors in a given area or region. The opportunity to develop animal production results from interactions between commodity, sectoral and location factors as well as between the proper use of human resources and related factors in development such as technology, socioeconomic conditions and variations in ecosystems within a particular area. The author claims that the partial development approach that has been employed in livestock development in Indonesia so far has widened socio-economic gaps between farming communities, and has contributed to the existing institutional competition and institutional imbalance. He argues that the development of livestock production should be sustained by appropriate policy, infrastructure, capital and investment, appropriate technology and the participation of stakeholders. The author suggests that the direction and objectives of livestock industry development should be guided by a national initiative in the form of a macro-policy to be adjusted and implemented at the local level.
Small animals are a significant source of meat in rural areas during times of food shortage or when there are sudden unexpected food requirements for ceremonies. This paper assesses the potential, opportunities and constraints in rearing small animals for integrated rural development in East Nusa Tenggara based on experiences and a review of studies. It finds that small animals such as goats, sheep, chickens, pigs and ducks are potentially a major component of integrated rural development. However, given that farmers generally have low education levels, the paper rightly points to a need for continuing advice and guidance to develop agribusiness acumen. The authors suggest that programs for rearing small animals in rural areas should be managed within a cooperative system with diversification activities, and sustained with wise management based on agribusiness principles. They also highlight the need for cooperation from supporting and skilled partners in order to ameliorate problems and realise opportunities. This review is useful for developing the potential of small animal husbandry in East Nusa Tenggara, particularly for farmers, partnerships and activities models.
Limited information exists about the growth of young Bali calves under local feeding strategies which are likely to be adopted by farmers. In this article, the authors examine a range of diets designed to increase the growth rate of young Bali cattle and develop practical feeding strategies to complement weaning in order to improve cattle production systems of smallholder farmers in Central Sulawesi. Three experiments were conducted to determine liveweight gain and feed and water intake of weaned Bali cattle offered a range of feed types. In each experiment, 18 weaned male Bali cattle were allocated to three treatment groups in a completely randomised block design, with six animals per treatment. The results show that the growth of weaned Bali calves could be substantially increased from ~0.1-0.2 kg/day on various forage sources in the region to over 0.4 kg/day with the addition of locally available protein/energy concentrates or gliricidia without depleting available feed resources. The authors conclude that increases of this order would likely have a major impact on the turnover of cattle and increase cash flows for smallholder operations across eastern Indonesia.
Seaweed farming is predominantly practiced in shallow waters where other sensitive ecosystems such as seagrass beds are also likely to occur. This study examined the effect of shading, trampling and varying intensities of seaweed farming on seagrass in a shallow bay of a traditional fishing village in South Sulawesi. Methodology involved manipulating different levels of shading and trampling in experimental plots over a homogenous seagrass bed and experimental seaweed farms of differing farming intensities. Results are presented and discussed in terms of treatment effects on shoot density and biomass. While farming methods and seedling densities were not found to harm seagrass the author does discuss the potential for seagrass associated fauna to be impacted by farming practices. The author lists several options for increasing seaweed production including increasing farming densities to 185,000 seedling per hectare (reported as optimum sustainable density) but concludes that extending production to open water outside reef systems is the best option when considering seagrass and reef top management. There is brief discussion of factors to consider with this option.
The demand for maize as food and feed in Indonesia has been steadily increasing. Total national maize production has grown at 4.07 per cent per annum in the last three decades, thanks mainly to the adoption of improved production technologies, particularly hybrid seed. This high production, however, still fails to meet domestic demand and has caused a rapid increase in the net import of maize. This study presents the maize production systems in four major maize-producing provinces in Indonesia: Lampung, East Java, West Nusa Tenggara and South Sulawesi. It identifies important productivity constraints faced by maize farmers, including low grain prices during harvest; high input prices; large distances between maize production areas, feed mills and seed industries; lack of promotion of local improved maize varieties (OPVs and hybrids) by government research centres; and lack of farmer capital. The authors propose that farmers, the Government of Indonesia, and private companies should be encouraged to develop appropriate technology and policies, such as tariffs and credit systems, to overcome some of these constraints.
A number of insect pests are associated with maize in Indonesia. This article examines the species composition and status of maize pests in Donggala district of Central Sulawesi province in order to identify an appropriate control strategy and make location-specific integrated pest management recommendations. The study was carried out in seven villages in 2007, in which 50 samples were collected in each location from maize plots of 0.25-1 ha. Observations were recorded visually using sweep nets. The results reveal that maize pests found in Donggala district were almost the same as elsewhere in terms of structure, infection and distribution. The most important insect pests were Ostrinia furnacalis Guenee, Helicoverpa armigera Boddie and Atherigana sp, followed by Dalbulus maidis Delong and Walcott, Rhopalosiphum maidis Fitch and Nezara viridula L. The study recorded one parasite and 12 predators as natural enemies of these pests. In particular, egg parasites were found to be more effective in controlling O. furnacalis compared with larval parasites. The percentage of egg mass of O. furnacalis parasites ranged from 60-96 per cent in all locations.
In this paper, the authors describe the successful implementation of an integrated village management system to improve reproductive efficiency in beef cattle production. They also review the results of a range of studies conducted to develop feeding strategies to increase growth of early weaned Bali cattle across eastern Indonesia, as well as the potential use of crop residues, including rice straw, as a basal diet for reproducing females. To support the Indonesian government's proposed increase in cattle numbers, the authors conclude that a greater quantity of feed resources is needed. This requires a change in feeding management where early weaned calves are preferentially fed less abundant high quality materials at a fixed proportion of live weight, while lower quality materials and crop residues are directed to non-lactating cows for maintenance of body condition. The authors propose that the use of crop residues as a basal feed resource for non-lactating cows combined with early weaning, new forages and strategic supplementation of early weaned calves have the potential to increase cattle numbers and the efficiency of cattle production systems across Indonesia.
This report provides a very brief overview of Indonesian mango production and more specifically that of East Java. The information presented encompasses export potential, extension prospects, marketing of East Java mango and problems with extension of the mango industry in East Java. The discussion in these sections includes highlighting limitations to current mango production and identification of opportunities to expand and develop production. The report identifies East Java as having potential for further development and expansion of the mango industry in Indonesia. Provinces outside of Java with expansion opportunities are also outlined. The report identifies key areas for intervention as: government involvement in preparing complete packing houses in some production centres to handle and control fruit quality; provision of low interest credit for improved management practices; and increasing market linkages for export.
Rapid urban population growth has increased demand for quantity and quality of mangoes. This report outlines the changes in consumption that are driving changes in marketing and production. The project involved 113 interviews with various value chain stakeholders (input suppliers, farmers, brokers, processors and wholesale, traditional and modern markets) in East Java and West Java—provinces that produce 61 per cent of Indonesia's mango production. The report details changes in consumer demand and subsequent impacts on marketing including the importance of wholesale markets and the increasing trend for modern retail markets, processors and exporters to procure directly from farmer groups. The process of mango production expansion tends to be via tree management consolidation (tree rental) then land expansion with a restructure towards more commercial operations. Demand for quality is also driving high quality variety expansion. The report highlights the necessity for 'sprayer trader' operations, characterised by vertical integration of tree renting and marketing and implementation of intensive production technologies to be able to meet growing demand.
Despite growing recognition of the importance of collaborative relationships in facilitating exchange in the fresh produce industry, few studies have empirically sought to explore the nature of trading relationships between market intermediaries. This paper contributes to this literature by exploring the prevailing trading practices and activities and the key dimensions of long-term buyer-seller relationships, namely trust, power-dependence and satisfaction. The authors use data from interviews conducted with 53 collectors, 12 traders and 10 wholesalers in Probolinggo, Malang and Jakarta. From this, they determine that a trusting relationship enables market intermediaries to profit from the Manalagi mango supply chain in a way that would not be possible individually. They found that intermediaries gain a certain level of risk sharing and improved access to markets and information, and display some trust and satisfaction in their relationships. However, the authors emphasise the importance of improvements in operational effectiveness to reduce cost and increase value, including better post-harvest handling practices and improvements in infrastructure and logistics to reduce product losses.
This reports presents a profile of the beef and live cattle industries in Indonesia, including production, food marketing channels and distribution, meat processing and the retail sector, consumer trends, and live cattle and beef imports. Research involved collection and analysis of secondary information and interviews with value chain participants in 2010. Morey briefly summarises the main issues facing beef production as: minimum private sector investment (except for fattening), lack of economic incentives to develop the cattle industry and lack of sufficient cattle feed during the dry season. The author also observes that food consumption is the largest household budget component, modernisation of the retail sector offers growth opportunities, distribution of perishable products across Indonesia's islands remains challenging and imported boxed beef is the cheapest source. Live cattle and boxed beef imports to meet domestic demand prompted government interest in accelerating growth of the industry towards self-sufficiency. Programs to assist self-sufficiency are documented in the report, along with the challenges. The report outlines proposed government policies and potential impacts on Indonesian beef and live cattle imports and trade with Australia.
This article describes and analyses the marketing practices and constraints of beef cattle producers in lowland and upland sites in East Java as part of a study to improve the reproductive performance of cows and the performance of fattening cattle in low input systems in Indonesia. The research uses data gathered from a survey of 184 smallholder cattle producers and 30 cattle traders in 2010. The study found that most farmers sold to village collectors, who mostly paid in cash. Subsequent marketing costs and risks were therefore borne by the traders. While some farmers used a regular trader, others varied their choice depending mainly on the price offered. In general, prices appeared to be competitively determined. There was no obvious difference between upland and lowland locations, suggesting a well-integrated regional market. The authors conclude that the subsequent movement of cattle to fattening operations and to slaughterhouses will be a crucial aspect of future research.
The increasing role of modern retail markets and supermarkets provides an opportunity for the Indonesian fruit and vegetable sector if supply chain issues can be resolved. This study discusses the multi-layer distribution system as it applies to the Indonesian fruit and vegetable sector and proposes more effective and efficient options. The paper outlines the advantages and weaknesses of multi-layer distribution channels. Despite being advantageous in marketing small farmers' products and providing employment opportunities as intermediaries there are various disadvantages. The long distribution channel increases risk of quality reduction and costs to maintain quality, higher transaction costs, inadequate technical requirements and limited information flow and asymmetry. Alternative systems proposed by the author include contract farming and direct collaboration with modern-supply-chain players; repositioning of existing cooperative networks to be business focused and self-reliant; creating producer organisations to achieve associated benefits (stronger bargaining position, reduced transaction costs and lobbying capacity); integrating consumer-oriented policies in all supply channels so that Indonesia can produce consumer preferred products rather than turning to imports; and creating a favourable political situation through redesign of policies.
Boosting productivity of rice and maize in rice-maize cropping systems requires efficient fertilizer management to improve the nutrition status of the soil. However, fertilizer rates for rice-maize cropping systems are conventionally calculated separately for each commodity regardless of the fertilizer residue of the preceding crop. This paper explores the impact of balancing and phasing nutrients for both crops on crop yields. It is based on an experiment conducted at the ICERI experimental farm in Maros during 2007. The experiment used a randomized block design with four replications of NPKS fertilizer in a rice-maize rotation. The findings show that the highest yield of both rice (5.01 t ha-1) and maize (8.30 t ha-1) were obtained by using a combination of four fertilizers (600 kg ha-1 urea, 200 kg ha-1 SP 36, 200 ha-1KCl and 100 kg ha-1 ZA) in equal proportions—50 per cent for rice and 50 per cent for maize. This finding suggests that fertilizer use efficiency and productivity of a rice-maize cropping system in the rainfed lowlands of Indonesia would be optimized if the fertilizer dosage was appropriately apportioned to the two crops.
Increased beef demand and prices could increase smallholder cash flow and production if feed quantity and quality limitations could be addressed. This project assessed the potential use of cocoa by-products as a cattle feed and various forage and tree legumes in managed grazing systems in South East Sulawesi (Sultra). Methodology involved laboratory, research facility and on farm trials. Results indicate cocoa pods could successfully be fed to Bali cattle (10-15g DM/kg live weight/d) while contributing to cocoa pod borer management and using simple low-cost processing for storage. Gliricidia and Sesbania tree legumes provide additional stock feed options. Key recommendations include the introduction of cheap cocoa pod choppers and extension of cocoa pods as a feed source. The authors suggest several areas for further investigation, including assessment of forage legumes, which was limited by unfavourable climatic conditions in the current study, the role of Aspergillus niger in improving low quality feedstuffs and the most palatable form of processed cocoa pods. The project contributed to capacity building and developing research linkages for future ruminant nutrition research.
This article presents the findings of a study to help farmers develop optimal potato yields in the Sembalun Highlands—an isolated area of West Nusa Tenggara province without specialist potato support services. The author's assumption was that utilizing a less costly potato system would increase the ability of small farmers to take up potato production. The research was carried out in six farmers' fields involving six farmer-initiated learning groups, who compared the use of superphosphate with local compost. The results show that there was no significant difference in yields using 300 and 600 kg/ha of superphosphate, which produced 33.0 and 33.1 t/ha, respectively. Likewise, there was no significant difference in yield using compost treatments at 3,000kg/ha and 5,000 kg/ha, resulting in 33.0 and 32.7 t/ha, respectively. As a result, farmers can reduce costs and increase income by improving efficiency in input use. An added benefit of this research is the capacity building of local farmers and extension workers, who are now equipped to plan and coordinate simple potato experiments.
This report details the outcomes of work undertaken in West Java, Central Java, West Nusa Tenggara and South Sulawesi to develop potato and cabbage integrated crop management systems, develop and improve farmer access to quality potato seed and build capacity for adaptive research and development. The report details the results from surveys of 80 potato and 50 cabbage crops covering crop agronomy, yield, economics, post-harvest management and potato seed supply, source and quality. It outlines the constraints to potato and cabbage production, with low soil pH being the major constraint. A modified farmer field school participatory technology transfer process facilitated farmer testing of a range of crop management techniques (potato late blight and clubroot management, liming), which is discussed in the report. Soil testing identified the Sembalun Valley as free of potato cyst nematode (PCN) for the potential development of a partial PCN free seed supply using seed imported from Australia. The impact of the project was assessed through farmer surveys, which identified a number of production, financial, environmental, social and gender impacts.
In 2010, the Indonesian government introduced a 15 per cent export tax on cocoa beans to promote investments in downstream value-added activities. This paper examines the impact of this tax on domestic welfare and whether the government has imposed optimal taxes on cocoa beans. The research uses a partial equilibrium approach to analyse effects of policy by upstream sectors on downstream cocoa manufacturing. It also presents econometric estimates of import demand and export supply elasticity. The findings demonstrate some positive effects of export taxes, including diversion of some cocoa crop to domestic use. However, this results in significant losses to cocoa bean producers and does little to encourage the development of a downstream processing industry, the stated objective of the policy. The findings also show evidence of interdependence between the policies of major cocoa exporting countries. The authors acknowledge that due to limited available data, better econometric techniques do not necessarily lead to improved robustness of estimates of elasticity. This could significantly affect estimates of optimal export taxes and, therefore, analysis of welfare effects.
To secure quality and quantity of agricultural products in the face of rising global demand, private companies are increasingly developing and nurturing long-term relationships with producers and their organizations. This case study describes how cocoa traders and manufacturers on the island of Flores are investing in producer organizations to ensure quality, sustainability and future supply, and ultimately their own survival. It provides a useful overview of the cocoa supply chain on Flores and then details how the efforts of P.T. Mars to secure their supply of cocoa has resulted in sustainable changes in the Flores cocoa chains. This includes improved organizational and marketing skills of farmers, increased resilience among farmer's organizations to cope and adapt to new situations, strengthened skills among farmers, and increased potential for collaboration and coordination among actors. Given the announcement by Mars Inc. that by 2020 all their cocoa beans would be from sources certified as sustainable, this approach presents a new and growing market opportunity for farmers.
This report provides a brief overview of pig production in Indonesia, in particular its significance in terms of pig exports and the predominance of smallholders. Government focus has been on both larger scale commercial production as well as significant support for smallholders through research and development, extension services, cooperative development and private sector provision of goods and services. The report provides details on investment priorities for the Indonesian pig industry. These include genetics (breeding programs and production potential), nutrition (feed ingredients), animal health (key diseases), housing and environment (pig housing and effluent considerations), product development and quality (impact of consumer demand and trends), reproduction (litter size), socio economics and technology transfer (smallholder production and extension approaches). The authors conclude that development of the Indonesian pig industry requires a research focus on environmental factors (encompassing climatic, structural, health, nutrition, cultural and social aspects) and socio economics and technology transfer to provide necessary support to improve smallholder production systems.
This article identifies and analyses constraints in seed production in Indonesia and describes the major factors that account for the failure to produce quality seed potatoes. The study is based on interviews with staff from government and non-government agencies, farmer-seed producers, farmer cooperative members and end-user farmers. Facilities and techniques used in various stages of seed production and quality control were also evaluated. One of the major problems highlighted by the author is that seed growers claim to sell certified seeds, but they are not actually certified by the government. This has led to a lack of trust by farmers in seed growers and their reluctance to use seeds other than their own, which has in turn created a marketing problem for seed producers. Other constraints highlighted include lack of funding for institutions conducting research and development in potato seed production, limited cold storage facilities, re-introduction of field-grown or net house-grown materials as in vitro without proper procedures, low priority given to potato tissue culture activities, and existing laws that are not conducive to seed production. Overall, the study provides a thorough background to the key constraints in Indonesia's potato seed system.
Traditional Indonesian shallot production is based on seed bulbs but True Seed Shallots (TSS) could improve competitiveness of the industry. This study assesses numerous factors such as, seed raising mixtures, sowing depth and furrow fill, productivity comparison of TSS cultivars and seed bulb cultivars, plant density and nitrogen fertilisation, for their impact on shallot growth and production. Each experiment is reported on and discussed separately. The report discusses the impact of these different factors on a range of shallot characteristics such as emergence, growing period, yield, bulb size, bulb colour and storage quality. The results lead the authors to identify areas for additional research such as the impact of nitrogen fertiliser on storage quality of bulbs and the mechanism through which stable manure improves seedling emergence. The authors conclude that TSS could be a viable option for improving the competitiveness of Indonesia's shallot production. TSS yield's averaged 70 and 113% higher than the seed bulb cultivar 'Bima curut' but exhibited a 2-3 week longer growing period. The report discusses optimal nitrogen fertiliser rates and plant densities for the TSS and seed bulb cultivars.
This paper explores the allocation of inputs in small-scale shallot production with a view to increasing efficiency and raising farmers' profits. The research uses primary data gathered through a survey of 43 farmers in one village in East Java. It applies double-log production function and polynomial cost function to measure the profit gap. Three simulations are used for input allocation based on low, medium and high input costs. The findings show that land, labour and seed are the most important group of inputs for production, followed by the fertilizer phosphate. Seeds were found to be used efficiently in all three simulations. However, allocation of labour, pesticides and potassium all exceeded optimum use. In contrast, inputs such as land, phosphate and nitrogen were under-utilized. The profit gaps for low, medium and high input costs were calculated at 4.72 per cent, 13.96 per cent and 17.92 per cent, respectively. The research concluded that the gap between actual and optimum profit for shallot farmers was significant, but could be improved with efficient input allocation.
This report reviews previous agroforestry, forage and livestock projects in eastern Indonesia to assess the potential for integrated timber-forage-livestock agroforestry systems to improve the incomes of smallholder farmers in West Timor. It identifies strategies for developing more acceptable systems, proposes methods for their implementation and provides an assessment and analysis of the constraints to adoption of research results. The scoping study included field investigation and a social survey in West Timor in 2007. Findings reveal that the major barriers constraining the adoption of agroforestry programs are physical, social, institutional and economic in nature, including water availability, limited understanding of farmer's decision making processes, labour shortages, low household capital, and regulatory frameworks and policies inhibiting beneficial programs. Furthermore, farmers were found to be reluctant to make long-term investments. The study proposes a timber, forage, livestock agroforestry approach as a strategy for enhancing the uptake of new technology—a flexible approach that allows for the cyclical nature of adoption. Success will depend on the extent to which biophysical and socio-cultural aspects are integrated into the approach.
In recent years, maize cropping in Indonesia has been increasing rapidly at 20-30 per cent per annum, particularly in the lowlands. Yet more areas have the potential for development of maize farming. This paper presents the results of integrated maize management trials conducted in lowland areas of Sidrap regency in South Sulawesi during the dry seasons of 2006 and 2007. Data was gathered through Rural Participatory Appraisals, respondent interviews and secondary data collection. The results show that planting open-pollinated varieties of maize (Lamuru and Srikandi Kuning-1) produced an average of 4-4.5 t/ha-1 with a benefit of Rp. 4.6 million ha-1 and a return:cost ratio of 2.31. This shows the marked promise of developing maize in the rainfed lowlands. The authors propose that five component technologies need to be implemented by farmers for integrated management of maize production, namely high-yielding open-pollinated varieties, quality seed, appropriate plant spacing, nitrogen fertilization and water channel construction. The authors conclude that more emphasis should be placed on planting maize in Indonesia's rainfed lowlands, especially since technology is available to enhance productivity and cost efficiency.
This report compares and contrasts the potential for use of a public private partnership approach to solve the problems of low productivity and inadequate smallholder income in the beef cattle and cocoa industries in eastern Indonesia. Overall, the study found that the potential for improvement of productivity in the beef industry—in order to reduce import dependence and meet market demand—appears much lower than the potential for success in improving profitability and sustainability in the cocoa industry by improving yields and quality. Cocoa provides a good model for reform and productivity improvement in high value cropping by smallholders in partnership with Government and the private sector in Indonesia. However, the solutions to the multiple problems of production, product quality, trade and export, research and extension require an approach involving the whole supply chain. The report outlines a management structure for public private partnership involving an industry wide Commission and Secretariat composed of all stakeholders.
The growth of international specialty coffee markets has increased the demand for high-quality coffee production at origin, offering opportunities for smallholders to engage in product upgrading and potentially increase the farm-gate price of their coffee. This paper examines smallholder farmer engagement in specialty coffee production across the islands of Sulawesi and Flores. The study integrates global value chain analysis with a livelihoods approach to address the critical linkages between quality upgrading in the value chain and farm livelihood strategies, asking the question whether or not quality upgrading directly contributes to improved livelihood outcomes without further institutional support. A key finding from this research is that distinct livelihood strategies affect both the willingness of farmers to participate in value chain upgrading as well as their potential to gain tangible benefits from enhanced value chain integration. The authors suggest that government interventions should no longer focus on areas of market failure or the provision of public goods, but instead areas of rural development not being provided through value chains.
This case study provides an overview of an ACIAR-funded project to minimise aflatoxin contamination in Indonesian and Australian peanuts through research, development and extension of on-farm and postharvest management practices. It details the motivation behind the project, which ran for five years from 2001 to 2006, and the main outputs and impacts it has or is expected to make. One of the important impacts of the project, noted in the case study, is the quantification of actual—and potential for—aflatoxin contamination throughout the peanut food chain, which has established a clear link between agriculture and human health. This presents compelling justification for further action from national and provincial governments to develop and implement appropriate policy measures to reduce its impact throughout the Indonesian community. At the same time, dissemination of information on aflatoxin incidence and its management, generated by the project, has led to significant adoption by research and extension agencies, as well as to the creation of a large extension network program. The lessons learned from this project are useful for future research on peanuts in Indonesia.
This study identifies potential business partners and investment opportunities for the IFC to consider in future development of the horticulture sector. The report details consumer, distribution and retails trends, horticultural production, exports and imports, processed horticultural products and investment trends and constraints. The report also profiles East Java, South Sulawesi, North Sumatra, Lampung and Bali encompassing regional investment, and constraints and opportunities for future development. Methodology involved a literature review, collation and analysis of secondary information from a range of horticulture networks, and 20 interviews with key supply chain stakeholders such as fresh produce suppliers, importers, retailers, processors, government and foreign embassies. Regional analysis and profiling involved 31 regional visits and interviews. The author identifies opportunities for development of Indonesian horticulture in four key areas: value added produce for high value markets; plantation farming; farmer trader retailer partnerships with associated investment in facilities and support in the areas of technical information, finance access and market intelligence; linking investors to take advantage of Indonesia's investment appeal. The report also outlines Government regulations impacting on export, import and investment.
This paper examines factors affecting the reproduction level of Kacang and Peranakan Etawah goats under the village production system. The study was conducted in two regencies in Central Java as part of a doe productivity evaluation program under the village production system. Reproduction data of 173 Peranakan Etawah and 189 Kacang does were collected through on-farm research over 20 months. The reproduction traits examined were parity, type of birth and litter weight at weaning. The findings revealed that the average reproduction rate of Kacang and Peranakan Etawah does was 2.95 and 1.76 kid/doe/year, respectively, which was significantly affected by parity, type of birth and litter weight at weaning. The reproduction rate of both breeds of doe tended to increase with the advance in parity up to the fourth parity and slightly decreased thereafter. The reproduction rate increased progressively with the advance in birth type. The findings also showed that at each 1 gram increase in litter weight at weaning there was an increase of 0.17 and 0.08 reproduction rate of Kacang and Peranakan Etawah does, respectively.
This report outlines the South East Sulawesi seafood supply chain including live fish and lobster, processed abalone and sea cucumber and seaweed. The report is based on desk research as well as meetings with seafood market chain operators, traders and buyers which are reported as case studies. The author outlines the role of Makassar in South Sulawesi as the trading centre for seafood products. The seaweed case study highlights limitations and opportunities in the seaweed market chain including price discounts for high moisture content due to inadequate drying, quality improvement with improved cultivation techniques and location selection and lack of direct seaweed exports from Kendari port due to insufficient supply, lack of established relationships with importers, unsuitable infrastructure and control of exports by Makassar traders. The report concludes with an overview of seafood chain issues and opportunities, including strong export opportunities and development of regional branding; lack of market focus by fishermen; control of market power by traders; limited infrastructure at Kendari port; and a need for allied industry involvement in development programs.
With increasing population density and subsequent increases in fishing pressure, seaweed farming is an alternative income source for coastal villages traditionally reliant on artisanal fisheries. This study is a component of a larger thesis and investigates the impact of seaweed farming on the economy of a traditional fishing village in South Sulawesi. Data was obtained through random semi-structured interviews (n=31) with households. The study results encompass basic demographic data, farming system information (farm establishment, seaweed farming practices, harvest and marketing, contribution to household income) and farmer motivations, satisfaction and future hopes. Income from seaweed is reportedly 81 per cent of household income. Results are discussed in terms of economic activities and effort, seaweed culture and fishing problems, market problems and income, satisfaction with seaweed farming and fisheries and the future. The author makes several recommendations to maintain or improve farmer income: economic and productivity opportunities should focus on addressing poor post-harvest processing practices for improved crop quality market price; further development should consider market access and environmental suitability; and community development plans should consider alternative sources of income to buffer against significant fluctuations in seaweed prices.
This report examines the main strengths and constraints affecting the profitability of the coffee industry in Flores, focusing on the two main coffee producing districts of Manggarai and Ngada. The report highlights a number of strengths and opportunities which suggest that Flores could develop into a specialty Arabica coffee origin, whilst further building the reputation of its Robusta coffee. In addition to the ideal coffee-growing environment, the report suggests that the established coffee-growing tradition within communities provides a good basis on which to develop a high value industry. Furthermore, the current combination of poor primary processing and lack of market understanding provide potential to quickly add value to this coffee. However, the authors identifies a number of constraints to overcome in order to capitalize on these strengths and opportunities. These include geographical isolation, a highly risk averse farm system, the need for infrastructure improvements, and lack of knowledge about market opportunities and technical requirements for quality improvement and value adding. The report contends that creating a world class speciality coffee origin could result in increased farm incomes for the estimated 75,000 families currently involved in coffee production.
Strong international demand for specialty coffee from the District of Tana Toraja, South Sulawesi, provides significant opportunities to improve rural incomes. This report provides an overview of the Sulawesi specialty coffee industry including key coffee producing districts, international markets for Sulawesi coffee, geographical identities and certified coffees. The authors detail factors of significance to any future development of the Sulawesi and particularly the Toraja coffee industries. These range from the comparatively very low yields of Toraja coffee (150-200kgGBE/ha) through to certified coffee, processing and cup quality, geographical authenticity, post harvesting processing and value adding, coffee varieties, pest and disease assessments and management, farmer organisation, market risks and price and value chain analysis. This information was based on discussions with various organisations and individuals involved in the Sulawesi coffee industry. The study recommends five activities for development of the Sulawesi coffee industry. These include industry wide partnership, socioeconomic research on farmer decision making processes, an effective extension service promoting sustainable management, improved understanding of the physical quality of Sulawesi coffee, and establishment of regional branding and geographical identities.
This paper briefly outlines the issues and opportunities for family farming in Indonesia's agricultural sector. It provides a summary of two contrasting views on Indonesia's rural sector social characteristics and development of supply chains. There is no detail on the methodology used to inform the paper. The key issues facing family farming operations are summarised as: land access and fragmentation, constraining distribution channels, lack of consideration of the potential for women in family farming, and lack of promising career options for young in agriculture. The rights of women and the social power this provides, and increasing regional and global demand for agricultural products are highlighted as key opportunities for development of family farming for women and young people, respectively. The author lists challenges and recommendations to address these opportunities but does not provide any detailed strategies for implementation and delivery.
In this paper, Priyanti et al. examine the nature and potential of small-scale cattle production in East Java, with a particular focus on the relation between crop and cattle production. A study was carried out in 2010 with 194 cattle producers across two sites (irrigated lowlands and rain-fed uplands) to explore constraints facing cattle producers in these environments and potential means to enhance their production systems and incomes. In particular, the paper focuses on the issue of feed supply and the local market that has emerged for agricultural by-products (rice straw, maize stover, and legume residues) and planted forage grasses—a market supply chain linking crop producers and cattle producers in the lowlands and cooperative arrangements for importing feed into the less productive uplands. The research shows that intensive cattle production can provide a viable pathway out of poverty, even for resource-poor households.
The report examines the restaurant market as an opportunity for East Nusa Tengarra smallholders and identifies market chain issues and opportunities for development. Methodology involved initial feedback from value chain participants to identify a priority market sector for further analysis i.e. restaurant market. Farmer (n=102) and restaurant (n=50) surveys informed the restaurant market analysis. Detailed farmer survey data is presented in terms of household and farm characteristics, the pig supply chain and farmer perceptions and restaurant data in terms of restaurant characteristics, requirements, owner perceptions and consumer preferences. Several issues for pig farms and the pig industry as a whole are discussed. The author's outline their recommendations for future development including improving farmer technical and marketing skills and value chain communication systems. As taste and lean meat were most valued by consumers, improvement should include a quality differential payment system for farmers and farmer training in improved breeding and feeding practices to benefit these preferred characteristics. The authors also recommend the industry develop a strategic direction for the industry and farmer focused activities to assist with realisation of the industry's full potential.
This report examines the cattle marketing chain in Bali and Lombok and describes the role of its various stakeholders. It also identifies the role that farmer groups play in assisting smallholders to link to the market chain, and the characteristics of farmer groups and their leaders that result in greater access to markets. The research uses a mix of qualitative and quantitative data collection methods, the latter involving two multiple regression analyses. The study provides new information about cattle marketing chains in Bali and Lombok, factors that influence a cattle group's ability to support smallholders in linking to markets, and factors influencing smallholders' choices of where to sell. The findings have important implications for the way private and public investors form and manage smallholder cattle groups. Policymakers are faced with a choice. If they are distributing cattle via groups to improve cattle productivity and industry efficiency, they will need to form and foster groups and group leaders in a different way than if they are distributing cattle to improve short-term smallholder welfare.
In this paper, Widowati et al. estimate the potential area and carbon absorbed in seaweed cultivation in the Takalar water area in South Sulawesi and estimate the increase in the local economy if potential areas were optimally cultivated. The research is based on data collected through satellite imagery, base maps, spatial data and field surveys. It found that existing seaweed cultivation covers less than 10 per cent of the potential area of 59,731 hectares. Based on this data and the large amount of carbon content obtained (20.73 ± 1.73 per cent), the amount of carbon emission that can be absorbed is equal to 71,531,381.82 to 120,578,542.70 tons C per cycle. If the cultivation of seaweed in Takalar were optimized, the total price of seaweed could reach US$45,250,334, increasing local GDP by 28 per cent. This study provides useful evidence for scaling up investment in seaweed cultivation in farming communities. The methods could be easily applied in other coastal areas in Indonesia to measure similar variables. However, the authors suggest that further study be undertaken to improve the analysis for more concrete estimation of the suitable area.
Early weaning of Bali calves at six months of age increases herd reproductive efficiency and offers beef smallholders an opportunity to increase productivity and cash flow. This report assesses numerous feeding strategies aimed at increasing the growth rate of early weaned Bali calves in Sulawesi Tengah, East Java, West Nusa Tenggara and East Nusa Tenggara. Results demonstrate that simple feeding strategies available to farmers could increase growth rates from 0.1-0.2kg/d to over 0.4kg/d by including high protein feeds such a leucaena, sesbania or copra meal. The economic impacts of enhanced productivity and social implications from reduced labour inputs and increased cash flow are discussed. Farmer involvement in research activities proved beneficial in facilitating adoption. The authors identify several areas for future work relating to management of feed supplies, assessment of new forages, low input feeding strategies, growth of early weaned Bali calves and an extension program highlighting the importance of nutrition. The report also discusses different strategies for increasing microbial crude protein, and reports on capacity building of Indonesian scientists through integration of Australian and Indonesian research groups.
Maize farmers in East Nusa Tenggara have been slow to adopt new cultivation technologies despite several initiatives by the Indonesian government. A key challenge for farmers is access to the required inputs—improved varieties, fertilizer and pesticides. This research aimed to identify a suitable agribusiness model for subsistence/semi-commercial maize farmers to help address their challenges in using new technologies. Research was conducted with three farmer groups in South Timor Tengah district in 2007-2008. Innovations tested were both technological (improved varieties, plant spacing, fertilizer and seed production techniques) and institutional (strengthening farmer group capital, management of input supply and seed production). The initiative involved establishing a village-level technology clinic managed by extension workers and farmer groups, which proved useful in providing agricultural information to farmers and facilitating input supply from the district/provincial level. Farmers can take inputs on credit and repay them in kind after harvest. The clinic also processes maize, sells it in the early rainy season and helps build a village maize seed unit. This strategy shows promise in ensuring the continuity of maize farming and has potential to be extended to other villages.
Cashew is a major source of income for most farmers on the island of Flores. This article details the experience of developing organic cashew nut production in four villages in Flores based on a joint project between VECO Indonesia and Swisscontact. The project aimed to help farmers optimize the potential for cashew nuts through organic certification while maintaining a low input system of production. The article describes how the two international NGOs collaborated with two Indonesian NGOs—Bangwita and YMTM—to enhance the capacity of selected farmers' groups to add value to their produce. Organic certification was viewed not only as a means of securing better markets, but also as a means to improve product quality in the long term. As a result of the project, all four participating farmers' groups secured international organic certification. Further achievements include farmer's enhanced understanding of the certification process and required documentation, as well as sustainable land management practices. The author notes that the process of linking to the market, however, remains a challenge.
Flores cocoa production is characterised by low productivity and poor quality. This report describes the use of a value chain approach to design interventions for the Flores cocoa industry as part of a training program for Swisscontact LED-NTT staff. The report details the cocoa value chain in Indonesia and globally as well as Flores cocoa production and the local value chain. The methodology involved interviews with value chain participants from producers to national processors and exporters to identify constraints and opportunities, and field visits to assess possible interventions. The report outlines suggested interventions to address constraints, focused on improving farmer knowledge, skills and access to technology for improved practices, production and quality. Others relate to finance, market linkages, the business environment and industry advocacy. The paper concludes with several recommendations for implementation—focused pilot areas, sourcing of resources, change agents and partners for intervention, public and private sector support—and staff involvement.
This paper reviews the current status of Bali cattle in Indonesia based on national and regional statistical records and research and subjective information from government and university officers and farming groups in the regions where Bali cattle are produced. The research found that Bali cattle are the predominant beef cattle in the Eastern Islands of Indonesia, amounting to around 80 per cent of the total 2.95 million Bali cattle in the country. Overall numbers have declined in three of the last four years, which is believed to be a long-term trend. The annual calving rate was found to be a moderate 52-67 per cent, but calf mortality varied from 8 to 48 per cent, which is very high. The paper concludes that there are opportunities for improving the declining population of Bali cattle by applying strategies that reduce calf mortalities, reduce the slaughter of productive cows, prepare and retain appropriate bulls in the herd, and improve the genetic base towards animals that grow and survive better than at present.
Reduced productivity and increased demand for soybean products has increased dependency on soybean imports and support for tariffs. This study involved a desk top analysis and interviews with key stakeholders (soybean farmers, traders, and government officials) in Blitar, East Java, to develop farm level production budgets based on traditional and improved production technology (improved seed and water control, monoculture and multi-cropping). The Policy Analysis Matrix was used to analyse the competitiveness of different soybean cropping systems, the influence of public investment and the impact of price fluctuations resulting from government policy. Results indicate that all methods of soybean production are both privately and socially profitable. The authors thus conclude that protectionist policies are unnecessary and that Blitar soybean production is competitive with imported soybean. Investments in technology provided greater profits than traditional soybean production while improved technology, multi-cropping and non-irrigated land provided the highest private and social benefits. The authors recommend that any policy should promote and distribute welfare amongst all soybean chain stakeholders.
Demand for soybean in Indonesia currently exceeds supply. Based on a review of recent literature, Susilowati et al. analyse the decline in Indonesia's soybean and discuss efforts to ensure its future supply. Among the solutions proposed in this review are increasing production and substitution power (on imports) of domestic soybeans through rules and mechanisms of control over the existing trade system, and increasing the role of trade agencies and/or cooperatives such as KOPTI in the trade system. The authors highlight the important role of KOPTI in the soybean supply chain, but note the need for it to become more resilient to market conditions. Given the limited understanding of the institutional aspects and resilience of its businesses, further research is required to suggest practical solutions to strengthen KOPTI's role in the supply of soybean. While the scope of this literature review is limited, it presents a useful overview of key studies (mostly in Bahasa) on soybean in Indonesia, which is useful for practitioners engaged in value chain research on this important protein-rich commodity.
This study explores the impact of new cassava processors in Sukadana, East Lampung district in Lampung province on the production and prices of cassava in the area. A survey of eighty cassava farmers was carried out to explore their relationships with processors, their production cost structures and their cultivation practices. The study found that harvesting age was a critical factor to determine the cassava yield and price in the study area. Three types of farmers were observed, namely farmers collaborating with new external processors (foreign food companies), farmers collaborating with local processors and farmers who have no close relationships with processors. The technical support provided by the emerging processing companies was found to have a positive impact in plant management. It is expected that the increasing demand for cassava induced by biofuel production will attract more companies to the processing business and increase the companies' investment in supporting activities for farmers. This, in return, would contribute to farmers' welfare through improved profit of cassava production.
This paper assesses the economic performance of mungbean in relation to productivity of the existing mungbean cultivar (Fore Belu) and management practices of local farmers. The research reveals that average mungbean productivity in the sample villages is 0.35 ton/ha, well below the national average of 0.75 ton/ha. This is largely due to local farmers using the low-yield Fore Belu cultivar. It also shows that the Sriti cultivar produces the highest gross margin compared to other varieties. According to the authors, several issues need to be addressed to improve the productivity and profitability of mungbean growers in West Timor, namely timely access to good quality seed, improvement of varieties and management practices, production costs and industry partnership. Limited availability of seed at the time of planting (wet season) is highlighted as a major concern and attributed to the fact that the largest part of production is consumed and sold to earn cash income during the harvest season. While this research provides valuable insights into the crucial issues surrounding productivity improvements, it does not indicate the types of solutions required to address them, which is restrictive given the limited literature on this commodity.
This article examines pest control and production management methods used by farmers in Sulawesi to improve cocoa bean quality and increase income from cocoa. Strategies investigated include those directed at increasing the number and size of cocoa pods, those aimed at reducing hosts for pest transmission, two input-intensive approaches, and the alternative of doing nothing beyond harvesting mature cocoa pods. The research also identifies factors correlated with choice of technique by using a multiple outcome model to measure the likelihood of a behavioural response given conditioning factors such as household and farm characteristics. Data was collected in 2005 from 600 households and 915 cocoa fields in one village in Luwu district. The findings suggest that spraying is a profitable management strategy and that modest gains in profit could be realised through greater use of fertiliser, and of both household and hired labour. The authors conclude that average increases in private returns from more intensive cocoa management appears to compensate for higher production costs, but observed extension efforts have not been correlated with higher profits among farmers in the sample.
This paper explores whether proper management of feeding goats with forages could increase the production and reproduction of Kosta goats. Research was carried out in two phases. The first observed the growth of female Kosta goats after weaning at four months to puberty at seven months and mating at nine months. Variables assessed include ration consumption, daily weight gain and puberty age on the livestock. The second phase observed female goats from mating to birth, assessing ration consumption, daily body weight gain, length of pregnancy, litter size, kid birth weight and kid weaning weight. The research used a completely randomised design, using forages with three energy levels—53, 61 and 69 per cent—with relatively equal protein content at 12 per cent. The forages included field grass and leaves of waru, lamtoro, gamal and jackfruit. The research found that the higher the dietary energy (up to 61 per cent TDN) in the ration, the higher the production performances of Kosta female goats in terms of efficiency of ration usage, body weight gain, birth weight and weaning weight, and the higher the reproduction performances in terms of age of puberty, length of pregnancy and litter size.
This paper examines factors that influence Indonesian cocoa exports and uses an econometric model to assess potential policy impacts. Results identified export price, cocoa production growth, exchange rate and time trend as significant influences on cocoa exports (R2 = 0.9473). The author concluded that a fertiliser price subsidy could be expected to increase Indonesia cocoa exports and production for cocoa smallholders. Simulating a 15 per cent fertiliser price subsidy resulted in increased cocoa production (0.38-8.3 per cent) in three out of the four regions included in the study and increased national production (1.93 per cent) and exports (1 per cent). Simulating an export tax of 5 per cent identified possible price transmission impacts on the domestic cocoa price that resulted in a reduction in Indonesian cocoa production and a decline in cocoa exports. The author recommends a devaluation policy as an alternative to an export tax policy to avoid any negative impacts on cocoa production, cocoa exports and smallholder welfare. These findings support previous assessments of similar policies on corn, cocoa and palm oil.
This study examined soybean insecticide demand in Java and assessed the impact of integrated pest management (IPM) on insecticide use using aggregate regional data. The report includes an overview of the IPM program and technology transfer including a detailed outline of Farmer Field Schools. Data was collected from various sources and analysed using recursive and simultaneous equation models, the construction of which is detailed in the report. Results from each model are reported and compared, consistently attributing significant reductions in soybean insecticide use in Jogjakarta and Central Java to IPM technology. Results are discussed in terms of how well the variables explain variation in insecticide use and outline the relationship between insecticide use and other variables such as relative pesticide price, pest infestation and IPM technology. The greater accuracy of the simultaneous model was highlighted due to its ability to capture the reversible relationship between pest infestation and insecticide use. In concluding, the authors attribute the reduction in soybean insecticide use to the elimination of the insecticide subsidy which resulted in increased insecticide prices and dissemination of IPM technology.
This paper assesses the impact of integrated pest management (IPM) training on the economics of pest management decision making and discusses the mechanisms of reduced insecticides associated with IPM training. Background information outlines IPM and pesticide use and the concept of an economic threshold for pest control. Data on soybeans during 1990-1998 was collected from provincial agricultural agencies and analysed using an econometric analysis. Results include a discussion of the extent to which the model explains the variability in pest attack and pesticide use and details relationships with other variables. The paper highlights that pesticide use decreased as IPM training increased and discusses this in terms of changes in farmer expectations for yield loss and increasing acceptable levels of pest attack up to a point i.e. the economic threshold. The authors outline policy implications and some considerations for continued dissemination of IPM training given its success in influencing farmer's strategic thinking and develop economical plant protection.
This study reports the impacts of trade liberalization on the economic performance of soybeans in Indonesia. Data for the econometric model reported in this paper was obtained from various sources. The econometric model, its representativeness and ability to describe the Indonesian soybean economy and its validation are briefly reported. The paper outlines the world soybean economy, identifying primary producers and exporters, importers and briefly outlining the Indonesian soybean economy. Detailed results of the following simulations are reported 1) full trade liberalization, with no trade restrictions by exporters or importers; 2) import country shock (Chinese imports increased by 30%; 3) export country shock (US production decreased by 25%); both importer and exporter shock. The results of these simulations are discussed in terms of the impact on world soybean price, world imports and exports and Indonesian domestic price and imports. The authors conclude with key recommendations for the Indonesian soybean economy: actively encouraging removal of subsidies to ensure efficient and fair trade as intended by trade liberalization; and increasing Indonesian domestic production through policy that facilitates adoption of improved production practices and technology and expansion of soybean production.
In this article, the authors explore how the coffee processing method can influence coffee cup taste by evaluating three commercial coffee processing methods—full-washed, wet-hulled and pulped-natural—in use in the Indonesian specialty coffee origin of “Bajawa” on the island of Flores. Specifically, the research attempts to determine whether pulped-natural processing creates inherently lower quality coffee, while at the same time considering the environmental, resource and financial constraints of the Flores farm system. Sixty-seven coffee tasters in Australia, Indonesia and the USA tested composite samples by using blind cupping, comparative preference testing methodology. The results show a clear preference for pulped-natural processing (often considered an inferior method in Indonesia), indicating that processing method does influence coffee cup taste. The demonstrated quality results, coupled with low water use, low waste output and minimal processing equipment requirement indicates that pulped-natural processing in the Flores coffee industry warrants further investigation. This research also highlights the importance of considering traditional practices and local conditions along with market requirements when making recommendations for coffee value adding and quality improvement.
In recent years, domestic maize demand for food and feed industries in Indonesia has grown faster than production. This paper reviews the past and current status and the future prospect of maize in Indonesia based on time series data from the last 41 years. The research shows that over the last four decades, consumption of maize has changed structurally from direct food to feed and food industries. Demand from both industries began to increase, and after 1975, maize production could not meet the growing demand for maize, which led Indonesia to import maize from other countries. Current production is said to be 'levelling-off', while demand continues to grow. The authors therefore propose that without future intervention, Indonesia is likely to have an increasing maize deficit. The authors suggest several policy interventions to reduce Indonesia's dependency on maize imports, namely intensive promotion of high yield seed varieties, development of a fair partnership between seed growers, seed companies, maize farmers, feed millers and food factories, helping farmers with subsidized and simple credit, and strengthening farmers groups to improve their bargaining position.
Goats are the most important small ruminants produced and consumed in Indonesia, in particular in some parts of Eastern Indonesia. They play an important economic and socio-cultural role in the lives of many small holders. This article presents a broad picture of the goat sector in Indonesia. Using recent literature as the main source of information, the article presents a review of the main breeds of goats found in Indonesia; their population levels in Indonesia and changes over time; their socio-economic role in smallholder households; their most common management and production systems and the challenges and obstacles for better production of goats. The article concludes with a number of potential strategies to encourage, facilitate and improve the production of goats by smallholders in Indonesia.
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.
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.
This paper explores maize productivity and the yield gap in maize production in five provinces of Sulawesi. The research is based on secondary data collected for the period of 2001 to 2007 on harvested area, production, seed distribution and productivity. The findings revealed that average maize production and productivity varied significantly across the five provinces, from 64,664 tons in Central Sulawesi to 698,198 tons in South Sulawesi and from 2.21 t/ha in Southeast Sulawesi to 3.39 t/ha in Gorontalo. The paper documents the main constraints to production, including biophysical (e.g. pests and diseases and soil fertility), socio-cultural (e.g. poor production facilities and failure to use high quality seed and fertilizer), economic (e.g. high input prices and limited farmer capital) and institutional (e.g. lack of extension services). In general, there remains a large yield gap (3-6.5 t/ha) between farm level yields and yield potential for several superior varieties, both hybrid and composite, in Sulawesi. The authors propose that this yield gap could be overcome by the availability of a package of locally specific planting technologies that could be easily and quickly adopted by farmers.