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.