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.