Eastern Indonesia
Agribusiness Development
Opportunities (EI-ADO) - Supply Chain

The tomato value chain from West Java farms to Jakarta retail

sudo — Mon, 09 Feb 2015 09:35:52 +0000

WorldBank(2007)TomatoValueChainWestJavaFarmsJakartaRetail-Annex5.pdf

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%).

Publication Date:

2007

Author:

World Bank.

Publisher:

In 'Horticultural producers and supermarket development in Indonesia', Report No. 38543-ID. Pp. 87-116

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Towards cost effective, high quality value chains improvement of shallot supply chains

sudo — Mon, 09 Feb 2015 09:35:52 +0000

VanDenBrink-Basuki(2009)TowardsCostEffectiveHighQualityValueChainsImprovementShallotSupplyChains.pdf

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.

Publication Date:

2009

Author:

Van den Brink L. and Basuki R.S.

Journal:

HORTIN-II Research Report No. 14.

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IFC SADI Agri sectors: value chain analysis for the NTB shallot industry

sudo — Mon, 09 Feb 2015 09:35:52 +0000

NimmoBell(2007)ValueChainAnalysisNTBShallotIndustry_IFC_SADI.pdf

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.

Publication Date:

2007

Author:

Nimmo-Bell and Company Ltd.

Publisher:

IFC

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Vegetable value chains in eastern Indonesia - a focus on chilli

sudo — Mon, 09 Feb 2015 09:35:52 +0000

White(2007)VegetableValueChainsEasternIndonesiaFocusChilli-ACIAR_SADI.pdf

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.

Publication Date:

2007

Author:

White B., Morey P., Natawidjaja R. and Morgan W.

Publisher:

SADI-ACIAR Research Report. ACIAR-SMAR/2007/042. Australian Centre for International Agricultural Research

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Do chili traders make price volatility worse? A qualitative analysis of East Java trading practices

sudo — Mon, 09 Feb 2015 09:35:52 +0000

WebbEtAl(2012)ChilliTradersPriceVolatilityQualitativeAnalysisEJavaTradingPractices.pdf

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.

Publication Date:

2012

Author:

Webb A.J., Kartikarsari F.G. and Kosasih I.A.

Publisher:

National Cheng Kung University: Taiwan

Keywords:

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Farmer-trader relationships in the Indonesian chilli markets: the role of relationship quality in modern and traditional supply chains

sudo — Mon, 09 Feb 2015 09:35:52 +0000

Sahara(2011)FarmerTraderRelationshipsIndoChilliMarketsModernTraditionalSupplyChains_AdelaideUni.pdf

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.

Publication Date:

2011

Author:

Sahara G.A., Stringer R. and Umberger W.J.

Publisher:

Australian Agricultural and Resource Economics Society (AARES) 55th Annual Conference

Keywords:

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Chilli (Capsicum spp.) Food Chain Analysis: Setting Research Priorities in Asia -Indonesia

sudo — Mon, 09 Feb 2015 09:35:52 +0000

MustafaEtAl(2006)IndonesiaChiliFoodChainAnalysisIndoSettingResearchPriorities_AVRDC.pdf

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.

Publication Date:

2006

Author:

Mustafa U., Ali M., Kuswanti H.

Publisher:

In 'Chili (Capsicum spp.) food chain analysis: setting research priorities in Asia', ed. by M. Ali. Technical Bulletin No. 38. AVRDC

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Multi-layer distribution system of Indonesian fruit-vegetable sector: current challenges and future perspectives

sudo — Mon, 09 Feb 2015 09:35:52 +0000

SovianaPuspa(2012)MultiLayerDistributionSystemIndoFruitVegSector.pdf

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.

Publication Date:

2012

Author:

Soviana and Puspa

Publisher:

Conference on International Research on Food Security, Natural Resource Management and Rural Development, Göttingen, Germany 19-21 September 2012

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Report on the Indonesian investment market for horticultural produce

sudo — Mon, 09 Feb 2015 09:35:52 +0000

Morey(2009)IndonesianInvestmentMarketHorticulturalProduce_MorelinkAsiaPacific.pdf

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.

Publication Date:

2009

Author:

Morey P.

Publisher:

IFC

Keywords:

Commodity:

A rapid assessment of the horticulture vegetable sector in Indonesia

sudo — Mon, 09 Feb 2015 09:35:52 +0000

MenegayDarmono(2007)RapidAssessmentHorticultureVegSectorIndonesia_USAID_AMARTA.pdf

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.

Publication Date:

2007

Author:

Menegay M.R. and Darmono W.A.

Publisher:

USAID

Keywords:

Commodity:

Eastern IndonesiaAgribusiness DevelopmentOpportunities (EI-ADO) - Supply Chain

The tomato value chain from West Java farms to Jakarta retail

Towards cost effective, high quality value chains improvement of shallot supply chains

IFC SADI Agri sectors: value chain analysis for the NTB shallot industry

Vegetable value chains in eastern Indonesia - a focus on chilli

Do chili traders make price volatility worse? A qualitative analysis of East Java trading practices

Farmer-trader relationships in the Indonesian chilli markets: the role of relationship quality in modern and traditional supply chains

Chilli (Capsicum spp.) Food Chain Analysis: Setting Research Priorities in Asia -Indonesia

Multi-layer distribution system of Indonesian fruit-vegetable sector: current challenges and future perspectives

Report on the Indonesian investment market for horticultural produce

A rapid assessment of the horticulture vegetable sector in Indonesia

Eastern Indonesia
Agribusiness Development
Opportunities (EI-ADO) - Supply Chain