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.
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.
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.
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.
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.
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.
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.
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.
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.
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.