Eastern Indonesia
Agribusiness Development
Opportunities (EI-ADO) - Food

Competition between traditional food traders and supermarkets in Indonesia

sudo — Mon, 09 Feb 2015 09:32:32 +0000

Suryadarma(2011)CompetitionBetweenTraditionalFoodTradersSupermarketsIndo_ANU_0.pdf

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.

Publication Date:

2011

Author:

Suryadarma D.

Publisher:

Paper prepared for presentation at the 'The supermarket revolution in food: good, bad or ugly for the world's farmers, consumers and retailers?' Conference conducted by the Crawford Fund for International Agricultural Research

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Horticultural producers and supermarket development in Indonesia

sudo — Mon, 09 Feb 2015 09:32:02 +0000

WorldBank(2007)HorticulturalProducersSupermarketDevelopmentIndonesia.pdf

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.

Publication Date:

2007

Author:

World Bank.

Publisher:

World Bank. Report no. 38543-ID

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Significance of family farming in the Asian regions: the Indonesian agriculture sector

sudo — Mon, 09 Feb 2015 09:32:02 +0000

Eugenia(2010)SignificanceFamilyFarmingAsianRegions_WAMTI.pdf

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.

Publication Date:

2010

Author:

Eugenia L. .

Publisher:

IYFF ASIA Continental Meeting, New Delhi, 23-25 March 2010

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Indonesia's modern food retail sector: interaction with changing food consumption and trade patterns

sudo — Mon, 09 Feb 2015 09:32:02 +0000

DyckEtAl(2012)IndonesiasModernFoodRetailSector_USDA.pdf

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.

Publication Date:

2012

Author:

Dyck J., Woolverton A.E. and Rangkuti F.Y.

Publisher:

U.S. Department of Agriculture, Economic Research Service

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