KINERJA RANTAI PASOK SAYURAN DAN PENERAPAN CONTRACT FARMING MODELS

Abstract. A good supply chain requires strong collaboration, coordination, andintegration within each components of the chain involved. Such role is held by PTBimandiri Agro Sedaya as a driven between farmers and modern market. However, inthe marketing process, PT Bimandiri has a problem in the lack of supply of vegetablesallegedly due to lack of vegetables produced by partner farmers. This study aimed toanalyze performance of vegetable supply chains and contract farming partnerships inPT Bimandiri Agro Sedaya. Data processing method are Supply Chain OperationReference (SCOR) analysis, and Contract Farming Models analysis with respondents20 partner farmers and staff of PT Bimandiri. The results of chain performancemeasurements showed attribute of reliabilities in the advantage position so that theperformance of the supply chain of vegetables should be improved. Attributes ofresponsiveness and flexibility of the firm in a superior position. The result of a suitableagricultural partnership contract analysis to support supply chain performance is theCentralized Model. The company buys vegetables from farmers and then packs thevegetables to distribute to the modern retail. Strategic efforts that done to improvesupply chain performance by building cooperation with suppliers.Keywords: contract farming, SCOR, supply chain, vegetabl

KINERJA RANTAI PASOK SAYURAN DAN PENERAPAN CONTRACT FARMING MODELS

Abstract. A good supply chain requires strong collaboration, coordination, and integration within each components of the chain involved. Such role is held by PT Bimandiri Agro Sedaya as a driven between farmers and modern market. However, in the marketing process, PT Bimandiri has a problem in the lack of supply of vegetables allegedly due to lack of vegetables produced by partner farmers. This study aimed to analyze performance of vegetable supply chains and contract farming partnerships in PT Bimandiri Agro Sedaya. Data processing method are Supply Chain Operation Reference (SCOR) analysis, and Contract Farming Models analysis with respondents 20 partner farmers and staff of PT Bimandiri. The results of chain performance measurements showed attribute of reliabilities in the advantage position so that the performance of the supply chain of vegetables should be improved. Attributes of responsiveness and flexibility of the firm in a superior position. The result of a suitable agricultural partnership contract analysis to support supply chain performance is the Centralized Model. The company buys vegetables from farmers and then packs the vegetables to distribute to the modern retail. Strategic efforts that done to improve supply chain performance by building cooperation with suppliers. Keywords: contract farming, SCOR, supply chain, vegetabl

Trade, Food Standards and Poverty: The Case of High-Value Vegetable Exports from Senegal

Agricultural supply chains are changing globally with pervasive food standards and increased vertical coordination. The impact of these changes for developing countries and for small farmers in those countries is not yet well understood. We analyze the developments in high-standards FFV supply chains and the effects for small farmers and rural households in Senegal. We use a unique dataset derived from company level interviews and household surveys in the main horticulture zone in Senegal. Supply chain restructuring resulted in a shift from contract-farming with small-scale producers to large-scale vertically integrated estate-farming. A comprehensive econometric analysis shows that the restructuring of the value chain has enhanced an equitable distribution of rents among the rural population. Contract-farming, on the one hand increases the gains from high-value production and trade that accrue to the rural smallholder population but on the other hand, leads to the exclusion of the poorest farmers. Estate-farming and associated rural employment have a smaller (albeit still significantly large) effect on rural incomes and probably increase the rents from high-value agricultural trade that are extracted by large agro-industrial companies but add to the income of the poorest households. This challenges the argument made in the literature that high-standards food production needs to integrate small farmers as suppliers if it needs to benefit rural development and increase the welfare for the poor.International Relations/Trade, D1, L66, O13, Q12, Q17,

Optimising contract design in modern food supply chains: The case of paprika sector in Central Malawi

Contract farming remains one of the most efficient tools for integrating small-scale farmers into modern food markets. However, the literature lacks evidence on best practices in designing contracts for food supply chains in developing countries. The purpose of this study is to analyse the design of an existing contract in the emerging Malawian paprika sector using a qualitative analytical approach. The study compared a contract design in Malawi’s paprika supply chain with four similar contracts from the horticultural sector in Malawi, India, Zambia and Cape Verde. This study employed a thematic qualitative analysis and developed 17 categories for analysing contracts. The findings showed that the Malawian contract contained in total eleven defined clauses. There were missing clauses that influenced the risk and power distribution between parties in the contract. The comparison of the Malawian contract with other contracts revealed that none of the analysed contracts included all clauses necessary for a sustainable and fair relationship. The study proposed improved contract design and future actions to contribute to decreasing inequalities between parties engaged in the Malawi’s paprika supply chain. The implications of the study include initiation of changes in public policies related to contract farming strategies as the findings suggest that vulnerable small-scale farmers might be left unprotected and generate low gains through supply contracts due to poorly formulated contract clauses

Supply chain analysis of fresh fruits and vegetables (FFV): Prospects of contract farming

The paper examines the factors that lead farmers to participate in c the contract farming in the Peninsular Malaysia. The primary data was collected through a survey using a questionnaire on the total of two hundred and eight farmers from various states in Malaysia. The study utilizes the stratified sampling method. Both descriptive and inferential statistics were used to analyze the data. The survey identified forty-one contract farmers. Factor analysis was carried out to identify the factors that lead farmers to participate in the contract farming. Based on the analysis, five factors were identified as the reasons for contracting, namely, market stability, and access to marketing information and technology, transfer of technology to improve farming practices, access to inputs and indirect benefit. Contract farming or contract arrangements can be a valuable source of an additional income and knowledge that can be employed to enhance the productivity of the entire farming enterprise

The participation of Malaysian fresh fruit and vegetable farmers in contract farming

Contract Farming (CF) is seen as a means of fostering smallholder participation in new high-value product markets and improving quality standards, thus increasing and providing stability to smallholder incomes. This study aims to identify the factors related to CF as a new marketing practice among selected vegetable and fruit suppliers. The specific objectives are to identify factors influencing vegetable and fruit suppliers to engage in CF, and to suggest policy initiatives that promote CF sustainability. The factor analysis identified five factors that lead farmers in Peninsular Malaysia to participate in contract farming of fresh fruits and vegetables (FFV) in the context of the new supply chain namely market assurance, access to marketing information and technology, transfer of technology to improve farming practices, access to inputs and indirect benefit. The findings show that farmers are interested in CF because it helps them gain better knowledge in cultivation practices, get access to marketing information, market their produce and utilise farm resources. At the same time, CF or contract arrangements can be a valuable source of knowledge that can be employed to enhance their productivity

A comparative value chain analysis of burley tobacco in Malawi - 2003/04 and 2009/10

This article conducts a value chain analysis of smallholder burley tobacco production in Malawi for the 2003/04 and 2009/10 agricultural seasons. The comparison suggests in 2003/04 smallholder profits from growing burley were limited by two main factors: first, the practices of leaf merchant companies on the auction floors who operated as a cartel (and governed the burley supply thread); and secondly, by inefficient marketing arrangements. By the 2009/10 season the rents, governance and systemic efficiency within the supply thread had changed considerably: there was greater competition on the auction floors largely due to direct state intervention (which increased growers' net margins in nominal terms), improvements in marketing arrangements, tighter state regulation (including the introduction of minimum prices for grades of burley) and increased systemic efficiency (through a rapid expansion of contract farming). The article concludes by highlighting some of the opportunities and threats that this form of vertical integration poses smallholder growers.

FARMERS’ SATISFACTION TOWARD ARRANGEMENT AND PERFORMANCE OF SUGARCANE CONTRACT FARMING IN WONOLANGAN SUGAR MILL, PROBOLINGGO, EAST JAVA

The sugarcane supply chain needs to be efficient and highly coordinated to ensure quality and quantity. Contract farming is an instrument used to achieve efficiency and high coordination of the sugarcane supply chain. The efficiency of contract farming depends on how the contract's arrangement satisfies the requirements and characteristics of each party involved. This study aimed to analyze the arrangement and farmer's satisfaction toward the implementation of contract farming. This study was conducted at PG Wonolangan in Probolinggo, East Java, on March, April, and September 2018. The samples used in this study consisted of 100 sugarcane contract farmers in PG Wonolangan and seven employees of PG Wonolangan. Descriptive and rank Spearman correlation analyses were employed to analyze the arrangement and farmer's satisfaction toward contract farming. The results of this study showed that there was a change in the contractual arrangement between PG and farmers. Currently, the role of PG changed from acting as farm credit and inputs supplier into a market guarantor for farmers; the changes reduced the risk and capital requirements of PG. In general, farmers were satisfied with the implementation of contract farming. The farmers' satisfaction increased as farm extension, scheduled planting and harvesting times, and the quickest harvest and transport management. However, they have concerns regarding farm inputs provision and profit-sharing mechanism.Keywords: Sugarcane agribusiness, correlation analysis, supply chainAbstrakKEPUASAN PETANI TERHADAP POLA DAN KINERJA KEMITRAAN USAHATANI TEBU DI PABRIK GULA WONOLANGAN, PROBOLINGGO, JAWA TIMURRantai pasok agribisnis tebu perlu efisiensi dan keeratan koordinasi yang tinggi untuk menjaga kualitas dan kuantitas gula yang dihasilkan. Kemitraan adalah salah satu cara untuk meningkatkan efisiensi dan koordinasi rantai pasok agribisnis tebu. Efisiensi kemitraan tergantung pada bagaimana pola kemitraan tersebut bisa memuaskan kebutuhan dan karakteristik pihak yang bermitra. Penelitian ini bertujuan untuk menganalisis pola kemitraan usahatani tebu dan kepuasan petani terhadap kinerja kemitraan. Penelitian dilakukan pada Pabrik Gula (PG) Wonolongan di Kabupaten Probolinggo, Jawa Timur, pada bulan Maret, April, dan September 2018. Responden terdiri dari 100 petani mitra PG Wonolangan dan 7 pegawai PG Wonolangan. Analisis deskriptif dan korelasi rank spearman digunakan untuk menjelaskan pola kemitraan dan kepuasan petani terhadap kemitraan. Hasil penelitian menunjukkan bahwa terjadi perubahan pola kemitraan antara PG dengan petani. PG berubah peran dari yang sebelumnya sebagai pemberi kredit dan input usahatani menjadi penjamin pasar, perubahan ini menurunkan risiko usaha PG serta modal awal yang harus dikeluarkan PG. Secara umum, petani mitra merasa puas dengan kemitraan yang dijalankan PG Wonolangan. Faktor yang memperkuat kepuasan petani adalah adanya bimbingan teknis dari PG, teraturnya jadwal tanam dan panen, serta cepatnya proses tebang dan angkut. Akan tetapi fasilitas saprodi, sistem bagi hasil dan penentuan rendemen dengan sistem hamparan merupakan faktor yang menjadi perhatian petani.Kata kunci : Agribisnis tebu, analisis korelasi, rantai pasok

Value Chain Analysis of the Cotton Market in Tanzania: Application of Structure-Connduct-Performance (SCP) Model

Using field data from the western cotton growing areas, this discussion paper applies Structure-Conduct-Performance Model to assess the value chain of the crop with a view to identifying competition issues along the entire cotton value chain in Tanzania. Several actors in the cotton subsector were identified along each of the main five nodes of the value chain addition vis input supply, production, buying, processing/ginning and export marketing. The structure, conduct and performance of the cotton market are strongly regulated, and only partially liberalized. However, the assessment on the other hand analyzed a number of opportunities from the economies of scale that have shown that cotton production has a significant profit-margin to the market actors. There is equally ample room for improvement by capitalizing on the advantages pegged on the contract farming, organic cotton production and new low cotton producing areas. Keywords: Tanzania cotton market, value chain analysis, S-C-P mode