High value products, supermarkets and vertical arrangements in Indonesia

" Indonesian economy has experienced some major changes during the last three decades and transformed from a predominantly agricultural economy to one that relies more heavily on its non-agricultural sector. Within agriculture, there has also been a change in the contribution of different sub sectors and high value products have grown relatively rapidly making agriculture more diversified. Similar to the changes in agricultural production, food consumption in Indonesia has shown a pattern of change over the past three decades, from a diet characterized primarily by the staple foods of cereals and cassava, to one that includes a larger share of fruits, fish, meats, dairy products and processed foods. Alongside the change in composition of food demand, newer forms of retail have also come up commonly known as supermarkets. However, the emergence of modern retailing has other consequences that go beyond consumers. It requires deep integration with farmers and can influence the production and transaction costs at farm level. It can also influence the distribution of value among different agents involved in production, intermediation, and retailing. In this paper we pursue three interrelated objectives. First, we review the structural changes that have taken place in Indonesian agriculture for the last three decades and the state of high value products. Second, we examine the driving forces behind the production of high value products and the constraints that limit their production. Third, we review the emergence of supermarkets and the vertical arrangements among farmers, traders/distributors, and supermarkets. We have relied both on primary and secondary data sources. Most of the secondary data has come from government directorates, different ministries and the central bureau of statistics (CBS) of the Government of Indonesia. In cases where secondary information was not readily available, we have also collected primary data. Our findings suggest that during the last three decades, there has been a significant structural change in Indonesian agriculture and the production of high value commodities and products –estate crops, livestock, fisheries, fruits and vegetables, and floriculture – has grown faster than the cereals. However, the extent of diversification towards high value products has remained limited to few regions and to few products within each sub sector. Factors that have contributed most in diversification are the rapid growth in income and accompanied changes in urban consumption in favor of high value products and agricultural mechanization. The economic crisis that was triggered by the currency crisis has had a long negative impact on agriculture sector. Structural changes in Indonesian agriculture have been accompanied by changes in consumption pattern in urban areas in favor of high value products and by a major change in retailing in the form of growth of modern supermarkets. To cater to the demand of changed urban consumption needs, supermarkets have been integrating with farmers through formal and informal contracts. This vertical relationship between farms and supermarkets that has been emerging in Indonesia has been helpful to follow grades and standards, to improve quality, and to reduce transaction costs and information asymmetries. It has also been helpful to reduce price and production risks at farm level and to ensure a higher price for farmers compared to traditional value chain. However, it seems that the participation of small holders in the vertical relationship depends largely on vendors. Within the vertical chain, supermarkets appropriate a monopsony rent. Important policies that can be drawn from this study are the greater emphasize on rural infrastructure, user right of state-owned estate to smallholders, promotion of public-private partnerships, encouragements of vertical arrangements, grades and standards, and bringing up the modern retailing sector under the purview of regulatory oversights." Authors' AbstractDiet ,High value agricultural products ,Supermarkets ,

PROCEEDING 3rd i-CoME 2019

PROCEEDING 3rd i-CoME 201

Climate-Smart Agriculture in Indonesia

This CSA Country Profile describes the risks posed by climate change to agriculture in Indonesia, discusses the potential of CSA to attenuate those risks, identifies factors that can influence the adoption of CSA practices, and highlights potential entry points for investment in CSA at scale. The report is split into two parts; the National Profile and Provincial Profiles. In the National Profile, agriculture’s relation to economic development, livelihoods, specific social groups, land use, food security, and greenhouse gas emissions are explored, in addition to agricultural production systems critical to national food security and livelihoods. In the Provincial Profiles, qualitative research is employed to delve deeper into farming systems and agricultural value chains across three Indonesian Provinces (East Java, North Sumatra, and Nusa Tenggara Timur)

A social network analysis of the use of social media to promote agriculture to indonesian youth

Farmer regeneration remains a big challenge for Indonesia to address food insecurity and promote sustainable agricultural development. With the issue of aging farmers, youth have the potential to become agents of change for the development of agriculture and support the Industrial Revolution 4.0. Nevertheless, young people have less willingness to participate in agriculture. Instead, they prefer working in off-farm employment. It is expected that social media such as Facebook and Instagram can be great tools to promote youth to agriculture. Through social network analysis, this research aims at describing the topics discussed by communities in Instagram and Facebook, representing influential actors, and evaluating the effectiveness of social media in engaging young people in the networks. ScrapeStorm was utilized to scrape posts on Instagram and Facebook with a total of 18,866 and 6,566 posts, respectively. Analyzed through Gephi using Open Ord and Force Atlas 2 algorithms, this study found emerged themes in Instagram network and Facebook related to agricultural production and movement, agribusiness development, sustainable and scientific farming, youth encouragement, and resources needed by youth. The Ministry of Agriculture and Pastal Farm are influential actors in the network that actively advocate for young people to work in agriculture. Finally, Instagram was found to form a more cohesive network of young people. This study contributes to the literature regarding the use of social media to increase youth participation in agriculture through user-generated data and for policymakers, government, and stakeholders to design more effective ways to increase youth participation in the sector. Keywords: Youth, social network analysis, youth participation, agriculture, farmer regeneration

Studies on IPM policy in SE Asia : two centuries of plant protection in Indonesia, Malaysia and Thailand

Integrated Pest Management (IPM) became a widely supported approach in the control of pests and diseases in crops. This study describes IPM policy and implementation, a.o. by the FAO Inter-Country Programme for the Development and Application of IPM in Rice in S and SE Asia in Indonesia, Malaysia and Thailand.A brief description of agricultural development in the three countries serves to understand their priorities in crop production and protection, the origin of their institutions, their main pest and disease problems and their achievements in the public and private sectors. Examples demonstrate the ingenuity of colonial research in solving major obstacles in estate agriculture. A comparison of methods of pest management in pre-World War II agriculture without synthetic pesticides with modern IPM technology reveals some essential differences.In SE Asia in the 1960s, large scale intensification programs in rice production on the basis of Green Revolution technology led to serious outbreaks of secondary pests and virus epidemics. The Regional and National IPM programmes induced a political commitment to IPM in Indonesia and Malaysia. Large scale IPM training following the FFS extension method had reached about 1 million Indonesian farmers by 1996. An analysis of sales data over sixteen years shows that the effect of the FAO IPM programmes on the pesticide markets of the three countries is evident in Indonesia, but not in Malaysia and Thailand.</p

The Proceeding Of The 1st International Conference Technology on Biosciences and Social Science 2016: “Industry Based On Knowledges

The Proceeding Of&nbsp;The 1st&nbsp;International Conference Technology on&nbsp;Biosciences and Social Science 2016 &nbsp;Theme: “Industry Based On Knowledges” 17th– 19th&nbsp;November 2016, Convention Hall, Andalas&nbsp;University, Padang, West Sumatera, Indonesia Organized by&nbsp; Animal Science Faculty of Andalas University&nbsp;and Alumbi Center of Universiti Putra Malaysia&nbsp; &nbsp

Discretization reaction-diffusion models with finite difference method

Discretization model is a continuous model transformation procedure to model discrete. Discretization is done using advanced finite difference method, by analogy differential equations using limit rules, with different equations using the different between discrete time points. The model used in this paper is a model of reaction-diffusion (Turing) that represents the diffusion of fluid in the cells that cause the cells to move. Finite difference method is a numerical method that can be used to solve partial differential equations. Methods used explicit finite difference scheme developed for the time difference and central difference for the space to complete the reactiondiffusion equation (Turing). Based on the numerical solution obtained then the amount of domain growth does not affect the stability of reaction-diffusion models (Turing)