Transforming markets for high-value agricultural commodities in Indonesia

Background

Despite growing market opportunities, horticulture value chains in Indonesia continue to face numerous challenges. Fruit and vegetable imports quadrupled between 2000 and 2010. Sourcing from imports at high and increasing rates implies limited domestic sector competitiveness. Small farmers forego higher profits and higher incomes by not selling to the rapidly emerging modern retail sector. Rural communities miss opportunities for local jobs, local investment and local growth.

The overall aim of this project is to more effectively promote the growth and development of Indonesia's fresh fruit and vegetable value chains, focusing specifically on ways smallholders and rural communities can participate and benefit. This project aims to support Indonesia's horticulture policy objectives: to accelerate and sustain growth and development of the fresh fruit and vegetable industry and to enhance its contribution to food security, poverty reduction, employment and wealth creation.

Project objectives

• Assess and compare the progress and effectiveness of public and private interventions designed to address smallholder participation in Indonesia's fresh fruit and vegetable value chains
• Examine the patterns, determinants and effects of successful fresh fruit and vegetable value chain upgrading
• Develop practical 'working linkages' between the public policy sectors, fresh fruit and vegetable industry associations and the academic community to encourage knowledge development, policy dialogue and industry advocacy in ways that benefit small producers
• Build empirical research capacity and outreach programs to better inform policy discussions and project design for improving smallholder engagement.

Project partners

Collaborating institutions:

• International Food Policy Research Institute (IFPRI)
• Michigan State University, USA
• The Indonesian Center for Agriculture Socio-Economic, and Policy Studies (ICASEPS), Indonesia
• The Center for Agrifood Policy and Agribusiness Studies (CAPAS), Indonesia

Funding:

Australian Centre for International Agricultural Research (ACIAR Project AGB/2009/060), 2014-2018

Contact

GFAR researchers involved in this project:

• Professor Randy Stringer
• Dr Dale Yi