Local market potential and marketing systems of vegetables from upland areas of Indonesia

I.W. Arsanti, M.H. Böhme
Vegetable products from upland areas are very important to the growth of the economy. The three areas, West Java (Pangalengan), Central Java (Kejajar) and North Sumatera (Berastagi-Simpang Empat) are upland farming areas contributing 65% of Indonesia's vegetable production. A study was conducted on the prospects for the further development of these areas, based on available statistics and stakeholder interviews. On the demand side, vegetable consumption per head and population increased by 1.5% between 2005-2015. In 2015, Indonesia had a surplus of upland vegetables such as tomatoes, carrots, headed cabbage and potatoes, with the cabbage and potatoes representing the best prospects for export. The study found that upland farmers are reliant on successful negotiations with traders. Marketing occurs through general distribution, auction or by direct access to large buyers by corporate farms. Eight, frequently long and inefficient, supply chains were identified. Preference for particular supply chains varied between the three areas studied. The development of upland areas was found to be constrained by factors such as low prices, price instability, high input costs, supply competition, individual farmers with poor bargaining power and the lack of economies of scale. The need for better physical infrastructure to lower input and transport costs was the single largest issue for upland farmers and traders. The national market information services (for prices) has assisted farmers more than traders. The development of upland vegetable areas can be facilitated by appropriate agricultural policy development, the avalis system and support for high-investment Vegetable Farming Systems with the resources to meet sophisticated market requirements.
Arsanti, I.W. and Böhme, M.H. (2018). Local market potential and marketing systems of vegetables from upland areas of Indonesia. Acta Hortic. 1205, 235-244
DOI: 10.17660/ActaHortic.2018.1205.26
supply chains, market information services

Acta Horticulturae