IPB (Economics postgraduate program & INTERCAFE), supported by the University of Adelaide has successfully organized International Seminar “AFTI 2014: The University of Adelaide – IPB Policy Forum on Agricultural and Food Sectors Transformation in Indonesia” on 18 December 2014 at IPB campus in Baranangsiang, Bogor, Indonesia. The seminar presented four keynote speakers: Dr. Arief Daryanto (Director of MB IPB), Dr. John Ackerman (Regional Manager for Indonesia of Meat and Livestock Australia), Dr. Nunung Nuryantono (Director of INTERCAFE, LPPM-IPB), and Prof. Dr. Rick Baricello (University of British Columbia, Canada). The seminar was convened by Dr. Nunung Nuryartono and Dr. Risti Permani (Global Food Studies, University of Adelaide).
Dr. John Ackerman delivered his presentation titled “Sustainably Feeding 9 Billion People: Self-sufficiency, Research and Trade”. He stated that agriculture is showing signs of supply constraint. These signs are more limited to land & water for agricultural production, and the declining of agricultural productivity rates. A number of governments are pursuing self-sufficiency as a reaction to potential future food shortage. He asserted that food sufficiency is not equal with food security. He suggested a rather controversial policy issue by not pursuing self-sufficiency. A narrow focus on self-sufficiency has high economics and social cost, given the example of Indonesia’s beef sufficiency policy that has lead to the increase of beef price.
Dr. Arief Daryanto presented his paper on“Dairy Industry in Indonesia: Challenges and Opportunities”. He identified key driving forces in dairy sector transformation consists of demand drivers (increased demand for food products, diversification toward higher value food, food spending shifting, and more emphasis on food security and improved nutrition) and supply shifters (investment in agricultural research, value chain development, increase scale production, climate change, less market protection.) He emphasized the importance of increasing the dairy sector value chain and removing the constraints along the value chain. Constraints across the dairy value chain were identified starting from the inputs (breeding), production (low productivity & adoption of technology), collection (lack of infrastructure, quality standard), processing (seasonality of production and fluctuating supply), market/consumers (unorganized market, heterogeneous consumer requirements). Dr. Arief Daryanto suggested one of the solutions for dairy industry development is to develop the inclusive growth business model, such as Cimory Model, Nestle Model, PisAgro Model, and Gapoknak Sugih Mukti Mandiri Model.
Dr. Nunung Nuryantono presented on the topic of “Agriculture Transformation: Who Is the Winner and the Loser?” According to him, from the studies that have been done, agricultural transformation has impacted on the smallholders farmers (farmers with land less than3 ac). He highlighted the case in Jambi Province, agricultural transformation happened when farmers shifted their main crops from food crops& horticulture into plantation estate crops (palm oil). This transformation has impacted on the economic growth of Jambi Province that was always higher than the national economic growth (2004-2013). However, the rate of poverty headcount in Jambi is not declining as fast as the national level, rather it tends to be stagnant from 2011-2013. So, the question then is who benefited from the agricultural transformation in Jambi Province? IPB researchers in collaboration with Gottingen University is working on the answers for this issue.
Prof. Rick Barichello delivered his presentation titled“A Framework for Agricultural and Food Sector Transformation in Indonesia”. He introduced two dimensions of transformation at a framework level:
- The process of shifting resources from agriculture to the industrial / service sectors
- The transformation of the agricultural sector to increasing competitiveness and productivity within the sector.
Both dimensions are very important yet focus on different issues and suggest different policies.Prof. Barichello suggested several policies that can be adopted in the agricultural / food sector transformation, which are:
- Technology and human capital improvement
- Choose policies that foster competition, innovation and comparative advantages
- Remove regulatory barriers (e.g. in transport & logistic, taxes)
- Exploring export markets and developing products better suited to consumers
Furthermore, He also stated that some policies do not work, such as:
- Subsidies that just raise prices (e.g. rice tariff)
- Import barriers such as high tariffs and import quota
- Any policy action that reduces competition
- Any regulatory measures that limit farm consolidation & limit innovation.
At this international seminar, GoLive Indonesia representation, Farda Eka Kusumawardana (GoLive’s online administrator), also introduced and explained projects, objectives and activities of the coming year 2015 to the seminar audiences. He also invited the audiences to contribute an article to be published in the GoLive Indonesia blog.