Category Archives: Agriculture

The Centre for Global Food and Resources to host a new scholarship to research food trade between South Australia and Indonesia

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South Australia is offering a research scholarship to an Indonesian student to undertake a higher degree at the University of Adelaide and our new Centre for Global Food and Resources (GFAR) will host the scholarship recipient.

The scholarship focuses on food production systems and value chains between South Australia and Indonesia. The successful student will be selected in a competitive process from Bogor Agricultural University, and will commence work with GFAR in 2017.

Trade and Investment Minister Martin Hamilton-Smith, who announced the scholarship earlier this week, says, ‘The scholarship builds on the strong relationship between our two leading research institutions and offers opportunities for growth in the food trade between South Australia and Indonesia.’ There is particular interest to work with the Indonesian government on prospective trade of tropical fruit and vegetables from Indonesia to South Australia.

We are also keen to build a value chain and to work with partners in Indonesia on two-way flow of investment between our economies to complement our trade relationship. This scholarship will support this work so we can better understand how the food value chains connect our two regions.Martin Hamilton-Smith, Trade and Investment Minister.

Professor Christopher Findlay, Executive Dean of the Faculty of the Professions at The University of Adelaide, very much welcomes the Minister’s support for this project and for the work of our new Centre for Global Food and Resources.

I look forward to working with government and business in South Australia to share our work on connecting food value chains in our region.Professor Christopher Findlay

Centre for Global Food and Resources (GFAR) is officially launched today

For more information about study at GFAR: please visit this homepage.

*This post was prepared by Dr Lenka Malek, a Postdoctoral Fellow at GFAR. It was originally posted at GFAR website.

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Filed under Agriculture, Australia, Education, Indonesia, Scholarship, Student, Trade

Rida Akzar on Sharing with Adelaide Local Community

One of Golive Indonesia enthusiast, Rida Akzar, was invited to Rosefield Local Community (RLC) monthly event “Men’s breakfast” in Adelaide on Tuesday May 10th 2016. Rida was there to present his current master research project on “Innovations Adoption of Indonesian Dairy Farmers”. RLC manages this breakfast on every second Tuesday of the month. RLC regularly invites students or researchers to present their research or interest on various topics. Rida was invited by Mr Brian Jefferies, member of RLC, whom he met from Adelaide University’s program that links international student with local family, Experience Adelaide.

This time around, the event was attended by around 20 people from different occupation and backgrounds, such as scientists, doctors, lecturer, environmentalist, dairy farmers etc. After enjoying breakfast together, the discussion went on for about forty minutes consisting of presentation and discussion time. Prior to Rida’s presentation, Mr Rob Rodenburg, RLC’s coordinator asked Rida to elaborate more on Indonesia. He acknowledges that Indonesia-Australia are neighbors but not many is understood about Indonesia so far. Indeed, Rida’s research topic provides a great opportunity to get to know more about Indonesian dairy farm industry.

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Rida Akzar presenting at RLC Men’s Breakfast

Rida started his presentation with a quote from Brenda Schoepp that says “My grandfather used to say that once in your life you need a doctor, a lawyer, a preacher, a policeman, but everyday, three times a day we need a farmer”. The room was lit up with smiles showing anticipation towards the presentation. The presentation began with elaborating the concept of innovation adoption in agricultural sector in developing countries. Rida puts emphasis on the obstacles faced by smallholder’s farmer while adopting innovations. The issue revolves around how small the scale of the business is and how farmers have limited access to market information and credit. Both issues pose as hindrance for farmers in adopting innovations.

Then, he linked the concept to his case study about Indonesian dairy farmers. As cited from IFC (2011), Indonesian dairy sector is centered in three provinces West, Central and East Java. The sector is dominated by smallholder dairy farmers that on average manage three cows per farmer with a productivity 10-11 liters/day. Most of the dairy farmers are members of dairy cooperatives that links farmers with milk processing companies.

Everyone was quite amazed at the fact that Indonesian dairy farmers is mostly small-scaled business, especially when compared to smallholder Australian farmers which have much greater number of dairy cows per farmer. Also, an interesting observation was deliberated during the discussion session on how Indonesia and Australia differs in defining ‘smallholder farmers’. Indonesia defines it based on the business scale (farm size and number of cows), while Australia defines it according to land ownership.

Overall, Rida highly appreciates the opportunity to share his research to the RLC community. He believes that presenting to people with different backgrounds is important as we are able to gain valuable insights from different perspectives. Even more so, this opportunity provides him with the chance to introduce and share stories about Indonesia to Australian local community.

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RLC Men’s Breakfast

The presentation was greatly praised and led to the invitation for Rida to visit one of the participant’s dairy farm in Northern Adelaide where he will have a chance to learn how to make hay. Building network and exchanging experience is definitely the expected outcome of such sharing practices.

Rida Akzar is a master student at Global Food and Agricultural Business, the University of Adelaide. His master research project is supervised by Dr Risti Permani and Dr Wahida.

Reference
IFC 2011, Working with Smallholders: A Handbook for Firms Building Sustainable Supply Chains, International Finance Corporation, Washington, DC USA.

 

Photos courtesy of Reyza Ramadhan

GoLive Indonesia would like to thank Rida Akzar for sharing his experience and look forward to more great endeavors. We also look forward to accepting other inspiring stories. Send your experience via email to golive.moderator@gmail.com

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Filed under Adelaide, Agriculture, Community, Indonesia, Student, Uncategorized

Rida Akzar on AARES Conference 2016

Another GoLive Indonesia #SharingMarch story featured Rida Akzar experiences on attending the 60th AARES Conference earlier this year in Canberra. GoLive Indonesia is proud to have the support of such talented young minds.

Rida Akzar is currently studying his Master of Global Food and Agricultural Business in The University of Adelaide. At the moment, he is working on his research project focusing on the adoption of dairy farm innovations of Indonesian smallholder farmers under supervision by Dr Risti Permani and Dr Wahida.

Last month he attended the 60th Annual Conference Australian Agricultural and Resource Economics Society (AARES) 2-5 February 2016 in Canberra to present his research.  It was his first experience on presenting an international conference and was the only Master’s student to do so this time around. His preparation started early on in October 2014. The preparation evolved from developing an abstract, compiling a research proposal to securing research ethics for data collection and data analysis. During that time, he finds it really demanding and time consuming but was extremely grateful for the support given by his supervisory team.

He emphasises that by attending an international conference, he was provided with the opportunity and pathway to engage with the academic and research community especially in the agriculture field. Furthermore, the feedbacks and insights provided to him by renowned researchers on the field attending the conference is very useful in shaping the progress of this research project. He felt very fortunate

He adds that he also learnt many new things from what people are doing in the field, thus, enables him to update his knowledge. Another plus point is that he met with numerous senior researchers, professionals and other PhD students from other universities.  One interesting story is that he was able to have a short discussion with Professor David Pannell who is an author of one of the main article he cited in his thesis. He was curious to see if what he was doing is on the right track according to the Professor. From the discussion, the Professor recommends Rida to have a look at some related articles of him that may help to develop his research project.

In addition his presentation, Rida also attended a pre-conference event, early career researcher (ECR) workshop from January 29th to February 1st 2016. This three-day conference was organised by the AARES committee and attended by postgraduate students and young lecturers. The primary aim of this workshop was to provide an insight and advice to guide participants’ future career development across sectors: academia, government, and private. Speakers from various organisations attended this session and shared good insights to the participants about working in different sectors.

According to Rida, both events were extremely valuable for his networking and career development in the future. Thus, he encourages other master students to attend an international conference to be able to engage the research community. He also added that the conference is really important not only for people who are working in academia, but also people working in government and business sector.

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On top of building and expanding network, the conference is also a media for researchers to disseminate and communicate their innovative ideas, update sectoral trends and policy recommendations for the development of agricultural sector.

Rida would like to thank to his supervisory team (Dr Risti Permani and Dr Wahida) for the great support given by the Global Food Studies, The University of Adelaide and the AARES committee for the travel grants provided for him.

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Left: Professor David Pannell (Head of School of Agricultural and Resource Economics Director, Centre for Environmental Economics and Policy University of Western Australia) Right: Dr Malcolm Wegener (Honorary Senior Research Fellow University of Queensland, The AARES President in 2012)

 

 

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Filed under Academic writing, Agriculture, Conference, Research, Student

International Seminar: “AFTI 2014: The University of Adelaide – IPB Policy Forum on Agricultural and Food Sectors Transformation in Indonesia”

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

Dr. John Ackerman

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. Iman Daryanto

Dr. Arief Daryanto

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 (middle)

Dr. Nunung Nuryantono (middle)

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

Prof. Rick Barichello

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:

  1. The process of shifting resources from agriculture to the industrial / service sectors
  2. 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:

  1. Technology and human capital improvement
  2. Choose policies that foster competition, innovation and comparative advantages
  3. Remove regulatory barriers (e.g. in transport & logistic, taxes)
  4. Exploring export markets and developing products better suited to consumers

Furthermore, He also stated that some policies do not work, such as:

  1. Subsidies that just raise prices (e.g. rice tariff)
  2. Import barriers such as high tariffs and import quota
  3. Any policy action that reduces competition
  4. 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.

Speakers and Audience of the Seminar

The Speakers and Audience of the Seminar

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Filed under Agriculture, Food and agriculture, Indonesia

2013 Food Security Regional Dialogue-Medan: Inter-economy perspectives of food security scenarios

As part of promotion of evidence-based policy making, decision makers and researchers have applied a wide range of modelling to evaluate the effectiveness of food security programs. One widely applied model is a multi-country computable general equilibrium model or known as the GTAP.  Anna Strutt (University of Waikato) and Signe Nelgen (University of Adelaide) shared their work entitled “Food security scenarios for the Asia Pacific – inter-sectoral and inter-economy perspectives”.

Anna Strutt (University of Waikato)

Anna Strutt (University of Waikato)

Strutt and Nelgen’s study focuses on CIPTTV countries, namely China, Indonesia, Philippines, Chinese Taipei and Viet Nam aiming to capture the impact of potential policy changes and other external shocks. The study uses an economy-wide framework using a computable general equilibrium model, a global trade model GTAP. Some important features of the modelling include: attention is given to the structural detail of the economy and inter-relationships between sectors; Prices and quantities are determined simultaneously with markets usually are assumed to clear; Incomes are endogenously determined; There is optimising behaviour by consumers and producers, with prices inducing adjustment. The CGE model imposes constraints e.g. availability of factors of production.

The GTAP model and the latest available GTAP version 8.1 data base with a base year of 2007 for 134 countries/regions and 57 sectors are used. Aggregation is implemented to derive 25 sectors and 28 regions in the study. The data are first projected to 2015. Agricultural distortions by Anderson and Valenzuela (2008) are updated and mapped to the GTAP sectors. Bilateral preferences from the GTAP database are maintained. To better capture food security aspects, the study augments the GTAP with food nutrition data using kilocalories per day per person.

Signe Nelgen (University of Adelaide) to explain about agricultural distortions dataset

Signe Nelgen (University of Adelaide) to explain about agricultural distortions dataset

Five scenarios are being simulated for the CIPTTV region: 1) improved agricultural productivity (land consolidation may lead to a 5 per cent increase in TFP in land-using sectors; 2) increased rice self-sufficiency through increasing tariffs imposed on imports from all regions thus eliminating 99 per cent of rice imports; 3) Combination of 1) and 2); 4) increased rice self-sufficiency and retaliatory tariffs from a key rice exporter; and 5) natural disaster harming land productivity which is assumed to lead to a 5 per cent reduction in land productivity in the region.

The study concludes that policies to promote self-sufficiency through the use of protectionist trade policies such as tariff may lead to a worsening of key food security indicators such as household food consumption. But if agricultural productivity improvements are part of the policy mix, the impacts will be less severe. However, retaliatory trade policies are likely to worsen conditions.

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Filed under Agriculture, Conference, East Asia, Economic development, Economic Integration, Food and agriculture, Investment, Methodology, Trade

2013 Food Security Regional Dialogue-Medan: The Quiet Revolution in Staple Food Value Chains in Asia

Professor Tom Reardon of Michigan State University has lead research in the past 10 years on staple food value chains in China, Bangladesh, India, Indonesia, Philippines and Viet Nam where nearly 10,000 farmers and supply chain actors being surveyed. He gave a presentation over the Skype on Day 2 of the 2013 Food Security Regional Dialogue, Medan.

Modern supermarket in Medan, Indonesia

On eve of Green Revolution, there has been debate in these countries on development to choose the following. First is a large-farm development path where supporters saying large estate farms mean fast development. Moreover, there are no good technologies for small farm and small farms wont adapt new technologies.

The second is small farm development path where supporters saying Green Revolution provides technology that makes small farmers as or more productive than large estate farms.  Also, small farm path fits land scarce, labour abundant situation.

All six countries adopted small farm development path starting with the Green Revolution in the 1970s now have massive investments in rural infrastructure. But what progress have they made in small farm modernisation and in developing supply chains from small farms to domestic market (95 per cent of the food market in Asia), especially the rapidly growing cities (urban areas are 75 per cent of food market in Asia).

Tom’s project found some surprising findings. Small farms are rapidly becoming small businesses who sell 70-90 per cent of output such as rice farms in India, China, Vietnam and Bangladesh. They are very responsive to the improved contacts. There has also been rapid intensification of small farms where they shifted into high use of new varieties, purchased seed, fertiliser, pesticide and herbicide. Some examples include shrimp and mangoes in Indonesia where they use new commercial varieties and high use of inputs.

Tom’s project also observed rapid mechanisation of small farming. There was rapid shift to high use of farm machinery to free labour from grain farming to higher income activities (horticulture, rural non-farm jobs). Rapid diversification of small farms was also observed where small farms ‘climbed the value ladder’ shifting from rice/wheat into vegetables, fruits, fish, livestock, dairy,etc and providing them 4-8 times earnings; or shifting from low-quality to high-quality rice with 50-100 per cent higher returns as in Vietnam and China.

Tom’s project also reported ‘quiet revolution’ in food supply chains. It was mainly grassroot revolution by small/medium enterprises and driven by private sector (not government intervention).  There was rapid spread of ‘cold storages’ and  modernisation of wholesale markets and traders and rice mills. Spread of supermarkets in all six countries was also significant. This all supply chain development is important because it forms 50-70 per cent of food costs to consumers.

The role of the government has been extremely important. In all six countries except grain in Indonesia, government role in direct intervention is very small. There was minimal role in input supply and crop marketing. The role of government in enabling farmers and grass-roots private sector was very large. This includes agricultural research (eg seed varieties), investments in roads, ports, electricity grids, permitting cell phone expansion and promotion of information and extension.

*This summary was written by Risti Permani (University of Adelaide) and may be subject to her personal interpretation of the presentation.

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Filed under Agriculture, East Asia, Economic development, Economic Integration, Food and agriculture, Trade, Transport and logistics

2013 Food Security Regional Dialogue-Medan: Food Security in Philippines

Challenges facing Philippines’ food security programs have become more evident in recent years. Salvador Catelo of College of Economics and Management, The University of Los Banos explained challenges and opportunities faced by Philippines to achieve food security.

Salvador Catelo

Salvador Catelo

Between 2012 and 2010, there has been 5 million population increase or 208,000 newborn each month! In addition, income per capita continues to grow. Rice consumption increases by 1.43 per cent per annum between 2000 and 2009 and 5.08 per cent per year increase in consumption of poultry meat. In addition to increase production demand, there has also been increasing demand for safer, healthier and better quality food. It is expected that there will be a significant change in food baskets.

Food staples sufficiency program 2011-2016 has been to enhance agricultural productivity and global competitiveness. Agriculture and Fisheries Modernization Act of AFMA of 1997 defined broad strategies for and basic principles of rational use of resources, poverty alleviation, and social equity, global competitiveness as well as food security.

Whilst the contribution of agriculture to GDP continues to decline in Philippines, its role in poverty alleviation especially in rural areas is still significant. Productivity, however, has been growing at a slow rate despite various government support schemes although sectoral variations exist.

In general, Philippines is a net agricultural importer. The main issue is whether the world can produce enough food, at reasonable prices and provide the poor access to food, and not destroy the environment in the process?

*The summary was written by Risti Permani (University of Adelaide) and may be subject to her interpretation of the presented materials.

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Filed under Agriculture, Conference, East Asia, Food and agriculture, Trade