Transcript 3723_KurniawanSANREM_EEP

MARKETING OF VEGETABLE UNDER
AGROFORESTRY (VAF) SYSTEM IN INDONESIA
Understanding the Market Demand
Indonesia Marketing Team:
Iwan Kurniawan
James Roshetko
Denta Anggakusuma
Lia Dahlia
Bogor, 29 May 2008
SUSTAINABLE AGRICULTURE AND NATURAL RESOURCE MANAGEMENT
COLLABORATIVE RESEARCH SUPPORT PROGRAM (SANREM CRSP)
Outlines
• Selection of existing VAF products
• RMA Survey
• Progress on Development of Nanggung Agroenterprise
• Problem and Opportunities
Background
• The common problems faced by the small-scale farmers are lack of
market information, remote location and poor accessibility to
production resources.
• In Nanggung, most of farmers are not market-oriented in their
decision on agriculture activities.
• To enter in a competitive market, the farmers have to hold reliable
market information to minimize their risk.
• Obtaining good market information will guide farmers to make
decision on what vegetable has to be planted, when, where and how
to sell the VAF products.
Selection of Existing VAF Products
• The marketing study is generally conducted in two stages: first,
market opportunity evaluation leading to the selection of a product(s)
and second, in-depth market chain analysis.
• Selection process of existing VAF products in Nanggung was
conducted through FGD, field observation and discuss with key
market agents.
• Concern to the existing VAF products is lower risk than introducing
new product to the market.
• Farmers can learn how to evaluate market for products that are
already well known.
• Criteria: give highest income, low capital, could be regular and short
term source of income, and potential to be planted under AF.
The Existing VAF Products
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Katuk leave (Sauropus androgynus).
Kucai (Allium odorum).
Trubuk/Tebu Telor (Saccharum officinarum).
Honje/Ginger bud (Etlingera spp).
Characteristics and Current Condition of VAF
Products
SPECIES
Honje
(Etlingera
spp.)/
Ginger bud
(English)
USAGE
CURRENT CONDITION*
POTENCY TO IMPROVE
Spice, fruit,
vegetable,
medicinal,
textile, tanning,
perfume
* Planted under the tree and open
area
* Demand of honje at Jakarta &
Tangerang were good
* Irregular yields & small quantity
* The demand was higher than
the supply
* Can be consumed until 7-14 days
after harvest
* production & the quality as well
as the marketing issue.
* Most of farmers know, grow and
use the species
* There is chance to increase the
price.
* it under Pine trees on Perhutani
land
* Suitable packaging/storage
method & material
* The market is already exist.
There are 3 local collectors
Katuk
(Sauropus
androgynus)
Vegetable,
medicine,
dyeing,
ornamental
* Planted in small & open area as
hedge at garden
* High demand on local market
* Mostly for household need
(subsistence)
* Cultivation is relative easy
* There was no information about
the village production
* It can be grow under AF
* Perishable (2 day after harvest)
* Low capital
Characteristics and Current Condition of VAF
Products
SPECIES
USAGE
Vegetable,
spice,
medicine
Kucai (Allium
tuberosum)
CURRENT CONDITION
POTENCY TO IMPROVE
* Planted under AF
* Sustainability of production
* The price was good & the market was
already exist
* Potential VAF and main
source of income
* It could be as attractive short term
income
* Long term market linkages
* Irregular yields
* Packaging/storage method
& material
* Need to assistance on production
technology
Tebu Telor
(Saccharum
officinarum)
Vegetable,
fodder,
hedge,
ornamental
* Planted by a few farmers
* It has high market demand
at regional market
* Can be grown under AF
* Mapping the supply chain
* Can be consumed until 7-14 days
after harvest
* Improve quantity & quality
(grading, packaging etc)
* Low price and small production
* Develop market linkages
* Mostly not for commercial use
* The leaf can be used as
feed cow (side product)
RMA Survey
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RMA: Iterative and interactive research methodology which is
used to better understand complex market system in the
short time
Objectives:
To assist farmers in obtaining and using accurate market
information.
To facilitate the farmers group in selecting and producing the
most marketable VAF.
To link the farmers with potential traders and enter the
market.
Hypothesis  Obtaining good market information will guide
farmers to make decision on what vegetables to be planted,
how many, how to sell the products and estimate the income.
Why RMA is a Good Tool?
• Identify market outlets for surplus produce,
• Change the production orientation to market demand
(quantity, quality, processing, packaging),
• Identify niche products for which an area has comparative
advantages,
• Reorient production to respond to changing demand,
• Facilitate a change in thinking from “production minded” to
“market minded”,
• Facilitate a mental change from “middle-men are the
bloodsuckers of the poor” to a different perception, in
which each stakeholder has a role in the market chain.
Benefit of Using RMA Method
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Improves farmer understanding of their marketing
environment.
Empowers farmers to negotiate for better prices.
Reduces farmer’s risk.
Indicates which crops are fetching a better price and
why.
Provides information on reason for premium prices.
Indicates new market options.
Informs producers and traders about new market
options.
Provides real market signals.
Steps in RMA
1. Planning the Market Opportunity Survey by Selection of
Existing Products.
2. Developing of Survey Plan
3. Literature review/desk study to create criteria of product
selection (Technical, investment, risk).
4. Identify, select and conduct semi-structured interview
with key market agents.
5. Visit best practice farm management.
6. Share and discuss finding with farmer’s group.
7. Development of marketing plan.
Survey Finding
• Recommended the farmers to develop Katuk (Sauropus androgynus)
and Kucai (Allium odorum) as prospective and marketable
vegetables.
• These vegetables require low capital investment, can be grow under
the shading (20-25% for Katuk), promise good return for the farmers,
good & stable market demand and price for the last 12 months.
• The yield of Katuk about 4-5 tons/ha and can be harvested 5-6 times
per year (intercropping with cassava and produce 8-10 tons of
cassava per year).
• The yield from Kucai is 7.6 tons/ha and can be harvested 7-8 times
per year (planted in open area).
• The Katuk and Kucai can be harvested for 5 years before replanted
the new seeds.
• The cost-benefit analysis showed these farming systems will
contribute to household income about USD 1,093/ha/year from Katuk
and USD 2,867/ha/year from Kucai.
• There is opportunity for women group to earn US$ 2 per day in
sorting, grading and packing Katuk and Kucai.
Development Nanggung AgroEnterprise
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Farmers agreed to establish Katuk and Kucai’s Demonstration Plots
in Nanggung to produce commercially.
Production demonstration plots have been established in three
selected villages.
The project has distributed 60.000 of Katuk’s seedling (cutting stem)
and about 150 kg of Kucai’s seeds to farmer partners and to be
planted in 5000 m2.
For now, farmers will follow existing marketing channel as a strategy
to penetrate the market and collect in-depth market information to
improve and innovate the marketing strategy in the future.
Farmer’s groups are facilitated by World Agroforestry Centre have
deal with trader to harvest and pick up the production at the farmer’s
gate at an agreed quantity and quality, and the price will follow the
market.
Problems & Opportunities
• The farmers have no experience in planting Katuk and Kucai.
• Limited capital, man power and access to soft loan credit scheme.
• Passive farmer group  need to be strengthened the local/marketing
institution.
• Limited facilitation from extension agent.
• The land for Katuk & Kucai garden are more available  by
optimizing and planting the bare land under AF.
• Farmers in three selected village show their strong enthusiasm and
interest to develop the vegetables, especially Katuk.
• Farmer’s awareness on benefit of Katuk farming has been increase
(ex. Bupati of Bogor District has encourage the farmers in Nanggung
to develop Katuk, some of farmers in other village have been planted
Katuk in commercially scale  2 Ha.
• There is opportunity to supply medical factory about 3 tons of
Katuk/week.
Thanks You
Please your
comments, inputs
and suggestion . . .