The Design of a Contract Farming Model for Coffee Tree Replanting (original) (raw)
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2019
This study aims to analyze the models, rules and patterns of interaction applied in contract farming. The location of the study took place at the coffee production center in Tanggamus and the Lampung Barat Region. The survey of farmer households was conducted in May-June 2018. The sample in the study was coffee farmer households and institutions involved in contract farming. The coffee farmer household sample is 170 respondents consisting of 98 contract farmers and 72 non-contract farmers. The analytical method used to answer the research objectives uses descriptive analysis. The contract farming applied by coffee farmers in Lampung is a contractual agreement with an intermediary model that is characterized by the existence of sub-contracts carried out by the sponsoring company with a farmer cooperative (KUB). Comparison of agricultural performance between contract farmers and non-contract farmers shows that contract farming can increase productivity, increase selling prices, and re...
Sustainability, 2019
Contract farming is considered as institutional arrangements that manage the coordination of production and distribution between smallholder farmers and agro-industrial firms. Under the market reforms and industrialization process, contract farming links smallholder farmers to a better market through effective farming management and high-quality products. Despite the many benefits attributed to participation, the existing literature addresses the main issues that result in the opposing attitudes and motivations toward contract farming. This study therefore aims to analyze factors that influence the choices of smallholder farmers for different contract faming models using multinomial logistic (MNL) regression. Different contract attributes and socioeconomic characteristics of farmer households are used as endogenous variables in the MNL model. Based on a research sample of 183 smallholder farmers involved in certified coffee production in Dak Lak province, Vietnam, the study revealed that there are different typologies of production contract including the informal model, intermediary model, and nucleus estate model. Significant factors that affect smallholders' preferences for different contract farming models are gender, farm size, the provision of inputs, price option, technical assistance, delivery schedule, and monitoring. Main issues that induce failures of contract farming are farmer's overdependence and the monopolistic power of industrial coffee firms in the nucleus estate model, as well as the information asymmetry in the informal model. In addition, a cost-benefit analysis symbolizes the role of the cooperative in the intermediary model, which is essential for augmenting win-win outcomes for smallholder farmers and industrial coffee firms.
Asia Pacific Journal of Management and Education, 2019
The purpose of this research was to evaluate the business strategies applied in one of the sustainable organic farming in Yogyakarta, Indonesia. The methodology used is Soft System Methodology (SSM). SSM is an organizational process modeling method that can be used for general problem resolution and change management. Rich picture, Root definitions and conceptual model were presented in the paper. Data were taken using focus group discussion and in-depth interviews with the owner, staffs, and farmers from the organic farm. The focus of this research is to get knowledge about the actors, their behavior, relationships and their influence on decision-making processes. From the analysis, eight main results were obtained as the key strategies in organic farming: identification of actors and critical factors in the farm, vision and mission socialization, operational evaluation, transformation, managerial improvement, measurement of revenue and profit, consistency in sustainability indicator used, and mitigation plan.
Interest in analysing agri-food supply chains, has grown tremendously in the last decade because of the importance of food in well-being, an increasing globalisation of the food industry and as a result agri-food chains increased in complexity. The complexity also results from the perishable nature of food products, seasonality and the risks inherent in the production systems. In a developing country like Indonesia, these complexities are heightened but a further factor can be added-traditional culture plays an important role in almost every aspect of business activities. Agri-food supply chains are highly organised social systems, which have the objective of efficiently matching consumer demand with product supply. The importance of social factors such as cooperation, trust and relationships suggest that Soft Systems Methodology (SSM) has some potential for exploring improvements to agri-food supply chains. This paper reports on an application of SSM to improve agri-food supply chain performance for dryland farming products from small-scale farmers in Lombok, Indonesia. Some possible future research opportunities are also explored.
Regeneration of Coffee Farmers: A Case in Malang Regency, East Java Province, Indonesia
International Journal of Agriculture and Environmental Research
The low interest of today's generation in agriculture has resulted in a small number of young farmers in Indonesia. There is a need of change between the coffee farmers who are no longer productive and younger coffee farmers through the process of coffee farmer regeneration. This study aims to determine the state of regeneration of coffee farmers, the impact of local instructor, education level, land ownership, and income from other sectors on the regeneration of coffee farmers in Karangploso District. This research used descriptive research with qualitative method and phenomenological approach. The data were analyzed with analysis techniques and data representation from Cresswell. The result shows that the regeneration of coffee farmers are taking places in only 4 villages and has been occurring for three generations from 1990, the role of local agricultural instructors are still limited, the education level of coffee farmers range from elementary to junior high school level, some farmers who do not own land cooperate with Perhutani, and coffee farming is not the main source of income for coffee farmers. It is important to continue the regeneration of coffee farmers in Karangploso District, considering that Karangploso District is a coffee-producing area.
Social Relations Between Markets and Farmers: A Sustainable Development Model for Coffee Commodities
Advances in Economics, Business and Management Research, 2021
The socioeconomic characteristics are used in making judgments about the effects of different effects on economic welfare policies. This research focuses on the issue of coffee farming as one of the objectives of the study to create empowered and prosperous farming communities. Thus, the purpose of this study is to describe the socioeconomic characteristics of coffee farmers who have successfully innovated in Jember Regency, to describe and explain the political factors of local government policies in forming social relations between the government, markets and farmers, to describe how the character of the coffee commodity market according to farmers. Market players. This type of research is a mixed method research with quantitative and qualitative approaches. The survey was conducted on coffee farmers in several areas in Jember. A binary logistic model is used to show how these characteristics influence farmers' choice of marketing channels through which to distribute their produce. The results show that increasing the age and income of coffee farmers, the tendency to choose the middleman sales channel increases.
Principal agent in tree mortgage system on traditional agroforestry management in Moluccas Indonesia
IOP Conference Series: Earth and Environmental Science
The agroforestry system in land management has been carried out traditionally by societies in Moluccas. The practice is known as dusung, and includes the cultivation of nutmeg trees. Farmers face a number of problems, one of which is a system of debt bondage that inflicts financial loss upon the farmers. This study aims to explain the involvement of farmers with debt bondage system, namely the tree mortgage system (TMS). This research uses a case study approach, with the collection of interviews and participant conservation data. The data is analysed using principal agent theory. The results showed that nutmeg farmers (principal) have a risk when debt bondage (agent) denies an agreement/moral hazard or acts out an agreement. This occurs when agent exploits the access of information and nutmeg marketing prospects, which makes the position of farmers weak and disadvantaged. Improving contracts for TMS and local institutional strengthening is necessary, as it can improve the bargaining...
From Laborers to Coffee Farmers: Collaborative Forest Management in West Java, Indonesia
Sustainability
Collaborative forest management (CFM) is assumed to provide benefits for improving the condition of the forest ecology and the community’s economy. However, its effectiveness is often debated, particularly regarding the involvement of poor and landless farmers in program implementation. In this relation, this study examines a CFM program implementation in Bandung District, West Java, the so-called Pengelolaan Hutan Bersama Masyarakat (PHBM). The study combined qualitative and quantitative approaches in collecting data. GIS analysis and vegetation identification supported this study. The study shows that the PHBM program implementation in the study area provided benefits for improving forest ecological conditions and the livelihood of the farmers. This study also suggests that poor or landless farmers could secure their rights and access to the forest; they became coffee farmers. Despite this, to ensure the sustainability of the program, especially the involvement of the poor and lan...
Servitization on the primary sector – coffee plantations case
Exacta
Este trabalho analisa o processo de servitização de diferentes fornecedores na cadeia produtiva do café no Brasil. Foi realizada uma revisão da literatura sobre sistemas produto-serviço (SPS) para estabelecer uma estrutura para identificar a tipologia de serviços no setor agrícola. Os resultados destacaram que a prestação de serviços "menos avançados" não é uma condição necessária para que a empresa ofereça serviços "mais avançados". Entretanto, as características das propriedades rurais parecem afetar o número de serviços associados aos fornecedores de máquinas. Os resultados ajudam os gerentes desse setor a identificar as ofertas de serviços e ampliam a discussão sobre servitização, ao abranger um setor pouco explorado.
2005
Three hundred smallholders near Malang in East Java were surveyed of whom 150 were participating in a hybrid seed contract with Pioneer Hybrid International Inc, an American MNC that has been contracting in the area since 1986. The objectives of the study were to determine whether the contract improved the welfare of those who participated and, if participation did improve welfare, to evaluate why this contract, in contrast to many other farm contracts in developing countries, is successful. A transaction cost framework was used to specify a framework for probit analysis of contract participation and regression analysis used to measure the contribution made by contract participation to gross margins. The empirical results suggest (i) contract selection was by Pioneer and not through self-selection, (ii) the contract is likely to favour larger farmers and (iii) the Pioneer contract improved returns to farm capital and hence was likely to be welfare improving for contractors. The success of the contract over many years was attributed to the nature of the contracting process which was between Pioneer and grower groups and not at the individual smallholder level.