Development of Agribusiness Enterprises - Asian Productivity ...

More documents

Recommendations

Info

2. INDONESIA Prajogo U. Hadi Agricultural Economic Researcher Center for Agro Socio-economic Research Agency for Agricultural Research and Development Bogor, Dr. Margaretha A. Madjid Sub Director of Livestock Product Management Directorate of Agricultural Product Management Ministry of Agriculture, and Maruli Indra Staff of Directorate of Marketing Directorate General of Primary Industry and Marketing Ministry of Agriculture both Jakarta INTRODUCTION In Indonesia, the agriculture sector has acted several times as an economic rescuer during crisis periods. Yet, in 1999, the sector had a share of only 9.4 percent (Rp.214.9 trillion) of total national GDP. That figure becomes larger if the agro-industrial sector is included. In nominal value, the agro-industry share of national GDP in 1999 accounted for Rp.166.6 trillion. Despite its small GDP share, the agriculture sector plays a major socio-economic role. First, the sector still provides a relatively high percentage of total employment. In 1999, 49 percent of the national workforce of 80 million people was engaged in this sector. While the large workforce can be used to accelerate national economic growth, the increasing population is creating difficulties in providing sufficient employment opportunities. In addressing this situation, an economic development policy must be formulated that will ensure structural changes leading to economic growth that is high enough to absorb the increasing workforce and improve labor productivity. To avoid unfavorable impacts from excessive urbanization, the government policy on rural development should be consistent in encouraging people to stay and make a better living in the rural areas but not necessarily from agricultural production. Such a strategy is aimed at reducing the pressure for urban development as well as the social and economic upheavals that accompany such a transformation. The key to making this strategy more successful is the generation of off-farm employment, such as through providing services (extension, post-harvest storage, transportation and marketing) and manufacturing industries (provision of inputs, post-harvest processing, packaging and transportation). - 76 -
Second, the contribution of agriculture to export earnings is one source of the country’s economic growth. Since the recent economic crisis, increasing foreign exchange earnings have been one of the primary goals of economic development in Indonesia. Even though exports of agricultural products in 1999 decreased by 20.6 percent, those exports still showed a significant contribution, amounting to foreign exchange earnings of US$2,901.4 million, which provided a big increase in national reserves. Decreases were only recorded for a few commodities. Third, the sector provides sufficient food for the Indonesian population and contributes to the development of other sectors, especially through the supply of raw materials to the agro-processing industry. Thus, it meets expanding domestic demand for food commodities and processed products. Although the agriculture sector plays an essential role in the national economy, the emphasis is still on improving the comparative advantages of the sector. This is a necessary but inadequate condition for dealing with the rapid and fundamental changes being made towards a new global economic environment that will affect the national economy, including the agriculture sector and its related activities. A greater competitive advantage through improved efficiency will indeed be the key to success in the foreseeable future. Therefore, agricultural commodities must be produced and processed more efficiently, in order to ensure that product quality will meet market demands. In other words, the role of comparative superiority, which was stressed in the past, should now be replaced by emphasis on competitive superiority. To support this concept, Indonesia needs to shift its development paradigm from “product-oriented” to “market-oriented”. CURRENT TREND AND FUTURE PROSPECT OF AGRIBUSINESS Production Agricultural commodities can be classified into five main groups: (a) coarse grains, roots, tubers and pulses; (b) vegetables and fruit; (c) estate crops; (d) livestock; and (e) fisheries. The production aspects of each group are briefly discussed below. In the first group, the commodities are all produced by smallholders. Rice, the most important commodity, is the single major staple food and therefore receives constant government attention. From 1995 to 1999, rice production increased by 1.32 percent. Maize, the second most important commodity, plays an important role as a principal raw material for the feed industry. The production of maize increased more rapidly than rice (11.23 percent), due primarily to the use of the newly released high-yielding hybrid varieties in response to increasing demand for feed. Cassava production increased by 5.86 percent during the same period. In contrast, sweet potato production declined significantly (25.04 percent) because of a less favorable price. This situation was also true for the production of pulses, with soybean and groundnut production dropping by 18.30 percent and 8.90 percent respectively, mainly due to higher prices of the major farm inputs such as fertilizers and pesticides. The price increases were a consequence of the cancellation of the fertilizer subsidy and farm credit provision as well as the depreciation of the rupiah against the US dollar. In the second group, the major vegetable commodities, shallots, potatoes and cabbages are predominant. During 1995-99, some commodities experienced a rapid increase in production, while cabbage output declined. Moreover, there are 12 fruit commodities for which production data are recorded. These commodities are all grown by smallholders; pineapples are the exception as they are partly produced by large private companies for canned and juice products. Of the fruit commodities, bananas, oranges, mangoes and - 77 -
Page 1 and 2:
From: Development of Agribusiness E
Page 3 and 4:
Report of the APO Seminar on Develo
Page 5 and 6:
FOREWORD Modern agricultural techno
Page 7 and 8:
SUMMARY OF FINDINGS INTRODUCTION Th
Page 9 and 10:
Policies and Programs for Promoting
Page 11 and 12:
Governments should not be undertaki
Page 13 and 14:
crops (i.e., non-traditional crops/
Page 15 and 16:
Financing/Credit Inadequacy of fina
Page 17 and 18:
the State Industrial Bank of Indone
Page 19 and 20:
1. AGRIBUSINESS DEVELOPMENT IN ASIA
Page 21 and 22:
US$ million 8,000 Percent 100 7,000
Page 23 and 24:
Introduction of high-yielding varie
Page 25 and 26: 2. Agriculture and Agro-industry Th
Page 27 and 28: 60 50 40 30 20 10 0 60 50 40 30 20
Page 29 and 30: (27,213) (119,378) Japan U.S.A. (57
Page 31 and 32: supply balance, conserve resources,
Page 33 and 34: 2. POLICIES AND PROGRAMS FOR PROMOT
Page 35 and 36: Table 1. World Markets for Agricult
Page 37 and 38: Japan requires that imported agricu
Page 39 and 40: High Transportation Costs Shipping
Page 41 and 42: competitive markets, improving and
Page 43 and 44: terminals in some cities, which wil
Page 45 and 46: 3. REQUISITES FOR INITIATING AGRIBU
Page 47 and 48: Diversification of production will
Page 49 and 50: Those manufacturers who use substan
Page 51 and 52: STRATEGY FOR AGRIBUSINESS VENTURES
Page 53 and 54: 4. MARKETING PROMOTION OF AGRIBUSIN
Page 55 and 56: of inefficiency. Coordinating the f
Page 57 and 58: such an undertaken can be a very us
Page 59 and 60: Improving Productivity/Management o
Page 61 and 62: Tools for a Purpose Simplistically
Page 63 and 64: 4. Know Who You Are and Who You are
Page 65 and 66: 5. Falling in Love with Technology
Page 67 and 68: ensure a pool of leaders for future
Page 69 and 70: 1. BANGLADESH INTRODUCTION - 69 - A
Page 71 and 72: sector before any imports are allow
Page 73 and 74: C An inadequacy of appropriate tech
Page 75: now constitute 88 percent of frozen
Page 79 and 80: During 1995-99, some commodities in
Page 81 and 82: Indonesia imported only a few commo
Page 83 and 84: Product Quality This issue has beco
Page 85 and 86: agribusiness sector attempts to rec
Page 87 and 88: 3. ISLAMIC REPUBLIC OF IRAN INTRODU
Page 89 and 90: Food Processing Plants Food process
Page 91 and 92: denied. That creates economic imbal
Page 93 and 94: construction (11.6 percent), and th
Page 95 and 96: 2. Operational Conditions This sect
Page 97 and 98: - 97 - Table 5. Present Situation o
Page 99 and 100: (b) When recommended by manufacture
Page 101 and 102: 2. Supporting Production Automation
Page 103 and 104: Kang, S. K., 1994. “The State and
Page 105 and 106: 5. MALAYSIA INTRODUCTION - 105 - Ab
Page 107 and 108: ROLES OF THE FARMERS’ ORGANIZATIO
Page 109 and 110: (e) warehousing facilities to assis
Page 111 and 112: land leased out by farmers to FOs.
Page 113 and 114: Cooperation between the government
Page 115 and 116: Department of Agriculture, 1994. Cr
Page 117 and 118: 6. MONGOLIA INTRODUCTION - 117 - En
Page 119 and 120: Agricultural extension differs from
Page 121 and 122: C streamline the mechanism of long-
Page 123 and 124: 7. NEPAL INTRODUCTION - 123 - Arjun
Page 125 and 126: usiness orientation to the agricult
Page 127 and 128:
* First eight months only. AGRIBUSI
Page 129 and 130:
C directly to wholesale markets or
Page 131 and 132:
dalmoth/chips, ketchup/squash/jam,
Page 133 and 134:
Inadequate Infrastructure Storage f
Page 135 and 136:
Technical and credit support is bei
Page 137 and 138:
8. PAKISTAN INTRODUCTION - 137 - Ma
Page 139 and 140:
C sugar industry - 78 sugar mills C
Page 141 and 142:
- 141 - Table 1. Ongoing Agreements
Page 143 and 144:
9. PHILIPPINES INTRODUCTION - 143 -
Page 145 and 146:
Continuation Item 1995 1996 1997 19
Page 147 and 148:
Seventh was seaweed and carrageenan
Page 149 and 150:
Development of Irrigation Systems O
Page 151 and 152:
Trade and Investment Missions An in
Page 153 and 154:
Executive Order 133 (Tariff Exempti
Page 155 and 156:
Table 1. Contribution of Difference
Page 157 and 158:
Table 5. Overall Export Performance
Page 159 and 160:
The number of registered agro-indus
Page 161 and 162:
extrusion cooked products. This typ
Page 163 and 164:
technical transfer loans to enable
Page 165 and 166:
C The formation of an organization
Page 167 and 168:
Table 1. Cultivated Area, Yield, Pr
Page 169 and 170:
substitution, export requirements a
Page 171 and 172:
and prepare for global climate chan
Page 173 and 174:
Major Factors Contributing to the S
Page 175 and 176:
12. VIETNAM - 175 - Nguyen Thi Thuy
Page 177 and 178:
The equipment used in processing te
Page 179 and 180:
percent of the raw materials are su
Page 181 and 182:
Strategic Solutions for Achieving S
Page 183 and 184:
APO Seminar on Development of Agrib
Page 185 and 186:
Vietnam Ms. Nguyen Thi Thuy Senior
Page 187 and 188:
Asian Productivity Organization Hir
show all

Development of Agribusiness Enterprises - Asian Productivity ...

Create successful ePaper yourself

Delete template?

Save as template?