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Bananas and Food Security - Bioversity International

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232 Les productions bananières / <strong>Bananas</strong> <strong>and</strong> food security – Session 1<br />

Contribution of banana compared to rice in the Indonesian diet ranges 6-9% in<br />

quantity but only 5-6% in value. The role of bananas is, however, somewhat low when<br />

considering it as a potential complementary staple food. It should in fact represent<br />

between 20 <strong>and</strong> 25%. The quantity of bananas consumed yearly by the rural people is<br />

higher than that consumed by urban people but lower in value. The fact suggests that the<br />

bananas eaten by the rural people are of a lower quality or might be cheaper when<br />

bought at the farm gate. If our program in promoting bananas succeeds, we might expect<br />

to have a stronger national staple food security than in the current condition that rely<br />

mostly on rice.<br />

Among all fruits, bananas are the most important fruit consumed in Indonesia. Rural<br />

people consume more bananas (43.83%) than urban people (25.78%). Therefore, bananas<br />

have an important role in the rural nutrition <strong>and</strong> food security.<br />

Banana trade<br />

The domestic market is very important: more than 200 million people live in Indonesia.<br />

The consumption of banana starts very early when babies begin to have additional food<br />

instead of only nursing their mother. In other words, bananas is part of the Indonesian<br />

way of life.<br />

Seven models of marketing system are currently in use in Indonesia. The models<br />

differ from one region to another (Figure 1). The differences affect prices obtained by<br />

the farmer. Prices at the farm gate are 39.71 + 13.9% from the price at the consumer end<br />

level. The longer the marketing chain is, the lower is the price obtained by the farmer.<br />

The farm gate prices do not really reflect the profit share that might be obtained by the<br />

farmer. Most of the farmers do not include their labour in cost of production. The<br />

intermediaries obtain the highest profit in the marketing system. Risk <strong>and</strong> yield losses<br />

<strong>and</strong> the fluctuations in prices at intermediary stages, are mostly due to transportation,<br />

grading <strong>and</strong> variations in consumers’ preferences. The risk at the postharvest stage is<br />

higher because any damage in this sector is irrecoverable.<br />

A compared analysis of the retail prices of banana (Pisang Ambon) in the western<br />

<strong>and</strong> eastern parts of Indonesia show important differences. The summary of analysis is<br />

presented in the Table 4.<br />

Fluctuation of banana prices is more important in the western part of Indonesia<br />

where transportation <strong>and</strong> exchanges are more dynamic. The market in the eastern part<br />

is more conservative because it includes less population <strong>and</strong> more isl<strong>and</strong>s than western<br />

part <strong>and</strong> that makes banana transportation more difficult to manage.<br />

Table 4. Average retail prices (Rupiah + sd) of banana at the eastern vs western part<br />

of Indonesia (1992-1996).<br />

Part of<br />

Indonesia<br />

1992 1993 1994 1995 1996<br />

Eastern 721.0 ± 157.3 822.6 ± 199.4 900.5 ± 162.3 1,239.0 ± 184.5 1,236.4 ± 327.1<br />

Western 804.1 ± 496.3 863.2 ± 412.6 1,037.7 ± 422.6 1,475.0 ± 810.6 1,824.4 ± 713.4<br />

US$ 1.00 = Rp 3.500 (1996)

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