Determinants of Sustainable Vegetable Farming among Smallholder Farmers in Bogor Regency
DETERMINANTS OF SUSTAINABLE VEGETABLE
FARMING AMONG SMALLHOLDER FARMERS
IN BOGOR REGENCY
WAHID ULLAH
POST GRADUATE SCHOOL
BOGOR AGRICULTURAL UNIVERSITY
BOGOR
2014
DECLARATION
I do hereby declare that the thesis entitled “DETERMINANTS OF
SUSTAINABLE VEGETABLE FARMING AMONG SMALLHOLDER
FARMERS IN BOGOR REGENCY” is my original work produced through
the guidance of my academic advisors and that to the best of my knowledge
has not been presented for the award of any degree in any educational
institution. All of the incorporated material originated from other published as
well as unpublished papers are clearly stated in the text as well as in the
references. Furthermore, a research article with the same title has been published
in July 2014 in International Journal of Current Review ad Research (IJCRR),
Volume 6, Issue 13, Page 06-14; as a preliminary requirement for master‟s degree.
Therefore, I hereby delegate the copyrights of this work to Bogor
Agricultural University, Bogor, Indonesia
Bogor, July 2014
Wahid Ullah
P052128381
DEDICATION
This thesis is dedicated to my beloved parents, brothers and my dear sister,
who has provided me with never ending support all the way since the beginning of
my study and is always a source of motivation for me.
DETERMINANTS OF SUSTAINABLE VEGETABLE
FARMING AMONG SMALLHOLDER FARMERS
IN BOGOR REGENCY
WAHID ULLAH. Determinan Pertanian Sayuran berkelanjutan di
Kabupaten Bogor, dibawah bimbingan SRI MULATSIH, SYAIFUL ANWAR
and SAHARA.
ABSTRAK
Sektor pertanian memiliki peran penting dalam perekonomian Indonesia dan
mata pencaharian penduduk lokal. Salah satu pemangku utama di bidang
pertanian adalah petani kecil. Sebagian besar petani kecil ini memproduksi
sayuran untuk dijual dan dikonsumsi sendiri tetapi mereka mempunyai akses yang
terbatas ke sumber daya pertanian termasuk tenaga kerja, teknologi dan input
lainnya. Tujuan dari penelitian ini adalah untuk mengidentifikasi karakteristik
sosial-ekonomi, praktek pertanian dan variabel lingkungan yang mempengaruhi
produksi sayuran berkelanjutan petani kecil di desa Situ Daun dan Cinangneng
yang terletak di Kecamatan Tinjolaya, Kabupaten Bogor, Jawa Barat. Penelitian
ini menggunakan analisis deskriptif dan regresi logistik ordinal. Berdasarkan
sampel dari 96 rumah tangga, penelitian ini menunjukkan bahwa 71,09% petani
tidak puas dengan produksi mereka karena kurangnya sumber daya keuangan,
hujan deras, dan input lain yang diperlukan untuk pertanian mereka. Hasil dari
analisis regresi logistik rotasi tanaman, pelatihan pertanian, anggota kelompok
petani dan luas lahan merupakan variable-variable yang secara signifikan
mempengaruhi produksi petani kecil. Rotasi tanaman dan pelatihan pertanian
adalah variabel signifikan yang berpengaruh positif sedangkan anggota kelompok
tani dan luas lahan berpengaruh negatif terhadap hasil petani kecil. Penelitian ini
juga menunjukan bahwa persyaratan utama untuk meningkatkan produksi petani
kecil adalah menyediakan pupuk bersubsidi, pestisida, benih, kredit ramah petani
dan alat-alat lainnya yang diperlukan untuk pertanian sayuran untuk memastikan
produksi yang konstan dan berkelanjutan. Mengingat dominasi sektor petani kecil
dalam perekonomian, pemanfaatan yang efektif dari sumber daya ini akan
bergantung pada pelaksanaan serangkaian kebijakan yang memungkinkan petani
untuk mencari spesialisasi yang lebih besar dan meningkatkan produksi mereka.
Kata Kunci: Petani kecil, Produksi sayuran berkelanjutan, Input pertanian,
Analysis logit
SUMMARY
WAHID ULLAH. Determinants of Sustainable Vegetable Farming among
Smallholder Farmers in Bogor Regency Bogor, supervised by SRI MULATSIH,
SYAIFUL ANWAR and SAHARA.
The agricultural sector plays a significant role in the Indonesian economy and
local‟s livelihood. One of the major stakeholders in agriculture is the smallholder
farm sector. Large number of these smallholder farmers (SHF) produces
vegetables for commercial and subsistence purposes but they have limited access
to agriculture resources including labor, technology and other inputs. The purpose
of this study is to identify socio-economic characteristics, agricultural farming
practices and environmental variables influencing smallholder‟s sustainable
vegetable production in the villages of Situ Daun and Cinangneng located in the
sub-district of Tinjolaya, Bogor regency, West Java. The study uses descriptive
and ordinal logistic regression analysis. Drawing on a sample of 96 households,
the study shows that sustainable production of vegetables is mainly affected by
the low quality of agriculture inputs, excessive rainfalls and lack of financial
resources. The findings in the paper reveal that, based on the output from logistic
regression; crop rotation, agriculture training, member of a farmer‟s group and
land size are the significant variables influencing SHF production. Crop rotation
and agriculture training are dominant variables that positively influenced SHF.
Member of a farmer‟s group and land size negatively influenced SHF vegetable
production. The study also established that by providing institutional requirement
such as infrastructure improvement, subsidized fertilizers, pesticides, seeds, soft
loans and other necessary services for vegetable farming to ensure constant and
sustainable production. Given the dominance of smallholder sector in the
economy, the effective utilization of these resources will hinge on the
implementation of a set of policies that would allow smallholders to seek greater
specialization and improve their produce.
Keywords: Smallholder farmers, Sustainable vegetable production, Agricultural
inputs, Logit analysis
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DETERMINANTS OF SUSTAINABLE VEGETABLE
FARMING AMONG SMALLHOLDER FARMERS
IN BOGOR REGENCY INDONESIA
WAHID ULLAH
A thesis submitted in partial fulfillment of the requirements for the
degree of
Master of Science
in
Natural Resources and Environmental Management
POST GRADUATE SCHOOL
BOGOR AGRICULTURAL UNIVERSITY
BOGOR
2014
Thesis Title
Name
Student ID
: Determinants of Sustainable Vegetable Farming among
Smallholder Farmers in Bogor Regency
: Wahid Ullah
: P052128381
Approved by
Supervisory Committee
Dr Ir Sri Mulatsih, MScAgr
Head
Dr Ir Syaiful Anwar, MSc
Member
Dr Sahara, SP MSi
Member
Acknowledged by
Head of Study Program
Natural Resources and
Environmental
Management
Dean of Post Graduate School
Prof Dr Ir Cecep Kusmana, MS
Dr Ir Dahrul Syah, MScAgr
Date of Thesis Defense: 23 June 2014
Date of Completion:
External Examiner for Thesis Defense: Prof Dr Ir Surjono Hadi Sutjahjo, MS
i
TABLE OF CONTENTS
LIST OF TABLES
LIST OF FIGURES
LIST OF ABBREVATIONS AND SYMBOLS
1 INTRODUCTION
ii
ii
iii
1
Background
1
Problem Statement
2
Research Objectives
3
Benefits of the Research
3
2 LITERATURE REVIEW
4
Indonesian Horticulture Sector
4
Contribution of Smallholder Farmers to the Global and Indonesian
Agriculture
7
Hurdles to Smallholders Farmers in Indonesia
8
3 RESEARCH METHOD
11
Study Area
11
Selection of Sample and Data Collection
11
Data Analysis
13
Descriptive Data Analysis
13
Logistic Regression Analysis
13
Determination of Dependent Variable
13
Selection of Independent Variables
13
Model Specification
14
Likelihood Ratio Tests
15
Ordinal Logistic Regression Assumptions
16
4 PROFILE OF THE STUDY AREA
17
Geography, Topography, Geology
17
Climate
18
Population
19
5 RESULTS AND DISCUSSION
Characteristics of Smallholder Farmers
Socio-economic Profile of the Smallholder Farmers
Households Assets
Landholding Size of the Smallholders
20
20
20
20
21
ii
Production Portfolio and Smallholders
Satisfaction with Land Production
Trend in Production
Desire to Participate in Supermarkets
Availability of Inputs for Agricultural Practices
Awareness Level of Smallholder Farmers
Demands of Smallholder Farmers from Government
Agricultural Sustainability related Farming Practices of Smallholder
Farmers
22
22
23
24
25
26
27
Determinants of Sustainable Agriculture of Smallholder Farmers
29
27
REFERENCES
33
APPENDIX 1
37
LIST OF TABLES
1 Poppulation and sample size of the study area
2 Average Annual Rainfall in Bogor Regency
3 Annual Temperature of the Bogor Regency
4 Socio-economic Characteristics of Smallholders Farmers
5 Households assets of the smallholder farmers in the study area
6 Land holding sizes of the smallholder farmers in the study area
7 Production from land and farming time of Smallholder farmers
8 Satisfaction with Production from Land
9 Trends in Agricultural Production
10 Desire of smallholder farmers to participate in supermarket.
11 Inputs available for practicing agriculture sustainably
12 Awareness level of smallholders
13 Requirements of smallholder‟s for agriculture
14 Smallholder farmers Agricultural Sustainability Related Practices
15 Determinants of Sustainable Vegetable Farming
12
18
18
19
21
22
22
23
24
24
26
26
27
28
30
LIST OF FIGURES
1 Map of the Study Area
2 Population of Bogor Regency
11
19
iii
LIST OF ABBREVATIONS AND SYMBOLS
mm
: Milimeter
Km
: Kilometer
UN
GAP
: United Nations
: Good Agricultural Practices
BPS
: Badan Pusat Statistik (Central Bureau of Statistic)
SMH
: Smallholder Farmers
Ha
: Hectare
Km/H
: Kilometer/Hour
o
C
Degree Centigrade
%
: Percent
Km2
: Kilometer Square
m2
: Meter Square
FAO
: Food and Agricultural Organization
GBGI
: Global Business Guide Indonesia
IFAD
: International Fund for Agricultural Development
WDR
: World Development Report
IAASTD
International Assessment of Agricultural Knowledge,
Science and Technology for Development
IJCRR
International Journal of Current Review and Research
1 INTRODUCTION
Background
Sustainable development has numerous definitions and its ecological,
economic and social principles received universal agreement at the 1992 Earth
Summit. One of the summit‟s major outcomes, Agenda 21. Today, 106 countries
have National Sustainable Development Strategies and at least 120 voluntary
sustainability standards are being implemented by the food and agriculture
industry. However, developing and implementing an integrated approach to
analyzing different sustainability dimensions as a coherent whole and integrating
them in development or business strategies remains a major challenge (UN, 2011).
Sustainable development has been defined by FAO as “the management and
conservation of the natural resource base, and the orientation of technological and
institutional change in such a manner as to ensure the attainment and continued
satisfaction of human needs for present and future generations. Such sustainable
development (in the agriculture, forestry and fisheries sectors) conserves land,
water, plant and animal genetic resources, is environmentally non-degrading,
technically appropriate, economically viable and socially acceptable” (FAO
2010). A more sustainable agriculture (which meets the needs of the present
without compromising the ability of future generations to satisfy their own) seeks
to make the best use of nature‟s goods and services as functional inputs. It does
this by integrating natural and regenerative processes, such as nutrient cycling,
nitrogen fixation, soil regeneration and natural enemies of pests into food
production processes. It minimizes the use of nonrenewable inputs (pesticides and
fertilizers) that damage the environment or harm the health of farmers and
consumers. It makes better use of the knowledge and skills of farmers, so
improving their self-reliance. And it seeks to make productive use of social capital
- people‟s capacities to work together to solve common management problems,
such as pest, watershed, irrigation, forest and credit management (Pretty and Hine
2001).
In order to feed nine billion people in 2050, we urgently need to adopt the
most efficient farming systems and recommend for a fundamental shift towards
sustainable agriculture as a way to boost food production and improve the
situation of the poorest (Altieri et al 2012).
Similar to the other countries of the world, agricultural sector plays an
important role in the Indonesian economy and local‟s livelihood especially in
reducing poverty, providing employment, improving farmers‟ welfare and
maintaining sustainable utilization of natural resources and the environment.
Indonesian agriculture accounts for 15.3% of Gross Domestic Products (BPS
2012). Poor rural households have a high dependency on agriculture as the main
source of food security and income or an important complement to off-farm
income (Roshetko et al 2011). Farmers generally practice mixed-cropping
systems, cultivating both annual and perennial crops to produce rice, vegetables,
fruits and other staples. Staple crops such as corn, sugar and rice alongside
vegetables for domestic consumption are mainly carried out by smallholder
farmers (BPS 2012). According to labor force indicator data from Statistic Central
2
Board BPS on November 2003, from 88.1 million people of labor force in
Indonesia as 46.6 percent work on agricultural sector (Sudihartono et al 2008).
Smallholders are the main contributors in agriculture sustainability and their
role in agriculture production is a topic of interest. Around 500 million
smallholders in the world, supporting almost 2 billion people, one third of
humanity (IFAD 2010). They feed poor communities including themselves and
the small increases in yields on their farms could have a profound impact on
poverty and access to food at the local and regional levels (Altieri et al 2009).
They account for 60% of global agriculture, manage vast areas of land, and
through ingenuity and sweat manage to feed about one-third of humanity.
Indonesia has a large smallholder agriculture sector which are often
vulnerable to external disturbances arising from weather, market volatility and
farm failures, which keeps them in constant poverty. Indonesian smallholder
farmers, like other countries of the world are among the poorest community and
lack basic resources for practicing agriculture in a sustainable manner
(Wickramasinghe 2012).
Most Indonesian smallholder farmers grow their crops on less than 0.79ha
(Sahara 2012) facing many constraints in agricultural production including limited
technical knowledge and planning, low use of inputs, weak management and poor
post-harvest handling result in yields of low quantity and quality, limited access to
market information and strong dependence on local collectors result in
unfavorable bargaining positions for smallholders (Roshetko et al 2007).
Experience shows that helping smallholder farmers can contribute to a country‟s
economic growth and food security. For example, India, China, Bangladesh,
Thailand and Viet Nam have gone from being food-deficit countries to food
exporters. They achieved this largely through development of its smallholder
farming sector.
This study was conducted in the villages of Situ Daun and Cinangneng
situated in the Bogor Regency, Indonesia will try to identify the characteristics of
smallholder farmers producing vegetables, their agricultural practices with a focus
on sustainability aspect and factors (socio-economic, agricultural and
environmental) that limits the production. The study will also try to identify the
possible solution(s) for the constraints (socio-economic, agricultural and
environmental) affecting smallholder farmers‟ production and possible
suggestions through which these farmers can further improve their yield
sustainability.
Problem Statement
Indonesia has a 246 million total population of which nearly 17 million are
smallholders, most of which are often vulnerable to external shocks emerging
from weather and access to other agricultural inputs (labor, technology, finance,
fertilizers, pesticides and best management practices etc.). Smallholder farmers in
have very limited land i.e. 0.79ha. Majority of these smallholder farmers are poor
and choose vegetables as their main agricultural crop. There are number of
reasons why smallholder farmers choose vegetables and the most important of
which is its fast growth. These smallholders are economically marginalized and
lack resources to buy good quality inputs and practice agriculture sustainability.
3
This lack of resources and agricultural inputs diminishes their yield which might
have the potential of improvement by providing basic needs to assure sustainable
use of land.
Research Objectives
The overall research objective of the study is to identify the characteristics
of smallholder agriculture practices related to sustainability, what constraints they
are facing and how to cope with those hurdles in order to assure sustainable
production from their lands? The specific research objectives are to;
1 Identify the characteristics of smallholder farmers growing vegetables.
2 Identify agricultural sustainability related farming practices of smallholder
farmers growing vegetables.
3 Examine factors that influence sustainable vegetable farming of smallholder
farmers.
Benefits of the Research
1 This study has identified the characteristics of smallholder farmers which will
help policy makers or any other stakeholder in understanding smallholder‟s
household characteristics, their farm characteristics and information on their
total annual production of their main vegetable crop. Based on these
information policy makers can revisit their policies and make it friendly to help
smallholder farmers in increasing their yield.
2 The research has also identified the sustainability related practices of
smallholder farmers through which policy makers can prioritize the areas
which needs to be improved in order to make a sustainable use of land while at
the same time insure maximum yield form it.
3 The study has also focused on the identifying the factors that influence
sustainable vegetable production of smallholder farmers. This will be the key
area to focus on in agricultural policies and train the farmers according to the
demands of the modern agricultural practices. This will need financial as well
as practical support on the field to insure sustainable production form
smallholder farm sectors of agriculture.
2 LITERATURE REVIEW
Indonesian Horticulture Sector
According to Global Business Guide Indonesia Report (2012) fresh fruit and
vegetables have always made up a significant portion of the Indonesian diet which
in the past consisted of locally grown produce purchased from traditional retail
outlets and markets. Indonesian consumer spending on fresh horticultural products
compared to that on rice was 50% in 1994, this has since risen to 75% in 2004 and
100% for urban dwelling Indonesians in 2007 (Horticultural Producers and
Supermarket Development in Indonesia Report, World Bank). However,
Indonesian per capita consumption of fresh fruit and vegetables is still below the
recommended level set by the United Nation‟s Food and Agriculture Organization
(FAO) at an average of 40kg per person every year while the recommended
amount is 70kg (Indonesia Statistics Bureau Survey 2011). Indonesia‟s upper
middle class, who will swell to 30 million people by 2015 according to World
Bank estimates, will contribute to this new trend as increased awareness about
health and the nutritional benefits of fresh fruit and vegetables as part of a
balanced diet become entrenched in everyday eating habits. This trend is also
being accelerated by improved supply chains and the ease of access to modern
retail facilities such as supermarkets in urban areas which allow for the correct
storage of fresh produce thus making previously unavailable varieties of fruit and
vegetables available to consumers. The market is therefore highly promising for
both local and foreign producers; however the country‟s reliance on imports is
highlighting the declining competitiveness of Indonesia‟s domestic horticulture
sector as well as the government‟s moves towards more protectionist and
restrictive trade policies.
Imported fresh fruits and vegetables are coming to make up an increasing
share of fresh produce sales in Indonesia. In 2006, horticulture imports stood at
$600 million USD and rose to $1.7 billion USD in 2011 (Ministry of Trade).
Approximately 45% of such imports constitute fresh fruit predominantly apples
($153 million USD), oranges ($150 million USD), grapes ($99 million USD) and
durians ($74 million USD). China is the main source of Indonesia‟s fruit imports
at 55% followed by Thailand 28%, USA 10%, Chile 4% and Australia 3%. In
2011, imports of fresh vegetables increased by 29% with white onions making up
a substantial portion ($242 million USD) as well as red onions ($74 million USD).
With regards to vegetables, China is also the leading source contributing to 67%
of total imports with both Thailand and Myanmar each making up 10% and India
at 8%. The preference for imported fruit is due to the superior quality and taste
offered by produce from China and Thailand in particular in addition to the
competitive pricing as a result of government subsidies often making imported
goods comparatively cheaper to those produced in Indonesia.
Indonesia has long been hailed for its comparative advantages in all things
agricultural; mineral rich volcanic soil, a varied tropical climate for counter
seasonal cultivation and the wide availability of fertile land for plantations are just
some of these advantages. The country‟s economy remains heavily dependent on
agriculture with over 40% of the labor force engaged in the sector, however only
5
11% of the agricultural workforce is absorbed by horticulture (Ministry of
Agriculture). The value of the fresh fruit and vegetables market has doubled over
the course of 1995-2009 to an estimated $10 billion USD industry (Indonesia
Statistics Bureau), however the local horticultural industry is playing less of a role
than it is surely capable of. There are various factors involved as to why this is the
case, one cause pointed out by local horticultural players is the lack of quality
seeds available to local farmers despite the research underway at institutions such
as Bogor Agricultural University and the private sector. Government support of
the industry to assist in educating farmers on modern cultivation methods has also
not been forthcoming making the necessary investments to improve output out of
reach for most independent farmers. In contrast, Thai horticulture producers
receive state support for their operations to create economies of scale and the
country‟s fresh fruit and vegetables have become an area of national pride for both
the local and export market due to the promotional efforts of the reigning
monarch. Transportation and storage is a further issue that has held back local
farmers in commanding higher value for their produce as the use of traditional
transport methods such as open air trucks results in large portions of the products
being spoiled on arrival to their destination.
Indonesia‟s horticulture sector represents a key opportunity for local and
international horticultural players to work with local farmers to introduce
improved production methods and coordinate economies of scale which would
result in more competitive pricing in the domestic and international market. Areas
such as seed research, modern planting and greenhouse methodology in addition
to cold chain storage and transportation networks offer highly lucrative business
opportunities. Plantations are a further area of potential to foreign investors given
the laws governing investment which allow ownership of up to 95%. While
restrictions on fruit and vegetable imports are getting tougher for foreign exporters
to navigate (this matter is covered in more detail later), the country‟s fruit imports
will continue unabated leaving plenty of scope for further growth. However,
exporters should position themselves strategically to offer products that cannot be
grown locally such as temperate fruit varieties rather than competing directly with
local producers. For example, stone fruits such as cherries, peaches and plums as
well as various berry fruit types cannot be cultivated in Indonesia‟s tropical
climate.
Transportation and distribution of goods is a challenge for all consumer
goods related industries in Indonesia, however the problem is more acute for fresh
fruit and vegetables producers given the time pressures to ensure that the fruit is
fresh on delivery. Indonesia‟s poor infrastructure and high logistical costs is not a
new issue for those in the agriculture sector; however the announcement that as of
June 2012 four out of the country‟s eight main sea ports will be closed to
horticulture products is seen as exacerbating this problem. Jakarta‟s main ports
such as Tanjung Priok previously handled up to 90% of the imported horticultural
goods which will now have to go through Soekarno Hatta Airport, Tanjung Perak
Port in Surabaya, Soekarno Hatta Port in Makassar and Belawan Port in Medan
which will significantly add to transport costs. The Indonesian government has
justified its decision to close the ports due to the lack of facilities such as
laboratories for testing and quarantine. The government‟s actions have prompted
6
complaints from 12 horticulture exporting countries in the EU as well as Canada,
USA and New Zealand who raised the matter at a World Trade Organization
meeting in May 2012 citing the lack of scientific evidence for Indonesia‟s claims
regarding phyto-sanitation requirements as the cause for the closure of the ports.
Following on from the lodge of the complaint, three countries namely Canada,
USA and Australia have requested a Mutual Recognition Agreement enabling
them to continue to export fruits and vegetables through Tanjung Priok provided
that Indonesian horticultural goods receive reciprocal treatment.
The Indonesian government move follows the introduction of new quality
standards for imported fruit as per the Ministry of Agriculture Regulation
No.15/2012 and No.16/2012 which stands as an amendment to No. 89/2011 and
No.90/2011 on Technical Requirement and Plant Quarantine Measures on Import
of Fresh Fruits and/or Vegetables and Fresh Bulbs into the Republic of
Indonesia`s Territory. Such amendments were made following the discovery of
traces of formaldehyde in imported fruit products with 19 incidents reported in the
prior 18 months according to a statement by the Minister of Trade, Gita Wirjawan.
In May 2012, the Ministry of Trade also announced new restrictions on
horticulture imports in the form of regulation No.30/2012 whereby producers and
importers must obtain a special import license that is subject to the approval of the
Ministry of Agriculture in effect as of 29th September 2012. Eligibility for the
license will depend on the technical capacity of the importer including ownership
of cold storage transport facilities and having relationships with multiple
distributors to avoid monopolistic practices and to provide opportunities to local
agents.
Indonesia‟s fresh fruit and vegetables sector is at a key stage in its
development with the scope to offer lucrative opportunities to both local players
and international importers. The government‟s efforts to tighten their grip over
agricultural imports are making life more difficult for importers and local
distributors due to the inadequate infrastructure available in Java and Jakarta as
the country‟s main economic hub and trade gateway. The intent of such measures
is clear; locally produced Indonesian products must be competitive in their
domestic market to avoid losing out on the surge in consumer demand particularly
among the lower-middle income bracket. However, a more hands on approach
will have to be taken by the government to have a real impact on the horticulture
sector as a whole by providing local farmers with the tools to cultivate higher
quality fruit such as better seed varieties as well as education on packing and
transportation. The private sector and foreign investors also have key
opportunities available to them within an improved local horticulture industry for
plantations, distribution as well as marketing. For fruit exporters to Indonesia, the
middle-upper income bracket will still provide plenty of demand for their products
while greater local producer involvement will also provide a more competitive
environment to effectively differentiate and position their products in the
marketplace.
7
Contribution of Smallholder Farmers to the Global and Indonesian
Agriculture
Smallholders are the main contributors in agriculture sustainability and their
role in agriculture production is a topic of interest. Around 500 million
smallholders in the world, supporting almost 2 billion people, one third of
humanity (IFAD 2010). They feed poor communities including themselves and
the small increases in yields on their farms could have a profound impact on
poverty and access to food at the local and regional levels (Altieri et al 2009).
They account for 60% of global agriculture, manage vast areas of land, and
through ingenuity and sweat manage to feed about one-third of humanity
(providing up to 80% of food in sub-Saharan Africa and Asia). They also make up
the largest share of the developing world‟s undernourished (Pimbert 2009).
Approximately 2.5 billion people in poor countries live directly from agriculture
farming crops and livestock are relying on forestry or fisheries IAASTD (2008)
and 1.5 billion people live in smallholder household. Of an estimated 525 million
farms worldwide, about 435 million are small farms with two hectares of land or
less (Zhou 2010; FAO 2011).
Asians constitute 57 per cent of the world‟s population and of them 56 per
cent or close to 1.92 billion people FAO (2011) depend on agriculture, mostly
working on smallholdings of less than 2 hectares. According to Ganesh Thapa
(2010) “it is estimated that about 87 per cent of the world‟s 500 million small
farms (less than 2 ha) are in Asia and the Pacific region, China and India alone
account for 193 million and 93 million small farms, respectively. Three other
Asian countries with a large number of small farms are Indonesia (17 million),
Bangladesh (17 million) and Viet Nam (10 million)”.
Small farmers are the key groups requiring attention in agricultural and rural
development. Increasing their productivity and incomes can make a major
contribution to reducing hunger and poverty. The number of smallholder farmers
has increased globally during the last few decades which have decreased the
landholding size (World development reports 2007 and 2008). Most importantly,
there is a lack of off-farm employment opportunities for smallholders, who
typically have limited education and professional skills. Small farmers in
developing countries will continue to be the custodians of vast areas of
agricultural land for at least some decades to come (Altieri et al 2009). Large
numbers of smallholders are women, heads of households or indigenous peoples,
they live in the most ecologically and climatically vulnerable landscapes, such as
hillsides, dry lands and floodplains, and rely directly on weather-dependent
natural resources. For some years now, a combination of enlightened government
officials, community groups, civil society organizations, think tanks and
international aid agencies such as the International Fund for Agricultural
Development (Ifad) have been developing a more sustainable approach to
agriculture, with great success and huge potential to include smallholders (Pimbert
2009).
Three-quarters of the world‟s poor and 70% of hungry people live in rural
communities where smallholder farming is the predominant livelihood and source
of food. Small-scale producers provide more than half of the world‟s food supply.
They contribute over 90% of Africa‟s agricultural production and the majority of
8
the maize, beans and potatoes for domestic consumption in Latin America
(Nagayets 2005). Small farms also contribute to greater food security, particularly
in areas with poor infrastructure where high transport costs make locally produced
foods less costly and less risky than many purchased foods (Hazell 2011).
Most of Indonesian people‟s livelihood is in agriculture. According to labor
force indicator data from Statistic Central Board on November 2003, from 88.1
million people of labor force in Indonesia, as amount 41.054.600 people or 46.6
percent work on agricultural sector (Sudihartono et al, 2008). The agriculture
sector is critical for rural household incomes, employing more than 40% of labor
and contributing 17% of GDP. But agricultural productivity growth has been
slower and is currently low both compared with other countries and historically
for Indonesia. Contribution of agricultural sector on national output has been
declining, but contributions of other sectors, such as trade, manufacturing, and
services, have been increasing constantly (Sudihartono et al 2008). After the crisis
level rises in 2007/08 and then in 2010/2011 the focus at policy level is again on
farming with significant emphasis on the role of smallholders for fulfilling the
world‟s food needs.
Hazell (2011) stated that not all of the changes that might be thought
particularly harmful to small farmers are necessarily any worse for them than they
are for larger-scale farmers. But some clear threats to small farms emerge. In large
part they arise from market failures, themselves amplified by the policy retreat
from intervention that has left the private sector operating within markets as the
main actor in input supply, financial services, marketing, and even technical
advice and innovations. If smallholders are to survive and prosper, then they must
find ways to meet new demands in supply chains and to obtain inputs, credit, and
technical knowledge from private agents at competitive prices with large-scale
farms. A key question is how far the public sector should intervene in helping
small farms gain access to markets, technologies, and support services rather than
leaving everything to the private sector. How one answers this question is one of
the key differences between those who believe that small farmers have a future
and those who do not.
According to Gulati (2008) the large smallholder agriculture sector in
Indonesia requires greater attention. Smallholder farmer‟s productivity and
incomes can make a major contribution to reducing hunger and poverty in
Indonesia. The impacts of environmental degradation, climate change, asset
ownership, awareness about fertilizers usage on proper soils, lack of power both
in the economic sphere and with respect to state institutions, transportation
expenses or other incentives on agricultural inputs, urbanization and globalization
affect both small and large farms more or less equally. But other developments
may pose more severe challenges for smallholdings. When new technologies
require more capital inputs, mechanization, or high levels of education, these
requirements may disadvantage smaller farms. More worrying are the
implications of changes to marketing chains (Hazell et al 2007).
Hurdles to Smallholders Farmers in Indonesia
Ganesh Thapa (2010), states that smallholders are facing a number of
challenges in producing food in a sustainable manner. Although some of these
9
challenges affect both large and small farms, there is evidence that they apply
more strongly to small farms. For example, small farmers cannot take advantage
of higher food prices by expanding production if they have difficulty in accessing
services and credit. Similarly, when new technologies require higher capital inputs
or mechanization, small farmers may be at a disadvantage unless they are helped
in reducing their transaction costs to access inputs, credit and marketing facilities.
Poor smallholder farmers are particularly exposed to natural disasters,
seasonality, year-to-year variability, and commodity price volatility. Given their
limited ability to cope with risk due to resource constraints and absence of formal
risk insurance markets, the poor are left vulnerable. With limited options to
manage risk through formal market mechanisms, they experience significant
fluctuations in income and makes consumption smoothing difficult (GabreMadhin 2009). The impacts of environmental degradation, climate change, asset
ownership, awareness about fertilizers usage on proper soils, lack of power both
in the economic sphere and with respect to state institutions, transportation
expenses or other incentives on agricultural inputs, urbanization and globalization
etc. are also the main hurdles with smallholders.
To feed the world‟s growing population – projected to exceed 9 billion in
2050 UN (2009) it will be necessary to boost the production of food and to do so
sustainably. To be sustainable, agriculture will need to be intensified and its
environmental footprint made to shrink (Nagayets 2005). Volatile food prices,
recurrent droughts, floods, soil and water degradation, and land grabs, agriculture
technology, proper season and methods of harvesting, proper fertilizers usage,
environmental and agriculture education or awareness etc. are some of the
multiple challenges faced by small-farmers in poor countries (Altieri et al 2009).
The World Bank (2008) report mentions that “to feed nine billion people in
2050, we urgently need to adopt the most efficient farming systems and
recommend for a fundamental shift towards agro-ecology as a way to boost food
production and improve the situation of the poorest”. The global demand for food
is expected to increase by 60% by 2050. Given climate change, natural resource
constraints and competing demands, especially for the production of befouls,
among other factors, this presents a considerable challenge for the agriculture and
food systems worldwide. Smallholders will need to play a key role in meeting
these requirements, if for no reason other than the sheer magnitude of their
production in developing countries (Altieri et al 2012).
A “supermarket revolution” has been underway in developing countries
since the early 1990s. Supermarkets (here referring to all modern retail, which
includes chain stores of various formats such as supermarkets, hypermarkets, and
convenience and neighborhood stores) have now gone well beyond the initial
upper- and middle-class clientele in many countries to reach the mass market.
Within the food system, the effects of this trend touch not only traditional
retailers, but also the wholesale, processing, and farm sectors. The supermarket
revolution is a “two-edged sword.” On the one hand, it can lower food prices for
consumers and create opportunities for farmers and processors to gain access to
quality-differentiated food markets and raise incomes. On the other hand, it can
create challenges for small retailers, farmers, and processors who are not equipped
to meet the new competition and requirements from supermarkets. When
supermarkets modernize their procurement systems, they require more from
10
suppliers with respect to volume, consistency, quality, costs, and commercial
practices.
3 RESEARCH METHOD
Study Area
The Study area comprises of Situ Daun and Cinangning villages located at
sub district of Tinjolaya in the Bogor Regency where agriculture is the main
source of income of the local‟s livelihood. Both the villages are located at an
altitude of 450 meter and 380 meter above sea level respectively. According to the
Central Bureau of Statistics, Indonesia (2012) total population1 of Situ Daun was
8,678 with a total land size of 3.29 km2.
Figure 1 Map of the Study Area
The population density in Situ Daun village was 2638 persons/km2 while the
total population of Cinangneng village is 8,660 with a population density of 4085
individuals/km2. The total land size of Cinangneng village is 2.12 km2. The mean
monthly rainfall in both villages was 15 days and 245mm for the year 2012. The
field surveys were conducted between July-August 2013 following by data
analysis in the October 2013.
Selection of Sample and Data Collection
Smallholder is a farmer who owns or rent in land equal to or less than 2.0
hectares (Joshi 2006). A household was defined as a group of people living under
the same roof and pool resources (labor and income). Labor pooling means that
household members exchange labor time without any payment. Income pooling
means that they „eat from the same pot‟ although some income may be kept by the
household member who earns it (Sunderlin et al 2010).
1
The data was taken from the village profile of Situ Daun and Cinangneng provided by the village office and Statistic
Agency (BPS), Bogor Regency for year 2011-12.
12
There were 20 and 23 neighborhoods (Rukun Tetangga “RT”) in the
villages of Situdaun and Cinangneng respectively. For primary data collection the
neighborhoods were selected randomly (Simple Random Sampling) while the
households were selected purposively on certain basis i.e. a household has to be
involved in any kind of agriculture or horticulture activities, a household should
own/rent land less than or equal to 2 hectares (definition of smallholder on the
basis of land occupation) (Joshi 2006) a household should be largely dependent on
family labor and a household can decide independently for him/herself what to
grow and then where to sell his agricultural products.
The sites were chosen for this research because most of the farmers grow
vegetables there, they are economically marginalized, lacking the necessary
requirements for doing good agriculture practices (GAP). The study covers only
the producer‟s perceptions regarding participation in supermarkets. It also covers
the level of awareness of those farmers regarding the standards for the quality and
quantity of agricultural commodities and products.
Primary data was gathered on household level through household surveys
with the farmers by using both closed and open ended questions. The
questionnaire was divided into different sections starting from the very general
characteristics of the respondents, assets of the household and awareness of a
respondent regarding participation in supermarkets, agricultural production and
supermarket accessibility, institutional support for participating in supermarkets,
good agricultural practices and environmental sustainability.
Table 1 Poppulation and sample size of the study area
Characteristics
Total population of the village (persons)
Total population involved in agriculture
(persons)
Land holders (persons)
Sampled Population (households)
Villages
Situ Daun
Cinangneng
8678
8660
660
680
330
49 (15% of the
total landholders)
345
47 (13.62%
of the total
landholders)
Source: Central bureau of statistics (BPS) 2012
A sample of 104 farmers was selected purposively for the study from the
villages of Situ Daun and Cinangneng in Bogor Regency. After cleaning process
the data of 8 respondents was eliminated since they were not owning, renting or
contracting the land. They were only working on daily wages on someone else
land which was not the criteria to choose respondent for this study. Hence out of
104 respondents 96 were included in the analysis accounting for about 15% of the
total land owing farmers in the villages. Detailed information was collected on
their socio-economic conditions, institutional support from government and nongovernment bodies, landholding, type of fertilizer and pesticide use, irrigation
facilities, shifts in cultivation, crop rotation, livestock holdings, and access to
market information. It needs to note that prior to the survey, a village level study
13
was carried out applying Rapid Rural Appraisal (RRA) technique to gather data
and information about Kecamatan Tinjolaya as basis for village selection.
Direct field observations were made to cross check the data obtained from
interviews. The additional information from direct field observations was used in
the analysis to complement the information gathered from the questionnaire.
Secondary data was collected from existing and available literature in hard form
like thesis, dissertation, Journals, internet, and other Government related
bodies/organizations.
Data Analysis
Data was analyzed in two sections i.e. descriptive data analysis and logistic
regression analysis.
Descriptive Data Analysis
From the survey, descriptive statistics on environmental, agricultural, social,
economic and the aspects of awareness level of smallholder famers is generated to
determine their farming activities, tillage practices, household‟s assets, cropping
patterns, selling sources, constraints to smallholder farmers in accessing their
production to supermarkets and their perceptions regarding participating in
supermarkets.
Logistic Regression Analysis
Using farmers and farm characteristics including socio-economic,
agricultural and environmental, an ordinal logistic regression model was estimated
to determine the dependency of yield on crop rotation, pesticide use, fertilizer use,
agricultural training, member of a farmer‟s group, access to market information,
age of the household, gender, education, size of the household, time spent in
agriculture and land holding size.
Determination of Dependent Variable
Sustainability was analyzed through the quantity of yield and was divided
into three categories with codes assigned to it (an increase in yield was coded as 3,
if constant then 2 and if yield is decreasing then was coded as 1).
Selection of Independent Variables
A total of twelve independent variables were included in the logistic
regression model to analyze dependency of yield. Specific codes were assigned to
all variables.
An independent variable „Crop Rotation‟ was created by scoring method. If
a farmer is rotating his crop(s) then it was coded as 1, otherwise 0. It was
hypothesized that a farmer doing crop rotation will be having a higher yield which
means that this is sustainable agriculture, otherwise not.
14
Pesticide utilization was another independent variable to analyze how much
yield was dependent on it.
A farmer using pesticide was coded as 1, otherwise 0. The assumption made
was that if a farmer is using pesticide then his/her yield will be less and that
means that the agricultural he is practicing is un-sustainable and vice versa.
Fertilizer utilization was a dummy variable created by scoring method. It
was assumed that by using organic fertilizers, yield will be higher and agriculture
will be sustainable otherwise not. Organic fertilizer use was coded as 1 and inorganic as 0.
Agricultural Training (years) was coded as (received=1, 0 otherwise).
Farmers who have received any kind of agricultural training were expected to
have higher yield.
A farmer who shares resources within „farmer‟s group‟ was desired to have
higher yield and was coded as 1 otherwise 0.
A farmer who has „access to market information‟ was coded as 1, if not than
0. It was expected that a farmer keeping himself aware of the current updates
about market will try to adjust his/her agriculture according to the demands of the
market and will have higher yield.
Age of the household (years) was a continuous variable. Original ages of the
respondents were used for logistic regression analysis. It was assumed that older
farmer will be more mature will cares about his agricultural production to support
his family. The assumption was that he/she will be having higher yield.
Gender was another dummy variable used to separate the sex (male or
female) of the respondents and was created by scoring method. A score of 1 was
given to male and 0 to female farmers. Historically male are more engaged in
agriculture compare to females, however the scenario has been changing since last
decade. Households headed by male farmers were expected to have higher yield
than those headed by female. Female famers are also starting to adopt vegetable
farming due to the direct benefits it offers (Tiwari et al 2008a).
Education (years) was used as a continuous variable. It was hypothesized
that education of the respondent will be positively related to yield. Educated
farmers are more likely to be practicing sustainable agriculture will be having
higher yield (Nkamleu et al 2000).
Size of Household (persons) was a continuous variable and it was
hypothesized that large households will be having higher yield because the total
number of laborers involved in farming activities from their families will be more.
Farming time (years) was a continuous variable. It was expected that
farming time will be positively related to yield i.e. more experience-more yield.
He will also be having knowledge of good agricultural practices.
Landholding Size (m2 or hectare) was the last continuous variable included
in the model and was expected to have positive relationship with yield.
Model Specification
Estimation of the deteminants of household yeild was analyzed by ordinal
logistic regression model. The use of ordinal logistic regression model was to
determine the variables that affect household yeild.
15
Ordinal logistic regression with a response variable i.e. yield was categorical
and multilevel (ordinal). Logistic models for ordinal response data with category c
(c> 2) is an extension of the logistic model for nominal response data with two
categories (binary logistic models). As in other regression models, two or more
explana
FARMING AMONG SMALLHOLDER FARMERS
IN BOGOR REGENCY
WAHID ULLAH
POST GRADUATE SCHOOL
BOGOR AGRICULTURAL UNIVERSITY
BOGOR
2014
DECLARATION
I do hereby declare that the thesis entitled “DETERMINANTS OF
SUSTAINABLE VEGETABLE FARMING AMONG SMALLHOLDER
FARMERS IN BOGOR REGENCY” is my original work produced through
the guidance of my academic advisors and that to the best of my knowledge
has not been presented for the award of any degree in any educational
institution. All of the incorporated material originated from other published as
well as unpublished papers are clearly stated in the text as well as in the
references. Furthermore, a research article with the same title has been published
in July 2014 in International Journal of Current Review ad Research (IJCRR),
Volume 6, Issue 13, Page 06-14; as a preliminary requirement for master‟s degree.
Therefore, I hereby delegate the copyrights of this work to Bogor
Agricultural University, Bogor, Indonesia
Bogor, July 2014
Wahid Ullah
P052128381
DEDICATION
This thesis is dedicated to my beloved parents, brothers and my dear sister,
who has provided me with never ending support all the way since the beginning of
my study and is always a source of motivation for me.
DETERMINANTS OF SUSTAINABLE VEGETABLE
FARMING AMONG SMALLHOLDER FARMERS
IN BOGOR REGENCY
WAHID ULLAH. Determinan Pertanian Sayuran berkelanjutan di
Kabupaten Bogor, dibawah bimbingan SRI MULATSIH, SYAIFUL ANWAR
and SAHARA.
ABSTRAK
Sektor pertanian memiliki peran penting dalam perekonomian Indonesia dan
mata pencaharian penduduk lokal. Salah satu pemangku utama di bidang
pertanian adalah petani kecil. Sebagian besar petani kecil ini memproduksi
sayuran untuk dijual dan dikonsumsi sendiri tetapi mereka mempunyai akses yang
terbatas ke sumber daya pertanian termasuk tenaga kerja, teknologi dan input
lainnya. Tujuan dari penelitian ini adalah untuk mengidentifikasi karakteristik
sosial-ekonomi, praktek pertanian dan variabel lingkungan yang mempengaruhi
produksi sayuran berkelanjutan petani kecil di desa Situ Daun dan Cinangneng
yang terletak di Kecamatan Tinjolaya, Kabupaten Bogor, Jawa Barat. Penelitian
ini menggunakan analisis deskriptif dan regresi logistik ordinal. Berdasarkan
sampel dari 96 rumah tangga, penelitian ini menunjukkan bahwa 71,09% petani
tidak puas dengan produksi mereka karena kurangnya sumber daya keuangan,
hujan deras, dan input lain yang diperlukan untuk pertanian mereka. Hasil dari
analisis regresi logistik rotasi tanaman, pelatihan pertanian, anggota kelompok
petani dan luas lahan merupakan variable-variable yang secara signifikan
mempengaruhi produksi petani kecil. Rotasi tanaman dan pelatihan pertanian
adalah variabel signifikan yang berpengaruh positif sedangkan anggota kelompok
tani dan luas lahan berpengaruh negatif terhadap hasil petani kecil. Penelitian ini
juga menunjukan bahwa persyaratan utama untuk meningkatkan produksi petani
kecil adalah menyediakan pupuk bersubsidi, pestisida, benih, kredit ramah petani
dan alat-alat lainnya yang diperlukan untuk pertanian sayuran untuk memastikan
produksi yang konstan dan berkelanjutan. Mengingat dominasi sektor petani kecil
dalam perekonomian, pemanfaatan yang efektif dari sumber daya ini akan
bergantung pada pelaksanaan serangkaian kebijakan yang memungkinkan petani
untuk mencari spesialisasi yang lebih besar dan meningkatkan produksi mereka.
Kata Kunci: Petani kecil, Produksi sayuran berkelanjutan, Input pertanian,
Analysis logit
SUMMARY
WAHID ULLAH. Determinants of Sustainable Vegetable Farming among
Smallholder Farmers in Bogor Regency Bogor, supervised by SRI MULATSIH,
SYAIFUL ANWAR and SAHARA.
The agricultural sector plays a significant role in the Indonesian economy and
local‟s livelihood. One of the major stakeholders in agriculture is the smallholder
farm sector. Large number of these smallholder farmers (SHF) produces
vegetables for commercial and subsistence purposes but they have limited access
to agriculture resources including labor, technology and other inputs. The purpose
of this study is to identify socio-economic characteristics, agricultural farming
practices and environmental variables influencing smallholder‟s sustainable
vegetable production in the villages of Situ Daun and Cinangneng located in the
sub-district of Tinjolaya, Bogor regency, West Java. The study uses descriptive
and ordinal logistic regression analysis. Drawing on a sample of 96 households,
the study shows that sustainable production of vegetables is mainly affected by
the low quality of agriculture inputs, excessive rainfalls and lack of financial
resources. The findings in the paper reveal that, based on the output from logistic
regression; crop rotation, agriculture training, member of a farmer‟s group and
land size are the significant variables influencing SHF production. Crop rotation
and agriculture training are dominant variables that positively influenced SHF.
Member of a farmer‟s group and land size negatively influenced SHF vegetable
production. The study also established that by providing institutional requirement
such as infrastructure improvement, subsidized fertilizers, pesticides, seeds, soft
loans and other necessary services for vegetable farming to ensure constant and
sustainable production. Given the dominance of smallholder sector in the
economy, the effective utilization of these resources will hinge on the
implementation of a set of policies that would allow smallholders to seek greater
specialization and improve their produce.
Keywords: Smallholder farmers, Sustainable vegetable production, Agricultural
inputs, Logit analysis
© All Rights Reserved IPB, the Year 2014
Copyright Reserved
All or part of this thesis report is prohibited to quote without providing
proper citation. Quotation is only for educational purposes, research, scientific
writing, preparation of reports, critical writing, or review an issue; and citations
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Prohibited announced and reproduce part or all of this publication in any
form without permission of IPB
DETERMINANTS OF SUSTAINABLE VEGETABLE
FARMING AMONG SMALLHOLDER FARMERS
IN BOGOR REGENCY INDONESIA
WAHID ULLAH
A thesis submitted in partial fulfillment of the requirements for the
degree of
Master of Science
in
Natural Resources and Environmental Management
POST GRADUATE SCHOOL
BOGOR AGRICULTURAL UNIVERSITY
BOGOR
2014
Thesis Title
Name
Student ID
: Determinants of Sustainable Vegetable Farming among
Smallholder Farmers in Bogor Regency
: Wahid Ullah
: P052128381
Approved by
Supervisory Committee
Dr Ir Sri Mulatsih, MScAgr
Head
Dr Ir Syaiful Anwar, MSc
Member
Dr Sahara, SP MSi
Member
Acknowledged by
Head of Study Program
Natural Resources and
Environmental
Management
Dean of Post Graduate School
Prof Dr Ir Cecep Kusmana, MS
Dr Ir Dahrul Syah, MScAgr
Date of Thesis Defense: 23 June 2014
Date of Completion:
External Examiner for Thesis Defense: Prof Dr Ir Surjono Hadi Sutjahjo, MS
i
TABLE OF CONTENTS
LIST OF TABLES
LIST OF FIGURES
LIST OF ABBREVATIONS AND SYMBOLS
1 INTRODUCTION
ii
ii
iii
1
Background
1
Problem Statement
2
Research Objectives
3
Benefits of the Research
3
2 LITERATURE REVIEW
4
Indonesian Horticulture Sector
4
Contribution of Smallholder Farmers to the Global and Indonesian
Agriculture
7
Hurdles to Smallholders Farmers in Indonesia
8
3 RESEARCH METHOD
11
Study Area
11
Selection of Sample and Data Collection
11
Data Analysis
13
Descriptive Data Analysis
13
Logistic Regression Analysis
13
Determination of Dependent Variable
13
Selection of Independent Variables
13
Model Specification
14
Likelihood Ratio Tests
15
Ordinal Logistic Regression Assumptions
16
4 PROFILE OF THE STUDY AREA
17
Geography, Topography, Geology
17
Climate
18
Population
19
5 RESULTS AND DISCUSSION
Characteristics of Smallholder Farmers
Socio-economic Profile of the Smallholder Farmers
Households Assets
Landholding Size of the Smallholders
20
20
20
20
21
ii
Production Portfolio and Smallholders
Satisfaction with Land Production
Trend in Production
Desire to Participate in Supermarkets
Availability of Inputs for Agricultural Practices
Awareness Level of Smallholder Farmers
Demands of Smallholder Farmers from Government
Agricultural Sustainability related Farming Practices of Smallholder
Farmers
22
22
23
24
25
26
27
Determinants of Sustainable Agriculture of Smallholder Farmers
29
27
REFERENCES
33
APPENDIX 1
37
LIST OF TABLES
1 Poppulation and sample size of the study area
2 Average Annual Rainfall in Bogor Regency
3 Annual Temperature of the Bogor Regency
4 Socio-economic Characteristics of Smallholders Farmers
5 Households assets of the smallholder farmers in the study area
6 Land holding sizes of the smallholder farmers in the study area
7 Production from land and farming time of Smallholder farmers
8 Satisfaction with Production from Land
9 Trends in Agricultural Production
10 Desire of smallholder farmers to participate in supermarket.
11 Inputs available for practicing agriculture sustainably
12 Awareness level of smallholders
13 Requirements of smallholder‟s for agriculture
14 Smallholder farmers Agricultural Sustainability Related Practices
15 Determinants of Sustainable Vegetable Farming
12
18
18
19
21
22
22
23
24
24
26
26
27
28
30
LIST OF FIGURES
1 Map of the Study Area
2 Population of Bogor Regency
11
19
iii
LIST OF ABBREVATIONS AND SYMBOLS
mm
: Milimeter
Km
: Kilometer
UN
GAP
: United Nations
: Good Agricultural Practices
BPS
: Badan Pusat Statistik (Central Bureau of Statistic)
SMH
: Smallholder Farmers
Ha
: Hectare
Km/H
: Kilometer/Hour
o
C
Degree Centigrade
%
: Percent
Km2
: Kilometer Square
m2
: Meter Square
FAO
: Food and Agricultural Organization
GBGI
: Global Business Guide Indonesia
IFAD
: International Fund for Agricultural Development
WDR
: World Development Report
IAASTD
International Assessment of Agricultural Knowledge,
Science and Technology for Development
IJCRR
International Journal of Current Review and Research
1 INTRODUCTION
Background
Sustainable development has numerous definitions and its ecological,
economic and social principles received universal agreement at the 1992 Earth
Summit. One of the summit‟s major outcomes, Agenda 21. Today, 106 countries
have National Sustainable Development Strategies and at least 120 voluntary
sustainability standards are being implemented by the food and agriculture
industry. However, developing and implementing an integrated approach to
analyzing different sustainability dimensions as a coherent whole and integrating
them in development or business strategies remains a major challenge (UN, 2011).
Sustainable development has been defined by FAO as “the management and
conservation of the natural resource base, and the orientation of technological and
institutional change in such a manner as to ensure the attainment and continued
satisfaction of human needs for present and future generations. Such sustainable
development (in the agriculture, forestry and fisheries sectors) conserves land,
water, plant and animal genetic resources, is environmentally non-degrading,
technically appropriate, economically viable and socially acceptable” (FAO
2010). A more sustainable agriculture (which meets the needs of the present
without compromising the ability of future generations to satisfy their own) seeks
to make the best use of nature‟s goods and services as functional inputs. It does
this by integrating natural and regenerative processes, such as nutrient cycling,
nitrogen fixation, soil regeneration and natural enemies of pests into food
production processes. It minimizes the use of nonrenewable inputs (pesticides and
fertilizers) that damage the environment or harm the health of farmers and
consumers. It makes better use of the knowledge and skills of farmers, so
improving their self-reliance. And it seeks to make productive use of social capital
- people‟s capacities to work together to solve common management problems,
such as pest, watershed, irrigation, forest and credit management (Pretty and Hine
2001).
In order to feed nine billion people in 2050, we urgently need to adopt the
most efficient farming systems and recommend for a fundamental shift towards
sustainable agriculture as a way to boost food production and improve the
situation of the poorest (Altieri et al 2012).
Similar to the other countries of the world, agricultural sector plays an
important role in the Indonesian economy and local‟s livelihood especially in
reducing poverty, providing employment, improving farmers‟ welfare and
maintaining sustainable utilization of natural resources and the environment.
Indonesian agriculture accounts for 15.3% of Gross Domestic Products (BPS
2012). Poor rural households have a high dependency on agriculture as the main
source of food security and income or an important complement to off-farm
income (Roshetko et al 2011). Farmers generally practice mixed-cropping
systems, cultivating both annual and perennial crops to produce rice, vegetables,
fruits and other staples. Staple crops such as corn, sugar and rice alongside
vegetables for domestic consumption are mainly carried out by smallholder
farmers (BPS 2012). According to labor force indicator data from Statistic Central
2
Board BPS on November 2003, from 88.1 million people of labor force in
Indonesia as 46.6 percent work on agricultural sector (Sudihartono et al 2008).
Smallholders are the main contributors in agriculture sustainability and their
role in agriculture production is a topic of interest. Around 500 million
smallholders in the world, supporting almost 2 billion people, one third of
humanity (IFAD 2010). They feed poor communities including themselves and
the small increases in yields on their farms could have a profound impact on
poverty and access to food at the local and regional levels (Altieri et al 2009).
They account for 60% of global agriculture, manage vast areas of land, and
through ingenuity and sweat manage to feed about one-third of humanity.
Indonesia has a large smallholder agriculture sector which are often
vulnerable to external disturbances arising from weather, market volatility and
farm failures, which keeps them in constant poverty. Indonesian smallholder
farmers, like other countries of the world are among the poorest community and
lack basic resources for practicing agriculture in a sustainable manner
(Wickramasinghe 2012).
Most Indonesian smallholder farmers grow their crops on less than 0.79ha
(Sahara 2012) facing many constraints in agricultural production including limited
technical knowledge and planning, low use of inputs, weak management and poor
post-harvest handling result in yields of low quantity and quality, limited access to
market information and strong dependence on local collectors result in
unfavorable bargaining positions for smallholders (Roshetko et al 2007).
Experience shows that helping smallholder farmers can contribute to a country‟s
economic growth and food security. For example, India, China, Bangladesh,
Thailand and Viet Nam have gone from being food-deficit countries to food
exporters. They achieved this largely through development of its smallholder
farming sector.
This study was conducted in the villages of Situ Daun and Cinangneng
situated in the Bogor Regency, Indonesia will try to identify the characteristics of
smallholder farmers producing vegetables, their agricultural practices with a focus
on sustainability aspect and factors (socio-economic, agricultural and
environmental) that limits the production. The study will also try to identify the
possible solution(s) for the constraints (socio-economic, agricultural and
environmental) affecting smallholder farmers‟ production and possible
suggestions through which these farmers can further improve their yield
sustainability.
Problem Statement
Indonesia has a 246 million total population of which nearly 17 million are
smallholders, most of which are often vulnerable to external shocks emerging
from weather and access to other agricultural inputs (labor, technology, finance,
fertilizers, pesticides and best management practices etc.). Smallholder farmers in
have very limited land i.e. 0.79ha. Majority of these smallholder farmers are poor
and choose vegetables as their main agricultural crop. There are number of
reasons why smallholder farmers choose vegetables and the most important of
which is its fast growth. These smallholders are economically marginalized and
lack resources to buy good quality inputs and practice agriculture sustainability.
3
This lack of resources and agricultural inputs diminishes their yield which might
have the potential of improvement by providing basic needs to assure sustainable
use of land.
Research Objectives
The overall research objective of the study is to identify the characteristics
of smallholder agriculture practices related to sustainability, what constraints they
are facing and how to cope with those hurdles in order to assure sustainable
production from their lands? The specific research objectives are to;
1 Identify the characteristics of smallholder farmers growing vegetables.
2 Identify agricultural sustainability related farming practices of smallholder
farmers growing vegetables.
3 Examine factors that influence sustainable vegetable farming of smallholder
farmers.
Benefits of the Research
1 This study has identified the characteristics of smallholder farmers which will
help policy makers or any other stakeholder in understanding smallholder‟s
household characteristics, their farm characteristics and information on their
total annual production of their main vegetable crop. Based on these
information policy makers can revisit their policies and make it friendly to help
smallholder farmers in increasing their yield.
2 The research has also identified the sustainability related practices of
smallholder farmers through which policy makers can prioritize the areas
which needs to be improved in order to make a sustainable use of land while at
the same time insure maximum yield form it.
3 The study has also focused on the identifying the factors that influence
sustainable vegetable production of smallholder farmers. This will be the key
area to focus on in agricultural policies and train the farmers according to the
demands of the modern agricultural practices. This will need financial as well
as practical support on the field to insure sustainable production form
smallholder farm sectors of agriculture.
2 LITERATURE REVIEW
Indonesian Horticulture Sector
According to Global Business Guide Indonesia Report (2012) fresh fruit and
vegetables have always made up a significant portion of the Indonesian diet which
in the past consisted of locally grown produce purchased from traditional retail
outlets and markets. Indonesian consumer spending on fresh horticultural products
compared to that on rice was 50% in 1994, this has since risen to 75% in 2004 and
100% for urban dwelling Indonesians in 2007 (Horticultural Producers and
Supermarket Development in Indonesia Report, World Bank). However,
Indonesian per capita consumption of fresh fruit and vegetables is still below the
recommended level set by the United Nation‟s Food and Agriculture Organization
(FAO) at an average of 40kg per person every year while the recommended
amount is 70kg (Indonesia Statistics Bureau Survey 2011). Indonesia‟s upper
middle class, who will swell to 30 million people by 2015 according to World
Bank estimates, will contribute to this new trend as increased awareness about
health and the nutritional benefits of fresh fruit and vegetables as part of a
balanced diet become entrenched in everyday eating habits. This trend is also
being accelerated by improved supply chains and the ease of access to modern
retail facilities such as supermarkets in urban areas which allow for the correct
storage of fresh produce thus making previously unavailable varieties of fruit and
vegetables available to consumers. The market is therefore highly promising for
both local and foreign producers; however the country‟s reliance on imports is
highlighting the declining competitiveness of Indonesia‟s domestic horticulture
sector as well as the government‟s moves towards more protectionist and
restrictive trade policies.
Imported fresh fruits and vegetables are coming to make up an increasing
share of fresh produce sales in Indonesia. In 2006, horticulture imports stood at
$600 million USD and rose to $1.7 billion USD in 2011 (Ministry of Trade).
Approximately 45% of such imports constitute fresh fruit predominantly apples
($153 million USD), oranges ($150 million USD), grapes ($99 million USD) and
durians ($74 million USD). China is the main source of Indonesia‟s fruit imports
at 55% followed by Thailand 28%, USA 10%, Chile 4% and Australia 3%. In
2011, imports of fresh vegetables increased by 29% with white onions making up
a substantial portion ($242 million USD) as well as red onions ($74 million USD).
With regards to vegetables, China is also the leading source contributing to 67%
of total imports with both Thailand and Myanmar each making up 10% and India
at 8%. The preference for imported fruit is due to the superior quality and taste
offered by produce from China and Thailand in particular in addition to the
competitive pricing as a result of government subsidies often making imported
goods comparatively cheaper to those produced in Indonesia.
Indonesia has long been hailed for its comparative advantages in all things
agricultural; mineral rich volcanic soil, a varied tropical climate for counter
seasonal cultivation and the wide availability of fertile land for plantations are just
some of these advantages. The country‟s economy remains heavily dependent on
agriculture with over 40% of the labor force engaged in the sector, however only
5
11% of the agricultural workforce is absorbed by horticulture (Ministry of
Agriculture). The value of the fresh fruit and vegetables market has doubled over
the course of 1995-2009 to an estimated $10 billion USD industry (Indonesia
Statistics Bureau), however the local horticultural industry is playing less of a role
than it is surely capable of. There are various factors involved as to why this is the
case, one cause pointed out by local horticultural players is the lack of quality
seeds available to local farmers despite the research underway at institutions such
as Bogor Agricultural University and the private sector. Government support of
the industry to assist in educating farmers on modern cultivation methods has also
not been forthcoming making the necessary investments to improve output out of
reach for most independent farmers. In contrast, Thai horticulture producers
receive state support for their operations to create economies of scale and the
country‟s fresh fruit and vegetables have become an area of national pride for both
the local and export market due to the promotional efforts of the reigning
monarch. Transportation and storage is a further issue that has held back local
farmers in commanding higher value for their produce as the use of traditional
transport methods such as open air trucks results in large portions of the products
being spoiled on arrival to their destination.
Indonesia‟s horticulture sector represents a key opportunity for local and
international horticultural players to work with local farmers to introduce
improved production methods and coordinate economies of scale which would
result in more competitive pricing in the domestic and international market. Areas
such as seed research, modern planting and greenhouse methodology in addition
to cold chain storage and transportation networks offer highly lucrative business
opportunities. Plantations are a further area of potential to foreign investors given
the laws governing investment which allow ownership of up to 95%. While
restrictions on fruit and vegetable imports are getting tougher for foreign exporters
to navigate (this matter is covered in more detail later), the country‟s fruit imports
will continue unabated leaving plenty of scope for further growth. However,
exporters should position themselves strategically to offer products that cannot be
grown locally such as temperate fruit varieties rather than competing directly with
local producers. For example, stone fruits such as cherries, peaches and plums as
well as various berry fruit types cannot be cultivated in Indonesia‟s tropical
climate.
Transportation and distribution of goods is a challenge for all consumer
goods related industries in Indonesia, however the problem is more acute for fresh
fruit and vegetables producers given the time pressures to ensure that the fruit is
fresh on delivery. Indonesia‟s poor infrastructure and high logistical costs is not a
new issue for those in the agriculture sector; however the announcement that as of
June 2012 four out of the country‟s eight main sea ports will be closed to
horticulture products is seen as exacerbating this problem. Jakarta‟s main ports
such as Tanjung Priok previously handled up to 90% of the imported horticultural
goods which will now have to go through Soekarno Hatta Airport, Tanjung Perak
Port in Surabaya, Soekarno Hatta Port in Makassar and Belawan Port in Medan
which will significantly add to transport costs. The Indonesian government has
justified its decision to close the ports due to the lack of facilities such as
laboratories for testing and quarantine. The government‟s actions have prompted
6
complaints from 12 horticulture exporting countries in the EU as well as Canada,
USA and New Zealand who raised the matter at a World Trade Organization
meeting in May 2012 citing the lack of scientific evidence for Indonesia‟s claims
regarding phyto-sanitation requirements as the cause for the closure of the ports.
Following on from the lodge of the complaint, three countries namely Canada,
USA and Australia have requested a Mutual Recognition Agreement enabling
them to continue to export fruits and vegetables through Tanjung Priok provided
that Indonesian horticultural goods receive reciprocal treatment.
The Indonesian government move follows the introduction of new quality
standards for imported fruit as per the Ministry of Agriculture Regulation
No.15/2012 and No.16/2012 which stands as an amendment to No. 89/2011 and
No.90/2011 on Technical Requirement and Plant Quarantine Measures on Import
of Fresh Fruits and/or Vegetables and Fresh Bulbs into the Republic of
Indonesia`s Territory. Such amendments were made following the discovery of
traces of formaldehyde in imported fruit products with 19 incidents reported in the
prior 18 months according to a statement by the Minister of Trade, Gita Wirjawan.
In May 2012, the Ministry of Trade also announced new restrictions on
horticulture imports in the form of regulation No.30/2012 whereby producers and
importers must obtain a special import license that is subject to the approval of the
Ministry of Agriculture in effect as of 29th September 2012. Eligibility for the
license will depend on the technical capacity of the importer including ownership
of cold storage transport facilities and having relationships with multiple
distributors to avoid monopolistic practices and to provide opportunities to local
agents.
Indonesia‟s fresh fruit and vegetables sector is at a key stage in its
development with the scope to offer lucrative opportunities to both local players
and international importers. The government‟s efforts to tighten their grip over
agricultural imports are making life more difficult for importers and local
distributors due to the inadequate infrastructure available in Java and Jakarta as
the country‟s main economic hub and trade gateway. The intent of such measures
is clear; locally produced Indonesian products must be competitive in their
domestic market to avoid losing out on the surge in consumer demand particularly
among the lower-middle income bracket. However, a more hands on approach
will have to be taken by the government to have a real impact on the horticulture
sector as a whole by providing local farmers with the tools to cultivate higher
quality fruit such as better seed varieties as well as education on packing and
transportation. The private sector and foreign investors also have key
opportunities available to them within an improved local horticulture industry for
plantations, distribution as well as marketing. For fruit exporters to Indonesia, the
middle-upper income bracket will still provide plenty of demand for their products
while greater local producer involvement will also provide a more competitive
environment to effectively differentiate and position their products in the
marketplace.
7
Contribution of Smallholder Farmers to the Global and Indonesian
Agriculture
Smallholders are the main contributors in agriculture sustainability and their
role in agriculture production is a topic of interest. Around 500 million
smallholders in the world, supporting almost 2 billion people, one third of
humanity (IFAD 2010). They feed poor communities including themselves and
the small increases in yields on their farms could have a profound impact on
poverty and access to food at the local and regional levels (Altieri et al 2009).
They account for 60% of global agriculture, manage vast areas of land, and
through ingenuity and sweat manage to feed about one-third of humanity
(providing up to 80% of food in sub-Saharan Africa and Asia). They also make up
the largest share of the developing world‟s undernourished (Pimbert 2009).
Approximately 2.5 billion people in poor countries live directly from agriculture
farming crops and livestock are relying on forestry or fisheries IAASTD (2008)
and 1.5 billion people live in smallholder household. Of an estimated 525 million
farms worldwide, about 435 million are small farms with two hectares of land or
less (Zhou 2010; FAO 2011).
Asians constitute 57 per cent of the world‟s population and of them 56 per
cent or close to 1.92 billion people FAO (2011) depend on agriculture, mostly
working on smallholdings of less than 2 hectares. According to Ganesh Thapa
(2010) “it is estimated that about 87 per cent of the world‟s 500 million small
farms (less than 2 ha) are in Asia and the Pacific region, China and India alone
account for 193 million and 93 million small farms, respectively. Three other
Asian countries with a large number of small farms are Indonesia (17 million),
Bangladesh (17 million) and Viet Nam (10 million)”.
Small farmers are the key groups requiring attention in agricultural and rural
development. Increasing their productivity and incomes can make a major
contribution to reducing hunger and poverty. The number of smallholder farmers
has increased globally during the last few decades which have decreased the
landholding size (World development reports 2007 and 2008). Most importantly,
there is a lack of off-farm employment opportunities for smallholders, who
typically have limited education and professional skills. Small farmers in
developing countries will continue to be the custodians of vast areas of
agricultural land for at least some decades to come (Altieri et al 2009). Large
numbers of smallholders are women, heads of households or indigenous peoples,
they live in the most ecologically and climatically vulnerable landscapes, such as
hillsides, dry lands and floodplains, and rely directly on weather-dependent
natural resources. For some years now, a combination of enlightened government
officials, community groups, civil society organizations, think tanks and
international aid agencies such as the International Fund for Agricultural
Development (Ifad) have been developing a more sustainable approach to
agriculture, with great success and huge potential to include smallholders (Pimbert
2009).
Three-quarters of the world‟s poor and 70% of hungry people live in rural
communities where smallholder farming is the predominant livelihood and source
of food. Small-scale producers provide more than half of the world‟s food supply.
They contribute over 90% of Africa‟s agricultural production and the majority of
8
the maize, beans and potatoes for domestic consumption in Latin America
(Nagayets 2005). Small farms also contribute to greater food security, particularly
in areas with poor infrastructure where high transport costs make locally produced
foods less costly and less risky than many purchased foods (Hazell 2011).
Most of Indonesian people‟s livelihood is in agriculture. According to labor
force indicator data from Statistic Central Board on November 2003, from 88.1
million people of labor force in Indonesia, as amount 41.054.600 people or 46.6
percent work on agricultural sector (Sudihartono et al, 2008). The agriculture
sector is critical for rural household incomes, employing more than 40% of labor
and contributing 17% of GDP. But agricultural productivity growth has been
slower and is currently low both compared with other countries and historically
for Indonesia. Contribution of agricultural sector on national output has been
declining, but contributions of other sectors, such as trade, manufacturing, and
services, have been increasing constantly (Sudihartono et al 2008). After the crisis
level rises in 2007/08 and then in 2010/2011 the focus at policy level is again on
farming with significant emphasis on the role of smallholders for fulfilling the
world‟s food needs.
Hazell (2011) stated that not all of the changes that might be thought
particularly harmful to small farmers are necessarily any worse for them than they
are for larger-scale farmers. But some clear threats to small farms emerge. In large
part they arise from market failures, themselves amplified by the policy retreat
from intervention that has left the private sector operating within markets as the
main actor in input supply, financial services, marketing, and even technical
advice and innovations. If smallholders are to survive and prosper, then they must
find ways to meet new demands in supply chains and to obtain inputs, credit, and
technical knowledge from private agents at competitive prices with large-scale
farms. A key question is how far the public sector should intervene in helping
small farms gain access to markets, technologies, and support services rather than
leaving everything to the private sector. How one answers this question is one of
the key differences between those who believe that small farmers have a future
and those who do not.
According to Gulati (2008) the large smallholder agriculture sector in
Indonesia requires greater attention. Smallholder farmer‟s productivity and
incomes can make a major contribution to reducing hunger and poverty in
Indonesia. The impacts of environmental degradation, climate change, asset
ownership, awareness about fertilizers usage on proper soils, lack of power both
in the economic sphere and with respect to state institutions, transportation
expenses or other incentives on agricultural inputs, urbanization and globalization
affect both small and large farms more or less equally. But other developments
may pose more severe challenges for smallholdings. When new technologies
require more capital inputs, mechanization, or high levels of education, these
requirements may disadvantage smaller farms. More worrying are the
implications of changes to marketing chains (Hazell et al 2007).
Hurdles to Smallholders Farmers in Indonesia
Ganesh Thapa (2010), states that smallholders are facing a number of
challenges in producing food in a sustainable manner. Although some of these
9
challenges affect both large and small farms, there is evidence that they apply
more strongly to small farms. For example, small farmers cannot take advantage
of higher food prices by expanding production if they have difficulty in accessing
services and credit. Similarly, when new technologies require higher capital inputs
or mechanization, small farmers may be at a disadvantage unless they are helped
in reducing their transaction costs to access inputs, credit and marketing facilities.
Poor smallholder farmers are particularly exposed to natural disasters,
seasonality, year-to-year variability, and commodity price volatility. Given their
limited ability to cope with risk due to resource constraints and absence of formal
risk insurance markets, the poor are left vulnerable. With limited options to
manage risk through formal market mechanisms, they experience significant
fluctuations in income and makes consumption smoothing difficult (GabreMadhin 2009). The impacts of environmental degradation, climate change, asset
ownership, awareness about fertilizers usage on proper soils, lack of power both
in the economic sphere and with respect to state institutions, transportation
expenses or other incentives on agricultural inputs, urbanization and globalization
etc. are also the main hurdles with smallholders.
To feed the world‟s growing population – projected to exceed 9 billion in
2050 UN (2009) it will be necessary to boost the production of food and to do so
sustainably. To be sustainable, agriculture will need to be intensified and its
environmental footprint made to shrink (Nagayets 2005). Volatile food prices,
recurrent droughts, floods, soil and water degradation, and land grabs, agriculture
technology, proper season and methods of harvesting, proper fertilizers usage,
environmental and agriculture education or awareness etc. are some of the
multiple challenges faced by small-farmers in poor countries (Altieri et al 2009).
The World Bank (2008) report mentions that “to feed nine billion people in
2050, we urgently need to adopt the most efficient farming systems and
recommend for a fundamental shift towards agro-ecology as a way to boost food
production and improve the situation of the poorest”. The global demand for food
is expected to increase by 60% by 2050. Given climate change, natural resource
constraints and competing demands, especially for the production of befouls,
among other factors, this presents a considerable challenge for the agriculture and
food systems worldwide. Smallholders will need to play a key role in meeting
these requirements, if for no reason other than the sheer magnitude of their
production in developing countries (Altieri et al 2012).
A “supermarket revolution” has been underway in developing countries
since the early 1990s. Supermarkets (here referring to all modern retail, which
includes chain stores of various formats such as supermarkets, hypermarkets, and
convenience and neighborhood stores) have now gone well beyond the initial
upper- and middle-class clientele in many countries to reach the mass market.
Within the food system, the effects of this trend touch not only traditional
retailers, but also the wholesale, processing, and farm sectors. The supermarket
revolution is a “two-edged sword.” On the one hand, it can lower food prices for
consumers and create opportunities for farmers and processors to gain access to
quality-differentiated food markets and raise incomes. On the other hand, it can
create challenges for small retailers, farmers, and processors who are not equipped
to meet the new competition and requirements from supermarkets. When
supermarkets modernize their procurement systems, they require more from
10
suppliers with respect to volume, consistency, quality, costs, and commercial
practices.
3 RESEARCH METHOD
Study Area
The Study area comprises of Situ Daun and Cinangning villages located at
sub district of Tinjolaya in the Bogor Regency where agriculture is the main
source of income of the local‟s livelihood. Both the villages are located at an
altitude of 450 meter and 380 meter above sea level respectively. According to the
Central Bureau of Statistics, Indonesia (2012) total population1 of Situ Daun was
8,678 with a total land size of 3.29 km2.
Figure 1 Map of the Study Area
The population density in Situ Daun village was 2638 persons/km2 while the
total population of Cinangneng village is 8,660 with a population density of 4085
individuals/km2. The total land size of Cinangneng village is 2.12 km2. The mean
monthly rainfall in both villages was 15 days and 245mm for the year 2012. The
field surveys were conducted between July-August 2013 following by data
analysis in the October 2013.
Selection of Sample and Data Collection
Smallholder is a farmer who owns or rent in land equal to or less than 2.0
hectares (Joshi 2006). A household was defined as a group of people living under
the same roof and pool resources (labor and income). Labor pooling means that
household members exchange labor time without any payment. Income pooling
means that they „eat from the same pot‟ although some income may be kept by the
household member who earns it (Sunderlin et al 2010).
1
The data was taken from the village profile of Situ Daun and Cinangneng provided by the village office and Statistic
Agency (BPS), Bogor Regency for year 2011-12.
12
There were 20 and 23 neighborhoods (Rukun Tetangga “RT”) in the
villages of Situdaun and Cinangneng respectively. For primary data collection the
neighborhoods were selected randomly (Simple Random Sampling) while the
households were selected purposively on certain basis i.e. a household has to be
involved in any kind of agriculture or horticulture activities, a household should
own/rent land less than or equal to 2 hectares (definition of smallholder on the
basis of land occupation) (Joshi 2006) a household should be largely dependent on
family labor and a household can decide independently for him/herself what to
grow and then where to sell his agricultural products.
The sites were chosen for this research because most of the farmers grow
vegetables there, they are economically marginalized, lacking the necessary
requirements for doing good agriculture practices (GAP). The study covers only
the producer‟s perceptions regarding participation in supermarkets. It also covers
the level of awareness of those farmers regarding the standards for the quality and
quantity of agricultural commodities and products.
Primary data was gathered on household level through household surveys
with the farmers by using both closed and open ended questions. The
questionnaire was divided into different sections starting from the very general
characteristics of the respondents, assets of the household and awareness of a
respondent regarding participation in supermarkets, agricultural production and
supermarket accessibility, institutional support for participating in supermarkets,
good agricultural practices and environmental sustainability.
Table 1 Poppulation and sample size of the study area
Characteristics
Total population of the village (persons)
Total population involved in agriculture
(persons)
Land holders (persons)
Sampled Population (households)
Villages
Situ Daun
Cinangneng
8678
8660
660
680
330
49 (15% of the
total landholders)
345
47 (13.62%
of the total
landholders)
Source: Central bureau of statistics (BPS) 2012
A sample of 104 farmers was selected purposively for the study from the
villages of Situ Daun and Cinangneng in Bogor Regency. After cleaning process
the data of 8 respondents was eliminated since they were not owning, renting or
contracting the land. They were only working on daily wages on someone else
land which was not the criteria to choose respondent for this study. Hence out of
104 respondents 96 were included in the analysis accounting for about 15% of the
total land owing farmers in the villages. Detailed information was collected on
their socio-economic conditions, institutional support from government and nongovernment bodies, landholding, type of fertilizer and pesticide use, irrigation
facilities, shifts in cultivation, crop rotation, livestock holdings, and access to
market information. It needs to note that prior to the survey, a village level study
13
was carried out applying Rapid Rural Appraisal (RRA) technique to gather data
and information about Kecamatan Tinjolaya as basis for village selection.
Direct field observations were made to cross check the data obtained from
interviews. The additional information from direct field observations was used in
the analysis to complement the information gathered from the questionnaire.
Secondary data was collected from existing and available literature in hard form
like thesis, dissertation, Journals, internet, and other Government related
bodies/organizations.
Data Analysis
Data was analyzed in two sections i.e. descriptive data analysis and logistic
regression analysis.
Descriptive Data Analysis
From the survey, descriptive statistics on environmental, agricultural, social,
economic and the aspects of awareness level of smallholder famers is generated to
determine their farming activities, tillage practices, household‟s assets, cropping
patterns, selling sources, constraints to smallholder farmers in accessing their
production to supermarkets and their perceptions regarding participating in
supermarkets.
Logistic Regression Analysis
Using farmers and farm characteristics including socio-economic,
agricultural and environmental, an ordinal logistic regression model was estimated
to determine the dependency of yield on crop rotation, pesticide use, fertilizer use,
agricultural training, member of a farmer‟s group, access to market information,
age of the household, gender, education, size of the household, time spent in
agriculture and land holding size.
Determination of Dependent Variable
Sustainability was analyzed through the quantity of yield and was divided
into three categories with codes assigned to it (an increase in yield was coded as 3,
if constant then 2 and if yield is decreasing then was coded as 1).
Selection of Independent Variables
A total of twelve independent variables were included in the logistic
regression model to analyze dependency of yield. Specific codes were assigned to
all variables.
An independent variable „Crop Rotation‟ was created by scoring method. If
a farmer is rotating his crop(s) then it was coded as 1, otherwise 0. It was
hypothesized that a farmer doing crop rotation will be having a higher yield which
means that this is sustainable agriculture, otherwise not.
14
Pesticide utilization was another independent variable to analyze how much
yield was dependent on it.
A farmer using pesticide was coded as 1, otherwise 0. The assumption made
was that if a farmer is using pesticide then his/her yield will be less and that
means that the agricultural he is practicing is un-sustainable and vice versa.
Fertilizer utilization was a dummy variable created by scoring method. It
was assumed that by using organic fertilizers, yield will be higher and agriculture
will be sustainable otherwise not. Organic fertilizer use was coded as 1 and inorganic as 0.
Agricultural Training (years) was coded as (received=1, 0 otherwise).
Farmers who have received any kind of agricultural training were expected to
have higher yield.
A farmer who shares resources within „farmer‟s group‟ was desired to have
higher yield and was coded as 1 otherwise 0.
A farmer who has „access to market information‟ was coded as 1, if not than
0. It was expected that a farmer keeping himself aware of the current updates
about market will try to adjust his/her agriculture according to the demands of the
market and will have higher yield.
Age of the household (years) was a continuous variable. Original ages of the
respondents were used for logistic regression analysis. It was assumed that older
farmer will be more mature will cares about his agricultural production to support
his family. The assumption was that he/she will be having higher yield.
Gender was another dummy variable used to separate the sex (male or
female) of the respondents and was created by scoring method. A score of 1 was
given to male and 0 to female farmers. Historically male are more engaged in
agriculture compare to females, however the scenario has been changing since last
decade. Households headed by male farmers were expected to have higher yield
than those headed by female. Female famers are also starting to adopt vegetable
farming due to the direct benefits it offers (Tiwari et al 2008a).
Education (years) was used as a continuous variable. It was hypothesized
that education of the respondent will be positively related to yield. Educated
farmers are more likely to be practicing sustainable agriculture will be having
higher yield (Nkamleu et al 2000).
Size of Household (persons) was a continuous variable and it was
hypothesized that large households will be having higher yield because the total
number of laborers involved in farming activities from their families will be more.
Farming time (years) was a continuous variable. It was expected that
farming time will be positively related to yield i.e. more experience-more yield.
He will also be having knowledge of good agricultural practices.
Landholding Size (m2 or hectare) was the last continuous variable included
in the model and was expected to have positive relationship with yield.
Model Specification
Estimation of the deteminants of household yeild was analyzed by ordinal
logistic regression model. The use of ordinal logistic regression model was to
determine the variables that affect household yeild.
15
Ordinal logistic regression with a response variable i.e. yield was categorical
and multilevel (ordinal). Logistic models for ordinal response data with category c
(c> 2) is an extension of the logistic model for nominal response data with two
categories (binary logistic models). As in other regression models, two or more
explana