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Triangle of Linkages among Modernising Markets, Sprayer–traders, and Mango-farming Intensification in Indonesia

Sara Ratna Qanti, Thomas Reardon and Arief Iswariyadi

Bulletin of Indonesian Economic Studies, 2017, vol. 53, issue 2, 187-208

Abstract: The domestic mango value chain in Indonesia is transforming rapidly. This article examines the triangle of linkages among farmers’ participation in modernising markets, the emerging use of outsourced services by sprayer–traders (STs), and farm technology intensification. The key findings are as follows. First, small farmers—not just larger farmers—participate in modernising markets. However, the participation is by the upper tier of small farmers, defined in non-land asset terms. Second, although both small and larger farmers use STs, the strongest determinant of use of an ST is the interaction between having non-farm employment (thus, demand for substitution for own labour on the farm) and having a medium-sized commercial farm (thus, demand for skilled agronomic services). Farmers in mango cluster areas also tend to use STs. Finally, use of STs and participation in modernising markets spur farming intensification through the use of modern inputs.

Date: 2017
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Bulletin of Indonesian Economic Studies is currently edited by Blane Lewis, Arianto Patunru and Robert Sparrow

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Handle: RePEc:taf:bindes:v:53:y:2017:i:2:p:187-208