Identifying limiting factors for feasible productivity improvement for smallholder farmers in coffee sector in Indonesia

Abstract

Abstract. Tran HTM, Nathan S, Ilmma A, Burkiewicz M, Wisana IDGK. 2021. Identifying limiting factors for feasible productivity improvement for smallholder farmers in coffee sector in Indonesia. Asian J Agric 5: 53-60. Coffee is a global commodity with significant value-addition and export potential for producing countries. The purpose of this study was to identify the important factors associated with increasing yields. Rather than prescribing theoretical solutions, our research purpose was to examine the prevailing agricultural practices that are used in the region and identify the top three factors that have a significant impact on yields. Using advanced data collection methods and controlling for regional characteristics and various farming practices, we found that higher yield was associated with the application of fertilizer, higher tree density, and shade level. The application of fertilizer was associated with an increase in yield of 98 kg/ha for Arabica and 124 kg/ha for Robusta. At the optimal density ranges, a higher yield can be obtained with the increase of trees. Lastly, the level of shade was negatively associated with yield for Arabica, but no significant difference was observed for Robusta. We found a lot of headroom to increase the yield, as the current fertilizer application was low especially for Robusta, a mismatch between optimum tree density for both Arabica and Robusta, and opportunities for better shade management to increase yield potential.

Measuring Child Labor: Whom Should Be Asked, and Why It Matters

“…ENVERITAS is a non-profit startup that certifies coffee (and, more recently, cocoa) companies by verifying farming practices in their supply chain -from chemical usage to child labor (see, for instance, Tran et al, 2021b). The certifier has specialized in reaching small and remote farmers, who often cannot be reached or even located by traditional certifiers.…”

“…To do that, ENVERITAS relies on partnerships to access fresh acquisitions of 50cm-resolution satellite data filtered for quality (with alleged maximum cloud covers of 15%, "crucial for finding (...) farms in cloudy equatorial regions"; Enveritas, 2020), combined with machine learning models to identify specific crops. Additional details on how such models have been successfully used to map coffee-growing households in different geographies can be found in Tran et al (2021a).…”

“…ENVERITAS monitors cocoa harvests in the country with the help of satellite imagery, surveying farmers specifically during harvest season. With harvesting activities ongoing at the time of the survey, the potential presence of child labor becomes apparent: not only it is much harder for parents to falsely deny children in employment when it is more visible, but also, ENVERITAS complements survey data with direct field observation (Tran et al, 2021a). Since 2020, their methodology has been aligned with the ILO's definitions.…”

The Design of a Contract Farming Model for Coffee Tree Replanting

“…Coffee farmers with 2 ha have an income of 55 mio IDR: 40% of their net income is from coffee (22 mio/year, after operational costs and transaction costs), and the other 60% is income from other plants, from honorarium, and other income. Data from Enveritas in the research of Tran et al (2021) indicate revenue comparable to that of research of Rosanti et al (2019), based on 2148 trees/ha, the national average, showing that revenue will be 19 mio IDR/ha. All the above are under the assumption of the farmgate price of December 2018, which was 19 mio IDR/ton (ICO robusta 17,000 USD/ton).…”

“…The density and stem method are found in cultivation practice in Arabica and Robusta; however, 3000 trees-4000 trees are found in numerous studies in new trees in Ghana, Uganda, Colombia, etc. (Tran et al 2021;Piato et al 2020). This model also provides direction and strategy for regulators, investors, farmers, and other actors to achieve a contract farming model for optimal coffee tree replanting investment.…”