Facilitating Trade of Small Agricultural Enterprises : Relevant Paperless Application and Constraint

in Implementation – A Perspective From Indonesia

Tomy Perdana Center for Agricultural Supply Chain and Logistics System Studies

Faculty of Agriculture, Padjadjaran University

Asia Pacific Trade Facilitation Forum 2014 in Bangkok

Background

Development of Indonesian fruits and vegetables products is a strategic effort in developing the Indonesian agriculture

The fruit and vegetables (FFV) demand (local and export) is not balanced with the FFV supply from the domestic production

Traditionally, most of the Indonesian FFV producers have small scale economics and scattered in several production centers

3

Background

ToTheModern(Structured)agrisupplychain

Production/Supply Expenses Market

HowtochangeTheTradi onal(unstructured)Agrisupplychain

Market Expenses Production/Supply

Introduction

Facilitating FFV small farmers to involve in modern agri supply chain is a strategic effort in globalization and free market

To be more effective and efficient, modern FFV supply chain that involving small farmers need using paperless system

This presentation will explore paperless aplication and its obstacles in implementation of modern FFV supply chain development that involving small farmers to fulfill market demand

Integrating small farmers to modern FFV supply chain

5

agribusiness cluster development

agricultural logistics service development

Inclusive supply chain management development

1st iteration

2nd interation

3rd iteration

Action

Research

The Triple Helix as an institutional innovation in agri cluster development

FFVSC

Government

PrivateUniversity

AESBI

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UniversitasPadjadjaran

APRINDO

Farmer

Farmers

Group Farmer

Farmer

Market

University

Gives services in technical, managerial, institutional,

access to technology, financing, and market.

Other Parties

(Banks, Syngenta Foundation,

Supermarket, food industry)

Reduce risks such as cancelled order, delayed payment, climate change

Ministry of Agriculture

Food Crops and Agricultural Services of

West Java

Giving the supporting facilities such as packing house with cold chain

system, irrigation etc

Central Bank,

Supporting Agencies

Funding trainings and building some

demonstration plots

The Role of Each Actor in Facilitating Small Farmers

Market

guarantee

Supplying

consistency

Facilitating Trade of Small Farmers (Flow of Materials)

Farmers Farmers

FarmersGroup

Farmers Farmers

FarmersGroup

Farmers Farmers

FarmersGroup

Growing

RuralLogistcs

Collec veproduc onsystem

Postharvest,sor ng,grading,packing,pre-cooling,cooling,storage,trading,transport

Distributor Exporter

Logis csServices

Consolida on,qualitycontrol,branding,marke ng

ModernRetail

Consolida on,qualitycontrol,marke ng

Consolida on,qualitycontrol,marke ng

Importer(Buyer)

Transporta on,administra on

Interna onalmarket

Tradi onalMarket

Domes cmarket

The Triple Helix Facilitation

Facilitating Trade of Small Farmers

Facilitating Trade of Small Farmers (Flow of Information and Money)

Chain Information

Management By The Triple

Helix Facilitation

Web Based Services

(Paperless)

Farmers Farmers

FarmersGroup

Farmers Farmers

FarmersGroup

Farmers Farmers

FarmersGroup

RuralLogistcs

Distributor Exporter

Logis csServicesModern

Retail

Importer(Buyer)

Interna onalmarket

Tradi onalMarket

Domes cmarket

Chain Information Management Systems

Web Based Services

(Paperless Systems)

E-Trade

E-Tracebility

Cyber Extension

E-Money

E-Relationship Management

E-Compliance

The Triple Helix Facilitation

Obstacles of Chain Information Management (Paperless Systems) Application

• Understanding the value of transparency among supply chain players and stakeholers

• In the food chain, the main power lies within distributors, exporters and retail. The transformation from paper based to paperless systems must be driven by them

• Lack of awareness and coordination among chain actors and stakeholders in facilitating small farmers using paperless systems

• Lack of IT infrastructure in rural areas

Recommendations

• Buy in of chain information management systems is necessary from chain actors and stakeholders

• Requires strong market player motivation

• University can be a hub of interaction/coordination between chain actors and stakeholders

• Requires regulations for each component in chain information management systems (paperless systems)

Thank You

Asia Pasific Trade Facilitation Forum 2014 in Bangkok