Sustainable development of the contract farming in Indonesia: From cases of entrepreneurial local traders

2022 Fiscal Year Final Research Report

• Project/Area Number: 19K15917
• Research Category: Grant-in-Aid for Early-Career Scientists
• Allocation Type: Multi-year Fund
• Review Section: Basic Section 41010:Agricultural and food economics-related
• Research Institution: Ibaraki University
• Principal Investigator: Ikeda Shinya 茨城大学, 農学部, 助教 (40816823)
• Project Period (FY): 2019-04-01 – 2023-03-31
• Keywords: 契約栽培 / ホールドアップ問題 / 共同体 / 伝統的流通 / 持続可能性 / ジャワ / インドネシア

Outline of Final Research Achievements

In this study, I aim to clarify whether or not contract farming systems are sustainable market participation for smallholder farmers in Java, Indonesia. From my field survey in 2019, I theoretically analyze the issue. As main results, breaching the contracts would be caused by sharp increase of price levels in the traditional marketing systems. Meanwhile, the contract enforcement by a community mechanism helps both counterparts avoid hold-up problems, such as side-selling behavior. I also conduct comparing the result with a case of the Philippines. This attempt suggests that community structure for this issue would be vital point for the issue. Finally, I insist the traditional marketing systems still remain importance from my quantitative analysis of evaluating the sustainable agricultural development.

Free Research Field

農業経済学

Academic Significance and Societal Importance of the Research Achievements

農産物流通近代化のモデルケースとして知られるジャワの本事例の契約栽培は持続的ではなかったものの、小規模経営農家の市場参加を促進し、その地位を向上させた点で、長期的な農業開発における契約栽培の在り様に関して新たな視点を提示した。この点において学術的意義があると考える。また、フィリピンの農産物流通と国際比較を行ったことで、東南アジア地域の農産物流通改善という開発実務家にとっても有益な知見を与えた点で社会的意義があると考える。