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Type: Journal article
Title: Tomato farmers and modernising value chains in Indonesia
Author: Hernández, R.
Reardon, T.
Natawidjaja, R.
Shetty, S.
Citation: Bulletin of Indonesian Economic Studies, 2015; 51(3):425-444
Publisher: Taylor & Francis Ltd.
Issue Date: 2015
ISSN: 0007-4918
Statement of
Ricardo Hernández, Thomas Reardon, Ronnie Natawidjaja, Shobha Shetty
Abstract: The tomato value chain in Indonesia has transformed in the last two decades. We assess this transformation here, focusing on small tomato farmers in West Java and the determinants of their market-channel choices (as well as the technology correlates of those choices). These farmers sell to traditional village traders, urban and modern wholesalers, and supermarkets, and they have all invested heavily in irrigation and rely on external inputs. We find differences among farmers selling to different market channels. To wit, non-land assets—especially irrigation—are important to farmers participating in the supermarket, or modern, channel, but farm size affects modern-channel participation only in high-level commercial zones (zones dense in infrastructure and near highways). We also find that modern-channel farmers earn more profit than farmers in other channels but do not necessarily use chemicals more intensively. Yet hardly any farmers sell graded tomatoes; the main ‘capture of rents’ goes to specialised and modernising wholesalers.
Keywords: tomatoes; modern markets; technology adoption
Rights: © 2015 Indonesia Project ANU
DOI: 10.1080/00074918.2015.1104649
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Appears in Collections:Aurora harvest 3
Global Food Studies publications

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