Supply Chain Management Assessment to Improve the Performance of Contract Farming Between a Multi National Company and Smallholders in East Java

Irianto, Bambang Setyobudi; Yuniarti, _; Santoso, Purnomo Budi

doi:10.17660/actahortic.2006.699.26

Cited by 3 publications

(3 citation statements)

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“…Instead, traders perceive farmer ability and sales contract to be the most important requirements ( Table 2 ). This is consistent with Irianto et al [ 49 ], who found that contracts between farmers and traders for the provision of credit and technical assistance, such as the terms of planting, can be implemented to overcome financial constraints.…”

Section: Resultssupporting

confidence: 90%

Access to finance from different finance provider types: Farmer knowledge of the requirements

2017

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Analysing farmer knowledge of the requirements of finance providers can provide valuable insights to policy makers about ways to improve farmers’ access to finance. This study compares farmer knowledge of the requirements to obtain finance with the actual requirements set by different finance provider types, and investigates the relation between demographic and socioeconomic factors and farmer knowledge of finance requirements. We use a structured questionnaire to collect data from a sample of finance providers and farmers in Java Island, Indonesia. We find that the most important requirements to acquire finance vary among different finance provider types. We also find that farmers generally have little knowledge of the requirements, which are important to each type of finance provider. Awareness campaigns are needed to increase farmer knowledge of the diversity of requirements among the finance provider types.

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Section: Resultssupporting

confidence: 90%

Access to finance from different finance provider types: Farmer knowledge of the requirements

2017

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“…Instead, traders perceive farmer ability and sales contract to be the most important requirements (Table 2.2). This is consistent with Irianto et al (2006), who found that contracts between farmers and traders for the provision of credit and technical assistance, such as the terms of planting, can be implemented to overcome financial constraints.…”

Section: Methodssupporting

confidence: 89%

The relation between finance utilisation and business performance in Indonesian horticulture

Wulandari¹

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Finance is important for Indonesian farmers to purchase agricultural inputs and machinery and to pay for hired labour, which can improve farm performance. Farmers in Indonesia can access finance from various finance providers, i.e. banks, micro-finance institutions, farmers' associations, traders, agricultural input kiosks and so-called "other sources" such as family and friends. The overall objective of this thesis was to analyse the relation between finance utilisation from different finance providers and horticultural business performance in Indonesia. This thesis first compares farmer knowledge of the requirements to obtain finance with the actual requirements set by finance providers, and investigates factors that determine farmer knowledge of the requirements. Next, this thesis analyses the relation between finance utilisation from different finance providers and the technical efficiency of horticultural farms using a bootstrap truncated regression. Furthermore, the role of finance utilisation from different finance providers in production risk is analysed using an ordinary least squares regression. Finally, this thesis analyses finance utilisation and its relation with chili supply chain continuity as reflected by contract fulfilment rates using a censored regression analysis. Findings show that farmers generally have little knowledge of the finance requirements. Findings also show that in-kind finance utilisation from farmers' associations positively associates with farmer knowledge of finance requirements. The results of the bootstrap truncated regression show that commercial credit from banks and in-kind finance from farmers' associations positively associate with the technical efficiency of some types of horticultural farms. Commercial credit from micro-finance institutions and flexible payment of inputs to agricultural input kiosks generally have negative associations, especially with the technical efficiency of mangosteen farms. Subsidised credit from banks and in-kind finance from traders have both positive and negative associations with the technical efficiency of the horticultural farms. With regard to production risk, results show that depending on the risk measure, risk-reducing associations were found for commercial credit from banks and flexible payments of inputs to kiosks. With respect to supply continuity, outcomes show that chili contract fulfilment rates are positively associated with in-kind finance from farmers' associations, but negatively associated with subsidised credit from banks and flexible payment of inputs to agricultural input kiosks.

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“…For instance, there are likely to be four principle transaction costs incurred by TNCs (or other companies) in contract farming, especially smallholders: (a) costs of drafting, negotiating and enforcing contracts; (b) maladoption up and running costs associated with governance; and (d) bonding costs of implementing secure commitments. These costs can be reduced to mutual advantage, as in the case of contract farming in seed maize involving a TNC and smallholders in Indonesia (Irianto, Yuniarti and Santoso, 2006).…”

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confidence: 99%

The influence of Ukrainian agricultural corporations on the national trade balance

Shubravska¹,

Prokopenko²

2020

Ekon. prognozuvannâ

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assisted as interns at various stages. Production of the WIR09 was carried out by Séverine Excoffier, Rosalina Goyena, Chantal Rakotondrainibe and Katia Vieu. It was edited by Praveen Bhalla and desktop published by Teresita Ventura.Peter J. Buckley and John H. Dunning served as senior economic advisers to the Report. John H. Dunning sadly passed away in January 2009 and this year's Report is dedicated to his memory. He was involved in the conception and realization of the World Investment Reports from the beginning, and during succeeding years played a significant role in their evolution, all the while providing guidance and advice on substantive issues related to research themes and analytical approaches. He acted -where appropriate -as a mentor to many members of the WIR team. His wisdom, valued advice and enthusiasm will be missed.WIR09 benefited from comments provided by participants at a brainstorming meeting

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Supply Chain Management Assessment to Improve the Performance of Contract Farming Between a Multi National Company and Smallholders in East Java

Cited by 3 publications

References 0 publications

Access to finance from different finance provider types: Farmer knowledge of the requirements

Access to finance from different finance provider types: Farmer knowledge of the requirements

The relation between finance utilisation and business performance in Indonesian horticulture

The influence of Ukrainian agricultural corporations on the national trade balance

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