IDEAS home Printed from https://ideas.repec.org/a/ags/phajad/275690.html
   My bibliography  Save this article

Contract Farming through Tea-Horticulture Intercropping System: A Case Study of Gambung Estate and Horticultural Farmers in Bandung, Indonesia

Author

Listed:
  • Sita, Kralawi
  • Rosyadi, Achmad Imron
  • Aji, Tri Maruto

Abstract

Contract farming is becoming a viable form of partnership between tea plantation companies and local farmers in the management of tea plantations. This study aimed to: (1) describe a contract farming pattern through the system of intercropping tea-horticulture, (2) analyze the efficiency of the management of tea garden with contract farming, and (3) describe the benefits and sustainability of the contract farming between Gambung Estate and horticultural farmers. The case study was conducted in Gambung Estate using qualitative descriptive analysis and contract farming scheme analysis. The study observed that the contract farming patterns applied was a modified nucleus estate model with a combination of resource provisioning cooperation with production management cooperation. The challenges for future contract farming include land management, new skill transfer, climate change, and shared risk and effort between the two parties so that the bargaining position of horticultural farmers will be increased in the sustainable tea plantation management framework. Value of investment efficiency was 47 percent for new planting and 49 percent for replanting. The highest R/C and B/C values were given to the intercropping system of tea-chili at 2:25 and 1:25, respectively.

Suggested Citation

  • Sita, Kralawi & Rosyadi, Achmad Imron & Aji, Tri Maruto, 2018. "Contract Farming through Tea-Horticulture Intercropping System: A Case Study of Gambung Estate and Horticultural Farmers in Bandung, Indonesia," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 15(01), June.
    • Handle: RePEc:ags:phajad:275690
    DOI: 10.22004/ag.econ.275690
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/275690/files/AJAD%2015_1_Paper%205.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.275690?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Johann Kirsten & Kurt Sartorius, 2002. "Linking agribusiness and small-scale farmers in developing countries: Is there a new role for contract farming?," Development Southern Africa, Taylor & Francis Journals, vol. 19(4), pages 503-529.
    2. Linda M. Young & Jill E. Hobbs, 2002. "Vertical Linkages in Agri-Food Supply Chains: Changing Roles for Producers, Commodity Groups, and Government Policy," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(2), pages 428-441.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ashok K. Mishra & Anjani Kumar & Pramod K. Joshi & Alwin D'Souza, 2018. "Cooperatives, contract farming, and farm size: The case of tomato producers in Nepal," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 865-886, October.
    2. Mungandi, Sepiso & Conforte, Daniel & Shadbolt, Nicola M., 2012. "Integration of Smallholders in Modern Agri-food Chains: Lessons from the KASCOL Model in Zambia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(3), pages 1-22, September.
    3. repec:oup:apecpp:v:40:y:2018:i:3:p:353-378. is not listed on IDEAS
    4. Saenger, Christoph & Torero, Maximo & Qaim, Matin, 2016. "Impact of third-party enforcement of contracts in agricultural markets—A field experiment in Vietnam," IFPRI book chapters, in: Devaux, André & Torero, Maximo & Donovan, Jason & Horton, Douglas E. (ed.), Innovation for inclusive value-chain development: Successes and challenges, chapter 11, pages 343-374, International Food Policy Research Institute (IFPRI).
    5. Sahoo, B.B., 2010. "Global Market and Local Players: A Value Chain System of Collaborative Strategies," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 23(Conferenc), November.
    6. Hooks Teresa & Macken-Walsh Áine & McCarthy Olive & Power Carol & Henchion Maeve, 2018. "Co-Operation among Irish Beef Farmers: Current Perspectives and Future Prospects in the Context of New Producer Organisation (PO) Legislation," Sustainability, MDPI, vol. 10(11), pages 1-19, November.
    7. Federica Di Marcantonio & Pavel Ciaian & Vicente Castellanos, 2018. "Unfair trading practices in the dairy farm sector: Evidence from selected EU regions," JRC Research Reports JRC112770, Joint Research Centre.
    8. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    9. Swinnen, J.F.M. & Maertens, M., 2007. "From Public to Private Governance in Agri-food Supply Chains of Transition and Developing Countries," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 42, March.
    10. Shanoyan, Aleksan & Brent Ross, R. & Gow, Hamish R. & Christopher Peterson, H., 2014. "Long-term sustainability of third-party facilitated market linkages: Evidence from the USDA marketing assistance program in the Armenian dairy industry," Food Policy, Elsevier, vol. 46(C), pages 157-164.
    11. Singh, Gurpreet & Budhiraja, Parisha & Vatta, Kamal, 2018. "Sustainability of Farmer Producer Organisations under Agricultural Value Networks in India: A Case of Punjab and Gujarat," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 73(03), July.
    12. Michelson, Hope & Reardon, Thomas & Perez, Francisco, 2012. "Small Farmers and Big Retail: Trade-offs of Supplying Supermarkets in Nicaragua," World Development, Elsevier, vol. 40(2), pages 342-354.
    13. Poulton, Colin & Dorward, Andrew & Kydd, Jonathan, 2010. "The Future of Small Farms: New Directions for Services, Institutions, and Intermediation," World Development, Elsevier, vol. 38(10), pages 1413-1428, October.
    14. Peter Dannenberg, 2013. "The rise of supermarkets and challenges for small farmers in South African food value chains," Economia agro-alimentare, FrancoAngeli Editore, vol. 15(3), pages 15-34.
    15. Viet Hoang & Vinh Nguyen, 2023. "Determinants of small farmers' participation in contract farming in developing countries: A study in Vietnam," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 836-853, July.
    16. Sharma, Nivedita, 2014. "Contract Farming Practice In Indian Punjab: Farmers’ Perspective," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 2(01), pages 1-12, January.
    17. Neda Trifković, 2014. "Food Standards and Vertical Coordination in Aquaculture: The Case of Pangasius from Vietnam," IFRO Working Paper 2014/01, University of Copenhagen, Department of Food and Resource Economics.
    18. Špirić, Jovanka & Ramírez, M. Isabel, 2022. "Looking beyond the conflict: Everyday interactions and relations between Maya and Mennonite farmers in the state of Campeche, Mexico," Land Use Policy, Elsevier, vol. 113(C).
    19. Phatela Raleting & Ajuruchukwu Obi, 2015. "An Analysis of Institutional Factors Influencing Vegetable Production amongst Small-Scale Farmers in Six Vegetable Projects of the Nkonkobe Local Municipality," Journal of Agricultural Science, Canadian Center of Science and Education, vol. 7(6), pages 184-184, May.
    20. David John O'Brien & Lloyd Banwart & Michael L. Cook, 2013. "Measuring the Benefits of Smallholder Farmer Membership in Producer‐Controlled Vertical Value Chains: Survey Findings From a Development Project in East Africa," Poverty & Public Policy, John Wiley & Sons, vol. 5(4), pages 399-416, December.
    21. Mugwagwa, Innocent & Bijman, Jos & Trienekens, Jacques, 2020. "Typology of contract farming arrangements: a transaction cost perspective," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 59(2), March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:phajad:275690. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/searcph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.