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Farm demand for quality potato seed in Indonesia

Author

Listed:
  • Keith O. Fuglie
  • Witono Adiyoga
  • Rini Asmunati
  • Sukendra Mahalaya
  • Rachman Suherman

Abstract

Seed is the one of the most costly components of potato production in developing countries. Since potato is a vegetatively reproduced crop, diseases such as viruses build up and yield declines as tubers are saved from one harvest for use as seed the next season. Replacing farm‐saved seed with clean seed is one means to increase yield, but information asymmetry between buyers and sellers on seed quality may restrict market supply of this input. In this article we develop a model of the seed market in which clean seed is treated as a capital good providing benefits over several seasons. To determine farm demand for clean seed, we conducted a survey of 182 potato farmers in the major potato growing areas of Indonesia to elicit their perceptions of seed quality from different sources, and derive farmers' “willingness‐to‐pay” for quality potato seed. Results indicate that the effects of information asymmetry on seed supply may be partially offset by the “reputation” of specialized seed producers. Nevertheless, marginal returns to disease‐free seed appear to significantly exceed marginal costs, indicating that improving supply of quality seed will contribute strongly to productivity growth in potato. We discuss several policy options to encourage supply and utilization of quality potato seed.

Suggested Citation

  • Keith O. Fuglie & Witono Adiyoga & Rini Asmunati & Sukendra Mahalaya & Rachman Suherman, 2006. "Farm demand for quality potato seed in Indonesia," Agricultural Economics, International Association of Agricultural Economists, vol. 35(3), pages 257-266, November.
    • Handle: RePEc:bla:agecon:v:35:y:2006:i:3:p:257-266
    DOI: 10.1111/j.1574-0862.2006.00160.x
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    Cited by:

    1. Abdul Muis Hasibuan & Daniel Gregg & Randy Stringer, 2021. "The role of certification, risk and time preferences in promoting adoption of climate-resilient citrus varieties in Indonesia," Climatic Change, Springer, vol. 164(3), pages 1-21, February.
    2. Shawn McGuire & Louise Sperling, 2016. "Seed systems smallholder farmers use," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(1), pages 179-195, February.
    3. Christine Wamuyu Mwangi & Josiah Ateka & Robert Mbeche & Luke Oyugi & Elijah Ateka, 2022. "Comparing farmers’ willingness to pay with costs of clean sweet potato seed multiplication in Kenya," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(5), pages 1279-1293, October.
    4. Wossen, Tesfamicheal & Spielman, David J. & Alene, Arega D. & Abdoulaye, Tahirou, 2024. "Estimating seed demand in the presence of market frictions: Evidence from an auction experiment in Nigeria," Journal of Development Economics, Elsevier, vol. 167(C).
    5. Astrid Mastenbroek & Irma Sirutyte & Robert Sparrow, 2021. "Information Barriers to Adoption of Agricultural Technologies: Willingness to Pay for Certified Seed of an Open Pollinated Maize Variety in Northern Uganda," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(1), pages 180-201, February.
    6. Mywish K Maredia & Brian Bartle, 2023. "Excess demand amid quality misperceptions: the case for low-cost seed quality signalling strategies," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(2), pages 360-394.
    7. Takeshima, Hiroyuki, 2014. "Importance of rice research and development in rice seed policies: Insights from Nigeria:," IFPRI discussion papers 1343, International Food Policy Research Institute (IFPRI).
    8. Thomas Pircher & Conny J. M. Almekinders, 2021. "Making sense of farmers’ demand for seed of root, tuber and banana crops: a systematic review of methods," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(5), pages 1285-1301, October.
    9. Shawn McGuire & Louise Sperling, 2016. "Seed systems smallholder farmers use," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(1), pages 179-195, February.
    10. Takeshima, Hiroyuki & Adesugba, Margaret Abiodun, 2014. "Irrigation potential in Nigeria: Some perspectives based on factor endowments, tropical nature, and patterns in favorable areas:," IFPRI discussion papers 1399, International Food Policy Research Institute (IFPRI).
    11. repec:fpr:export:1343 is not listed on IDEAS
    12. Muratbek Baglan & Gershom Endelani Mwalupaso & Xue Zhou & Xianhui Geng, 2020. "Towards Cleaner Production: Certified Seed Adoption and Its Effect on Technical Efficiency," Sustainability, MDPI, vol. 12(4), pages 1-17, February.

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