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Food system transformation and its impact on smallholder farmers’ income and food security in Indonesia

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Listed:
  • Hery Toiba
  • Tri Wahyu Nugroho
  • Dwi Retnoningsih
  • Moh. Shadiqur Rahman
  • Goodness Aye

Abstract

Transformation of food system in Indonesia can have a profound impact on the supply chain of smallholder farmers. Policymakers are concerned about the impact of “modern food retail penetration” or “supermarket penetration” on Indonesian food chain participants. This study aims to analyze the link between supermarket penetration and smallholder farmers’ welfare. Data were obtained from a survey involving 300 smallholder horticulture farmers from two regencies: Malang and Kediri. The data were analyzed to shed light on these issues. Endogenous switching regression was used to analyze the impact of participation in modern food marketing channel on both food security and welfare. The results of the econometric analysis suggest that there is a link between participation in the modern market and food security. In addition, this study also highlights that the presence of a new system of food supply chain is able to increase smallholder farmers’ income through the stability of price and demand.

Suggested Citation

  • Hery Toiba & Tri Wahyu Nugroho & Dwi Retnoningsih & Moh. Shadiqur Rahman & Goodness Aye, 2020. "Food system transformation and its impact on smallholder farmers’ income and food security in Indonesia," Cogent Economics & Finance, Taylor & Francis Journals, vol. 8(1), pages 1854412-185, January.
    • Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1854412
    DOI: 10.1080/23322039.2020.1854412
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    Cited by:

    1. Moh. Shadiqur Rahman & Hery Toiba & Wen-Chi Huang, 2021. "The Impact of Climate Change Adaptation Strategies on Income and Food Security: Empirical Evidence from Small-Scale Fishers in Indonesia," Sustainability, MDPI, vol. 13(14), pages 1-16, July.
    2. Toiba, Hery & Noor, Arif Yustian Maulana & Rahman, Moh Shadiqur & Hartono, Rachman & Asmara, Rosihan & Retnoningsih, Dwi, 2023. "Consumers’ Preference and Future Consideration Toward Organic Instant Noodles: Evidence from Indonesia," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 15(1), January.

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