Dissemination Product Market Combination (PMC) Discussion meeting Agri Profocus – 1 June 2016 PROGRAM vegIMPACT TUJUAN: PROGRAM: (2013-2016) Meningkatkan Produksi dan Pemasaran Sayuran bagi Petani Kecil Meningkatkan Status Keamanan Pangan Mendorong Pertumbuhan Sektor Swasta Terkait 1. 2. 3. 4. 5. 6. Product Market Combination (PMC) Alih Pengetahuan (Knowledge Transfer) Budidaya Sayuran Secara Permanen (PermVeg) Kentang Kesehatan Pekerja Pertanian (Occupational Health) Monitoring & Evaluasi (M&E) Workpackage Product Market Combinations (PMC) A PMC is a pilot project implemented with partners in the supply chain, including small farmers (< 2 ha), who produce vegetables in a coordinated way and according to specific market demands. PMC’s are considered as a “proof of concept“ to show that innovations and cooperation in marketoriented supply chains potentially can benefit all supply chain partners and in particular small farmers. Supply driven v Demand driven vegetable Supply Chains RANTAI PASOK SESUAI PERMINTAAN (demand driven supply chains) Apakah yang dimaksud dengan demand driven supply chains? RANTAI PASOK SESUAI PASOKAN (Supply Driven Supply Chain) Petani Pengepul Pengepul trader Produk/barang trader pasar RANTAI PASOK SESUAI PERMINTAAN (Demand Driven Supply Chain) Petani Pengepul Pengepul trader Informasi Produk/barang trader Pasar MENGAPA PRODUKSI SESUAI PERMINTAAN? Supply driven menyebabkan fluktuasi harga Demand driven: • Harga stabil • Income stabil • Kepastian pasar Untuk semua pihak yang ada di rantai pasok! Lessons learned; 3 essential elements for inclusive demand driven projects according to the PMC team. Contract farming Contract farming involves agricultural production being carried out on the basis of an agreement between the buyer and farm producers. Agreements contain minimally info on: volume, quality, delivery specification, price agreement and price specification, timescale of agreement . Types of agreements • Formal/informal • Written or verbal • Per planting cycle, per period Continuous supply What is continuous supply ? Continuous supply is cultivating vegetable in such a way that a certain stable volume can be harvested on a weekly bases. Why is continuous supply important? - Needs of supermarkets and modern retail. - Generate stable income on weekly bases for the farmers. - Supplier guaranteed on weekly supply - Price agreement takes away stress - Economies of scale. Farmer group organization What are farmer groups? Group of farmers that works together on various aspects of their daily practices like sharing cultivating practices, jointly work with traders. Why are farm groups important? - Jointly you can form power towards for example traders. - To help each other in times of trouble - To be able to arrange continuous supply - To benefit from Economies of scale (jointly buying inputs). DISCUSSION • What do you think are essential elements for supply chain development? • Are the elements different for the various commodities (vegetables, coffee, cacao)? • Who should take on the much needed role of supply chain coordinator in Indonesia (Public sector, private sector)?