Linking farmers to the modern market: transparent margin partnership model, case of mango growers in Pemalang, Central Java, Indonesia.
Natawidjaja R. S., Napitupulu T. A., Rusastra I. W.
Author Affiliation: Center for Agricultural Policy and Agribusiness Study, Pajajaran University, Bandung, West Java, Indonesia.
Palawija News 25 : 5-9
Abstract : This paper focuses on the partnership between Bimandiri (a specialized supplier to modern markets) and an off-season mango farmers' group (Kelompok Usaha Bersama Mandiri (KUBM)/Self-help Collective Business Group) in Pemalang, Central Java, Indonesia. Central to this partnership is a 'transparent margin system'. This paper discusses this institutional innovation in the mango supply chain, the farmers' inclusion and exclusion in the partnership, the impact of the innovation, and its potential replication. The paper concludes by outlining some policies that can be devised to systematically promote and support the partnership system such as incentives for e.g. the food industry, to use such partnerships; training for producer groups; and financial support.