November 2013 – January 2014
Netherlands Ministry of Foreign Affairs
Animal Sciences Group, Centre for Development Innovation, the Agricultural Economic Research Institute of Wageningen University and Research Centre (LEI), Management Program of Bogor Agricultural University (MB-IPB), Maastricht School of Management (MsM), and Advance Consulting BV.
CSBC Experts involved :
- Dr. Diederik de Boer, MsM (lead)
- Dr. Arief Daryanto, IPB (IPB-lead)
- Dr. Idqan Fahmi, IPB
- Dikky Indrawan, SP, MM IPB
- Huub Mudde, MSc
Maastricht School of Management (MsM), the Graduate Program of Management and Business, Bogor Agricultural University (MB-IPB), and Wageningen UR Agricultural Economic Research Institute (LEI) and Livestock Research conducted a jointly socio-economic analysis of the three dominant trading and slaughtering systems of the poultry sector in West Java.
This study was executed as part of the Inception Phase of the Livestock development program on Food Security, as proposed by a consortium including the Animal Sciences Group, Centre for Development Innovation, and the Agricultural Economic Research Institute of Wageningen University and Research Centre, the Bogor Agricultural University, Maastricht School of Management, and Advance Consulting BV. This program aims to develop viable models for domestic production and supply of affordable, nutritious and safe animal-based products in Indonesia. With the development and testing of these models the program will contribute towards higher income levels of Indonesian smallholders and improved access to affordable and safe animal protein products among urban consumers. The focus will be on West Java as main production and sourcing area of dairy and poultry meat products for Jakarta and other main urban centres (Wageningen University and Research Centre, 2013).
The slaughtering points and -houses play a vital role in the poultry sector. Professionalization and/or restructuring of the chain actors are vital in the process of improving food safety and hygiene standards. Besides the required technical capacity development, more clarity is needed on the economic and financial functioning of the slaughterhouses: what are the key incentives and hurdles for change? The executed socio-economic analysis of the three dominant trading and slaughtering systems provides this information. The study aims to get more information on opportunities for upgrading of the slaughtering practices from an economical and food safety point of view.
This document is reporting the findings of this socio-economic study with the purpose to help give direction to the implementation of the foreseen livestock development program. It entails information on slaughtering practices, economics, food safety and environmental risks and government policies. It concludes with suggestions for project interventions.
The Indonesian poultry industry is on a cross-road. Both hygiene and prices are becoming important factors in the years to come demanding for up scaling in the sector. The slaughter points have many constraints for upgrading contrary to the industrial slaughterhouses whereby the semi-automated slaughterhouses are facing a mixture of constraints.
Interventions should be focused on three main areas. First, access to finance needs to be improved to enable up-scaling aspirations. Next infrastructure needs to be upgraded (roads). Finally, the business and government need to work more together in developing and maintaining the required hygiene levels and in obtaining economies of scale in the production processes. Tax exemptions might be helpful in this process of upgrading.
Related Publications :
Daryanto A, et al. 2014. Socio-economic Analysis of the Slaughtering Systems in the Poultry Meat Sector in Greater Jakarta Area. Wageningen: Agricultural Economic Research Institute of Wageningen University and Research Centre (LEI)
Tacken G, et al. 2014. Preferences for Poultry Meat Consumer Study in Jakarta Region. Wageningen: Agricultural Economic Research Institute of Wageningen University and Research Centre (LEI)