Sustain inabilit ity and Profitabil ility Cacao in in In - PowerPoint PPT Presentation

Sustain inabilit ity and Profitabil ility Cacao in in In Indonesia: Farmers and In Industry Perspective toward Improve Competitiv iveness Nunung Nuryartono & Research team

International Ce In Center for or Applie ied Fin Finance an and Economic ics Outline • Background • Framework • Research Results • Discussion http://intercafe.ipb.ac.id

In International Ce Center for or Applie ied Fin Finance an and Economic ics Background http://intercafe.ipb.ac.id

In International Ce Center for or Applie ied Fin Finance an and Economic ics 1. Decreasing in Production, Planted Area and Productivity Area (ha) Production (ton) 0,80 2.000.000 0,70 1.800.000 1.600.000 0,60 Produktivitas 1.400.000 0,50 1.200.000 0,40 1.000.000 0,30 800.000 0,20 600.000 0,10 400.000 0,00 200.000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source : Ministry of Agriculture (2016) Source : Ministry of Agriculture (2016) http://intercafe.ipb.ac.id

International Ce In Center for or Applie ied Fin Finance an and Economic ics 2. . Under Capacit ity of In Industry ry Year 2009 2010 2011 2012 2013 2014 2015 2016 Number of Unit 15 15 16 16 18 19 20 20 company Number pf people 4000 4000 4300 4300 5300 5800 6000 6000 Labour million Investment - 250 330 495 570 600 635 635 USD Installed Machine (1000) Ton 345 345 560 660 735 765 800 800 Capacity Used (1000) Ton 130 151 268 310 324 391 426 392 capacity Utility % 37 43 47 47 44 51 53 49 Source: AIKI (2017) http://intercafe.ipb.ac.id

In International Ce Center for or Applie ied Fin Finance an and Economic ics 3. . Pri rice volatility International and Do In Domestic Price rice 60000 Rp/Kg 50000 40000 30000 20000 10000 0 Jan-08 Mei-08 Sep-08 Jan-09 Mei-09 Sep-09 Jan-10 Mei-10 Sep-10 Jan-11 Mei-11 Sep-11 Jan-12 Mei-12 Sep-12 Jan-13 Mei-13 Sep-13 Jan-14 Mei-14 Sep-14 Jan-15 Mei-15 Sep-15 Jan-16 Mei-16 Sep-16 Jan-17 Mei-17 International Price Domestic Price http://intercafe.ipb.ac.id

In International Ce Center for or Applie ied Fin Finance an and Economic ics 4. Agriculture and Environment Foods and agricultural products are the fundamental consumption by people. It is still have a lot of primary needs for life. = Foods and agricultural products are the fundamental consumption by people. It is still have a lot of primary needs for life. Source: International Energy Agency 2016. http://intercafe.ipb.ac.id

International Ce In Center for or Applie ied Fin Finance an and Economic ics Research Questions 1. Is growing cacao profitable and farmers still interested? 2. How industry response dynamic of domestic supply? 3. Do Cacao contribute toward green development? 4. How domestic market link to international market http://intercafe.ipb.ac.id

In International Ce Center for or Applie ied Fin Finance an and Economic ics Framework http://intercafe.ipb.ac.id

International Ce In Center for or Applie ied Fin Finance an and Economic ics 1 Sustainable Livelihoods Framework LIVELIHOOD ASSETS Policies, Institution and Livelohood Processes: PORTOFOLIO Outcomes ▪ • Social Income • ✓ Well-being Household Human • Vulnerability ✓ neighbourhood ▪ Government Social Natural ✓ Central and local ✓ Laws/policies ✓ culture ▪ Private Sector ✓ markets Livelihood Physical Financial Strategies Vulnerability Context Shock Trend Seasons http://intercafe.ipb.ac.id

In International Ce Center for or Applie ied Fin Finance an and Economic ics 2. Sustainable Development Paradigm Sustainable Development Economics Social Environtment Environment Problem Global Warming Economics growth • Food Consumption • Non Food Consumption Greenhouse gases are Consumption • Consumption for Education predominantly Carbon Dioxide • Consumption for Health • Consumption for Energy and Transportation Carboon Footprint calculation of carbon dioxide in greenhouse gases with a carbon footprint approach http://intercafe.ipb.ac.id

In International Ce Center for or Applie ied Fin Finance an and Economic ics 3. Porter Diamond Model http://intercafe.ipb.ac.id

In International Ce Center for or Applie ied Fin Finance an and Economic ics Research Results http://intercafe.ipb.ac.id

In International Ce Center for or Applie ied Fin Finance an and Economic ics Livelihood : Access Capital Access to formal financial services is influenced by Education, Income and Financial Literacy Variabel Coefisien Standar Error Z P>|Z| Marginal Effect Education 0,7456687 0,2851498 2,62 0,009 0,2150269 Age 0,4714165 0,5125924 0,92 0,358 0,1359414 Income 0,4341688 0,145213 2,99 0,003 0,1252004 Dependency Ratio -0,0437945 0,0752637 -0,58 0,561 -0,0126289 Financial Literacy 1,693.992 0,8194665 2,07 0,039 0,4884931 Notes: * are significant at 5% Source : Primary Data (processed, 2017) http://intercafe.ipb.ac.id

In International Ce Center for or Applie ied Fin Finance an and Economic ics Livelihood : Human Capital Rela elationship ip betw tween nutri triti tional statu tus, hea ealt lth statu tus, food consumption, lif lifes estyle e to work pro roductivit ity Nutritional Health Work Work Status Productivity Status Productivity • There is a a rel elati tionship between blood pressure and amount of cocoa • There is no no rel elationship between nutritional status (body mass picked per day (kilograms). index) and work productivity • There is a a rel elati tionship between central obesity and number of absent day due to sick Food Work Work Consumption Productivity Lifestyle Productivity • There is no relationship between food consumption (energy • There is no relationship between lifestyle and work productivity adequacy, protein adequacy, fat adequacy and iron adequacy) to work productivity Rela elationship ip betw tween poo oor die iet t and hea ealth lth status (cen (central ob obes esit ity and hyperten ension) Health status Health status Poor diet Poor diet (hypertension) (central obesity) • There is no relationship between poor diet and health status • There is no relationship between poor diet and health (blood pressure, systolic, diastolic and central obesity). status (central obesity). http://intercafe.ipb.ac.id

International Ce In Center for or Applie ied Fin Finance an and Economic ics Livelih Liv lihood : : Physical l Cap apital Hig igh quali ality se seed is is im important for production efficiency Local Clon Clon Sulawesi 1 dan Sulawesi 2 District Village Maximum Minimum District Village Efficiency Efficie Efficiency Efficiency Efficienci < 1 value ncy = Minimum Value Value Efficiency Maximum 1 Efficiency Efficienc Efficienci < 1 value Efficiency Value y = 1 Kalapa Dua 0,755 1 0,170 7 13 Value Anreapi Kalapa Dua 0,937 1 0,852 3 4 Duampanua 0,833 1 0,411 8 13 Anreapi Duampanua 0,924 1 0,397 7 1 Sattoko 0,872 1 0,1 7 11 Mapili Landi Sattoko 0,800 1 0,07 6 4 0,789 1 0,43 4 10 Kanusuang Mapili Landi 0,858 1 0,393 6 11 Kanusuang Mean 0,812 1 0,277 6,5 11,7 Mean 0,879 1 0,420 5,5 5 http://intercafe.ipb.ac.id

In International Ce Center for or Applie ied Fin Finance an and Economic ics Carbon Footprint : Consumption and Production Side http://intercafe.ipb.ac.id

International Ce In Center for or Applie ied Fin Finance an and Economic ics The determinants of household carbon footprint Dependend Variable LnCo2 Variabel Independent I II III lnexp 0.873 poor 0.060 -0.626 Expenditure quantile 2 0.449 3 0.502 4 0.799 5 1.137 -0.014 hhsize 0.119 age 0.002 -0.002 hheduc elementary -0.214 -0.004 -0.319 -0.273 Secondary -0.263 -0.203 High school At least college -0.354 0.288 0.315 0.163 HH.married HH.female 0.142 -0.226 Description : The -0.011 0.031 asset index bold issignificant cons -6.064 8.439 8.377 at 5 percent 0.681 0.333 0.466 R-Squared http://intercafe.ipb.ac.id