Development of Agro-Industry in Rural of North Sumatra
By: Prof. Drs. M. Dawam Rahardjo *); Ir. Asrul Masir Harahap **)
As the area's relative forward with the fourth largest population in Indonesia, North Sumatra can not and should not ignore the potential of the countryside as the backbone of regional development especially in the era of regional autonomy.Statistics (CBS, 1999) shows the population of North Sumatra working in the agricultural sector is the largest amount that is 53.73%, and still more who live in rural areas than in urban areas ie 6.46 million (54.03%).
Laying the North Sumatra regional development priorities in the economic field with the pressure point on the agro-industrial sector in particular must be followed by concrete steps. The development of agro-industries in rural of North Sumatra first needs to be understood as part of an industrialization strategy that contains elements of a particular strategy.First, industrialization was planned in conjunction with the development of the agricultural sector. Second, the implementation of agro-industries in rural areas should be implemented. Agricultural activities generally take place in the countryside, but in the city there are also agricultural activities, even some certain types of agricultural activities take place in urban areas.
Why industrialization needs to be associated with the development of agriculture?. Because, according to some observations, industrialization had been still less to do with the development of agriculture. In fact, the development strategy in the past has been in focused on agriculture and agricultural processing industries (agro). Only industrialization carried on as if it stands alone, and do not process agricultural products should be also considered as outcomes and enhance agricultural development. Established industry generally foot-loose more processing of raw materials and auxiliary materials are imported. Even industry built in the countryside often work materials from agricultural products, especially local materials.Why agro-industry development is to take place in the countryside?, Because during the industrialization generally lasts around big cities. In fact, agriculture is generally produced in rural areas. Therefore, based on the principle of approaching materials or raw materials, agro logical that took place in the countryside.Agro-industries in rural areas is also related to the issue of surplus labor and the relatively high unemployment rates in rural areas. Unemployment itself arises due to various reasons, such as population growth and further narrowing the field or because of the use of technology (eg tractors or rolling machines), and changes in the social system has transform the use of human labor. The construction of rural agro-industry is expected to absorb labor. So in addition to approaching raw materials or raw materials, agro-rural areas also intends to approach the source of labor.
Furthermore, rural agro-industry related business ideas to create jobs in rural areas. Rural areas is static, meaning not a lot of changes in the economic field. Should the city more vibrant. More new jobs were created in cities. As a result, there was a migration of villagers to cities. Agro-industry is creating new jobs. Placement means the rise of rural agro-industrialization with all its impact on the countryside. Agro-industry is intended as a commercial venture or a new arena for the rural population.Of course there is the further intent of the development of agro-industries in rural areas. Agroindustry function creates value added for agricultural products. If agro-industries were developed in the towns, the value added of agricultural products that would result from the townsfolk. Though the rural population requires more income. With the agro-industry, the new revenue created can remain in the hold in the countryside.
Income generation in rural areas have a wider impact, which allows rural residents save. Of the savings capital will be formed. The potential savings that would cause banks as financial intermediation institutions. With the banks, open wider opportunities for the rural population to invest in utilizing credit facilities.
Development of Agro-Industry
If it was meant as agro-industry processing agricultural materials, agro verily has long been known in North Sumatra. Even agro-industry is an early form of North Sumatra, because Sumatra is an agricultural area with a belle plantation sub-sector.The development of the agricultural industry is the logical consequence of an agrarian society. Agro-industries related to agriculture and the early growing cottage industry that is generally done in the pattern of household crafts. Besides industry processing agricultural materials, the industry first developed in North Sumatra is the industry's work materials such as petroleum mining in Pangkalan Brandan. The mining industry is generally a large-scale foreign capital should be treated or SOEs.
In colonial times there were two kinds of agriculture and mining industries. The first is that its products are sold in the world market. Second, the products for the domestic market or for export. As it is known that the majority of the petroleum industry in exports. While the agricultural industry is also export oriented products of rubber, oil palm and tobacco deli.Some type of agricultural industry is more oriented towards the domestic market rather than export industries such as sugar and rice mills. While the agricultural industry such as coffee partly for export and partly to the domestic market.
In addition to the industries of agriculture and mining in North Sumatra is also developing a variety of industrial and non-agricultural and non-mining known as industrial manufacturing industries such as home furnishings, meubeler, iron tools (contrived the smiths), metal casting etc. other. Various industry began booming mid-decade of the '30 's. The government started to develop the industry for various reasons. First, to overcome depression caused by unemployment and falling agricultural sector. Secondly, in order to reduce dependence on manufactured goods abroad especially in time of war, although according to the industrial policy of 1937, the colonial government did not provide support and contribution to the industrial branches that compete with imported goods. And third, in order to reduce the bad influence of the world economic conjuncture.
In the development of various types of industries, principle of comparative advantage would be the consideration. Among others, the availability of agricultural materials are relatively abundant or available. Even one of the principal reasons the Dutch colonization is to be able to build farms that produce industrial materials. From there was born the rubber processing industry, tea, coffee, tobacco, sugar cane, oil palm and other plantation-based industry short term (such as sugar cane and tobacco) or perennial (such as rubber, tea, coffee and palm oil).
Agricultural industries is the type of industries that have a connection to the back (backward linkage), namely the agricultural business. Plantations of tea, coffee or cocoa in the wake to produce materials like beverage in European society. The world community is in much need of a sugar, rubber, clothing, paint, footwear and other goods, whose raw materials can only be produced in certain amounts and types outside Europe.At the time of independence, such as the agricultural industry is thriving and encouraged its development by the government. But the agriculture industry is a growing urgency manufacturing of import substitution industrialization policy. In the decade of the '50 's, when Indonesia began to build, and at the same time the newly independent states could also just started building, a common trend is the implementation of the policy of industrialization as the main form of development.
Some features of the industrialization policy was first priority and neglected agriculture sector. Second, the building industry to make the goods which had been imported. In other words, the industry is an industry built replacement for imported goods. And third, raw materials and auxiliary materials industry must be imported.
Many reasons why the raw materials and auxiliary materials must be imported. First, the goods to be made is that the original goods are imported, so the ingredients are still to be imported. Second, the technologies used are made overseas.And third, the raw materials can not be made in the country. Because it's the one feature of the import substitution industry is its dependence on raw materials, auxiliary materials and technology abroad. Import substitution industry assembly industry generally, such as the assembly of chemicals, liquid goods assembly, assembly tools, assembly of textile materials and even assembling ingredients.
Such type of industry developed in the New Order era, especially in the early days. That used to be the epitome of import substitution industries are motor vehicles or Coca-cola. Coca-cola Beverages models and soft drinks (soft-drink) others may only use water from Indonesia, the rest imported materials. Until now, this kind of type of industry is still growing. Such industry is the expansion and globalization of industry marketing only in developed countries, which is grown in Indonesia as a joint venture or franchise branch of the parent company.
Such type of industry can not be contained by our nation embracing open economic systems. Because it's the attitude that should be taken is a positive attitude, looking at aspects of direct or indirect benefits. At any rate the industry has been able to provide new jobs and income. Production of Coca-Cola has created new jobs. Distribution is at least also encourages the growth of restaurants, cafes and street vendors. Many people profit from sales and field work this kind of industry.
But the most valuable benefits is an inspiration to young entrepreneurs to make similar commodities. One of the positive reaction to the inclusion of this kind of industry is the birth of bottled tea industry and tea boxes. Initially a lot of people worry about Coca-Cola will be a 'culture' in Indonesia considering new motto: 'anytime and anywhere (drinking Coca-cola)'.
But now it's motto seems to have been forgotten. Indonesian and Asian people in general, will still drink coca cola stomach ache in the morning. Similarly, the parties or seminar organizers would rather serve tea bottles. Precisely bottled tea or tea box that is 'anytime and anywhere (suitable for drinking)' Coca-Cola only good at drinking if already cooled. But not so bottled tea and tea boxes. There are people even want to drink tea without refrigeration, to avoid colds. Apparently Coca-Cola bottled tea can still be defeated.
It was so beverage in bottles are durable and practical coming from outside the country has succeeded in stimulating the growth of new products. Among the famous Passion fruit drink from Sumatra and Sulawesi. The success of this drink because it is a typical product of a region. Until now other areas practically not developed this passion fruit products.
The concept of agribusiness
In the early decades of the '80 's, has become a popular concept of agribusiness. This concept in Indonesia initially popularized scholars expert in the marketing of agricultural produce graduates Germany, Prof. Dr. Ir AM Saefuddin (former Food Minister of Habibie cabinet, founder of Agribusiness Development Center), through IPB seminars initiated by himself in 1989. But the popularity of the concept of development is very slow. The late '80 's new concept began to busy talking.
Agro-industry is actually an integral part of the concept of agribusiness which means 'business in agriculture'. Therefore, agribusiness is a marketing concept. Background, first, the realization that agricultural yields can be easily damaged, so the price quickly fell. Second, agricultural products, the marketing also depends on the season. If now is not the season, consumers are hard to get these crops, but when the time of harvest, there is often over-production so that prices fall and hurt producers. Third, agriculture is not easily controlled. It is difficult for farmers to determine the size, volume, and taste the fruit, roots or leaves that are sold. This complicates the marketing.
The background is important is the emergence of the concept of development strategy in the '50 's and '60' s who think that the shortest way to build is to achieve high growth can only be achieved through the development of the industry.Agricultural development is considered the colonial legacy. Besides that, a lot of limitations. First, agricultural development is inhibited by what is known as the law of the ever rising yield decreases (law of diminishing return). Second, income elasticity the results of a small farm. Rising incomes did not cause major changes to the demand of agricultural products, but instead the result of high industry. Third, in terms of consumption, according to Engels law, the higher the income, the smaller part of their food consumption. In addition, the exchange rate against the smaller agricultural industrial products.Therefore, the purchasing power of the farmers group, the smaller.
Agribusiness is the concept of the marketing of agricultural products keeping in mind the properties of agricultural products, the marketing efforts to overcome difficulties: First, by means of biological engineering and biotechnology in crop cultivation. The process of farming is carried out by using advanced technology, good machined (using tools or machines), biology (developing seeds and how to plant maintenance) or chemical (fertilizers and pesticides). Second, the post-harvest handling and further processing of agricultural products that. And third, develop modern business organization and management, both in the production and distribution or marketing.
Although agricultural part of agribusiness, but agro-industry can implement and integrate the entire agribusiness system.Because it could be identical to the agro-agribusiness, at least the application of the agribusiness system. In this case agribusiness is an attempt to overcome the marketing of agricultural products by vertically integrating the production, marketing, and even the consumption of agricultural products.
Development Strategy
Agro-industry is a form of integration can the whole process from planting, post harvest handling, processing and marketing of agricultural products. With that effort, the results can be produced in agriculture on a large scale, long lasting, so it is quite time when marketed nationally and internationally. For example, potato crisps (potato chips) U.S. production is marketed all over the world in large numbers. This range of products has been developed in Indonesia, although it is still small in scale, low quality, and the price is much cheaper. Even so, we can replicate by using the U.S. product popularity.
Another example, banana chips is a popular traditional food. Even so, traditional banana chips may be too loud, too rough shape, and the packaging is not attractive. Now Lampung chips are manufactured with new packaging and is made in such a way, as if a typical product Lampung. Almost every outsider who visited Lampung definitely bring presents banana chips as people bring drinks Passion of Sumatra.
With fresh banana biotechnology makes it more durable, such as Del Monte plantation in Latin American countries and the Philippines, bananas marketed in the U.S., Western Europe and the Middle East. Though it was not as good as bananas Barangan and Ambon example. Biotechnology The course can also make bananas Barangan and Ambon fresh feel to be more durable and more comfortable, so that it can be marketed more widely.
Besides fresh bananas, one of the products that can be developed through banana agro example is the banana flour. This idea comes from a traditional Indonesian food. Until now, many mothers who give their babies eating bananas, besides giving milk. Perhaps, mothers need to flour banana baby food. Baby food from banana flour has not been popular, because women are able to overcome the problem by getting a fresh bananas at the market or supermarket. Besides feeding bananas to a baby with a banana is increasingly popular. Faced with this problem agribusiness can design a baby food product with the image of a modern and more practical, durable and secure.
Today we enter a new stage in agribusiness. Key feature of this new phase is the presence of high consumer awareness of the original products, especially in terms of hygiene and nutritional value. Every food product for example, felt the need to include the contents of the womb (ingredient), nutrition and hygiene level it. Food and beverage ingredients, and not just appearance and taste, can be made in promotional materials.Now this water was sold at the sale price even higher than gasoline or milk. Origins include the notion of healthy water that can be drunk (safe drinking water). In this case, the industry has managed to create a certain image in the water. Westerners are very careful to drink water, they are "safe to drink Coca-Cola". This aspect should certainly think about if we want to export agro commodities.
Today in industrialized countries there is a strong tendency to consume fruit juice (100% pure) without sugar (unsweetened). Products of this kind exist in the type of citrus fruit, tomatoes, pineapple, coconut or even rambutan, bark, banana, watermelon, durian and mangosteen are many in North Sumatra. The pattern of demand this of course needs to be answered manufacturer. It can be a way out for some of the problems of agricultural marketing in North Sumatra.
The thing to note is the fruit products in North Sumatra are less able to compete with imported products, such as grapes, apples, oranges and pears. Tropical fruit products we also can not compete with the same products from Asian countries, eg, China, Thailand, Philippines, Taiwan or even from the Middle East and Latin America for the U.S. and European markets. Agro-industry could be an effort to resolve the issue.North Sumatra should also be made of pineapple, passion fruit, rambutan and canned bark, liquids (beverages) or concentrate for export. Important note on agro fruit is that often the raw material processing industries from their own gardens can favorable less than traditional crops farmers yard, so it needs to develop a partnership that is one of the prerequisites agribusiness. In addition to raw materials guarantee a continuous, uniform and fruits should also be considered. The case of the failure of the factory in Jambi and West Java pineapple can be a lesson. When the machine has been in bring, it turns out to be pineapple if too small, though very sweet. Though apparently told farmers can not plant their pineapple change just like that. They prefer to plant traditional sweet pineapple for local market, the factory can not produce a result. By doing so, pineapple processing plant could lead to the pattern of planting pineapple or otherwise. Similarly, if we want to set up processing factories of rambutan, bark, passion fruit, and canned beverages or other materials, the industry should be in the form of vertical integration between processing and cultivation.
A more practical to develop agro-industry is to invite a well-established marketing industry, such as the restaurant industry.The restaurant could have known to consume agricultural products. If the kind of restaurant Garuda and Wong Solo with Chicken Roast and Chicken Pop and it can be developed across North Sumatra, especially in medium cities, with franchise system, the needs and chicken production will increase. The small breeder will be a supplier in bulk.
Actually traditional products can give inspiration to the development of agro-industries in North Sumatra. For example, satay, chicken satay and satay especially goat so famous through tourism. If promoted overseas, it could attract consumers who have known her. Demand satay is now grown in Singapore, Hongkong, and even in Japan. But no one in those countries that produces satay, so they prefer to import sate. North Sumatra People, of course, produces can sate. The problem, could they satay produces substantial amounts, steady and fast so that it can be sent late afternoon or early morning schedule aircraft?. Hygiene course requirements, must be met. This technique involves the production, packaging and the use of container as well as working with transport companies.
Epilog
The development of agro-industries in rural North Sumatra should be done by an integrated project. But this pattern requires substantial capital and advanced technology. A more practical way is to establish farming industry from the people who are ready, like a banana processing plant, rambutan, bark, coconut, or fish meal in the countryside. Of course, in need of organizing efforts at the level of production / cultivation of the people. But the awakening of an agro-industry in the market of agricultural products, especially in rural areas people had been able to secure.
It was so, it's time we developed an agro-industries in rural North Sumatra that are integrated with the use of advanced technologies, such as biotechnology. In this case, agro-industry is way out of the problems of marketing agricultural products in North Sumatra today.
_________
*) Commissioner, Agribusiness Development Center (PPA Consultants), Jakarta-Indonesia
**) Director of PPA Consultants, Jakarta-Indonesia
Senin, 10 Maret 2014
BUILD PATTERN THINK OF THE FUTURE FARMERS AND FISHERMAN
BUILD PATTERN THINK OF THE FUTURE FARMERS AND FISHERMAN
By: Prof. Dr. Ir. M. Amin Aziz *)
Ir. Asrul Masir Harahap **)
It is inevitable that farmers and fishermen still form the majority of Indonesia's population therefore remains to be the main target of the national development program. On the other hand farmers and fishermen because of the number and the potential it should provide a greater contribution to national development. Phenomena and issues surrounding the lives of farmers-fishermen lately, showing that the world is full of farmers and fishermen dynamic and constantly changing according to the demands and challenges of the times, and this is closely related to farmers think the pattern- fishermen themselves. The most common phenomenon of life of farmers-fishermen are generally their welfare level, both individually and communally, is still relatively low when compared with other individuals or groups of people, and it is a challenge for development. Portrait of the fishing village in general is a picture of poverty and squalor. While the common problems faced by them is the low productivity and incomes, caused by internal factors such as their own land increasingly marginalized, education, mastery and other technologies, as well as external factors such as marketing, financing etc..
In North Sumatra, farmers and fishermen in the constellation of regional autonomy is a local development actors is very important considering the amount of their 53.73% of the population of North Sumatra (CBS, 1999). Their contribution to local development is realized through its role in the provision of good results and industrial food production as well as in the role of the consumer products industry. Development efforts in increasing the production of North Sumatra regional and local revenue, as well as should be aimed at increasing the productivity and income of farmers-fishermen. Considerable revenue, will allow them and their families get a good education and nutritious foods that will further increase productivity, something which is indispensable in improving the competitiveness of farmers-fishermen themselves.
Increased productivity and income of farmers-fishermen by the Government through programs of intensification, diversification, and the rehabilitation and improvement of the added value of the products produced. Various policies have been issued to encourage programs such as cheap credit, construction and repair of irrigation facilities, the provision of the means of production level, production and others. These programs are essentially subsidized, which means the diversion of national resources that can be used for the development of other sectors of the farmer-fisherman. Therefore, lack of success of such programs is not only detrimental to farmers-fishermen but also detrimental to the society.
For farmers-fishermen, the subsidized program is a great opportunity, which might seem expensive at the time to come. At the time even this subsidy was greatly reduced. Interest loans to farms is increasing, irrigation water must pay, reduced fertilizer subsidies and others. Farmer-fisherman faced with new challenges that need a new mindset to deal with it anyway.
Subsistence and Commercial Farmers-Fishermen
Based on their pattern think, farmers-fishermen are divided into subsistence and commercial. Among the two types of farmers-fishermen, there are intermediate types, namely farmers-fishermen who are at an intermediate stage from subsistence to commercial.
The worldview of these two groups of farmers-fishermen is very different to the farming unit. Subsistence farmers-fishermen see farming as a production unit that will produce food for their own needs and their families daily, while commercial fishermen-farmers see farming as a business unit business unit, which should bring the highest benefit, not only to meet the needs of food supply but also other needs such as education, recreation and further investment. If subsistence farmers-fishermen do not much consider factors beyond himself, then vice versa-peasant commercial fishermen always pay attention and act to respond to the changes that occur, because the rate of profit is determined by the farming changes there.
Subsistence farmers-fishermen do not require big capital, so it is quite full of previous efforts, while commercial fishermen-farmers needed considerable capital for his business continues to grow not only in the production but also on rental equipment and processing and marketing results.
Agencies to support activities such as farmer-fishermen and marketing credit institutions not so necessary to the subsistence farmers, while the farmers-commercial fishermen, these institutions is necessary because the existence of these institutions without the position of farmers in the field of marketing will be weak result in a lower sales price. Credit institutions needed except as a source of finance for farming is also required to store the surplus obtained.
Changes of Pattern Think of Farmer-Fisherman
Research on the changing patterns of Sumatra think the farmers-fishermen have done well instituted research institutes and universities, but some of the data in other areas of research can indirectly provide an indicator of the occurrence of a change of thought pattern farmer-fisherman since development programs run.
Indicators of change in the mindset of farmers-fishermen; First, changes in the use of quality seeds and fertilizers. The use of high yielding rice varieties in Indonesia began in 1968. Previously, farmers grow local varieties and superior national (Sigadis, Teens, Jelita, Dewi Dara, Shinta, and Bengawan). The use of new varieties PB / IR extends from year to year. If in the year 1970/1971 the use of varieties PB / IR only around 25% of the year 1980/1981 until now has been almost 100%.Along with the use of superior seeds, fertilizer usage rate also increased. Changes over the past 10 years (1970/1971 to 1980/1981) use of fertilizer has increased by about 145%. It's just because of the high price of fertilizer lately resulted in the use of manure as a major factor of production tends to decline because no / less comparable with the results achieved farming.
Second, changes in the use of agricultural equipment / fishing. Change of use of agricultural tools, found in both agricultural crops and on fisheries. At sea fishing companies, the use of outboard motors up about 20% per year, and a boat ride of about 10% per year. The increase was higher than the increase in boats without motors only increased 1% per year. Change of use of agricultural equipment in food crops can be demonstrated by the increasing use of agricultural equipment such as tractors, Hand Sprayer and Rice Thresher. The use of tractors, up about 15% per year, Hand sprayer up about 15% per year and the Rice Thresher up about 20% / year. Transitional use of agricultural equipment is based on rational thinking to increase profits. As a pretty good illustration is the use of tractors for land preparation. In cultivation, a shift in the use of human and animal power with tractors. This shift occurred because of an increase in real wages for both human and animal power. In addition to less use of tractors is also faster. In one study villages, processing by using tractors per hectare until ready to plant requires 22 hours of work, the animals 73 hours, with 206 hours of human labor.Costs incurred for cultivation per hectare in the growing season in 2000/2001 was Rp 250,000, - if using tractors, Rp 300,000, - with livestock and Rp 290,000, - if with human power.
Third, changes in the use of credit capital. The development of the use of credit can be seen from the increase in the amount of credit that is given by the Credit institutions operating in rural areas, such as Bank Village, Village Office and the State Pawnshop. Depth average growth of credit that is given by the Bank village is about 7%, about 54% Village Office and the State Pawnshop about 12%. These figures show that rural communities have needed capital to run its business loans.However, this growth is still relatively small when compared with the growth of the urban sector lending such as industry and trade which grew approximately 35% and 25% in the same period. Credit growth to the village barn big enough, but judging the volume of loan is small so it is not a measure to assess the development of rural credit. Lending data showed no growth Bimas even number of farmers to the debtor. In 1970/1971 the number of borrowers 1.3 million while in the year 1980/1981 the number of borrowers 1.1 million farmers, although its value is increased from 8.5 billion to 35.9 billion dollars. While the failure and breakdown of KUT program for agriculture that is often talked about these days due to many factors besides mismanagement and misappropriation, as well as technically agriculture in general to enjoy the harvest takes quite a long time, which is a minimum of three months. Furthermore, because of the capital requirements are also the government launched a capital assistance program for farmers such as Credit Food Security (CTF).
Fourth, institutional development. The institutions established by farmers to meet the requirement is farmer groups, cooperatives and Village Office. Farmer group is a forum to enhance knowledge and skills of technical, economic and KUD for container barn rural credit institutions that serve a loan in the form of rice or money on rural communities. The number of Village Office was only growing at about 0.5%. Maybe there is a presumption that a small growth is due to its role has been replaced by other institutions, but if the data is associated with the role of cooperatives that have not been so evident in the middle of the village, indicating that farmers are still experiencing difficulties in developing institutions.
Challenges Facing Future Farmers-Fishermen
Some of the challenges faced by farmers in the future, both from Government Policy Changes, Changes in consumer tastes, as well as the development of the population are: First, the rise in mortgage interest. Mortgage interest for farm loans has been increased from 12% per annum to 17% per year. This hike will increase the cost of farming. The increase in loans to large investment, it inhibits investment in agriculture and agro-industry.
Second, the rising price of fertilizer and water user fees. As with any loan, subsidy on fertilizer and irrigation water use will also likely be reduced because of the greater subsidies will further the government's financial burden, especially when the government has an agreement with the IMF to reduce and stop all forms of subsidies. Imposition of water fee to the farmer is the responsibility of the government delegation to the farmers. Thus the water is no longer a factor that can be obtained for free, but a factor that must be paid and should be efficient to use.
Third, the narrowness of the land. High population growth, leading to ownership of land per family increasingly narrow further result in the narrowing of manufacturing sector employment. The narrowness of employment opportunities is also because of the increasing pressure on sensitive role of farm laborers labor by mechanical force.
Fourth, the low prices of agricultural commodities. The low production due to farmers not good means of transport and the magnitude of the price margin. The bigger margin means the greater part of the price received by the merchant (and other trading system charges) of the price paid by the consumer for the product. It also shows the amount of margin weak position of farmers in the transaction and or the determination of prices by the government. The low prices then led to exchange of agricultural products to industrial goods declined, which means a relatively lower opinion of farmers.
Fifth, the existence of competition from imported products. As a consequence of the inclusion of Indonesia to the market globally, for the export of agricultural products and the industry, we also have to open up the domestic market to the entry of agricultural products. Thus the products farmers have to compete with imported products both for the domestic market and abroad.
Sixth, the quality demands of consumers. The increasing standard of living raises that increased demand for agricultural product quality / fisheries. Urban Consumers, especially community groups are able want products that clean, and free of disease. Similarly for export to the market entry, there are quality standards that must be fulfilled.
Pattern Think of Farmers-Fisherman in the Future
By: Prof. Dr. Ir. M. Amin Aziz *)
Ir. Asrul Masir Harahap **)
It is inevitable that farmers and fishermen still form the majority of Indonesia's population therefore remains to be the main target of the national development program. On the other hand farmers and fishermen because of the number and the potential it should provide a greater contribution to national development. Phenomena and issues surrounding the lives of farmers-fishermen lately, showing that the world is full of farmers and fishermen dynamic and constantly changing according to the demands and challenges of the times, and this is closely related to farmers think the pattern- fishermen themselves. The most common phenomenon of life of farmers-fishermen are generally their welfare level, both individually and communally, is still relatively low when compared with other individuals or groups of people, and it is a challenge for development. Portrait of the fishing village in general is a picture of poverty and squalor. While the common problems faced by them is the low productivity and incomes, caused by internal factors such as their own land increasingly marginalized, education, mastery and other technologies, as well as external factors such as marketing, financing etc..
In North Sumatra, farmers and fishermen in the constellation of regional autonomy is a local development actors is very important considering the amount of their 53.73% of the population of North Sumatra (CBS, 1999). Their contribution to local development is realized through its role in the provision of good results and industrial food production as well as in the role of the consumer products industry. Development efforts in increasing the production of North Sumatra regional and local revenue, as well as should be aimed at increasing the productivity and income of farmers-fishermen. Considerable revenue, will allow them and their families get a good education and nutritious foods that will further increase productivity, something which is indispensable in improving the competitiveness of farmers-fishermen themselves.
Increased productivity and income of farmers-fishermen by the Government through programs of intensification, diversification, and the rehabilitation and improvement of the added value of the products produced. Various policies have been issued to encourage programs such as cheap credit, construction and repair of irrigation facilities, the provision of the means of production level, production and others. These programs are essentially subsidized, which means the diversion of national resources that can be used for the development of other sectors of the farmer-fisherman. Therefore, lack of success of such programs is not only detrimental to farmers-fishermen but also detrimental to the society.
For farmers-fishermen, the subsidized program is a great opportunity, which might seem expensive at the time to come. At the time even this subsidy was greatly reduced. Interest loans to farms is increasing, irrigation water must pay, reduced fertilizer subsidies and others. Farmer-fisherman faced with new challenges that need a new mindset to deal with it anyway.
Subsistence and Commercial Farmers-Fishermen
Based on their pattern think, farmers-fishermen are divided into subsistence and commercial. Among the two types of farmers-fishermen, there are intermediate types, namely farmers-fishermen who are at an intermediate stage from subsistence to commercial.
The worldview of these two groups of farmers-fishermen is very different to the farming unit. Subsistence farmers-fishermen see farming as a production unit that will produce food for their own needs and their families daily, while commercial fishermen-farmers see farming as a business unit business unit, which should bring the highest benefit, not only to meet the needs of food supply but also other needs such as education, recreation and further investment. If subsistence farmers-fishermen do not much consider factors beyond himself, then vice versa-peasant commercial fishermen always pay attention and act to respond to the changes that occur, because the rate of profit is determined by the farming changes there.
Subsistence farmers-fishermen do not require big capital, so it is quite full of previous efforts, while commercial fishermen-farmers needed considerable capital for his business continues to grow not only in the production but also on rental equipment and processing and marketing results.
Agencies to support activities such as farmer-fishermen and marketing credit institutions not so necessary to the subsistence farmers, while the farmers-commercial fishermen, these institutions is necessary because the existence of these institutions without the position of farmers in the field of marketing will be weak result in a lower sales price. Credit institutions needed except as a source of finance for farming is also required to store the surplus obtained.
Changes of Pattern Think of Farmer-Fisherman
Research on the changing patterns of Sumatra think the farmers-fishermen have done well instituted research institutes and universities, but some of the data in other areas of research can indirectly provide an indicator of the occurrence of a change of thought pattern farmer-fisherman since development programs run.
Indicators of change in the mindset of farmers-fishermen; First, changes in the use of quality seeds and fertilizers. The use of high yielding rice varieties in Indonesia began in 1968. Previously, farmers grow local varieties and superior national (Sigadis, Teens, Jelita, Dewi Dara, Shinta, and Bengawan). The use of new varieties PB / IR extends from year to year. If in the year 1970/1971 the use of varieties PB / IR only around 25% of the year 1980/1981 until now has been almost 100%.Along with the use of superior seeds, fertilizer usage rate also increased. Changes over the past 10 years (1970/1971 to 1980/1981) use of fertilizer has increased by about 145%. It's just because of the high price of fertilizer lately resulted in the use of manure as a major factor of production tends to decline because no / less comparable with the results achieved farming.
Second, changes in the use of agricultural equipment / fishing. Change of use of agricultural tools, found in both agricultural crops and on fisheries. At sea fishing companies, the use of outboard motors up about 20% per year, and a boat ride of about 10% per year. The increase was higher than the increase in boats without motors only increased 1% per year. Change of use of agricultural equipment in food crops can be demonstrated by the increasing use of agricultural equipment such as tractors, Hand Sprayer and Rice Thresher. The use of tractors, up about 15% per year, Hand sprayer up about 15% per year and the Rice Thresher up about 20% / year. Transitional use of agricultural equipment is based on rational thinking to increase profits. As a pretty good illustration is the use of tractors for land preparation. In cultivation, a shift in the use of human and animal power with tractors. This shift occurred because of an increase in real wages for both human and animal power. In addition to less use of tractors is also faster. In one study villages, processing by using tractors per hectare until ready to plant requires 22 hours of work, the animals 73 hours, with 206 hours of human labor.Costs incurred for cultivation per hectare in the growing season in 2000/2001 was Rp 250,000, - if using tractors, Rp 300,000, - with livestock and Rp 290,000, - if with human power.
Third, changes in the use of credit capital. The development of the use of credit can be seen from the increase in the amount of credit that is given by the Credit institutions operating in rural areas, such as Bank Village, Village Office and the State Pawnshop. Depth average growth of credit that is given by the Bank village is about 7%, about 54% Village Office and the State Pawnshop about 12%. These figures show that rural communities have needed capital to run its business loans.However, this growth is still relatively small when compared with the growth of the urban sector lending such as industry and trade which grew approximately 35% and 25% in the same period. Credit growth to the village barn big enough, but judging the volume of loan is small so it is not a measure to assess the development of rural credit. Lending data showed no growth Bimas even number of farmers to the debtor. In 1970/1971 the number of borrowers 1.3 million while in the year 1980/1981 the number of borrowers 1.1 million farmers, although its value is increased from 8.5 billion to 35.9 billion dollars. While the failure and breakdown of KUT program for agriculture that is often talked about these days due to many factors besides mismanagement and misappropriation, as well as technically agriculture in general to enjoy the harvest takes quite a long time, which is a minimum of three months. Furthermore, because of the capital requirements are also the government launched a capital assistance program for farmers such as Credit Food Security (CTF).
Fourth, institutional development. The institutions established by farmers to meet the requirement is farmer groups, cooperatives and Village Office. Farmer group is a forum to enhance knowledge and skills of technical, economic and KUD for container barn rural credit institutions that serve a loan in the form of rice or money on rural communities. The number of Village Office was only growing at about 0.5%. Maybe there is a presumption that a small growth is due to its role has been replaced by other institutions, but if the data is associated with the role of cooperatives that have not been so evident in the middle of the village, indicating that farmers are still experiencing difficulties in developing institutions.
Challenges Facing Future Farmers-Fishermen
Some of the challenges faced by farmers in the future, both from Government Policy Changes, Changes in consumer tastes, as well as the development of the population are: First, the rise in mortgage interest. Mortgage interest for farm loans has been increased from 12% per annum to 17% per year. This hike will increase the cost of farming. The increase in loans to large investment, it inhibits investment in agriculture and agro-industry.
Second, the rising price of fertilizer and water user fees. As with any loan, subsidy on fertilizer and irrigation water use will also likely be reduced because of the greater subsidies will further the government's financial burden, especially when the government has an agreement with the IMF to reduce and stop all forms of subsidies. Imposition of water fee to the farmer is the responsibility of the government delegation to the farmers. Thus the water is no longer a factor that can be obtained for free, but a factor that must be paid and should be efficient to use.
Third, the narrowness of the land. High population growth, leading to ownership of land per family increasingly narrow further result in the narrowing of manufacturing sector employment. The narrowness of employment opportunities is also because of the increasing pressure on sensitive role of farm laborers labor by mechanical force.
Fourth, the low prices of agricultural commodities. The low production due to farmers not good means of transport and the magnitude of the price margin. The bigger margin means the greater part of the price received by the merchant (and other trading system charges) of the price paid by the consumer for the product. It also shows the amount of margin weak position of farmers in the transaction and or the determination of prices by the government. The low prices then led to exchange of agricultural products to industrial goods declined, which means a relatively lower opinion of farmers.
Fifth, the existence of competition from imported products. As a consequence of the inclusion of Indonesia to the market globally, for the export of agricultural products and the industry, we also have to open up the domestic market to the entry of agricultural products. Thus the products farmers have to compete with imported products both for the domestic market and abroad.
Sixth, the quality demands of consumers. The increasing standard of living raises that increased demand for agricultural product quality / fisheries. Urban Consumers, especially community groups are able want products that clean, and free of disease. Similarly for export to the market entry, there are quality standards that must be fulfilled.
Pattern Think of Farmers-Fisherman in the Future
Change of mindset you need to do is to answer the challenges faced by farmers-fishermen in the future. The change seems to have occurred, as evidenced by the adoption of new technologies and tools wearing agriculture / fisheries are more modern in their business activities. However, the institutional development of farmer-fishermen still seems satisfactory, but the challenges of the future problems to be answered by the farmers-fishermen together in a strong institutional.
Mindset of farmers-fishermen should be more integral in view of its business are closely associated with the processing and marketing as many challenges to be faced by the farmers-fishermen in terms of marketing.While the challenges of increasingly high price of inputs for various subsidies revoked can be overcome by the selection of the most valuable commodities.
Thus the mindset required to contain the following elements: First, efficient in the use of production inputs.Production inputs such as land, fertilizer, medicines, equipment, capital and value water more expensive, so the input should be used efficiently, which means using the same input must produce the highest value.Sensitivity to input prices and products are very important because these prices will be directly related to the profits generated. Rational attitude and apply new technologies that have been shown previously, need to be sharpened with a sensitivity to price.
Second, the market-oriented production / consumer. In the commodities that will be sold in part or in full, the farmer-fisherman should really pay attention to taste and quality desired by consumers. Thus, the product will be sold and farmers-fishermen get higher prices, thus higher profits anyway.
Third, create added value. Mindset that needs to change is the idea that the activities of farmer-fisherman is in the area of production. The narrowness of employment in the production sector must be offset by the creation of new jobs in the industrial sector especially rural industries that process agricultural production / fisheries.
Fourth, develop institutional. Agriculture / fisheries have common interests in terms of capital, the availability of inputs at the site, input and product prices were reasonable, and marketing. Common interest is more efficient and effective when done together. Institutional firm will also increase the bargaining power (bargaining position) farmer-fisherman.
Fifth, fertilizer savings and investment trust. To develop further business in both industrial production and rural peasant and fishermen need capital or a business partner. Capital and business partners will be acquired by accumulating capital from its surplus and lack of trust. Credit could also just be that the bank has confidence in the business prospects and borrowers.
Epilog
Efforts to improve the welfare of farmers-fishing is an activity that should continue to be done by all parties, especially farmers-fishermen themselves, because the farmers-fisherman is a component of the relatively even the largest in the country. Most important in the overall effort is how the farmers-fishermen pattern think is always constantly changing and evolving in accordance with the challenges it faces.
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*) President Director of Agribusiness Development Center (PPA Consultants), Jakarta-Indonesia
**) Director of PPA Consultants, Jakarta-Indonesia
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