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Smallholder commercial pig production in Nusa Tenggara Timur - opportunities for better market integration

Project ID

SMAR/2007/195

Project Country

Commissioned Organisation

Rural Solutions SA, The Food Export Centre, Australia

Project Leader

Mr Craig Johns

Email

craig.johns@saugov.sa.gov.au

Phone: 

08 8226 2682

Fax: 

8 8463 3336

Collaborating Institutions

South Australian Research and Development Institute, Australia
University of New England, Australia
Department of Livestock, NTT, Indonesia
University of Nusa Cendana, Indonesia
Assessment Institute for Agricultural Technology, NTT, Indonesia

Project Budget

$149,790.00

Start Date

01/05/2008

Finish Date

30/04/2009

ACIAR Research Program Manager

Mr David Shearer

Overview Objectives

Pigs are the most important livestock for smallholders in Nusa Tenggara Timur (NTT), playing a role in traditional religious and social activities and providing a critical source of protein. Currently the major reason for pig ownership is to have the animals available for ceremonies and to fulfil social and family obligations. However, a changing market in NTT has led to increasing smallholder investment in production units geared to supply a growing domestic market. This project sought to understand the changing market dynamics and determine how smallholders could benefit from these changes without losing the important cultural component pigs play.

Project Outcomes

The project identified the industry's potential and collected information that can now be used to assist the pig industry in NTT to develop and implement a strategic plan that will build the industry and play a significant role in improving the welfare of pig producers and other market chain stakeholders in NTT. The team used a value-chain approach to identify the market opportunities for farmers and evaluate the role that consumers may play in driving the production and marketing decisions and processes throughout the chain. By defining the chain the team was also able to identify and prioritise the issues and opportunities so that improvements could be instigated to benefit all stakeholders in the pig industry.
As a result of workshops, surveys and ensuing analysis it has become clear that the growing local restaurant market can provide sustainable opportunities for smallholder pig farmers in NTT. However, there needs to be significant market chain development undertaken to ensure that the industry develops in an equitable and efficient manner. The growing demand for pigs from the restaurant market became the focus for the market chain analysis. Through farmer and restaurant interviews in Kota Kupang, Kabupaten Kupang and Manggarai, customer and consumer needs were identified and the key issues and opportunities for market chain stakeholders defined.
While the market chain is improving, it is still not operating as efficiently as it should in regards to product flow, relationships and information flow. This project goes some way to identifying these issues but the next step needs to be an industry-driven strategic plan that sets out a road map for the future. The study has shown that there is the potential to develop farmer technical and marketing skills, communication systems between buyers, sellers and consumers, more efficient input provision methods and more consistent selection of appropriate breeding stock.
The project recommended that industry development be undertaken in partnership with the NTT government agencies (in particular the Dinas Peternakan) and the newly formed Monogastric Association (an industry body incorporating farmers, support service providers, input suppliers and government officials). The project also identified the need for farmer-based training in the areas of animal husbandry, housing, mating, waste utilisation, disease control and general on-farm procedures to improve productivity, efficiency and profitability. These skills may also encourage small farmers to take the next step and develop and grow their farms into commercial businesses. Part of the training might include a field trip to a more developed pig industry (such as Bali) to introduce farmers to what is possible if they are open to change.

Location

There are no project locations defined for this project.