Analysis Presentation: Agriculture And Food Institutions

Agriculture and Food Institutions Presentation Definition of Institutionalization ▪ Institution definition is a body, organization, or rules both formal and informal that regulate behavior. and the actions of members of a particular community both in their routine daily activities and in their efforts to achieve specific goals. ▪ Institutionalization is a place where people carry out both economic and non-economic activities. ▪ It can be an original / customary thing that has been passed down from generation to generation or a newly created thing that comes from outside or from the outside. comes from within society itself Customary/Local Institutions • In addition to formal bodies/organizations, institutions can also take the form of norms, customs, or rules, both formal and informal. • These institutions can be new institutions, as well as institutions that have existed for a long time and are carried out from generation to generation. • Each region can have norms, customs and rules that are unique and different from other regions. 1. 👎 Native institutions (customary institutions) Land ownership 👎 Trading rules 👎 Land lease rules 👎 Customary deliberation behavior 👎 The habit of mutual cooperation 👎 Profit sharing rules 2. New institution (refurbished old institution) ☻ ☻ ☻ ☻ ☻ ☻ Mutual cooperation 🡪 wage system informal savings and loans 🡪 formal microfinance institutions Agriculture Extension Research and Development Village Business Entity Sale and purchase -> sale and purchase deed to a notary etc. Institutionalization has four components, namely: 1. Person component. The people involved can be clearly identified. 2. Interest component. These people are bound by an interest or goal, so they must interact with each other. 3. The norms and rules component. Every institution develops a set of agreements that are held in common, so that one can predict what the behavior of others in the institution will be. 4. Structure component. Each person has a position and a role, which he or she must fulfill properly. People cannot change their position on a whim. Mutual cooperation 1. Gotong royong is a joint activity to achieve a common goal. 2. Conditions and reasons for gotong royong: a. The work concerns the interests of all or most of society b. The work is a local project, not financed by the central/regional government c. The work is very important to be completed quickly and concerns the livelihood of all / most people d. Community members working without pay (even spending money) Traditions in Various Regions Mutual cooperation in the form of solidarity between residents at every stage of the agricultural process, from managing agricultural land, planting, to carrying out harvesting in rotation without wages. Tidal transmigration settlement Plong is a normative gotong-royong institution that provides pre-planting services on a rotational basis among its members. Sonor is a mutual cooperation institution for planting rice on vacant land controlled by transmigrant farmer families and is only carried out during the long dry season which occurs every 5 years. The joint activities were carried out to clean fields, plant, harvest, and build houses. It is also for the construction of village offices, sanitation facilities, clean water, roads, bridges and the burial of villagers. Traditions in Various Regions District When harvesting, farmers baronde or take turns working together to harvest rice on each farmer's land, this tradition is still maintained today, so as to reduce harvesting costs. Batobo is a mutual cooperation activity to work on the fields together. Usually farmers help each other during the planting and harvest seasons. Each Batobo group consists of 10 to 15 households. The culture of Belale' or gotong royong applies when the rice planting season arrives. Women usually invite other people (relatives or neighbors) who also have rice fields to work together and help each other. 1. 2. 3. 4. 5. Institutionalized provision of production facilities, Farming/production institutions, Institutionalization of post-harvest and processing, Product marketing institutions, Institutionalization of support services. Agricultural and Food Marketing Institutions Types of institutions include: 1. Institutionalization of Production Facilities Provision • Institutions engaged in the production, supply and distribution of production facilities, for example: SOEs, Village Unit Cooperatives (KUD) and private trading businesses. • These institutions provide production facilities such as seeds, fertilizers and pesticides. • For example: institutions that provide fertilizers have the task of carrying out the preparation of the preparation and implementation of policies, the preparation of standards, norms, guidelines, criteria and procedures, as well as providing technical guidance and evaluation in the field of agricultural fertilizer provision. 2. Farming or Production Institutions It is an institutional element formed to improve the efficiency of agricultural production, through the implementation of activities and collective decisionmaking. Agribusiness institutions engaged in farming/production include: (1) Farmer households as the smallest business unit in the field of food crops and horticulture, (2) Farmer institutions in the form of farmer groups, and (3) Business institutions in the form of horticultural food crop cultivation companies. 3. Post-harvest Institutionalization and Product Processing Post-harvest handling is an action prepared or carried out at the post-harvest stage so that agricultural products are ready and safe for use by consumers and or further processed by the industry. Institutions related to post-harvest and processing of these products can be distinguished: (1) Institutions that do business in the post-harvest sector include: threshing service businesses, drying equipment service businesses with dryer equipment, harvesting equipment service businesses with reaper equipment, packaging, sorting, grading businesses carried out by traders and so on, (2) Business institutions in the field of product processing (increasing the added value of agricultural products and expanding product markets). The development of this institution can be initiated by establishing smallscale processing industries and households that are managed in groups. For example: tapioca flour milling industry, soy sauce industry, and so on. (3) Village granary institutions have a role in overcoming food problems, namely to meet very urgent food needs, where food availability is insufficient while the community has relatively no purchasing power to obtain it. 4. Institutionalization of Product Marketing Marketing institutions include institutions involved in the agricultural product trading system from the producer to the consumer. Apart from these marketing institutions, there are also marketing associations for food crops and horticulture products consisting of : a) Horticultural Marketing Association b) Horticultural Exporters Association c) Association of Animal Food Companies (GPMT) 4. Institutionalization of Product Marketing Marketing Institutions are bodies that organize marketing activities or functions with the aim of moving goods from producers to consumers. The role of the marketing organization is to perform marketing functions and fulfill the needs and desires of consumers to the maximum. Consumers provide a reward for the marketing function performed by consumer institutions. The value of this service is reflected in the amount of the marketing margin. 4. Institutionalization of Product Marketing Based on their control of the commodity being traded, marketing institutions can be divided into three groups, namely: 1. Marketing institutions that are not owners but have power over the product (agent middleman) 2. Institutions control marketing organization products that agricultural products has that are traded 3. Marketing institutions that do not own and control the agricultural products being transacted and 4. Institutionalization of Product Marketing 1. Marketing organizations that are not owners but have power over the product (agent middleman), among which are : a. Intermediaries, brokers, both selling brokers and buying brokers. Brokers are intermediary traders who do not actively participate in carrying out marketing functions, they only play a role in connecting the parties to the transaction. If the transaction is successfully executed, the broker will earn a commission for their services. b. Commission agents, which are intermediary traders who actively participate in the implementation of marketing functions, especially those related to the product selection, weighing and grading process. They generally earn a commission from the difference in product prices. 4. Institutionalization of Product Marketing 2. Marketing institutions that own and control the agricultural products being traded include: a. Collecting traders or collectors, cutters, middlemen or contract buyers, whole sellers. They generally estimate the total value of agricultural products by estimating the amount of yield multiplied by the expected price at harvest time (expectation price). In on-farm practice, if the contract buyer is a penebas or ijon, then after a price agreement, they will be responsible for maintaining the crop until the harvest is completed. The cost of harvesting is paid by the feller. b. Grain millers are traders or marketing institutions that have warehouses for storing agricultural products. They buy various agricultural products, mainly rice and secondary crops, and handle the post-harvest process. c. Exporters and importers. 4. Institutionalization of Product Marketing 3. Marketing institutions that do not own and control the agricultural products being transacted: a. Processors and manufacturers: These institutions are instrumental in the marketing process of agroproducts because their existence guarantees a market for agricultural products. For example, one can observe processed food industries such as producers of apple cider, canned fruit, pasteurized milk, animal feed, rice mills, both on a micro, small, medium scale to large industries such as Sugar Factories (PG), etc. b. Facilitative organizations: one form of facilitative organization already known in Indonesia is the fish auction market. The Agribusiness SubTerminal, although not yet fully operational, has offered an alternative to the transaction of various agricultural products through auctions. c. Trade associations: Agroproduct trade associations that primarily aim to collect, evaluate and distribute information to their members. Examples of such trade associations are AEKI (Indonesian Coffee Export Association), etc. Gapoktan grows from Poktan in the village/sub-district, then through Agricultural Extension activities, it is directed to grow Gapoktan which is bound by common interests to develop a profitable and efficient farming scale. Gapoktan consists of at least 3 (three) Poktan members. Function of Gapoktan a) Business Unit Providing Production Facilities and Infrastructure: Gapoktan as facilitator services to all members to fulfill the needs of production facilities b) Farming/Production Unit: Gapoktan has a business unit that produces commodities to meet the needs of its members and market needs. c) Processing Business Unit: Gapoktan can provide services, both in the form of the use of agricultural machinery and technology in processing commodity production. d) Marketing Business Unit: Gapoktan can provide marketing services/facilitation. e) Microfinance Business Unit (savings and loans): Gapoktan can facilitate Farming capital to members through Farming credit/capital as well as from Farmer selffinancing/results. Agriculture and Food Institutions Farmer Group Association Thank You!