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Urban shopping patterns and implications for high-value agriculture in Indonesia

Published by:
Online Location
Publication date
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Type of Publication:
Working Papers & Briefs
Focus Region:
Asia and the Pacific
Focus Topic:
Agricultural Value Chains / Agri-Businesses
Market / Trade
Nicholas Minot, Randy Stringer, Wendy Umberger, Wahida
International Food Policy Research Institute (IFPRI), University of Adelaide, ICASEPS, Michigan State University, CAPAS

With the combined effect of urbanization and rising incomes, the composition of the demand for food in many East Asian countries is changing rapidly. The dietary importance of rice and other staple foods has been declining in all countries. This trend is expected to accelerate with rising affluence in ASEAN as more consumers enter the middle class status. In Indonesia projections indicate that an additional 90 million people could add to the middle class by 2040. Urban consumers will continue to move towards a more balanced and nutritious diet—with less rice and greater amounts of proteins (meats, fish, and poultry), fruits and vegetables, and processed foods. As a result, farmers will have the opportunity to cultivate higher-value crops that will be in high and increasing demand.

Dr. Minot of IFPRI presented on the results of a research project called “Markets for high-value commodities in Indonesia: Promoting competitiveness and inclusiveness”. The project was carried out by IFPRI with collaboration from the University of Adelaide, ICASEPS, Michigan State University, and CAPAS. It looked at the evolution of urban shopping patterns and implications for high-value agriculture, and tried to shed some light on the following questions:
  • What are the patterns of urban consumer demand for modern retail outlets and implications for food retail transformation and effect on farmers?
  • What are the determinants and outcomes of participation of farmers in modern market channels for high-value commodities compared to traditional market channels?
  • What are the policies and programs that would promote the competitiveness and inclusiveness of the transformation of high-value supply chains?