Dr Sahara Describes the Transformation of the Digital Farmer Market in Indonesia at the International Seminar on Sustainable Food Systems in Southeast Asia

Dr Sahara, Head of the Department of Economics Science, Faculty of Economics and Management IPB University was invited as a speaker at an international seminar on Sustainable Food System in Southeast Asia Under and Beyond COVID-19: Policy Evidence and Call for Action, 20/5. The seminar was organized by the Department of Agriculture and Economic Resources at Kasetsart University Thailand, The Mekong Institute, the Feed the Future Innovation Lab for Food Security Policy Research, Capacity, and Influence (PRCI), the Regional Strategic Analysis and Knowledge Support System (ReSAKSS-Asia), and the Agricultural Economics Society of Thailand under the Royal Patronage (AEST). On the occasion, she gave her views regarding market transformation for agricultural products in Indonesia.

She explained that the COVID-19 pandemic had caused unrest in the resilience of the agricultural supply chain. Moreover, agricultural products are produced by small farmers in rural areas. Meanwhile, consumers of these products mostly come from big cities. Therefore, the supply chain of agricultural products tends to still depend closely on long-distance transportation networks and involve many intermediaries.

Prior to the pandemic, she said, the existence of modern and conventional food retailers in Indonesia had succeeded in connecting small farmers and consumers. According to her, the use of an online market for agricultural products has created several factions during the pandemic. Therefore, it is necessary to conduct research using the probit model to identify the determinants that influence the decisions of Indonesian consumers.

She said that small farmers still depend on conventional marketing. In fact, this method is still through many intermediaries and parties. With the digital market, said Dr Sahara, small farmers have a great opportunity to market their products more broadly and more profitably during the post-pandemic period.

"The digital market is still growing even in the era of the COVID-19 pandemic, increasing access to food product buyers and providing more policies for industry and traders to sell their products through the post-COVID-19 digital market," she explained.

The IPB University lecturer continued, several factors that influence the transition of farmers to adopt the digital market, namely age, education level, type of work, dependence on conventional markets, product quality including food safety. Not only that, Dr Sahara also mentioned that the role of the younger generation is also very important in developing digital farmer markets.

She also said that the younger generation and educated consumers who have permanent jobs tend to continue to use the digital market. The results of this study are important for traders to sell their products through online channels. Not only that, the research results are also useful for encouraging agricultural policies in Indonesia that are able to connect small farmers with consumers through online channels. (MW)

Published Date : 24-May-2022

Resource Person : Dr Sahara

Keyword : agriculture, digital market, food system transformation, digital farmer