Facilitating Smallholder Farmers’ Market Access

In the OIC Member Countries

TABLE 11: GROWTH IN TOTAL FACTOR PRODUCTIVITY IN AGRICULTURE, INDONESIA AND

SELECTED COUNTRIES

1961–70

1971–80

1981–90

1991–2000

2001–09

Australia

0.63

1.65

1.27

2.85

0.55

Canada

1.41

–0.36

2.67

2.55

2.14

Chile

1.70

2.20

1.09

1.71

2.58

Estonia

1.40

0.19

–0.69

1.29

4.70

Northwest Europe

0.85

1.48

1.55

1.80

2.75

Southern Europe

1.97

2.03

1.30

2.42

3.04

Israel

5.65

2.74

0.95

2.41

2.57

Japan

2.42

2.17

1.11

1.51

2.43

Korea

1.83

4.28

2.81

4.04

2.86

Mexico

2.65

2.17

–1.98

3.19

2.19

New Zealand

1.47

1.39

1.84

3.20

3.14

Norway

0.92

0.91

1.18

0.56

2.37

Switzerland

0.43

1.06

0.06

1.74

2.02

Turkey

0.75

1.54

0.99

1.50

1.78

United States

1.21

1.80

1.21

2.17

2.26

Brazil

0.19

0.53

3.02

2.61

4.04

China

0.93

0.60

1.69

4.16

2.83

India

0.49

1.00

1.33

1.11

2.08

Indonesia

1.75

1.40

0.59

0.99

3.68

Russia

0.88

–1.35

0.85

1.42

4.29

South Africa

0.34

1.15

2.71

2.79

3.01

Ukraine

0.41

–0.18

1.12

–0.07

5.35

Source:

OECD 2011a, Fuglie 2010.

Demand and market size

A growing population and improved incomes have driven demand for food steadily

upward in Indonesia. For many years, much of that growing demand was for rice. Diets

have diversified in more recent years, although rice remains a dominant source of calories

in the Indonesian diet

(Figure 39)

. The composition of production has changed as well.

Figure 40

compares the top 12 sources of farm revenue in 1990–92 and 2010–12. The

value of rice production alone exceeded the combined value of the next 11 crops in 1990–

92. In 2010–12, although rice remained the dominant source of farm revenue, other crops,

primarily oil palm, garnered a greater share of earnings.