Reducing Postharvest Losses
In the OIC Member Countries
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Improved Enabling Environment comes about as a result of legislation and investment. It is
noted that 60% of the Ministry budget is spent directly on fishermen and other value chain
players. For example, this year the Government is planning to invest in 300 flake ice machines,
29 cold store complexes and over 30 single cold stores.
Finally, improved market systems and the application of innovative technology (fish
processing factories that operate to zero losses for example) is trialled by both the private and
public sector.
This results in reduced physical and economic loss, which is monitored through research and
data collection.
4.7.4. Measures and Strategies Implemented for Postharvest Loss Reduction
As mentioned elsewhere in this report, there are several categories of postharvest losses. The
ones that are monitored and addressed in Indonesia are:
 Physical losses is the one that everyone understands. This is the volume of product
that is produced, but which is not consumed, usually because it is unfit for human
consumption.
 Economic / quality losses: This is the reduction in value that occurs as a result of the
product not achieving optimal price for quality reasons. For example, a poorly handled
fish will attract a lower price than it could realise, were it handled properly. A good
example of this is seen in the tuna fishery targeting the highly lucrative Shashimi
market. Unless the tuna meets the highest specifications, full price will not be
achieved.
 Market losses: These occur when oversupply results in a glut in the market, resulting
in lower prices.
Generally, losses are reports as single numbers, expressed as %. This is the % of the value
realised compared to the value that could have been achieved, had all the fish captured or
harvested been sold at the best price the market would expect. This is further explained in the
box, below.
Scenario 1
A fishing vessel is fishing for mixed reef fish.
The fair market price for reef fish at Jakarta market is $4,000 per tonne for Grade 1 and $ 2,500 per
tonne for grade 2catches 10 tonnes of reef fish over a one week period.
 The fishing vessel undertakes a one-week trip and catches 10 tonnes of fish.
 For various reasons only 9 tonnes are presented to market. One tonne is lost through
pilferage and spoilage.
 Of the 9 tonnes, 7 tonnes are first quality and achieve the grade 1 price.
 2 tonnes are of second quality and achieve the lower, grade 2 price.
The total income realised by the vessel, therefore is 7 x 4,000 = 28,000 plus 2 x 2,500 = 5,000 =
$33,000.
The total potential income is 10 x 4,000 = 40,000.
The total postharvest losses between capture and wholesale therefore are 1-(33/40)= 17.5%
Of this, 1 x 4,000/40,000 = 10% is attributable to physical loss and the remainder, 7.5 % is
attributable to quality loss.
Scenario 2
A fishing vessel is fishing for mixed reef fish.
The fair market price for reef fish at Jakarta market is $4,000 per tonne for Grade 1 and $ 2,500 per
tonne for grade 2catches 10 tonnes of reef fish over a one week period. However at the time of