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Being Updated GROWTH STRATEGY DOCUMENT MUNG BEAN SUB-SECTOR IN EAST JAVA OCTOBER 2015 PERKUMPULAN UNTUK PENINGKATAN USAHA KECIL (PUPUK) SURABAYA BEING UPDATED Table of contents Table of contents ................................................................................................................... i List of annex ..........................................................................................................................ii List of figures and tables ........................................................................................................ii Abbreviations ........................................................................................................................ iii 1. Executive summary ........................................................................................................ 1 2. Background .................................................................................................................... 3 3. Sector description .......................................................................................................... 3 3.1 Sector profile ........................................................................................................... 3 3.1.1 Overall context ................................................................................................. 3 3.1.2 Local context.................................................................................................... 7 3.2 Sector dynamics ..................................................................................................... 9 3.2.1 Market overview ............................................................................................... 9 3.2.2 Sector map .................................................................................................... 10 3.2.3 Core value chain ............................................................................................ 11 3.2.4 Supporting functions ...................................................................................... 13 3.2.5 Supporting rules and regulations.................................................................... 14 4. Analysis ....................................................................................................................... 14 4.1 Problems in the core function and underlying causes ........................................... 14 4.1.1 Problems affecting farmers ............................................................................ 14 4.1.2 Problems affecting farmers via other actors ................................................... 16 4.2 Weaknesses in services, rules and regulations ..................................................... 16 4.3 Cross cutting issues (gender and environment) .................................................... 18 5. Strategy for change ...................................................................................................... 18 5.1 Market potential .................................................................................................... 18 5.2 Vision of change ................................................................................................... 20 5.3 InterventionsBEING ................................ ................................UPDATED......................................... 20 5.4 Sequencing and prioritization of intervention ......................................................... 22 5.5 Sector vision of change logic ................................................................................ 23 i List of annex Annex 1: Summary table - intervention logic analysis framework (ILAF) - mung bean east java ..................................................................................................................................... 24 Annex 2: Sector map with additional information ................................................................. 27 Annex 3: Mung bean total area cultivated by province, average 2005-2014 ........................ 28 Annex 4: Mung bean production by province, annual average 2005-2014 .......................... 29 Annex 5: Mung bean productivity by province, average 2005-2014 ..................................... 30 Annex 6: Cost comparison of damp paddy, field paddy, corn, soybean, peanut, mung bean, cassava, and sweet potato production (in million rupiah) .................................................... 31 Annex 7: Percentage of mung bean farmers and percentage poverty rate in regencies/cities of east java, 2013 ................................................................................................................ 31 Annex 8. Investigation team ................................................................................................ 33 Annex 9: List of interviewees ............................................................................................... 34 List of figures and tables Figure 1: Indonesia: production, import and export of mung bean (MT) ................................ 5 Figure 2: Mung bean import trends in Indonesia: each month in 2005-2014 ......................... 5 Figure 3: Mung bean export trends in Indonesia: each month in 2005-2014 ........................ 6 Figure 4: Domestic mung bean production, land area, and average productivity – 2005- 2014 ...................................................................................................................................... 6 Figure 5: Domestic mung bean production and average price - 2010-2014 ........................... 6 Figure 6: Leading mung bean producing provinces (%) – 2005-2014 average ...................... 7 Figure 7: Production of mung bean in major provinces (2005-2014) ..................................... 7 Figure 8: Sector map........................................................................................................... 10 Figure 9: Sequencing and prioritization of intervention ........................................................ 22 Figure 10: Sector vision of change logic - mung bean East Java ........................................ 23 Table 1: Area of different types in East Java (Hectare) ......................................................... 8 Table 2: Market potentialBEING for introduction and UPDATED usage of quality seeds ................................. 19 Table 3: Market potential for introduction/usage of planting tools ....................................... 19 Table 4: Market potential for introduction/usage of on farm post-harvest management tools .................................................................................................................................... 19 Table 5: Market potential for education and training of cultivation technique, and proper post- harvest management .......................................................................................................... 20 ii Abbreviations Australia-Indonesia Partnership for Promoting Rural Income AIP-PRISMA through Support for Markets in Agriculture AVDRC The World Vegetables Centre FAO Food and Agriculture Organization of the United Nations ha Hectare ILAF Intervention Logic Analysis Framework KG Kilogram MT Metric Tonnes NTB Nusa Tenggara Barat (West Nusa Tenggara ) NTT Nusa Tenggara Timur (East Nusa Tenggara) PPI Progress out of Poverty Index PT Means limited company in Bahasa Indonesia. Similar to Ltd. PUPUK Perkumpulan Untuk Peningkatan Usaha Kecil R & D Research and Development Rencana Definitif Kebutuhan Kelompok (Definitive Plan for Group RDKK Needs; online agriculture application). USA United States of America USD United States Dollar BEING UPDATED iii 1. Executive summary Mung bean, a common staple in Asian diets, is rich in easily digestible protein and other nutrients. Mung bean adds nitrogen to the soil, requires less water and has a short crop- duration – therefore is widely used in crop rotation. Transformed into an important crop from a marginalized one from the 1970s, mung bean is grown mainly in South and Southeast Asia. Its cultivation has also expanded into Australia, USA, Canada and Ethiopia. Production of mung bean in Asia increased from 2.3 million metric tonnes (MT) in 1985 to 3.1 million MT in 2000. China is the largest exporter of mung bean in the world, followed by Myanmar, while India is the largest importer. Global demand of mung bean remains consistently high and stable. Demand from the food processing industry has also increased over the years. The majority of mung bean demand in Indonesia is met by domestic production. Nationally, production has been declining, particularly since 2012. This results in persistent increase in imports to cater for the food processing industry which dominates domestic demand. Availability of mung bean based food products has increased significantly in the recent years and the market price of mung bean in Indonesia has remained relatively stable. Central Java is the leading producer of mung bean in Indonesia followed by East Java. These two provinces produced 64% of Indonesia’s total production of mung bean in 2014. East Java has around 155,000 mung bean farmers spread throughout 38 districts / cities. Since 2005, both production and cultivation area has decreased in East Java, although productivity has increased. However, East Java it is still far away from its potential optimum productivity. Farmers generally do not use appropriate quality and quantity of inputs to grow mung beans in East Java. Minimizing cost and effort dominates their cultivation methods.
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