Analysis of agricultural innovation system in Indonesia: A case study of the beef sector in Nusa Tenggara Barat
2022
Valerio, Erika | Hilmiati, Nurul | Prior, Julian | Dahlanuddin, Dahlan
The demand for beef in Indonesia has increased over the last decade; however, national production barely meets half of the domestic demand. This gap creates an opportunity for beef smallholder farmers to improve their livelihoods by increasing their participation in the domestic market. Innovation is central to supporting smallholder farmers to benefit from this increase in beef demand in Indonesia. This paper aims to analyse the barriers to the innovation system in the Indonesian beef sector in the province of Nusa Tenggara Barat (NTB) to identify opportunities to increase smallholder beef productivity. In the analysis, we applied the agricultural innovation system (AIS) framework to identify constraints for boosting beef production in the province. We used qualitative data (in-depth interviews and focus group discussions) collected in NTB and data from a literature review. The results showed significant constraints across all AIS functions that ultimately translated to poor innovation in the beef sector in NTB. The results showed that the beef innovation system is constrained by multiple factors, including the lack of farmers' professionalisation, lack of agricultural R&D investments, underdeveloped beef value chain, and lack of incentives for PPPs. These findings inform policy in NTB and increase smallholder beef productivity. Additionally, the findings point to constraints that are likely common in beef production in many developing countries, and that could be considered when developing policy in other areas in Indonesia.
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