Modern variety adoption and intensification in Indonesian shrimp aquaculture
Are poor farmers included?
The primary objective of this paper is to identify if smallholders are participating in the growth of the shrimp aquaculture industry in Indonesia, a modern globalized agriculture sector that is characterized by (1) bi-modal size distribution of farms — at one end is a large mass of small household farms, and at the other end are large intensive farms like members of “Shrimp Club of Indonesia” and CP Prima, the largest shrimp operation in the world; (2) heterogeneity in the endowments of important non-land assets, and; (3) modern procurement systems that are regulated by international trade standards.
We study smallholder inclusion by testing for farm-scale effects in the adoption of shrimp HYV and the adoption of formulated shrimp feeds, critical inputs that are driving intensification of production systems and overall growth in the shrimp industry of Indonesia.