Home' Partners : Partners: Private-sector engagement Contents Biosecurity
Developing and building consumer
trust in ‘clean supply chains’ are part
of Indonesia’s market-driven strategy to
reduce the spread of poultry diseases,
particularly the deadly ‘bird flu’
market expand. However, the issue of trust
in the chilled supply chain competes with
concerns about disease.
When consumers buy a live bird they can
check for themselves how healthy it is and they
know their meat will be fresh. The same cannot
be said of pre-packaged and chilled products.
The ‘clean supply chain’ developed for
the Healthy Farm brand did not provide a
certified or guaranteed product to consumers.
Limited regulations and the ability to enforce
regulations make this difficult to achieve.
However, the brand offered assurance that
the products were produced on approved
and audited farms and that food safety risks
throughout the supply chain were being
actively assessed and managed.
When the project was initiated in 2008, the
peak industry body, the Indonesian poultry
industry forum, Forum Masyarakat Perunggasan
Indonesia (FMPI), signed on as an official project
partner. “ This is the first ACIAR project to have
an industry association as a formal project
partner and the participation of industry
was critical to the project’s success,”
Associate Professor Patrick says.
Through the provincial industry
partners, the project developed
value-chain stakeholder training
and management programs.
More than 613 stakeholders
BY CATHERINE NORWOOD
ndonesian smallholder farmers have
trialled and launched innovations to the
egg and poultry production system that
minimise food safety risks throughout
the supply chain. Establishing this clean
supply chain required ACIAR to engage with
all parties in the poultry industry, from the
contracting companies who provide day-old
chicks and feed, to contracted poultry farmers,
transporters, abattoirs and supermarkets.
The project culminated in the creation
of the now popular ‘Healthy Farm’ brand of
chilled chickens and fresh eggs for Indonesian
supermarkets and provided a test of what it
takes to develop a clean supply chain in the
country’s complex poultry sector.
The brand has also successfully tested
consumers’ willingness to pay a premium for
the products delivered, as these products have
continued to sell in supermarkets more than
two years after the trial ended.
The brand was developed as part of an
ACIAR-funded project in the Indonesian
provinces of Bali, South Sulawesi and West Java.
The project evaluated the potential of market
incentives to improve biosecurity for non-
industrial commercial poultry farmers.
In the first year of the four-year project,
surveys at supermarkets in the three provinces
indicated that consumers would be willing to
pay a premium of at least 10% for broilers or
eggs from biosecure farms.
Lead researcher Associate Professor Ian
Patrick, from the University of New England, says
the premium reflects growing concerns among
consumers about health and food-safety issues,
particularly following the outbreak of highly
pathogenic avian influenza (HPAI-H5N1)—better
known as bird flu—in the country.
First diagnosed in Indonesia in 2003, the
costs of bird flu have been significant, including
the death or culling of more than 18 million
birds, US$1 billion (A$1.2 billion) in economic
losses, and more than 220 human deaths. The
disease is now well established after spreading
to 32 of Indonesia’s 33 provinces.
Chicken is the primary source of meat
protein for most of Indonesia’s 240 million
people, and more than 90% of broiler chickens
are still sold through traditional markets. The
trading of live birds is standard practice, but
one that also creates a high risk of the build-up
and spread of poultry-related diseases.
The remaining 10% of the broiler market
is chilled product sold through
supermarkets and poultry stores.
As part of its efforts to improve
biosecurity and reduce the risk of
poultry diseases, the Indonesian
Government has indicated it would
like to see the chilled product
ISSUE ONE 2015 PARTNERS
Links Archive Partners: Building resilience in the Pacific Islands Partners: Nutrition in agricultural research Navigation Previous Page Next Page