Technology adoption by smallholder farmers: the case of drying technology in the Indonesian seaweed industry

Abstract

Purpose

Poor post-harvest handling practices by seaweed farmers are a key issue in seaweed value chains, contributing to low-quality seaweed being supplied to processors. To address this, a range of advanced drying technologies and methods have been developed, yet uptake by farmers remains low. This study examines factors affecting drying technology uptake by seaweed farmers to identify opportunities to incentivise improved drying practices.

Design/methodology/approach

This study draws on a quantitative survey of 273 seaweed farmers in two villages in South Sulawesi, 16 months of ethnographic fieldwork and 166 semi-structured interviews.

Findings

Farmers engage in limited adoption of improved drying technologies and practices as they don't receive higher prices for higher quality products, instead aiming to meet only the minimum acceptable standards to avoid a price discount or rejection of their product. Technologies and techniques that have been adopted are often used in ways that differ from their original purpose, such as to reduce drying times and labour input, rather than to produce products of low moisture and dirt contents. Similarly, local traders mix high- and low-quality seaweed in order to supply warehouses with seaweed which on average meets minimum quality standards.

Originality/value

This study reveals that improved drying practices are unlikely to be adopted unless incentivised by more targeted price-grade differentials.

Citation

Stone, S., Langford, Z., Arsyi, R., Lapong, I., Zach, Z., Ruhon, R., Julianto, B., Siradjuddin, I., Wong, A. and Waldron, S. (2023), "Technology adoption by smallholder farmers: the case of drying technology in the Indonesian seaweed industry", Journal of Agribusiness in Developing and Emerging Economies, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JADEE-01-2023-0011