Transforming food systems in Semarang City, Indonesia: A short food supply chain model

2.1 Desk study

The desk study aimed to identify potential commodities based on literature and official reports on agriculture and food systems in Semarang City. The study primarily utilized data from the Department of Agriculture (Dinas Pertanian), the Food Security Agency (Dinas Ketahanan Pangan), the Central Statistics Bureau (Biro Pusat Statistik) of Semarang City, and the integrated data portal called Portal Satu Data Indonesia of Semarang City. Additionally, this research incorporated findings from the SHIFT project conducted by the research team in 2023 [10].

Among the available resources, the most comprehensive data for this study came from the 2023 Agricultural Statistics Report (Laporan Pertanian dalam Angka) published by the Semarang City Department of Agriculture in 2024 [23]. The desk study produced an initial identification of potential commodities, which were further confirmed and refined during FGDs. Simple descriptive statistics, such as range and average, were used to analyze the quantitative data from available statistics and reports.

2.2 FGDs

Data collection from key stakeholders in Semarang City’s food system was carried out through four FGDs, each addressing specific research questions related to

1. Identifying potential commodities for SFSCs development.

2. Determining key stakeholders for SFSCs activation.

3. Establishing relevant parameters for SFSCs transformation.

4. Proposing an institutional model for SFSCs.

Each FGD lasted approximately 3 h and followed a structured approach outlined by Rabiee, which uses in-depth group interviews with purposively selected participants to explore specific topics [24]. Stakeholders included government officials, farmer and women farmer groups (WFGs), consumers, food-related businesses, academics, and non-governmental organizations. They were selected based on their expertise and previous involvement in related studies such as SHIFT [10,25,26].

The discussions were facilitated by a researcher familiar with the study objectives and discussion questions to ensure the session’s effectiveness [27]. Before the discussions, the facilitator provided an overview of the study’s background, significance, objectives, and specific aims for each FGD, presenting the questions to be discussed [27,28]. Discussions on each question continued until responses reached saturation.

2.3 Data collection and analysis

Information exchange during each FGD was documented in two formats: audio recordings and written notes. The notes were prepared by three researchers with Master’s and Doctoral qualifications, assisted by four senior undergraduate research assistants. The audio recordings were transcribed and aligned with the written notes to ensure accuracy and completeness.

The FGDs were designed to facilitate an in-depth exploration of SFSC topics in Semarang City and to identify specific issues, opportunities, and challenges related to the research topic [27]. The collected data were analyzed by focusing information on specific objectives of each FGD and, more broadly, the overarching research goals [24]. The qualitative data derived from FGDs were analyzed through a structured, iterative process aligned with the study’s objectives and the principles of thematic analysis.

Given the exploratory nature of the research, the Scissor-and-Sort technique [27], a manual, inductive method, was used to categorize and interpret participants’ responses flexibly while ensuring reliability. The analysis proceeded through four phases:

3.1 Readiness for SFSC activation

The number of farming enterprises in Semarang has been increasing. Between 2017 and 2021, the number of FGs grew from 371 to 406 [10]. Similarly, the membership of urban farming communities surged from 8 members in 2015 to 113 members in 2021 [10].

Based on production data and consumption surveys in the holistic food system assessment (SHIFT) for Semarang, potential SFSC commodities were identified and categorized into four groups: vegetables, fruits, grains (cereals), and tubers [10]. Key commodities included rice, various vegetables (e.g., water spinach, spinach, lettuce, and eggplant), and various fruits (e.g. papaya, banana, mango, rambutan, and durian) [10].

Despite a slight declining trend, rice production has remained stable at approximately 30,000 tons per year since 2019 [23]. Based on the production number, corn is the second most produced grain in Semarang. Semarang has consistently produced around 2,000 tons of corn annually since 2019 [23]. Desk study also reveals that 11 types of seasonal vegetables are produced in significant quantities in Semarang. The vegetables are listed in Table 2 ranking from highest to lowest production volume in 2023.

These findings demonstrate that Semarang possesses the foundational readiness to activate SFSCs, supported by a growing number of farming enterprises and urban farming communities, as well as diverse and consistent agricultural production. This readiness aligns with the identified priority commodities that form the core of the city’s food supply chain transformation. As an example, rice produced by one of the FGs, Sumber Rejeki FG, reached the consumers through three supply chains, i.e., (1) direct from farmer to consumers that live in Purwosari Village, Mijen District, Semarang, (2) through bazaar held by various organizations, and (3) through retailers who bought from the Toko Tani. Toko Tani is an e-commerce platform accommodating business to business transaction developed by the Department of Agriculture to shorten the supply chain of rice [29]. Through Toko Tani, rice from Sumber Rejeki farmer group also reached outside of Semarang. Another example is vegetables from Dahlia, a WFG, reached the consumers through two chains, i.e., directly to the consumers (villagers in Pedalangan, Banyumanik District) and through Arjuna vegetable shop, which has a contract with the WFG.

3.2 Commodities and stakeholders

Urban agricultural commodities are generally categorized as organic or non-organic. In the fruit sector, Semarang has been producing various types, including melons, papayas, and watermelons. However, certain commodities, such as crystal guava and bananas, face cultivation challenges, particularly due to plant diseases.

In the vegetable sector, Semarang exhibits substantial production, with key commodities including water spinach, chili, tomatoes, and oyster mushrooms. Accurate data collection on production is difficult due to the short lifecycle of these crops and the diversity in land size and distribution of urban farming plots owned by local residents. For grains, rice and corn remain the primary commodities. Additionally, there are ongoing pilot efforts to cultivate biosaline rice in brackish coastal lands in Semarang.

Based on the discussion outcomes, it was agreed that the development of SFSCs should not be limited to specific commodities. The selection of commodities should be localized, aligned with regional characteristics – considering both cultivation potential and market demand – as well as local farming practices, technological capacity, and existing expertise.

The actors identified as playing a critical role in the urban agricultural supply chain in Semarang include farmers, distributors, and the government. These three actors are key to developing an efficient and sustainable food supply system in Semarang. Additionally, there is a growing recognition of individual entrepreneurs, particularly from the younger generation with sufficient educational backgrounds, who are professionally engaging in urban agriculture.

To empower FGs and WFGs, as well as urban farmers in general, the government is expected to play a role in setting minimum selling prices as an alternative to input subsidies. Moreover, the government should ensure the absorption of urban agricultural products. Government intervention is deemed essential to stabilize prices and support farmers in mitigating the risks of financial losses.

Synthesis of desk research and FGDs reveals significant agricultural expansion in Semarang between 2017 and 2021. Key findings include a 9.4% rise in registered FGs and a remarkable 1,313% surge in urban farming participation. Both methods identified rice, water spinach, and fruits as staple commodities, but diverged in their emphasis on vegetables. Desk research highlighted specific leafy vegetables, whereas FGDs prioritized chili, tomatoes, and oyster mushrooms. Similarly, while rice and corn were consistently recognized as core grains, vegetable selection strategies lacked consensus. Common challenges included data inconsistencies, pest outbreaks, and disease management. Supply chain strategies also differed: desk research cited digital platforms like Toko Tani as successful models, while FGDs advocated for regionally tailored distribution systems.

Rice, stabilizing at approximately 30,000 tons annually since 2019, and corn, at around 2,000 tons per year, are vital for local food security and demonstrate the city’s agricultural strength. Rice’s consistent production underscores its role as a household staple and cash crop, bolstered by platforms like Toko Tani that improve market access and price stability. Local expertise in irrigation and pest management further enhances rice cultivation, allowing farmers to balance subsistence and commercial needs.

3.3 SFSCs parameters

Several farmers face challenges in marketing their harvest, particularly during peak harvest periods when overproduction occurs. Unsold produce is often sold at lower prices to vendors, while the surplus is processed into other products. The price disparity between local markets and larger marketplaces also presents a challenge, particularly for products that fail to meet quality standards.

Imbalances between supply and demand frequently disrupt the stability of food supply chains. Maintaining consistent production is crucial for attracting buyers, such as businesses in the hotel, restaurant, and café (HoReCa) sectors. Irregular and unpredictable harvests make it challenging for distributors to collaborate with farmers to meet market demands.

A representative from the Sumber Tani farmer group highlighted the importance of economic institutions in shaping local food systems. Administrative barriers often impede farmers’ access to more efficient markets. The representative proposed the establishment of local institutions to assist with data management and regulations, which would support agricultural development policies and enhance government involvement in food supply chains.

One of the recommendations that emerged from the FGDs is to establish urban agriculture clusters based on regional zones. These clusters can aggregate farmers’ production capabilities, improving continuity and production volumes. Institutions such as Farmer-Owned Enterprises could act as hubs within these clusters, as demonstrated by PT. Lumpang Semar in Semarang, an enterprise which successfully consolidated rice production from local farmers.

The owner of Sandi Buana Farm, an urban farming entrepreneur, highlighted the high demand for rice and catfish, which is constrained by productivity and operational costs. He emphasized that conventional farmers often struggle to meet the quality standards and supply continuity required by modern retail environments. Despite innovations in hydroponic cultivation, supply uncertainty remains a significant obstacle in securing long-term contracts with retailers.

A representative from Indogrosir, a company with chains of retail and wholesale stores, shared insights into the provision of local products and their economic benefits, which not only support regional economies but also meet consumer demand for fresh and high-quality goods. However, he noted challenges in maintaining consistent quality from local farmers, which necessitates improved logistics and better storage solutions. Without clear regulatory guidelines, retailers are often reluctant to source local products, highlighting the need for coordination between government bodies and agricultural producers.

From the retailer’s perspective, a representative from Istana Buah underscored the challenges of obtaining consistently high-quality local products, often leading to reliance on imports. She pointed to high demand for ready-to-eat products, such as California papayas, and noted that the short shelf life of certain products requires an efficient supply chain. Participants agreed that local production is essential for meeting the demand while maintaining quality, though logistical challenges remain a major barrier.

A representative from Svarnaloka, a non-government organization, expressed concerns about consumer preferences and suggested the need for greater education on the benefits of locally produced food. She proposed community initiatives to promote local products, which could shift consumer habits and increase demand for regionally sourced food.

Based on the series of FGDs, several parameters have been identified as critical for the success of SFSCs:

1. Quality and consistency: Most farmers lack the resources and technology needed to ensure consistent product quality. This limits their competitiveness in modern retail markets, where consumers expect high standards.

2. Market access: Conventional farmers face significant barriers to accessing retail spaces, especially due to stringent quality requirements and the need for consistent product supply. Without appropriate support, it is difficult for them to penetrate wider markets.

3. Technology: Investments in modern agricultural technologies are essential for improving productivity and quality. Sorting, grading, and quality control tools can enhance product consistency. Additionally, digital solutions such as blockchain can improve supply chain transparency and efficiency, with smart contracts simplifying transactions and fostering trust between producers and consumers.

4. Strengthening local institutions: Establishing agricultural cooperatives and local institutions can streamline administrative processes and improve market access for farmers. Policies prioritizing the promotion of local products and financial support for infrastructure, such as storage and transportation facilities, are vital for enhancing farmers’ bargaining power and productivity.

5. Government support: Stronger government support is urgently needed to boost agricultural productivity and improve market access. Local authorities should actively bridge the gap between producers and consumers by creating supportive policies, offering financial incentives, and facilitating farmers’ access to modern retail sectors.

6. Consumer engagement: Public initiatives that educate consumers about the benefits of local products can increase demand for regionally sourced food. Strategies such as clear product labeling and educational campaigns can strengthen local food supply chains and support sustainable farming practices.

7. Collaboration: Encouraging partnerships among local stakeholders – including farmers, retailers, government bodies, and academic institutions – is key to building a resilient food system. Collaborative efforts ensure that resources are shared effectively, and challenges in production, distribution, and consumer education are addressed in a coordinated manner.

These parameters underscore the multifaceted approach needed to develop robust and sustainable SFSCs, ensuring both economic and social benefits for all stakeholders involved.

3.4 Institutional model

The phenomenon of existing SFSCs in Semarang City has been clearly identified. Several FGs and WFGs involved in urban farming have successfully marketed their produce directly to local residents and, when production volumes are sufficient, through distributors.

The challenges faced by urban farming operations differ between the FG and WFG. FGs are generally more market-oriented, focusing on cultivating specific commodities such as rice (including organic rice), Hawaiian papaya, melons, and edamame. They are better prepared to partner with distributors who act as intermediaries between them and consumers or retail businesses (e.g., fruit and vegetable vendors). On the contrary, WFGs tend to grow a wider variety of commodities at smaller amounts due to limited land availability and community needs. On smaller plots, WFGs cultivate diverse vegetables, fruits, and herbs. Their focus lies more on community engagement through farming activities and self-produced healthy food consumption. Nonetheless, some WFGs have generated benefits through social and recreational activities.

From the perspective of producers, the food supply chain in Semarang is complex and multifaceted, with farmers playing a crucial role. The Director of the farmer-owned enterprise shared insights into their operations, which facilitate the buying and selling of agricultural products through a network of food reserve or lumbung. Currently, 102 lumbung are operational across Semarang. However, significant challenges remain in engaging local governments and communities to optimize the effectiveness of these systems.

In addition to FG and WFG, urban farming initiatives led by young entrepreneurs are pivotal in transforming food systems. These ventures are more adaptive to market challenges and consumer demands. Several young urban farming practitioners have successfully addressed key parameters for success in their operations. For instance, the owner of Sandi Buana Farm identified systemic barriers in urban farming, such as the separation of roles between producers and distributors due to financial and technical constraints, including business management, financial planning, and marketing. He emphasized the need for robust management systems to support farmers in overcoming these challenges and ensuring more effective connections between production and distribution.

A representative from Agriculture Agency of highlighted ongoing initiatives aimed at shortening supply chains, such as the establishment of farmers’ markets that enable direct transactions between producers and consumers. These initiatives are critical for enhancing access to local food and fostering closer relationships between farmers and the communities they serve.