Baseline Report on Maize Sub- Sector in Sumenep...Arisan Group-based rotating savings and lending...

Baseline Report on Maize Sub-Sector in Sumenep

Longitudinal Livelihood Study (LLS)

January 2016

PRISMA

Author: Tatiana Maria Jaramillo

Research Assistant: Adhi Maulana Akbar

iii

LONGITUDINALLIVELIHOODSTUDY

BaselineReportonMaizeSub-SectorinSumenep

PRISMA

Author:TatianaMariaJaramilloResearchAssistant:AdhiMaulanaAkbar

January2016

LLS|January2016

i

TableofContents

ListofAbbreviationandExpressions..................................................................................ii

ListofFigures.....................................................................................................................ii

ListofTables.....................................................................................................................iv

1 Introduction................................................................................................................1

2 ShortDescriptionIntervention.....................................................................................1

3 Sampling......................................................................................................................33.1 SamplingQuantitative......................................................................................................33.2 SamplingQualitative.........................................................................................................33.3 StatusofInterventionintheVillages.................................................................................43.4 PovertyRateofHouseholdsusingPPI...............................................................................4

4 FiveLivelihoodAssets..................................................................................................54.1 HumanAssets...................................................................................................................54.2 PhysicalAssets..................................................................................................................84.3 NaturalAssets.................................................................................................................164.4 SocialAssets...................................................................................................................174.5 FinancialAssets...............................................................................................................18

5 IncomeGeneration....................................................................................................195.1 AgriculturalActivitywithFocusonMaize........................................................................205.2 LivestockActivities..........................................................................................................23

6 ExpendituresandFinancialExpenditure....................................................................246.1 EducationExpenditure....................................................................................................256.2 SocialExpenditure..........................................................................................................266.3 LivestockExpenditure.....................................................................................................296.4 AgriculturalAssetsandInputs.........................................................................................296.5 RepayingDebt................................................................................................................306.6 FoodExpenditures..........................................................................................................30

7 IncomeUseofMaize.................................................................................................32

8 SeasonalityandVulnerability.....................................................................................34

9 ConclusionandRecommendationsforFutureWaves.................................................35

10 Appendix................................................................................................................36

LLS|January2016

ii

ListofAbbreviationandExpressions

Abbreviations

Obs Observation

SD SekolahDasar(PrimarySchool)

SMP SekolahMenengahPertama(JuniorHighSchool)

SMA SekolahMenengahAtas,(SeniorHighSchool),

SMK SekolahMenengahKejuruan(VocationalHighSchool)

UBSP UnitBersamaSimpanPinjam(SmallSavingsandBorrowingsGroup)

UPK UnitPengelolaKagiatan((Government)ActivityManagingUnits)

VCR VideocassetteRecorder

VCP VideocassettePlayer

VCD VideoCompactDisc

Expressions

Adat Localtraditions

Angkot Carforpublictransportation

Arisan Group-basedrotatingsavingsandlendingfund

Desa Village

Koperasi,Cooperative

Lebaran IslamiccelebrationinJuly2015

NaikHaji Hajjpilgrimage

Ojek Motorcycleforpublictransportation)

Pasar Localtraditionalmarket

Warung Localshop/restaurant

ListofFigures

Figure1:Schoolenrolmentforchildren7-18yearsoldbyquintiles.............................................................7

Figure2:HighestEducationofPersons25+years.........................................................................................8

Figure3:Assets-HouseandLand..................................................................................................................9

Figure4:Assets-Housing............................................................................................................................10

Figure5:Assets-Transport..........................................................................................................................10

Figure6:Assets-Communication................................................................................................................11

Figure7:Assets–KitchenandStorage........................................................................................................12

LLS|January2016

iii

Figure8:Assets–OtherHouseholdItems...................................................................................................12

Figure9:Assets-AgriculturalItems.............................................................................................................13

Figure10:LargeLivestockbyQuintile..........................................................................................................14

Figure11:OtherLivestockbyQuintile.........................................................................................................14

Figure12:AmountofLargeLivestockbyQuintile........................................................................................15

Figure13:AmountofOtherLivestockbyQuintile.......................................................................................16

Figure14:LandHoldingsbyQuintile............................................................................................................16

Figure15:OwnProductionandReceivedFood/TotalFoodConsumption.................................................17

Figure16:SavingandBorrowingbyQuintile...............................................................................................18

Figure17:SavingandBorrowingbyQuintile-totalamountinIDR.............................................................18

Figure18:AgricultureandLivestockIncomeGeneration............................................................................19

Figure19:FrequencyofCropsmentionedasoneofthethreemostimportant(exceptmaize)intermsofincome..................................................................................................................................................20

Figure20:CropsforSelf-consumption(reportednoselling).......................................................................21

Figure21:Cropswhicharemainlysold(reportedas50%+selling).............................................................21

Figure22:Maizesellingbycalendarmonth.................................................................................................22

Figure23:Othercrop(cropsotherthanmaize)salesbycalendarmonth...................................................22

Figure24:MonthwhenpeoplesellLivestock..............................................................................................24

Figure25:Significanthouseholdexpenditure..............................................................................................24

Figure26:ExpenditureonEducation(total)................................................................................................25

Figure27:Expenditureoneducationperchild............................................................................................25

Figure28:financingofEducation.................................................................................................................26

Figure29:Timingofsignificantexpenditure:Education..............................................................................26

Figure30:SocialExpenditure.......................................................................................................................27

Figure31:FinancingMarriage......................................................................................................................27

Figure32:Timingofsignificantexpenditure–Marriage.............................................................................28

Figure33:Timingofsignificantexpenditure(otherAdat/religious/villagecelebration)...........................29

Figure34:TimingofSignificantExpenditure-buyinganimalstock.............................................................29

Figure35:Timingofsignificantexpenditure-repayingdebt......................................................................30

Figure36:FoodExpenditurebyQuintile......................................................................................................31

Figure37:TotalFoodandnon-foodExpenditurebyQuintile......................................................................31

Figure38:TypeofFoodExpenditurebyQuintile(totalspend)...................................................................32

Figure39:ShareofExpenditureonRiceandOtherstaplesbyQuintile......................................................32

Figure40:Mostimportantuseofincomederivedfrommaize...................................................................33

Figure41:Secondmostimportantuseofincomederivedfrommaize.......................................................33

LLS|January2016

iv

ListofTables

Table1:SamplingofQuantitativeDataCollection........................................................................................3

Table2:SamplingofQuantitativeDataCollection........................................................................................3

Table3:CurrentStatusoftheInterventionperVillage.................................................................................4

Table4:PovertyRateofHouseholdsusingPPI..............................................................................................4

Table5:PerCapitaExpenditureperQuintileinRp.perMonth.....................................................................5

Table6:HouseholdCharacteristics................................................................................................................5

Table7:HouseholdMemberCharacteristics.................................................................................................6

Table8:EducationofPeople15YearsorOlder.............................................................................................6

Table9:Educationofchildren7-15years......................................................................................................6

Table10:SchoolEnrolmentbyAgeGroup.....................................................................................................7

Table11:IncomeEarnedwithMaize...........................................................................................................22

Table12:FemaleDecisionMakingPowerandEngagementinMaizeActivities.........................................23

Table13:ControlandDecisionPowerofEarningsfromMaize...................................................................34

Table14:FoodSecurity................................................................................................................................34

LLS|January2016

LivelihoodStudyBaselineReport 1MaizeSub-SectorinSumenepPRISMAJanuary2016

1 Introduction

This baseline report is part of a study, which aims to gain a deeper understanding on how targetedhouseholds use additional income generated through the PRISMA intervention. Sumenep is one ofmanydistricts in East Java that has been targeted by PRISMA and where the project tries to alleviate poverty.PRISMAsupportsmaize farmersbypromotinghybridseed fordry land farming.Thegoal is to increase theproductivity of maize and therefore increase the income of maize farmers. The goal of this longitudinallivelihoodstudy(LLS)istogainadeeperunderstandingonhowthemaizefarmersusetheiradditionalincomeanticipated to be generated through the intervention. This will run until the end of the program. Thehouseholdsinterviewedduringthisyearwillbetrackedduringthefollowingyearstoseehowtheirlivelihoodsituationhaschangedandhowthechangesrelatetotheintervention.SuchastudyisimportantforPRISMAbecauseithelpsassesswhethertargetsselectedforraisingruralincomearereasonableandhowitcanaffectrurallivelihoods.

The goal of this baseline report is to give an overview over the current livelihood situation to see in laterstageshowthissituationchanged.Thereportprovidesanoverviewwithspecialfocusonincomegenerationand use of income. The baseline study uses a mixed method approach including the collection of bothqualitative and quantitative data. 197 householdswere interviewed for quantitative data collectionwith aquestionnaireandninerespondentswereinterviewedforqualitativedatacollectionthroughsemi-structuredinterviews.Togetherthisdataprovidesapictureofthecurrentlivelihoodsituationofthefarmers.ThesamehouseholdswillbeinterviewedincomingyearsaspartofthenextwavesoftheLLS.

The baseline report initially provides a short overview over the intervention (Section 2); with the framesampling for the study discussed in Section 3; the five assets of the sustainable livelihood framework aredescribed inSection4;withadiscussionof incomegenerationdiscussed inSection5). Section6describesexpenditure;while Section7 focusesonuseof incomegeneratedby coconutearnings. Section8discussesseasonalityandvulnerabilityofthehouseholds,withconclusionsprovidedinSection9.

2 ShortDescriptionIntervention

2.1 Sumanep

SumenepisadistrictintheprovinceofEastJavaandliesontheislandMadura.Fortheyear2013thedistrictreported that 29.2%of thepeoplewerepoorwhich corresponds to 300,700poor people (StatisticAgencyCenter, 2014). Within East Java, Sumenep ranks 32 out of 39 districts with respect to the HumanDevelopment Index and has a score of 66.89 Statistic Center Agency (2016). Besides, life expectancy inSumenep is65.25yearsandaverageyearsofschooling is6.37years forboysand4.62years forgirls (2013data)(StatisticCenterAgency,2014;StatisticCenterAgency,2014).Literacyrateslieat85.07%forthe2012(Statistic Agency Center, 2015). According to the intervention plan (Internal PRISMA document, 2014),Sumenep has 179’945 farmerswith 29’656 farmers classified as poor farmers. Moreover, 19.1% of thoseunder-fiveyearsoldwerereportedundernourished(weightforage)and35.8%oftheunder-fiveyearswere

LLS|January2016


reported stunted (height for age) in East Java for the year 2013 (Statistics Centre Agency, health profile,2014).

2.2 InterventionSummary

Context

Globallymaize production is increasing and over 1 billion tons ofmaizewere produced in 2013. USA andChina are the dominating countries formaize production and together produce around half of the globalmaize supply. USA is known to be the largestmaize exporter followed by Brazil. Japan and the EuropeanUnion are large importers. (Food andAgriculturalOrganization, 2015). Indonesia is one of the ten largestmaize producers globally and around 18 million tons maize were produced in 2013 while ca. 3.8 millionhectareswereharvested(DataCenterandAgricultural informationSystem,2013) (internalPRISMAreport).Indonesiaexportsand importsmaizedependingonseasonalitybut isnet importer. IndiaandArgentinaareimportant partners for import while overall imports are highly volatile in amount. (Food and AgriculturalOrganization,2015).

Maize demand in Indonesia has been increasing rapidly due to the increasing demand for poultry (wheremaize is a key ingredient inpoultry feed).Household consumptionper capital is around1.18 kgmaizeperyear. Average productivity ofmaize production in Indonesia is 4.9 tons per hectare. (Sector Report) (DataCenter and Agricultural information System, 2013). The province with the largest maize production inIndonesia is East Java (Statistic Center Agency, 2014) .Within East Java, Sumenep district is an importantmaizeproducer–withsome359,000tonsofmaizeproduced in2013. However, theproductivityofmaizeproductioninSumenepisrelativelylow,at2.65tonsperhectarewhichisbelowtheaverageproductivityofEastJavaof4.80tonsperhectare.

There are several reasonswhy the productivity inMadura Island and especially in Sumenep is low. Firstly,low-yieldinglocalseedvarietiesareusedwhicharelessproductivethanhybridseed.Secondly,farmersoftenapplythefertilizer incorrectly.Thirdly,drysoilconditionsarenotmanagedproperlywithirrigationsystems,which is especially crucial for production in the dry season. A further problem is that poor post-harvestpracticesareappliedsothattheharvestedmaizegetscontaminatedwithforeignmaterialandoftencontainstoomuchmoisture,resultingindeteriorationinqualityandlowersellingprices.

Intervention

PRISMA’s intervention seeks to increase productivity amongst the small-holder farmers in Sumanep. Theintervention is implemented in three phases. Firstly, higher productivity is targeted with improved seeds;secondly,productivity is increased throughbetterpost-harvest technologiesand fertilizer;and, in the thirdphasetheintroductionofirrigationsystemsshallincreaseproductivity.

Inthecaseofpromotingtheuseofimproved/hybridseedPTAHSTIisthekeycommercialpartner.Whilethecompanysellsthetechnologiesthatcanimproveproductivity(hybridseeds),ithasnotbeenverysuccessfulinpromotingimprovedseedsinSumanepandotherareasofEastJava.Theinterventionseekstopromotetheseedsaswellasassociatedtrainingfordistributors.Inadditiontothis,PRISMAcollaborateswithPTAHSTItoprovide training and assistance for farmers during the transition phase between planting local seed andhybridseed.Theseedswillbepartlypaidbythefarmersdirectlyandpartlywillbepaidlater(formofcredit).

LLS|January2016


Moreover,PTAHSTIwill createnetworks forbuyers (e.g.Poultry farmers, feed-millers, traders) to facilitatethesellingoftheseeds.

The interventionseekstodistributehybridseedthroughfarmergroups.For thispurpose,PRISMAtogetherwithPTAHSTIapproachactivefarmergroups.Activefarmergroupsinthiscontextmeansthattheyareactiveintheirrepresentationofthefarmers.WhilePTAHSITsellshybridseedstothefarmergroups,theyselltheseedsontothefarmers.Thefarmergroupsthereforecanbeseenasintermediateactorinthesupplychainforimprovedinputs.

3 Sampling

3.1 SamplingQuantitative

Thestudyusedbothqualitativeandquantitativesamplinginordertoprovidethedataprovidedbelow.ThesampleframewasdrawnfrominternalPRISMAdocuments–withprojectionsonthepotentialtargetgroups.Thestudydrawsfrom197respondentsfromatargetof200–onlyx3respondentsweredroppedasthedatacollectedwasincomplete.Thehighestnumberofrespondentsfromasinglevillagewas34andlowest4,theaveragenumberofrespondentswas18.

Table1:SamplingofQuantitativeDataCollection

A10 No.Babbalan 20BatuDinding 25BilaporaTimur 20Kasengan 34KebundadapTimur 15Kopedi 20MandingTimur 19MoncekTengah 20Sarokah 4Totosan 20Total 197

3.2 SamplingQualitative

For the qualitative data collection, the same list of respondents was used as for the quantitative datacollection.Outofthevillagesavailableforquantitativedatacollectionfivevillageswerechosenforqualitativedata collection.One or two respondentswere chosen in the villageswhich yielded the sampling shown intable2.Thedatawascollectedfrom4to9November2015.

Table2:SamplingofQuantitativeDataCollection

NameofDesaNumberofrespondent

LLS|January2016


BilaporaTimur 1

Babbalan 2

MoncekTengah 2

Kopedi 2

KebondadapTimur 2

3.3 InterventionstatusintheVillages

Theinterventionhascommencedin6ofthe9villagesunderthestudy.9farmergroupsareinvolvedintheintervention.DatawascollectedinNovember2015.

Table3:CurrentStatusoftheInterventionperVillage

Kecamatan Desa Interventionstatus

Numberoffarmergroupsinvolvedinintervention

Nameoffarmergroups

Batuan Babbalan No 0

Gapura BatuDinding Yes 1

Ganding BilaporaTimur Yes 2

1)JoyoMulyo

2)OpelanJaya

Saronggi

Saroka Yes 11)SukaMaju

KebunDadap

Timur Yes 1

2)TarunaTani

Bluto Kopedi Yes 1 1)KWTTamanSari

Manding

Kasengan No 0

MandingTimur No 0

Lenteng MoncekTengah yes 1 1)Subur

BatangBatang Totosan Yes 2 1)KWTAnggrek

2)Sentosa

Source:PTAHSTI

3.4 PovertyRateofHouseholdsusingPPI

ThePovertyRateofHouseholdsusingPPIisgivenbelow:

Table4:PovertyRateofHouseholdsusingPPI

Nr.Obs mean

100%NationalPovertyRate 155.00 9.48

150%NationalPovertyRate 155.00 42.30

$2.52005PPPPovertyRate 155.00 74.27

LLS|January2016


4 FiveLivelihoodAssets

Thediscussionoffivelivelihoodassetsofthesustainablelivelihoodframeworkgivesagoodoverviewovertheresourcesthatareavailabletoahousehold(DFID,1999).Theassetsareclassifiedinfivecategorieswhicharehumanassets,physicalassets,naturalassets,socialassets,andfinancialassets.

Tounderstandhowthesevariousassetschangewithwealth level,awealthvariablewasconstructedbasedontotalexpenditurepercapita.Asthequestionnairecontainsscopefordetailedinformationonexpenditure,total expenditureper capitawere calculated. This total expenditureper capitaweredivided intoquintileswhich provides information on household expenditure per capita level. As will be discussed later, thesequintilesthenwereusedtosplitthesampleandunderstandinformationaboutdifferentquintilelevels.

Asseenintable5,thefirstquintilecontainshouseholdwhichspent193’222until396’533IDRpercapitaandper month with the mean of 328’912 IDR. The households in the highest expenditure quintile spent onaverage1’557’030IDR.

Table5:PerCapitaExpenditureperQuintileinRp.perMonth

Nr. Obs Mean Sd Min Max

Q1 37.00 328,011.74 49,446.83 193,222.22 396,533.31 Q2 36.00 464,549.17 37,792.70 400,305.53 537,916.63 Q3 37.00 634,447.01 54,087.71 548,416.63 706,966.63 Q4 36.00 789,443.31 52,424.34 711,805.56 913,750.00 Q5 36.00 1,557,029.56 740,344.44 930,955.56 4,432,291.50

4.1 HumanAssets

Humanassetsdescribeassetswhichliewiththepersonorhouseholditself.Thismightbehealth,educationorother household characteristics. This sub-section first focuses on household characteristics and then oneducation.

4.1.1 HouseholdCharacteristicsThenumberofhouseholdsisalsocategorisedashumanassetsbecauseitdeterminesthelabourforceinthehousehold. In the sample the average number of household members is 4.1 (see table 6). The smallesthouseholds report twohouseholdmembersand the largest reportsninehouseholdmembers.Theaveragenumber of children in this household is 1.0with some households that have no children at all and otherswhich have up to three children. The average number of elderly people is 0.4. The number of elderly andchildreninahouseholdindicatestheburdenonactivehouseholdmemberstosupporttheirhousehold.

Table6:HouseholdCharacteristics

Nr. Obs mean Sd Min Max

Hh size 197.00 4.06 1.40 2.00 9.00 Nr children 197.00 1.02 0.88 0.00 3.00 Nr elderly 197.00 0.38 0.69 0.00 3.00

LLS|January2016


Accordingtotable7, theaveragenumberof femaleandmalehouseholdmember inthehousehold isevenand theaverageagehouseholdmemberhas34.7 years.Householdsareoverwhelminglymale-headed. Ascanbeseenintable8,only1.1%ofthehouseholdsarereportedasfemale-headed.

Table7:HouseholdMemberCharacteristics

Nr. Obs Mean

Female 788.00 0.50 Age 796.00 34.73

Table8:Female-headedhouseholds

Nr. Obs Percent

female headed 186.00 1.08

4.1.2 EducationMost respondents during qualitative data collection reported that education is important for them. Theybelievethatthelifeoftheirchildrenmightbechangedforthebetterwitheducation.Onesaidthathewoulddoanythingtobeabletofinancehischild’seducation.Table9showstheeducationofpeoplewith15yearsandmore,here66.6%reportthattheycanreadandwritewhile65%reportthattheyeverwenttoschool.These levelsare lowcompared to thenational average. Thismightbedue to farmersbeing relatively lesseducatedthantheaveragepersoninSumenep.

Table9:EducationofPeople15YearsorOlder

Nr. Obs Mean

Can Read and Write 637.00 66.56

Ever Went to School 642.00 64.95

As seen in table10,mostbutnotall childrengo toschool.Some89.23ofboysbetweensevenand fifteenyearsreportthattheycanreadandwritewhilethispercentageis93.1%forgirls. Only3%oftheboysand3.4%ofthegirlsinthesameagegroupreportthattheyneverwenttoschool.

Table10:Educationofchildren7-15years

Nr. Obs Boys mean Boys Nr. Obs Girls mean Girls

Can Read and Write 65.00 89.23 58.00 93.10 Ever Went to School 66.00 96.97 59.00 96.61

Ascanbeseenintable11,schoolenrolmentfortheagegroup9-11yearsisthehighestandisreportedtobe100% for girls andboys. Younger children are less likely to be enrolled in school (72.7% for age group6-8years)andalsoolderchildrenarelesslikelytobeenrolledinschool.Apartfortheagegroup15-18years,girlsarelesslikelytogoschoolthanboys.82.4%boy’senrolmentand69%girl’senrolmentfortheagegroup6-8yearsarereported,andtheagegroup19-22reports68%enrolmentofboysand46.7%enrolmentofgirls.

LLS|January2016


Table11:SchoolEnrolmentbyAgeGroup

ALL Male Female

Mean Nr. Obs. Mean Nr. Obs. Mean Nr. Obs.

age 6-8 72.7 33.0 82.4 17.0 60.0 15.0

age 9-11 100.0 40.0 100.0 16.0 100.0 23.0

age 12-14 95.0 40.0 95.5 22.0 94.1 17.0

age 15-18 92.6 54.0 90.9 33.0 95.0 20.0

age 19-22 56.4 55.0 68.0 25.0 46.7 30.0

Figure1:Schoolenrolmentforchildren7-18yearsoldbyquintiles.

Asseeninfigure1schoolenrolmentofchildrenbetween7and18yearsisonaveragehigherthan85%forallquintiles. There is no clear trend visible across the quintiles. 42.6% of themen and 49.8% of the womeninterviewed in Sumenep report that their highest education is not finishing elementary school (No SD).Around28%ofmenandwomen report thatprimary school is their highest educationwhile around11.5%reportthatjuniorhighschool(SMP)istheirhighestdegree.While14.8%ofthemenreportthatseniorhighschoolistheirhighesteducationthispercentageislowerforwomen(9%).Highereducationwasachievedbylessthan4%bymenandwomen.Thepercentageofwomen,however,isslightlylowerwith2%.

91.995.2

91.3 88.9 90.5

0

20

40

60

80

100

Enro

lmen

t in

%

Q1 Q2 Q3 Q4 Q5

School Enrolment of Children 7-18 yearsby Quintile

LLS|January2016


Figure2:HighestEducationofPersons25+years

Terms:NoSD=notgoing/notfinishingelementaryschool;SD=Elementaryschool;SMP=Secondaryschool;SMA=SeniorHighschool;D1,D3,S1,S2,S3=HighereducationsuchasAcademy,University,andpost-graduate.

4.2 PhysicalAssets

Physicalassetscomprisethebasicinfrastructureandproducergoodsneededtosupporthouseholdmembersto pursue their livelihood strategies (see DFID, 1999). These can include: infrastructure, the physicalenvironmentthathelppeopletomeettheirbasicneedsandtobemoreproductive;andproducergoods,thetools and equipment that people use to function more productively. The following components ofinfrastructure are usually essential for sustainable livelihoods: affordable transport; secure shelter andbuildings; adequate water supply and sanitation; clean, affordable energy; and access to information(communications). This section will focus on housing, household, agricultural assets as well as livestockholdings.

4.2.1 Housing,WC,ElectricityandWaterAlmost100%oftherespondentshavetheirownhouse.Accordingtoqualitativedatacollected,thehouseisconsideredthemost importantasset for localhouseholds. Itwasreportedtobemore important than landand transportation assets. Respondents explained that housing gives them security and convenience andallows them to live andworkpeacefully. Theyalsoexplained that theyoften inherit thehouse from theirparentsorparents-in-law.Alsoagriculturallandisownedbyover90%inallquintileswhilethepercentageishigherforhouseholdsinthehighestexpenditurequintile(figure3).Otherhousesorbuildingsareownedbyaround50%to60%whilenotrendisdiscerniblebyquintile.

2.0

9.0

11.4

27.8

49.8

3.3

14.8

11.5

27.9

42.6

0 10 20 30 40 50percent

female

male

D1, D3, S1, S2,S3

SMA

SMP

SD

No SD

D1, D3, S1, S2,S3

SMA

SMP

SD

No SD

Highest Education of Person 25+ Years

LLS|January2016


Figure3:Assets-HouseandLand

Not all householdshaveelectricity.As canbe seen in figure4over80%of thehouseholdshaveelectricityacross all expenditure quintiles. Whether a household has electricitymay depend on location since somevillageshaveelectricityaccesstothenationalgrid(whichprovidesaccessforthehouseholds)whileforotherhouseholdsitismoredifficulttoaccesselectricity.Otherhouseholdsmightnotbeabletoaffordelectricity.

Better floor material (no bamboo or earth) is used more commonly in households in higher expenditurequintiles.43.2%reporthavingbetterfloormaterialinthelowestexpenditurequintilewhilethepercentageishigherforhigherexpenditurequintiles.Thehighestexpendituresquintilereports69.4%usingbetterhousingmaterial. Similarly, toilet facilitiesarepossessedmoreoftenbyhigherexpenditurequintiles. In the lowestquintileonly62.9%ofthehouseholdsreporthavingtoiletswhilethisrisesto90.9%ofthehighestquintile.

Wells and tubewells are not often possessed by local households. Only 16.7%of the lowest expenditurequintile reports having a well or tube well, while 52.8% in the highest expenditure quintile report havingthese.Theratherlowpercentagesofwelloratubewellownershipdoesnotnecessarilyequatetolowaccessto water. In some cases in Sumenep this may be explained as public water access is provided by thegovernmentonavillage level inagreementsbetween inhabitants. For somehouseholds,buildingawellortubewell in thehousehold isa secondaryneedbecause theyalreadyhaveaccess towatereven if it isnotprivate.

100.0

91.9

52.8

100.0

94.4

61.8

97.394.6

54.1

97.2100.0

55.6

97.2100.0

57.1

0

20

40

60

80

100

Perc

ent

Q1 Q2 Q3 Q4 Q5

Assets: House and Land

House Agricultural Land

Other House/Building

LLS|January2016


Figure4:Assets-Housing

4.2.2 TransportThemostcommonmeansoftransportationinSumenepisthemotorcycle.Morethan75%ofthehouseholdsin every quintile report having a motorcycle, with more households possessing motorcycles in higherexpenditure quintiles. During qualitative data collection it was reported that transportation assets areimportant as they enable the household members to be mobile. For households which do not havemotorcycles,householdmembersreportusingangkot(carforpublictransportation)andojek(motorcycleforpublic transportation) as alternativemeans of transportation. Therewere also respondents that explainedthattheygenerallywalktotheiragriculturallands.

Morethan60%ofrespondents ineveryquintileownbicycles.Bicyclesareusedgenerallyforshortdistancetransportation. Cars and trucks are a veryuncommonmeansof transportation in the sample.Householdsthatreportedhavingacaroratruckduringqualitativedatacollectionexplainedthattheyneedthoseassetsforlongdistancetransportationortoruntheirbusinesssuccessfully.

Figure5:Assets-Transport

86.5

43.2

62.9

16.7

86.1

57.1

68.6

17.6

89.2

54.3

88.9

8.1

94.4

77.8

88.9

41.7

82.9

69.4

90.9

52.8

0

20

40

60

80

100

Perc

ent

Q1 Q2 Q3 Q4 Q5

Assets: Housing

Electricity Floor not Eearth or Bamboo

WC Well/Tubewell

0.0

67.6

86.5

0.0

63.9

75.0

2.7

67.6

81.1

0.0

63.9

94.4

0.0

69.4

100.0

0

20

40

60

80

100

Perc

ent

Q1 Q2 Q3 Q4 Q5

Assets: Transport

Car/Truck Bicycle

Motorbike

LLS|January2016


4.2.3 CommunicationAssetsAsseenfigure6,televisionandmobilephonearecommoncommunicationassets.Morethanaround70%ofhouseholdshaveatelevisionandamobilephoneacrossallexpenditurequintiles.Bothassetsarepossessedmoreoftenbyhouseholdsinthehighestexpenditurequintile.Themobilephoneisusedforcommunicatingwith friends and family as well as for business issues. Television is used for both entertainment andinformation.

Havingaradio,computeroralandlineislesscommon.8.3%ofhouseholdsreporthavingaradio,transistor,stereoorcassetteinthelowestexpenditurequintile.Thehigherexpenditurequintilesreporthighernumberswhile the highest expenditure quintile reports 41.7% possessing those items. Also computers are morecommon in higher expenditure quintiles and 20% report having a computer in the highest expenditurequintile.Landlinesarenotveryfrequentwithlessthan15%reporthavingalandlineacrossallexpenditurequintiles.

Figure6:Assets-Communication

4.2.4 StoringandKitchenAssetsMostofrespondentshavestovesacrossallexpenditurequintiles.Inadditiontocooking,thestoveisalsousedfor heatingmaizewhen they store it in the kitchen. Themaize is usually storedon topof the stove. Thistraditionaltechniqueisusedtoavoiddiseasewhilethemaizecanbestoredlongerlikethis.Accordingtodatafromqualitativeinterviewsthestoveisoftenheatedwithfirewoodwhichtheysourcefromlocalforests.

8.3

73.0

2.8

73.0

11.1

22.9

77.8

11.8

69.4

9.1

40.5

81.1

2.7

83.8

8.1

47.2

91.7

13.9

83.3

5.6

41.7

91.7

20.0

86.1

11.4

0

20

40

60

80

100

Perc

ent

Q1 Q2 Q3 Q4 Q5

Assets: Communication

Radio, Transitor, Stereo, Cassette TV

Computer Mobile Phone

Land-Line

LLS|January2016


Figure7:Assets–KitchenandStorage

Grain storage containers are reported tobeownedby 30.6%of thehouseholds in the lowest expenditurequintile, while this percentage rises for higher quintiles reaching some 77.8% for the highest expenditurequintile.This isasignificantdifference. Sincethe intervention isconcernedwithhigherproductivity (whichrelatestostoring)thismight indicatethathigherexpenditurequintiles investmore instoragefacilities. Just2.7%ofthehouseholdsinthelowestexpenditurequintilereporthavingafridge.Thispercentageissteadilyhigherforhigherexpenditurequintilesreaching19.4%inthehighestexpenditurequintile.

4.2.5 OtherHouseholdAssets

Washingandsewingmachinesarenotverycommonamongsthouseholds inthesample.Bothhoweveraremorepresentinhigherexpenditurequintiles.Mostrespondentshavejewelleryintheirhousehold.Accordingtoqualitative interviews,mostsee jewelleryasasavingor investment. Theysaid that jewellery (especiallygold)canbesoldeasilyiftheyneedmoney.Inadditiontothis,thevalueofjewelleryisreportedtoappreciateso it corresponds to the idea that it is a form of investment. Surprisingly households which are in higher

83.3

30.6

2.7

75.0

44.1

2.9

64.9

40.5

5.6

72.2

44.4

16.7

80.0 77.8

19.4

0

20

40

60

80

Perc

ent

Q1 Q2 Q3 Q4 Q5

Assets: Kitchen and Storing

Stove Grain Storage Container

Fridge/Freezer

Figure8:Assets–OtherHouseholdItems

2.80.0

73.0

13.5

2.9 2.9

63.9

20.0

2.70.0

56.855.6

11.1

2.8

66.763.9

14.3

2.9

50.0 50.0

0

20

40

60

80

Perc

ent

Q1 Q2 Q3 Q4 Q5

Assets: Other Household Items

Sewing Machine Washing Machine

Jewelry VCR/VCP/VCD/DVD

LLS|January2016


expenditurequintilesreportedhavinglessjewellery.VCR/CP/VCD/DVDisreportedtobeownedby12.5%ofthelowestexpenditurequintilewhilethepercentageishigherforhigherexpenditurequintiles.

4.2.6 AgriculturalAssetsVeryfewhouseholdsreportedowningtractorsorotherheavyfarmingequipment.Thismaybeduetoreports that somehouseholds canaccess tractors through their farmergroup (which receives tractorsfrom the government). However, therewere other households that reported during qualitative datacollectionthattheydonothaveaccesstotractorsandinsteadusecowsforfarmlabourpurposes.Iftheydonothavecows,theycanalsorentcowsfromwithinthevillage. Irrigationsystemsarenotcommonlocally. Notably, irrigation systems are more frequent in lower expenditure quintiles. Householdswithoutirrigationsystemsreportthattheyaredependentonraintowatertheircrops.Asseeninfigure9,smalltools(suchasaxes,hammers,hoes,etc.)arewidelyowedbythehouseholds.Thetrendtohavethoseitemsincreasesbyexpenditurequintile.Figure9:Assets-AgriculturalItems

4.2.7 LivestockCows are the most common type of livestock in Sumenep. Aside from land and gold, farmers generallyconsidercowsasaninvestmentandaformofsavings.ThisisalsoreflectedinthefactthatSumenephasthebiggestcowpopulationinEastJava(StatisticCentreAgency,2015).Accordingtoqualitativeresponses,cowsareusedforsellingbutalsoasfarmequipmenttolooseningthesoilusingtraditionaltillingpractices.

0.0

19.4

0.0

48.6

2.9

14.7

0.0

64.7

0.0

8.1

2.7

78.4

0.02.8 2.8

77.8

8.3

2.8 2.9

50.0

0

20

40

60

80

Perc

ent

Q1 Q2 Q3 Q4 Q5

Assets: Agricultural Items

Tractor Irrigation Equipment

Heavy Farming Equipment Small tools

LLS|January2016


Figure10:LargeLivestockbyQuintile

Aside from cows, chickens are a common livestock in Sumenep. The higher the expenditure quintile thehigher the probability that the household will have chickens. Chickens are generally used to sell or forconsumption by households. Chickens are usually slaughtered during special events including Islamiccelebrations (Eid-ul-Fitri and Eid-ul-Adha). Buffalos are not very common, and most buffalos are onlypossessedbyhouseholdsinthehighestexpenditurequintile.

Figure11:OtherLivestockbyQuintile

Goats are a common typeof livestock for the samplehouseholds in Sumenepas canbe seen in figure11.These are less frequently found than cows or chickens. Ducks and fish are only possessed by very fewhouseholds.

86.5

0.0 0.0 0.0

83.3

2.80.0 0.0

86.5

0.0 0.0 0.0

83.3

0.0 0.0 0.0

86.1

13.9

0.0 0.00

20

40

60

80

Perc

ent

Q1 Q2 Q3 Q4 Q5

Livestock 1

Cow Buffalo

Horse Pig

24.3

43.2

0.0 0.0

33.3

47.2

2.80.0

21.6

62.2

0.0 0.0

33.3

66.7

5.6

0.0

30.6

66.7

5.6 5.6

0

20

40

60

80

Perc

ent

Q1 Q2 Q3 Q4 Q5

Livestock 2

Goat and Sheeps Chicken

Duck Fish

LLS|January2016


Figure12:AmountofLargeLivestockbyQuintile

Asseeninfigures12and131,thenumberofcowsandchickensiscorrelatedagainsttheexpenditurequintile,withhigherexpenditurequintilesreportingmore livestock. People inthehighestexpenditurequintilehave2.3 cowsonaveragewhile this is1.8 for the lowestexpenditurequintile.Alsohigherexpenditurequintileshavemorethantwiceasmanychickensthanhouseholdsinthelowestexpenditurequintile.

1Twooutliersweretakenoutforthenumberofchickensandoneoutlierwastakenoutforthenumberofgoats.Fishwastakenoutbecausetheyareanotherdimensionofnumbersandareownedbyfewrespondents.

1.8

0.0 0.0 0.0

1.9

0.10.0 0.0

1.8

0.0 0.0 0.0

2.0

0.0 0.0 0.0

2.3

0.2

0.0 0.00

.5

1

1.5

2

2.5

Amou

nt in

Num

ber

Q1 Q2 Q3 Q4 Q5

Amount of Livestock 1

Cow Buffalo

Horse Pigs

LLS|January2016


Figure13:AmountofOtherLivestockbyQuintile

4.3 NaturalAssets

Naturalresourcestockisconsideredanaturalresourcefromwhichthehouseholdcangetresourceflowandservices (DFID, 1999). Land is typically classified as natural asset and agricultural land is very commonamongstlocalhouseholds.Theamountofhectaresownedbythosewhohaveagriculturallandcanbeseeninfigure 142. The number of hectares owned by the households lies within a small range for the quintilesreachingfrom0.6until0.9hectares,indicatingthatthereislittledifferencebetweenthequintilesinrelationto land ownership. As shown in figure 15, the lowest expenditure quintile generates the largest share ofconsumption by them or received food from other parties (16.5%). The highest expenditure quintilegeneratesorreceives13.9%oftheirfoodconsumption.Thetrendtobuyfoodthereforeappearstoincreasewithexpenditurequintile.

Figure14:LandHoldingsbyQuintile

2Twooutliersweretakenout

0.6

2.5

0.0

1.1

3.1

0.1

0.6

3.2

0.0

1.1

5.1

0.4

1.1

5.5

0.1

0

2

4

6

Amou

nt in

Num

ber

Q1 Q2 Q3 Q4 Q5

Amount of Livestock 2

Goat and Sheeps Chicken

Duck

0.7

0.9

0.60.7 0.6

0

.2

.4

.6

.8

hect

ares

Q1 Q2 Q3 Q4 Q5

Land Holdings

LLS|January2016


Figure15:OwnProductionandReceivedFood/TotalFoodConsumption

4.4 SocialAssets

Socialassetsaresocialresourcesuponwhichpeopledrawtopursuetheir livelihoodobjective(DFID,1999).Sumenephasdifferentaspectswhichmightbeconsideredassocialassets.Duringqualitativedatacollectionitwasfoundthatfamilyneighboursandfriendsplayanimportantroleinahousehold’slivelihoodsituation.In particular, households rely on their friends and neighbours in situation of stress and uncertainty.Qualitativedatacollection indicatesthat threehouseholdsexplainedthatwhentheyfaceda lackofmoneytheydonotreducetheirconsumption,rathertheyborrowedmoneyandfoodfromtheirneighbours,family,andfriends.

Many households report savings systemswithin the villages (e.g.arisan)which encourage farmers to saveeachweek.Theamountofmoneypaidbythehouseholdsvariesanddependsontheabilityofthefarmerstopay.Inthis,farmergroupsplayalsoanimportantroleforthelivelihoodsituationofthehouseholds.Farmersreceive free seeds if they are members of farmer groups, which are often indirectly obtained by thegovernment. In addition to this, farmers report also borrowing and saving money in farmer groups.Equipmentsuchastractorscanbeborrowedbymembersof farmergroups.Tractorsmightbegiventothefarmergroupsbythegovernmentoracquiredthroughjointsavingeffortsofthemembers.

Another formof social interdependence inSumeneparecelebrations. Asdiscussedduringqualitativedatacollectionlargeeventssuchasmarriageareseldomfinancedbythecelebratinghouseholdalone,butratherarecommonlyfinancedbythewholecommunity. Neighbours, friends,andfamilyoftenhelpfinancethoseeventsforinstancebyofferingrice.Theamountofwhatisofferedtothecelebratinghouseholddependsontheneighbours, friends,and families’ financial capabilityandhowclose relationshipsare to thehousehold.Theamountgiventothehouseholdmightevenbewrittendownandshallbereturnedoncethehouseholdhasacelebrationofitsown.

16.5

11.2

13.4

7.2

13.9

0

5

10

15

20

Food

Pro

duce

d or

Rec

eive

d by

the

HH

in %

Q1 Q2 Q3 Q4 Q5

Own Food Production and Received Food ofTotal Food Conusmption

LLS|January2016


4.5 FinancialAssets

Financial capital denotes the financial resource that people use to achieve their livelihoodobjective (DFID,1999).Thisincludessavingsandborrowingsbylocalhouseholds.Whileborrowingmaynotbeconsideredasafinancialassetitdoesindicatealevelofaccesstocreditwhichcanbeseenasavaluableasset.

Ascanbeseeninfigure163,savingsdecreaseasapercentagewithexpenditurequintile,whichissurprising.Borrowings instead are increasing with expenditure quintile. In absolute terms however (see figure 17),households inhigherexpenditurequintileshavegreatervalue savingsandborrowings (for thosewhohavesavingsorexpenditures).Theaveragehouseholdinthefirstexpenditurequintilehas1.5millionIDRsavingsand 0.6 million IDR borrowings. In the highest expenditure quintile savings are 2.8 million IDR whileborrowingsare2.6millionIDR.Duringqualitativedatacollectionhouseholdsreportedthatsomedonottakecreditbecausetheyareconcernedaboutrepayments(interestandthepaymentschedule).

Figure16:SavingandBorrowingbyQuintile

Figure17:SavingandBorrowingbyQuintile-totalamountinIDR

3Dataofsavingsandborrowingswasnotalwaysconclusivesinceitwascontradicting.Thereforeresultsshouldbeinterpretedwithcaution.

59.5

10.8

52.8

14.3

37.840.5 41.7

14.3

27.8

19.4

0

20

40

60

Perc

ent

Q1 Q2 Q3 Q4 Q5

Saving and Borrowing

Saving Borrowing

1.5

0.6

2.4

0.7

3.0

1.5

3.1

0.8

2.8

2.6

0

1

2

3

Amou

nt in

Mill

ion

Rp.

Q1 Q2 Q3 Q4 Q5

Saving and Borrowing

Saving Borrowing

LLS|January2016


Duringqualitativedatacollectionhouseholdsreportedvariouswaystosavemoney.Banks,koperasi,arisan,and farmer groups were mentioned as institutions through which to save money. Three respondents ofqualitative interviews said that banks and koperasi are the best place to savingmoney because they haveprofessional management and it also allows them to borrow money there. Also farmer groups werementionedasinstitutionsinwhichtosavemoney.

Besidesthoseformsofsavingalsojewellery(asgold),arisanandlivestock(especiallycows)areseenasaformofsaving.Jewelleryandlivestockcanbesoldveryquicklywhentheyhavesuddenneedsandurgentlyneedmoney.Somehouseholdsrespondedthattheyconsidermaizestocktobesavings(qualitativedata).Aswillbediscussedlater,thismayberelatedtothewaysomehouseholdsdeterminethepointofsales.

Usuallyhouseholdsborrowmoneyfromtheirneighbours,family,andfriends.Accordingtointerviewsduringqualitative data collection, farmers can also borrow money from within farmer groups. However, farmergroupstendtolendmoneyinsmallvaluesonlyastheydonothavethescaleofresourcescomparedtobanksorkoperasi.

5 IncomeGeneration

Regarding the income generation strategies of the households, as can be seen in figure 18 51.5% ofhouseholdsreportthattheminorityoftheirincomeisgeneratedbyagriculturalandlivestockactivities.Some26.3%reportthataroundhalfoftheir incomecomesfromtheseactivities,while22.2%,or1 in5,reportedthat themajority of their income comes from agriculture or livestock activities. These findings correspondwithqualitativedataresponseswhichindicatedavarietyofincomesources.Householdsdonotonlydependon those agriculture or livestock activities, as different jobs including seed distributor, coconut distributor,governmental staff, chicken trader, egg producer, and casual labourer were mentioned. Labour-basedactivitiesmightalsodependonthevillage.InKopediforinstanceitiscommonthatmenworkasfishermanwhiletheyalsocultivatedifferentcrops.However,otherhouseholdsreportbeingmainlydependentontheiragriculturalandlivestockincome.

Figure18:AgricultureandLivestockIncomeGeneration

51.5

26.3

22.2

0

10

20

30

40

50

Perc

ent

minority

(<50

%)

half (

~50%)

majority

(>50

%)

Agricultural and Livestock Income Geneartion

LLS|January2016


5.1 AgriculturalActivitywithFocusonMaize

Whilemaize is important there are other crops that are also important for the households. Tobacco wasmentioned by most during qualitative data collection, and which is also attested in figure 19 where 118householdsreportthattobacco isoneofthethreemost important incomesources.Duringqualitativedatacollectionsomehouseholdsperceivedthatitistheirlargestincomesource.Alsorice(55households),mungbean(36households),peanuts(28households),soybeans(12households),andchilipepper(12households)werementionedtobeimportantforlocalhouseholds.

Figure19:FrequencyofCropsmentionedasoneofthethreemostimportant(exceptmaize)intermsofincome

As can be seen in figures 20 and 21, income from crops are used for different purposes.While some aremainly used for household consumption, other crops are used primarily for sales. During qualitative datacollection all households reported that they use part of themaize they produce to supplement their ownhouseholdconsumption. Someevenreportednotsellingatallattimes,andusingallforownconsumptionwhich is also reflected in figure 20 – where 64 households report that they plant maize only for self-consumption and where no selling was reported. During qualitative data collection some householdsexplainedthat theyusemaizeasastaple food intheirhousehold.Thiswas firstpriority,wherethesecondpriorityistosellmaize.Incomparison,ricewasthesecondmostusedcropforself-consumptionreportedby15householdstobeonlyusedprimarilyforthispurpose.

Incontrasttothis,therearealsohouseholds(120)whichreportthattheysellmorethan50%oftheirmaize(seefigure21).Alsotobaccowasreportedtobemainlyusedforsalesby115households.Sincetherearenohouseholds reporting that theymainlyconsumetobacco, tobaccomightbeconsideredasacashcrop.Alsomungbean (35households),peanut (27households) and soybean (12households) aremainlyproduced tosell.Whilericeisoftenusedforself-consumptionasjustdiscussed,itisalsoreportedtobemainlysoldby30households.

118

9

1

8

55

1

5

12

28

36

1

12

2

0 50 100 150frequency

Tobacco

Cassava

Watermelon

Banana

Rice

Pineapple

Cucumber

Soybeans

Peanut

Mung Bean

Guava

Chili Pepper

Chili

crop

Frequency of Crops Mentionedas one of the Three Most Important Crops

Apart from Maizein Terms of Income

LLS|January2016


Figure20:CropsforSelf-consumption(reportednoselling)

Figure21:Cropswhicharemainlysold(reportedas50%+selling)

Ascanbeseeninfigure22,householdsgeneratemost incomefrommaizebetweenAprilandthefollowingmonthsaswellasJanuary,correspondingtothetwoharvestseasonandthemonthafter. Forothercrops,households report mostly selling them during the dry season which also corresponds with the tobaccoharvestingseason.

2

1

15

1

64

1

0 20 40 60frequency

Cassava

Banana

Rice

Mung Bean

Maize

Chili Pepper

crop

Crops for Self-Consumption(Reported No Selling)

115

7

1

7

30

1

5

12

27

35

1

120

8

2

0 50 100 150frequency

Tobacco

Cassava

Watermelon

Banana

Rice

Pineapple

Cucumber

Soybeans

Peanut

Mung Bean

Guava

Maize

Chili Pepper

Chili

crop

Crops which are Mainly Sold(Reporting 50%+ selling)

LLS|January2016


Figure22:Maizesellingbycalendarmonth

Figure23:Othercrop(cropsotherthanmaize)salesbycalendarmonth

Table 12 shows the percentage that maize contributes to the total income from households. Thesehouseholdsclaimthataroundathird(31%)oftheirincomecomesfrommaize.

Table12:IncomeEarnedwithMaize

Nr. Obs mean

Percent of Total HH Income Earned with Maize 193.00 30.83

Duringqualitativedatacollectiontwohouseholdsexplainedthattheywereplantinghybridseedsforthefirsttime because they got hybrid seeds from the government which was encouraging households to try thetechnology. They knew that hybrid seeds have better yields but considered them to be costly. Anotherhouseholdnotcultivatingusinghybridseedssaidthattheseedswereexpensiveandledtoproducethatwas‘notverydelicious’.Also,onehouseholdrespondedthathybridseedscannotbestoredverylong.Whilelocalseedscanbestoredup toayear,hybridseedscanonlybestored foramaximumofsixmonths.Since thefarmerclaimedheneededtoconsumethemaizeyearround,thehouseholdneedstoplanthybridseed.

To sell maize households report a range of behaviours. Four respondents explained that they usually sellmaize to a trader which comes to the village, making it easier for them as they do not have to travelanywhere. Selling inthewarungwasmentionedbytworespondents,whicharealsonearthehomesfromwhichtheywereselling.Tworespondentsexplainedthattheygotothelocalmarketsbecausethepricethere

5.4

9.2 10.0

16.9

12.3

15.5

28.5

18.5

24.6

17.7

10.011.5

0

10

20

30

Perc

enta

ge

Octobe

r

Novem

ber

Decem

ber

Janu

ary

Februa

ryMarc

hApri

lMay

June Ju

ly

Augus

t

Septem

ber

Month When People Sell Maize

10.9

7.1

9.8

11.7 12.0

8.3

10.5

14.3

24.1

13.2

16.215.0

0

5

10

15

20

25

Perc

enta

ge

Octobe

r

Novem

ber

Decem

ber

Janu

ary

Februa

ryMarc

hApri

lMay

June Ju

ly

Augus

t

Septem

ber

Month When People Sell Cropsother than Maize

LLS|January2016


is better than what the trader offer, and that in the markets they can get information about the pricesituation.

The price which households command is important for the maize farmers as it directly determines theirincome.Whilesomehouseholdssellingmaizeconsiderthepricesituationandwaitiftheyconsiderthepricenot tomeet theirexpectations,otherhouseholdsreport that theyarecompelledtoselleven if theprice islowbecausetheyneedthemoney.

The perception of a ‘high’ price however is not consistent across the households interviewed duringqualitativedatacollection.Onehouseholdexplainedthatthehighestpricetheycangetis3’200IDRperkg.The householdmember said that if the price is 3200 IDR per kg then the government importsmaize andthereforethepricecanneverbehigherthan3200IDRperkg.Otherhouseholdsconsider3000IDRperkgashighenoughtosellmaize.Anotherhouseholdstatedthatthebestwaytogetinformationaboutthepricesiswhengoingtothemarket.Sometimes2’800IDRperkgisalreadyagoodprice.

Sales practices also show somediversity. Somehouseholds report selling all themaize they have at oncewhiledominantly thehouseholdsclaimthat theysell theirmaizebyparts. Householdsexplainedthat theyonly sellmaizewhen they needmoney. Those that aremore price-sensitive, sell only parts because theyhopethatthepricemightbehigherinthefuture.Otherhouseholds,however,explainthattheywaituntiltheprice ishighestwithinayear. Iftheydonotexpect ittoriseanylongertheyselleverythingatonce.Otherhouseholdshoweverexplainedthattheyselleverythingrightaftertheharvestingseasonasthis isthetimewhenthehouseholdneedstorepaydebts,hassocialexpendituresandfinanceseducation.

Regardinggenderdivisionof labour, fourhouseholds reported that thehusbandandwifegenerate incomefromagricultureandmanagelivestocktogether.Otherhouseholdsexplainedthatthehusbandgeneratestheincomewhilethehousewifeismoreresponsibletomanageissueswithinthehouse.Ascanbeseenintable13alsothedecisionwhentosellmaizeismostlythepreserveofmalehouseholdmembers.Yetinaroundaquarter(27.1%)ofhouseholds,womenarereportedtobethemostimportantdecisionmaker.

Therewereotherhouseholdswhichreportedthattheydonotthemselvesmanagetheirlandbutthisisdoneby labouroutside theirhousehold. Manyhouseholdmembershaveotheractivities toearn incomeanddonothavetimetomanagethelandthemselves.Oncetheharvestseasoncomestheysharetheprofitswiththelabourers.Thesehouseholdsgenerallyreportedthatchildrenarenotinvolvedinfieldwork.However,whenneeded(suchasintheharvestingseason)orwhenthechildrenareavailable(suchasinholidayperiods)theydohelpinthefield.

Table13:FemaleDecisionMakingPowerandEngagementinMaizeActivities

Nr. Obs mean

Most important decision maker in HH is female: Selling Maize 129.00 27.13 Second important decision maker in HH is female: Selling Maize 128.00 75.78

5.2 LivestockActivities

Livestock rearing is also part of household income. As discussed the livestock can be seen as a form ofinvestment. They are sold throughout the year as can be seen in figure 24. Livestock is sold regularlythroughouttheyearbutwithpeaksinAprilandAugust,whichmayberelatedtoreligiousceremoniessuchasEid-ul-Adha(August)

LLS|January2016


Figure24:MonthwhenpeoplesellLivestock

6 ExpendituresandFinancialExpenditure

As can be seen in figure 25, education expenditure was mentioned by 66% of the households to be asignificantexpenditure inthe last12months. Alsohealthexpenditure,expenditureformarriageandotheradatcelebrationswerementionedasmostsignificantexpenditure.For24%ofthehouseholdsbuyinganimalstockisasignificantexpenditureand21%consideragriculturalinputsareasignificantexpenditure.

Figure25:Significanthouseholdexpenditure

Therewasarangeofresponseregardingthemostimportanthouseholdexpenditure.Duringqualitativedatacollectionsomehouseholdsexplainedthatfoodexpenditureisthemostimportantasitisthesourceoftheirenergy.However,otherhouseholdsexplainedthattodonatetothepoorismostimportantbecausetheyareoften being forgotten. Other households claimed that agricultural expenditure and business were most

10.7 10.1

18.519.6 19.0

17.9

27.4

14.9 15.5

17.9

23.2

9.5

0

10

20

30

Perc

enta

ge

Octobe

r

Novem

ber

Decem

ber

Janu

ary

Februa

ryMarc

hApri

lMay

June Ju

ly

Augus

t

Septem

ber

Month When People Sell Livestock

48.7

66.0

1.6

42.3

0.0

23.8

15.3

24.3

1.6 0.07.9

20.6

10.2

0

20

40

60

80

Per

cent

Health

Exp

endit

ures

Educa

tiona

l Exp

endit

ures

Funera

l Cos

ts

Marria

ge

Naik H

aji/ U

mroh

Other A

dat/ R

eligio

us/ V

illage

Cele

brati

on

Repay

ing D

ebts

Buying

Anim

al Stoc

k

Openin

g a B

usine

ss

Buying

a Hou

se

Renov

ation

of H

ouse

Agricu

ltura

l Inpu

ts

Agricu

ltura

l Ass

ets

Significant Expendiutres

LLS|January2016


importantbecauseitenablestogeneratefurtherincome.Alsoeducationwasmentionedtobeimportantaswell.

6.1 EducationExpenditure

Ascanbeseen in figures26and27, theshareof totalexpenditureoneducationdecreasesbyexpenditurequintile. The total amountof IDRvalue spend for educationper childdoesnot seem tobemuchdifferentacrossthequintiles.

Figure26:ExpenditureonEducation(total)

Figure27:Expenditureoneducationperchild

All households interviewed during qualitative data collection explained that they consider education to beimportantbecause itopenstheirchildrennewpossibilitiesandcan leadtoabetter life inthefuture. Eventhough school is often free,manyhouseholds still consider education as a large expenditurebecause theyneedtopaytransportationcosts,books,uniforms,andprovidepocketmoney.Forotherhouseholdswherebooksanduniformsarecovered,theyclaimedtheystillneedtopayforpocketmoneyandtransportation.

Forhouseholdswithchildrenthatstudy inauniversity, thecostoftuitionandsometimesdormitoryfees isconsidered a large expenditure. Those households are convinced that education can help their childrenchangetheirlifeforthebetter.Twointerviewedhouseholdsreportedthatsincetheyhaveenoughmoneytofinance their children’suniversity theydonot feel that thoseexpendituresareaburden.Also,mostof thehouseholdsseemtobesatisfiedwiththecurrenteducationoftheirchildrenasfoundduringqualitativedatacollection.Onehousehold,however,explainedthat it isnotsatisfiedwithhisdaughter’seducationbecauseshewouldliketogotouniversitybutthehouseholdcannotaffordit.

10.710.3

7.0

4.8

3.3

0

2

4

6

8

10

Shar

e of

Tot

al E

xpen

ditu

rs in

%

Q1 Q2 Q3 Q4 Q5

Education Expenditure

0

50,000

100000

150000

200000

Tota

l Exp

endi

turs

in R

p

Q1 Q2 Q3 Q4 Q5

Education Expenditure per Child

LLS|January2016


Figure28:financingofEducation

Ascanbeseeninfigure29,mosthouseholdsfinanceeducationwhilesellingcropsandlivestockorbydrawingupontheirsavings.Educationalexpenditureistypicallyduearoundharvestseasonaswasseeninsection4.Thismightbethereasonwhytheeducationexpenditurearesometimesfinancedwithcropstocks.

Figure29:Timingofsignificantexpenditures:Education

6.2 SocialExpenditure

Socialexpendituremight includeceremonies,alcoholand tobacco, recreationandentertainment,and foodconsumedoutsidethehousehold.Theseexpendituresaretypicallymadewheninagroup.Expendituresfortobacco and alcohol are four all quintiles around 8-10% of total expenditures. Because Madura ispredominantly Muslim much of is likely to be tobacco consumption. No clear trend is visible across thequintiles. The expenditures for ceremonies are lower reaching around 1.2-2% depending on expenditurequintile. Also here no clear trend across quintiles can be reported. Expenditure for recreation and

33.1

0.8 0.8 0.8 0.8

40.3

19.4

4.0

0

10

20

30

40

Perc

ent

Saving

s

Help fro

m Rela

tives

/Friend

s

Help fro

m Gov

ernmen

t

Help fro

m NGO/R

eligio

us In

stitut

ion

Chang

e Eati

ng Patt

erns

Employe

d Hou

seho

ld Mem

bers

Inten

sified

Work

Adult H

ouse

hold

Membe

rs Star

ted to

Work

House

hold

Membe

rs Migr

ate

Reduc

e Exp

endit

ures o

n Hea

lth an

d/ or

Educa

tion

Credit

Sell Agri

cultu

ral Ass

ets

Sell D

urable

Assets

Sell La

nd/Buil

ding

Sell C

rop Stoc

k

Sell Li

vesto

ck

Inten

sify F

ishing

Send C

hildre

n to L

ive Else

where

Spiritu

al Effo

rts

Curren

t Inco

me

Did Not

Do Any

thing

Other

Financing Education

1.6 0.8

8.8

5.6

2.4

24.8

40.0

9.6

3.2 3.2

0

10

20

30

40

Perc

ent

Janu

ary

Februa

ryMarc

hApri

lMay

June Ju

ly

Augus

t

Septem

ber

Octobe

r

Novem

ber

Decem

ber

Timing of Significant Expenditures:Education

LLS|January2016


entertainmentaswellasforfoodconsumedoutsidethehouseareincreasingwithexpenditurequintile.Thisexpenditure,however,isalsorelativelylowforallquintiles.

Figure30:SocialExpenditure

Apartfromthisexpenditure,alsodonationsandgiftstootherhouseholdsareconsideredsocialexpenditure.Aswas already discussed before, helping neighbours, family, and friends finance celebration is part of thelocalcultureinSumenep,whileforinstanceforfuneralsandweddingsitisasocialobligationtoprovidericetothehouseholdholdingtheceremonies.Ascanbeseeninfigure31,andalsoattestedduringquantitativedata collection,many households reported that theymostly financewedding expenditureswith their cropstock.

Figure31:FinancingMarriage

Ascanbeseeninfigure32,otheradatexpenditures(generallyvillageorreligiouscelebrations)arefinancedwith savings, selling crops and livestock aswell. Even thoughonly a fewhouseholds report selling durable

8.7

1.6

0.0

0.6

8.3

1.2

0.0

0.9

10.0

1.3

0.0

0.7

9.3

2.0

0.2

2.1

8.2

1.5

0.5

1.3

0

2

4

6

8

10Sh

are

of E

xpen

ditu

res

from

Tot

al E

xpdn

ditu

res

in %

Q1 Q2 Q3 Q4 Q5

Social Expenditures

Alcohol & Tobacco Ceremonies

Recreation & Entertainment Food Consumed outside of the House

8.92.5 1.3 1.3 1.3

67.1

15.2

1.3 1.30

20

40

60

80

Perc

ent

Saving

s

Help fro

m Rela

tives

/Friend

s

Help fro

m Gov

ernmen

t

Help fro

m NGO/R

eligio

us In

stitut

ion

Chang

e Eati

ng Patt

erns

Employe

d Hou

seho

ld Mem

bers

Inten

sified

Work

Adult H

ouse

hold

Membe

rs Star

ted to

Work

House

hold

Membe

rs Migr

ate

Reduc

e Exp

endit

ures o

n Hea

lth an

d/ or

Educa

tion

Credit

Sell Agri

cultu

ral Ass

ets

Sell D

urable

Assets

Sell La

nd/Buil

ding

Sell C

rop Stoc

k

Sell Li

vesto

ck

Inten

sify F

ishing

Send C

hildre

n to L

ive Else

where

Spiritu

al Effo

rts

Curren

t Inco

me

Did Not

Do Any

thing

Other

Financing Marriage

LLS|January2016


goodsortakingcredit,itindicatestheimportanceofadatcelebrations.Somehouseholdsmentionedreducingexpendituresoneducationorhealthtobeingabletofinanceeducation. Thoseformsoffinancingmarriageandotheradatcelebrations,however,arerare.

Figure32:FinancingotherAdat

As can be seen in graphs 33 and 34, households hold most marriage and other adat, village or religiouscelebrationsaroundApriltoOctober.Thisisthedryerperiod,andhouseholdsgeneratemostincomearoundthosemonthsasreportedinqualitativedatacollection.

Figure33:Timingofsignificantexpenditure–Marriage

37.2

2.3 2.3

30.2

20.9

4.72.3

0

10

20

30

40Pe

rcen

t

Saving

s

Help fro

m Rela

tives

/Friend

s

Help fro

m Gov

ernmen

t

Help fro

m NGO/R

eligio

us In

stitut

ion

Chang

e Eati

ng Patt

erns

Employe

d Hou

seho

ld Mem

bers

Inten

sified

Work

Adult H

ouse

hold

Membe

rs Star

ted to

Work

House

hold

Membe

rs Migr

ate

Reduc

e Exp

endit

ures o

n Hea

lth an

d/ or

Educa

tion

Credit

Sell Agri

cultu

ral Ass

ets

Sell D

urable

Assets

Sell La

nd/Buil

ding

Sell C

rop Stoc

k

Sell Li

vesto

ck

Inten

sify F

ishing

Send C

hildre

n to L

ive Else

where

Spiritu

al Effo

rts

Curren

t Inco

me

Did Not

Do Any

thing

Other

Financing other Adat

2.5 2.53.8

2.5

15.0

20.0

7.5 7.5

15.0

23.8

0

5

10

15

20

25

Pe

rcen

t

Janu

ary

Febru

ary

Mar

chApr

ilM

ayJu

ne July

Augus

t

Septe

mbe

r

Octobe

r

Novem

ber

Decem

ber

Timing of Significant Expenditures:Marriage

LLS|January2016


Figure34:Timingofsignificantexpenditure(otherAdat/religious/villagecelebration)

6.3 LivestockExpenditure

As reportedby somehouseholdsduringqualitativedata collection, small livestock isoften financedby theearnings from selling grown livestock, business profits or by other forms of daily income. As discussedpreviously, livestock is also considered a form of investment and savings. Especially goats and cows arereported tobeingheld to finance largeexpenditures in the futurewhichmightbeoreducational,businessrelated(morelivestock),ortofinancehealthcare.

Expenditure toholdanimal stockare considered tobe small since they feed the livestockwithwaste fromtheircropsorbysearching food for the livestock in thenearby forest. Ascanbeseenthehouseholdsbuyanimal stock around the year. In August and September, they buymost animal stock. This is likely to becaused by the Eid-ul-Adha, an Islamic celebration where households slaughter livestock (and held inSeptemberin2015).

Figure35:TimingofSignificantExpenditure-buyinganimalstock

6.4 AgriculturalAssetsandInputs

Mostof thequalitativedata respondents (5of9)explained that theydonotconsidermaize inputs tobeasignificantexpenditureduringqualitativedatacollection,thisisalsoreflectedinfigure25.Theyaccessseeds

2.2 2.2

22.2

4.46.7 6.7

35.6

15.6

4.4

0

10

20

30

40

Perc

ent

Janu

ary

Februa

ryMarc

hApri

lMay

June Ju

ly

Augus

t

Septem

ber

Octobe

r

Novem

ber

Decem

ber

Timing of Significant Expenditures:Other Adat/Religious/Village Celebration

6.5 6.5

8.7

10.9

6.5

8.7

17.4 17.4

10.9

4.3

2.2

0

5

10

15

20

Pe

rcen

t

January

Febru

ary

Marc

h

April

May

June

July

August

Septe

mber

October

Nove

mber

Dece

mber

Timing of Significant Expenditures:

Buying Animal Stock

LLS|January2016


eitherfromthegovernmentorcultivatelocalseedsfromlastseasons’crops.Theyneedtopurchasefertiliser.Thisexpenditureis,however,notconsideredtobeverycostly.

Most of the households during qualitative data collection claimed that they finance inputs with dailyexpenditure,borrowingordrawingfromtheirprofits frombusinessoragriculture. Alsosmall toolsarenotconsidered tobea largeexpenditureandare financedwithdaily income.Aswasalreadydiscussedabove,tractorandotherlargeequipmentmightbeprovidedbythefarmergroupsorcowsareused.

6.5 RepayingDebt

Usuallyhouseholdsborrowmoneyfromtheirneighbours,family,andfriendsbuthavealsoaccesstoformalinstitutions as discussed previously. Borrowing is also an option when households have an importantexpenditure, but do not have enoughmoney to finance them. These households report to borrowmoneyduringplantingseason,schoolingperiods,andforbusinessexpenditure,andhealthexpenditureandfordailyexpenditure. Duringqualitativedata collection, 6 of 9 respondents explained that tobacco gives them themostincome.Theyexplainedthatwhentheyharvesttobaccotheyrepaytheirdebts,whichismainlyduringthemonthsSeptemberandOctober.

Figure36:Timingofsignificantexpenditure-repayingdebt

6.6 FoodExpenditures

As can be seen in figure 37, the share of food consumption is increasingwith expenditure quintile. This issurprising,sincewealthierhouseholdsusuallytendtohavelowersharesoffoodexpenditures.Ascanbeseentheshareliesbetween63%and75%.WhiletotalIDRvalueofnon-fooditemshasincreasedmoderatelyinthehigherexpenditurequintile,theincreaseinabsolutetermsforfoodexpenditureismorestriking.

7.1

3.6

10.7 10.7

3.6 3.6

17.9

21.4 21.4

0

5

10

15

20

Perc

ent

Janu

ary

Februa

ryMarc

hApri

lMay

June Ju

ly

Augus

t

Septem

ber

Octobe

r

Novem

ber

Decem

ber

Timing of Significant Expenditures:Repaying Debt

LLS|January2016


Figure37:FoodExpenditurebyQuintile

Figure38:TotalFoodandnon-foodExpenditurebyQuintile

Ascanbeseeninfigures39and40,higherexpenditureinfoodforhigherquintilesismainlydrivenbyhigherconsumptionofmeatandfish.AsIndonesiaingeneralreportsincreasingratesofanaemia(StatisticsCentreAgency, health profile, 2014),moremeat and fish consumption thereforemight indicate a preference formore diverse food consumption, richer in micronutrients, for higher expenditure quintiles. Also higherexpenditure isreported intheconsumptionofbeveragesandvegetables.Theshareofmoneyusedforriceandotherstaplefoodsisseentodecreasebyexpenditurequintile.

63.465.7

69.4 70.974.0

0

20

40

60

80

Shar

e of

Tot

al E

xpen

ditu

rs in

%

Q1 Q2 Q3 Q4 Q5

Food Expenditure

0

1.0e+06

2.0e+06

3.0e+06

4.0e+06

5.0e+06

Tota

l Exp

endi

turs

per

Mon

th in

Rp.

Q1 Q2 Q3 Q4 Q5

Total Food and Non-Food Expendiures by Quintile

Food Non-Food

LLS|January2016


Figure39:TypeofFoodExpenditurebyQuintile(totalspend)

Figure40:ShareofExpenditureonRiceandOtherstaplesbyQuintile

7 IncomeUseofMaize

Thewayincomeofmaizeisreportedtobeused.Ascanbeseeninfigure41,maizeearningsaremainlyusedtofinancedailyhouseholdneeds.Oncesuchbasicneedsaresatisfiedtheincomeismainlyusedforsavingsor education costs. However, most of the expenditure types in the figure were identified through the

0

200000

400000

600000

800000

Tota

l Exp

endi

ture

s pe

r Mon

th in

Rp.

Q1 Q2 Q3 Q4 Q5

Type of Food Expenditures

Rice Staple Food

Vegetables Dried Food

Meat Fish

Milk & Eggs Spices

Sugar Oil

Beverages Alcohol & Tobacco

Snaks Food Consumed Outside of the House

0

5

10

15

20

Shar

e of

Tot

al E

xpen

ditu

rs in

%

Q1 Q2 Q3 Q4 Q5

Type of Food Expenditures

Rice Staple Food

Vegetables Dried Food

Meat Fish

Milk & Eggs Spices

Sugar Oil

Beverages Alcohol & Tobacco

Snaks Food Consumed Outside of the House

LLS|January2016


quantitative data collection. Thismeans that after the household has satisfied daily household needs (forinstancefoodconsumption)theyusethemaizeincomeforarangeofexpenditurepriorities.

Incomefromtobacco(figure inappendix) isalsoconsideredtobean importantsourceof income ismainlyusedforeducationcosts.Therefore,incomefromcropsseemstobeusedforavarietyofpurposes

Figure41:Mostimportantuseofincomederivedfrommaize

Figure42:Secondmostimportantuseofincomederivedfrommaize

During qualitative data collection most households reported that the household head decides what theincomefrommaize isuseforastheheadof thehousehold is responsible. Usually theheaddiscusseswiththeirpartner. Since thehouseholdhead ismostly reported tobemale,womenaregenerallynot themostimportantdecisionmakerswithinahousehold.Asshownintable14,23%ofthehouseholdsreportthemostimportantdecisionmakerwithrespecttowhattheincomefrommaizeisusedforisreportedtobefemale.The second most important decision maker is female for 77% of households. Qualitative data collectionrevealed that often thewife takes decisionswhen she is responsible tomanage financial aspects and thehusbandtruststhewifetotakereasonabledecisions.

10.214.1

46.1

10.2

0.8 1.6

9.4

3.9 3.9

0

10

20

30

40

50P

erce

nt

0

Health

Exp

endit

ures

Educa

tiona

l Exp

endit

ures

Daily H

ouse

hold

Needs

Agricu

ltura

l Inpu

ts

Agricu

ltrual

Assets

House

reno

vatio

n/buy

ing

Debt R

epay

ment

Cash S

aving

s

Lives

tock

Other D

urable

Goo

dsOthe

r

Most Important Income Use of Maize

11.6

19.8

7.05.8

2.3

5.8

25.6

5.8

14.0

2.3

0

5

10

15

20

25

Perc

ent

0

Health

Expen

diture

s

Educa

tiona

l Exp

endit

ures

Daily H

ouse

hold

Needs

Agricu

ltural

Inpu

ts

Agricu

ltrual

Assets

House

reno

vatio

n/buy

ing

Debt R

epay

ment

Cash S

aving

s

Lives

tock

Other D

urable

Goo

dsOthe

r

Sectond Most Important Income Use of Maize

LLS|January2016


Table14:ControlandDecisionPowerofEarningsfromMaize

Nr. Obs mean

Most important decision maker in HH is female 129.00 23.26 Second important decision maker in HH is female 128.00 76.56

8 SeasonalityandVulnerability

During qualitative interviews households identified when they have most income during a year. August,SeptemberandOctoberwereexplainedasatimeofgenerating income,asthis istheharvestingseasonfortobacco.Mosthouseholdsalsoplanttobaccowhichtheyusetosell.Otherhouseholdshoweverreportedthatthey have most income when their business is especially lucrative which was Lebaran for one household(IslamiccelebrationinJulyfortheyear2015)orduringplantingseasonwhichisgenerallyDecembertoApril(dependingonthecrop).

Mosthouseholds,however, report that theyareshortofmoneyduring theplantingseason.Thosemonthsareespeciallydifficultformanyhouseholdsastheyhavetopayforagriculturalinputsandalsotorentcows.Thisdoesnotseemtoaffectfoodsecurity. Ascanbeseenintable15,only2%ofhouseholdsworriedthattheydidnothaveenough food toeat in the last sevendays and0.5%of thehouseholds faceda situationwithinthelast12monthsweretheydidnothaveenoughfoodintheirhousehold.Thesenumbersmightbelow,becauseallthehouseholdsproducemaizewhichatleastoffersthemenoughstaplefoodfortheirfoodconsumption.

Table15:FoodSecurity

Nr. Obs mean

Worried 193.00 2.07 Did not Have Enough Food 192.00 0.52

Aquestionaskedduringqualitativedatacollectionwaswhatthehouseholdswouldstopbuying if theyhadlessmoney. Some respondents explained that theywould not knowwhat to stop buying because all theexpendituresareimportant.Otherhouseholdsreportedthattheywouldbuycheaperfoodbecausethisistheonlythingthattheystillcanreduce.Anotherhouseholdreportedthatitwouldstopsavingforthechildren’seducationwhileothertwohouseholdexplainedthatthiswasimportantandtheywouldrelyontheirsavings.

Mosthouseholdsalsoclaimedthattheydonothaveunnecessaryexpenditure.Onehouseholdadmittedthatthey could reduce the cost of smokingwhile also clothes expenditure aswell as those for their children’seveningactivitieswerementioned.Duringqualitativedatacollectionitwasalsoidentifiedthatthelongdryseason(whichisbeinglongerthanusualbecauseitistheyearofElNiño),isaffectingthehouseholdsastheycannotstarttoplantandcropsarelessproductivethanusual.

LLS|January2016


9 ConclusionandRecommendationsforFutureWaves

This baseline study has seen that households have very different sources of income. Around 30% of theincome is reported tobegained throughmaize.Anotherkeycrop that is relevant for incomegeneration istobacco,whichisakeycashcrop.Maizerather isusedforamixofconsumptionandsales. Itprovidesthehouseholdswithstaplefoodandincreasestheirfoodsecurity.Theincomefrommaizeismainlyreportedtobeusedfordailyexpenditurewithhouseholdssellingmoremaizewhentheyhaveneeds.

Regardinghouseholdpurchasingpreferences if theyhadmoremoneytherewasarangeof responses.Twohouseholdsexplainedthattheywouldliketoopenanewbusiness–thattheyhaveideasbutneedmoneytoput these into action. Other households explained that theywould buy livestock because they anticipategood returns from the cows in the future. Another household said that itwould like to invest in existingbusiness(alargerpenfortheircattleascurrentlyitistoosmall).Buyinggoldorlandwasmentionedoftenastheseareassetsareunderstoodtoappreciateinvalue.

Two respondents claimed that the money should be saved as you cannot to anticipate unexpectedexpendituresinthefuture.Whilehouseholdshaveverydifferentideaswhattheywoulddoiftheyhadmoremoney,theyarenotconsideredessentialforsubsistenceandmostarerelatedtoanticipatedfuturereturns.In relation to large expenditures, here households answered that theywould like to renovate their homeyard,openabusiness,naikhajiandbuyahousewhilesomeotherexplainedthattheydidnothaveanylargeexpenditures planned. Other consumption preferences were more modest, one household claimed theywouldliketobuytheirgrandsonatoy.Savingswerealsomentioned.

Anotherindicationonwhatadditionalincomeisusedformightbegivenbycomparingthelivelihoodsituationacrossdifferentexpenditurequintiles.Households inhigherexpenditurequintiles tend tohavemore toiletfacilities,betterfloormaterial,moreTVs,mobilephones,motorcyclesandlivestock.Theyalsotendtohavemore grain storage containers which might allow better storage of maize. As was discussed earlier,householdsinhigherexpenditurequintilesconsumemoremeatandfishwhichindicateshighermicronutrientconsumption. Anotherarea is time. As the interventionwillchangethetypeofseedused, thismightalsochangetheamountoftimeneededforfieldpreparation,forinstancefertiliserneedtobeapplieddifferentlyandmorewaterresourcesareneeded.Understandingchangessuchasthesewillbeconsideredinthefollowupofthestudies.

LLS|January2016


10 Appendix

14.7

31.9

27.6

1.7 0.9

6.0

14.7

0.9 1.7

0

10

20

30Pe

rcen

t

0

Health

Expen

diture

s

Educa

tiona

l Exp

endit

ures

Daily H

ouse

hold

Needs

Agricu

ltural

Inpu

ts

Agricu

ltrual

Assets

House

reno

vatio

n/buy

ing

Debt R

epay

ment

Cash S

aving

s

Lives

tock

Other D

urable

Goo

dsOthe

r

Most Important Income Use of Tobacco

7.610.5

47.6

1.9 1.94.8

15.2

4.8 5.7

0

10

20

30

40

50

Perc

ent

0

Health

Expen

diture

s

Educa

tiona

l Exp

endit

ures

Daily H

ouse

hold

Needs

Agricu

ltural

Inpu

ts

Agricu

ltrual

Assets

House

reno

vatio

n/buy

ing

Debt R

epay

ment

Cash S

aving

s

Lives

tock

Other D

urable

Goo

dsOthe

r

Sectond Most Important Income Use of Tobacco

Baseline Report on Maize Sub- Sector in Sumenep...Arisan Group-based rotating savings and lending...

Documents

Transcript of Baseline Report on Maize Sub- Sector in Sumenep...Arisan Group-based rotating savings and lending...