September 21, 2020
AgResults is pleased to announce its newest Pay-for-Results prize competition: The Indonesia Aquaculture Challenge Project, which is anticipated to formally launch in 2021 and run for four years, will focus on strengthening the country’s aquaculture sector by working through the Indonesian private sector to encourage smallholder farmers to adopt on-farm technologies that increase productivity. WWF Indonesia will serve as the competition’s Project Manager.
Aquaculture is a rapidly expanding sector in Indonesia; it has grown as a share of overall fish production from 10.6% in 1960 to 40.2% in 2014. As capture fishery production levels off, the country is leaning increasingly on aquaculture to produce fish for domestic consumption and export. Smallholder farmers make up 70-80% of total aquaculture producers, yet they struggle from a variety of challenges. Traditional feeding methods are inefficient, driving up costs without maximizing production. Poor water quality management also limits productivity and increases the chances of fish disease and death. Generally, smallholder farmers do not have access to adequate practices and tools to manage and prevent disease, especially among shrimp.
To combat these market failures, the Indonesia Aquaculture Challenge Project will use a Pay-for-Results prize competition to incentivize the increased adoption of productivity-enhancing technologies like automatic feeders and aerators among smallholder farmers, and in the process strengthening value chain linkages between input providers, farmers, and offtakers. The project will take place in six of Indonesia’s provinces: West, East, and Central Java; West and East Nusa Tenggara; and South Sulawesi.
The prize competition will award monetary prizes to Indonesian private sector competitors based on how many aquaculture technologies, specifically aerators and feeders, they sell or rent to smallholder farmers. In addition to these per-unit prizes, the competition will offer a grand prize to those competitors that sell the most technologies over the four-year contest period. An independent verifier will track sales and verify results to ensure that prizes are distributed accurately.
In its role as Project Manager, WWF Indonesia will oversee day-to-day project activities across the six target provinces. For more than 15 years, WWF Indonesia and its partners have worked with industrial and smallholder farmers to improve aquaculture practices and have supported the Indonesian government efforts to tackle the biggest challenges that stand in the way of responsible aquaculture management.
“Rising fish demand has resulted in increased fish production. Failure in safeguarding on-farm practices could potential result in environmental damage, such as the conversion of critical habitats, sea water intrusion, and overfishing,” said Imam Musthofa, Director of Marine and Fisheries for WWF Indonesia.
As the project prepares to launch, the Project Manager will coordinate with relevant stakeholders, including local government authorities, to promote the competition to private sector actors and increase interest in participation.
“Such a competition aims to find solutions to increase productivity yields without further expansion nor harming the environment,” said Mr. Musthofa. “It is a new way to encourage improvements to use natural resources efficiently.”
Funded by USAID (US), FCDO (UK), DFAT (Australia), GAC (Canada), and the Bill and Melinda Gates Foundation, AgResults has designed and implemented prize competitions since 2013 focused on spurring fundamental change in market relationships between the private sector and smallholder farmers.