Sulawesi farmers baffled by high shrimp and bean profits

By Arifuddin Saeni

UJUNGPANDANG (JP): As Indonesia sinks deeper into an economic abyss, people warily look around for lifeboats.

But the metaphor does not apply to cacao and shrimp farmers in South Sulawesi. The disastrous 85 percent fall of the rupiah against the U.S. dollar has been a windfall for farmers in Pangkep, Pinrang, Polmas and Palopo regencies.

While many companies are teetering on the brink of bankruptcy, these farmers have become rich thanks to the unprecedented dramatic increase in cacao and shrimp prices on the world market.

Imagine this. Last July, when the crisis began, shrimps of average size fetched Rp 25,000 a kilogram; last month the price jumped to Rp 125,000. Cacao beans have soared from Rp 5,000 per kilogram to Rp 20,000 over the same period.

The dramatic rise in earnings appears too good to be true to many farmers. Some have been wise enough to reinvest their earnings, but others are spending money like it grows on trees.

"Many new wealthy people have no idea how to spend their money and they are reckless enough to spend it on consumer goods," a farmer boldly said.

Amien, a cacao farmer who has a 10-hectare farm in Polmas, recalled that before the economic crisis, his income was only sufficient to support his family's modest lifestyle.

Now, to obtain Rp 1 million cash he needs only to collect 50 kilograms of cacao.

Recently, he went into town and bought a king-size refrigerator even though his village has no electricity. So that his new luxury is useful, he keeps the family clothing in it as though it was a wardrobe.

"I'm patient enough to wait until electricity comes to my village," he said with a shy grin on his face. "Until then, let me use it like a wardrobe."

The booming cacao and shrimp businesses are also proving to be good news for car dealers in the area.

Sudirman AR, manager of Hadji Kalla Group's Toyota division, told of when he served a farmer who was wearing a worn-out shirt and thongs. He came into the showroom asking odd questions about the specifications of the latest Toyota Kijang model which had a price tag of Rp 125 million.

After a brief explanation, including the van's price, the farmer paid for the car in cash, which he carried in a black plastic bag.

Sudirman claims that ever since the economic crisis began to take hold, NV Hadji Kalla in Pinrang has been overwhelmed by orders for cars.

To meet the unusually high demand, the dealer has taken cars from showrooms in other towns such as Barru and Sidrap. "But still the demand is too high to meet," Sudirman said.

According to the company's statistics, monthly car sales have reached 200 over the past six months. The highest demand comes from agroindustrial areas like Pinrang, Palopo and Sinjai.

Nasrun Djunaid, 31, of Pinrang, about 185 kilometers north of Ujungpandang, reports that each hectare of his 50-hectare brackish ponds yield 600 kg of shrimp. In the forthcoming harvest season, he expects to harvest about 30 tons of shrimp of various sizes.

He said that of the 50 hectares of ponds, 40 hectares were rented from other farmers at Rp 4 million a year per hectare.

Shrimp farmer Andang, who employs 16 workers, says farmers harvest shrimp three times a year. For each hectare of pond, he puts about 1 million of fray (spawn) at the beginning of each breeding season, then applies 100 kilograms of supplement feed and 300 kg of fertilizer to the total number of ponds.

Each laborer earns Rp 150,000 in monthly wages. To motivate his workers, Andang leaves some small shrimps in the ponds at the end of each harvest for the workers to catch. Small shrimp usually sells at about Rp 10,000 per kilogram.

Unlike in Java, Lampung and North Sumatra, shrimp theft is rare in South Sulawesi. Farmers say theft is a minor problem.

The area's success story has become a much envied business in the province.

Basir, 40, turned his five hectares of paddy fields in Pinrang into shrimp ponds after realizing that the brackish fields were not very suitable for crops. Later he bought another 55 hectares of paddy fields to be made into ponds.

He said that in April, when the shrimp price hit Rp 120,000 per kilogram, he earned Rp 5.7 billion. Like other farmers, he falls into the category of the new wealthy who lead a consumptive life. He bought two Mitsubishi Pajero jeeps for almost Rp 300 million each.

The rise in cacao from Rp 5,000 to Rp 20,000 per kilogram has greatly motivated farmers who had long neglected their farms.

Marabang, 51, for example, is now seriously taking care of her farm, which she rarely visited before the cacao business boomed. Now the mother of two children regularly fertilizes and weeds her farm.

From the recent harvest, Marabang -- who is also a contract worker -- earned Rp 6 million, a surprising amount of money because she had never earned more than Rp 1 million before.

Most cacao farmers lulled by the soaring prices also spend their money on consumers goods, such as radios and TVs rather than reinvesting their money.

"If you want to be rich in this time of crisis, go to Pangkep and be a farmer," a shrimp farmer quipped.