Upstream-Downstream Challenges of Spice Commodities

Kompas/Riza Fathoni

Workers position a pallet of mace for drying at PT Agripro Tridaya’s nutmeg warehouse on Siau Island, Siau Tagulandang Biaro (Sitaro) islands regency, North Sulawesi, Friday (2/6). Behind them, pallets of nutmeg seeds are drying.

Pepper, nutmeg, clove, cinnamon and vanilla are major Indonesian spices. Each year, the country makes millions of US dollars from exporting these spices. However, Indonesia’s spice exports have not been developed optimally, as seen in the basic problems farmers in spice-producing regions face.

In 2015, the combined export value of pepper, nutmeg, clove, cinnamon and vanilla stood at US$824.37 million. The demand for spices continues to grow. Related associations and institutions recorded an increase in demand over the last few decades, occurring alongside expanding culinary trends and dining culture across the globe.