Sustainable Cocoa Production Program Indonesia

Transcription

Sustainable Cocoa Production Program Indonesia
Sustainable Cocoa
Production Program Indonesia
Bi-Annual Report 2015
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 1
Table of Content
2 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015
Program Background
Timeline
Cluster Map
Holistic Approach
4
4
6
8
Program Results until June 2015
Measuring Program Impact
Program Outcome Monitoring
Outcome on Farm Rehabilitation
Nutrition Program Outcome
Key Program Outputs
10
10
11
12
13
14
Farming Good Practices and Technology Transfer Systems
Master Trainings for Staff and Extension Officers
Cocoa Farmer Trainings
Cocoa Farming & Greenhouse Gas Emissions
17
17
18
19
Nutrition and Gender Sensitivity Integration
Good Nutrition Practices Trainings
Engaging Women in SCPP
21
21
23
Farmer Organization, Market Access and Certification
Farmer Groups and Organizations
Smallholders Farm Certification
ICT for Certification and Traceability
25
25
26
27
Integrated Agribusiness Financing Facility (AFF)
Financial Literacy Trainings
Collaboration with Financial Institutions
Cooperative Strengthening
29
29
29
31
Stakeholder Management and Networking Platforms
Role and Contribution of Governments
33
33
Conclusions
34
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 3
Program Background
Timeline
PEKA
SCPP - SECO
CPQP 1 - IDH
Phase 2
GNP - EKN
STMF - IDH
CPQP 2 - IDH
AFF-SECO
READ-IFAD
GP-SCPP MCA-I
2010
2011
SCPP targets as one of the main objectives to reduce
the poverty level of 98,000 families of cocoa farmers
by 2018, with further expansion planned until 2020.
The Program design is over several funding phases,
with 31 funding expansion planned until 2020,
reaching 130,000 and implementing contracts established so far for the period from 2012 to 2018.
The Indonesian cocoa sector provides opportunities
for farmers to improve their livelihood. This is in
line with Joko Widodo administration’s goal to make
Indonesia the largest cocoa production country in the
world. Nevertheless, the sector faces a number of
challenges, which affect the cocoa production. Small
farm sizes, low productivity, lack of access to formal
finance, and competition from other crops are some
of the challenges encountered. The challenges can be
traced back to many factors such as lack of cultivation
expertise, unproductive and aging trees, limited access
2012
to quality farm inputs, and a high incident of pest and
disease infestation.
The Sustainable Cocoa Production Program (SCPP) is a
large public-private partnership between Swisscontact
and the Swiss State Secretariat for Economic Affairs
(SECO), the Sustainable Trade Initiative (IDH), the
Embassy of the Kingdom of the Netherlands (EKN),
the International Fund for Agricultural Development
(IFAD), and the Millennium Challenge Account-Indonesia (MCA-I). At national level SCPP works with
the Indonesian Ministry of Home Affairs, while for
partnerships with private sector companies the Program is currently collaborating with ADM Cocoa, Barry
Callebaut, BT Cocoa, Cargill Cocoa and Chocolate, Ecom,
Mars Inc., Mondeléz International, and Nestlé. Each of
the SCPP operational regions has a slight variation in
market-related interventions, which depends on the
private sector partners’ support and infrastructure.
2013
2014
2015
2016
SCPP started on January 1, 2012 as a continuation of
the Economic Development Financing Facility Project
(PEKA) in Aceh. During the planning phase with SECO,
several private sector companies expressed their interest to work with Swisscontact in Sulawesi, which led
to the inclusion of IDH as additional funding partner
to SECO. When the Program started, three companies
have joined SCPP under the IDH component in Sulawesi. In December 2012, EKN joined the Program with
the Good Nutrition Practices (GNP) modules, adding
huge value to the Program’s activities to improve
farmers’ livelihood. In March 2014, SECO expanded its
commitment in SCPP with the Agribusiness Financing
Facility (AFF) component.
In January 2015, the Program welcomed IFAD to work
with SCPP implementation in five districts in Central
Sulawesi as part of the READ program bridging onto
the next phase. In March 2015, Swisscontact – as part
2017
2018
of the GP-SCPP Consortium – signed an agreement
with MCA-Indonesia Green Prosperity to add additional
districts. The total number of districts increased from
19 to 29 and adds with East Nusa Tenggara one more
province to SCPP’s umbrella. Through the Consortium,
SCPP is also partnering with the Belgium NGO VredesEilanden (VECO) and the World Cocoa Foundation
(WCF) in the implementation of the Green Prosperity
component.
The Program, among others, offers cocoa farmer field
school trainings, builds the capacity of farmer organizations and cooperatives, promotes the establishment
of superior clone nurseries, creates transparency in a
sustainable supply chain, provides access to local financial service providers, improves the nutrition intake
of the cocoa farming families, and reduces greenhouse
gas emission in the cocoa sector.
Kementerian Dalam Negeri
Republik Indonesia
4 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 5
2
3
26
27
1
24
27
26
28
4
29
25
5
Investing in rural people
22
C en
Aceh
tr al S u l a w e s
i
C en
tr al S u l a w e s
Toli-Toli
28
27
Sou
i
th- E a st S ula w e
si
23
29 Buol
25
26
Banggai
21 East Luwu
10
Mamasa 11
Polewali
Mandar 12
24 North Kolaka
20
19
Luwu
23East Kolaka
Sou
22
17
th- E a st S ula w
es
i
18
Sikka
15
16 East Flores
11
10
12
Southwest
Sumba
9
13
14
Ende
15
West Sumatera
18
20
16
14
19
17
21
13
Cluster Map
7 Provinces
29 Districts
8 Private Sector Partners
6 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015
We s t S ul a w e si
Eas
t Nusa Tenggar
a
S o uth
S ula w e s
i
S o uth
S ula w e s
i
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 7
Holistic Approach
8 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 9
Program Results
until June 2015
Measuring Program Impact
SCPP uses the latest update of Progress out
of the Poverty Index (PPI) developed by the
Grameen Foundation and recommended by the
Committee on Sustainability Assessment (COSA).
By collecting data using simple questionnaires,
SCPP estimates the cocoa farmer household’s
likelihood of having an income per household
member per day below the national poverty line
(7,893 IDR/day) and two international poverty
lines of 1.25 USD/day or 2.50 USD/day.
Using a different categorization, the farmers living below the national or 1.25 USD/day poverty
line are considered as poor whereas the ones
living between the national and 2.5 USD/day
line are classified as extremely vulnerable.
Before joining the Program (farmers have been
joining the Program continuously since PEKA
start in Aceh 2010), more than 63% of the farmers’ households were in an extremely vulnerable
condition. One year after the program interven-
Aceh
West
Sulawesi
South
Sulawesi
Program Outcome Monitoring
tion, this number has already dropped to 56%.
The situation is traditionally the most critical in
West Sulawesi where every fifth household is
classified as poor.
In most parts of the world, cocoa farming is
often linked with poverty. SCPP believes that
its holistic approach will contribute to move the
cocoa farming households from the poor to the
vulnerable category and finally out of the poverty circle in four years after the intervention.
Over the course of the implementation, SCPP
regularly collects data from at least 10% participating farmers for post-line survey to measure
changes including income increase. As per data
available until June 30th, 2015 around 33%
of the assisted farmers, amounting to 19,875
households, have increased their income by at
least 75%.
Central
Sulawesi
Southeast
Sulawesi
West
Sumatera
SCPP
Total
Aceh
900
16%
800
14%
700
Kg/Hectare/Year
Poverty Rate - 1.25$/day
18%
10%
8%
6%
South
Sulawesi
Central
Sulawesi
Southeast
Sulawesi
West
Sumatera
SCPP
Total
400
300
2%
100
0%
0
10 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015
West
Sulawesi
500
200
Post-line 1.25$/day
One of the results shows increased farmers’
productivity to 699 kg/ha/year. These data are
from farm surveys that were conducted at least
one year after the first support, compared to
overall baseline data of 450 kg/ha/year, collected from farm evaluations before farmers joined
training activities. As per now, SCPP promotion
of sustainable cocoa production has resulted in
among others, a productivity increase of 55.3%.
600
4%
Baseline 1.25$/day
SCPP is continuously monitoring its approach and
its effect on the farming practices and farmers’ livelihood by frequent visits and constant
data collection. Until June 2015, the Program
has collected rolling baseline data from all the
trained farmers and post-line data from more
than 10,000 farmers (18% sample). The data are
analyzed on a regular basis to provide insight on
farmers’ changing practices and strategies and
often shared with partners or public.
When monitoring the outcomes, SCPP realizes
how important the technical assistance and
follow up after the trainings are to make the
Program effective. Farmers often still hesitate
to replant their farms with new and improved
planting material. But if encouraged by field staff
and other farmers’ successes and examples seen
20%
12%
in learning centers, they regain motivation and
start maintaining their old farms thus increase
again their yields and with it their income.
Most cocoa farmers started to plant cocoa in the
1990s during the Indonesian cocoa boom. Since
then not many of the trees have been replanted,
therefore the age of the trees is one of the biggest issues in cocoa production. Old trees attract
more pests and diseases and if not regenerated
or replanted, the farmers’ income from cocoa
drops significantly. With only applying GAP,
named farm rehabilitation, yields at the younger
cocoa farms can be already improved significantly, whereas at the older farms replanting
and/or side or top-grafting is recommended
(regeneration). With increased yields farmers
earn better income thus provide better education
for their children and more job opportunities are
generated.
Baseline
Post-Line
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 11
Outcome on Farm Rehabilitation
7,319 hectares regenerated: Total hectare of
farms where old or/and less productive trees
were side or top grafted with improved planting
material to rejuvenate the farm thus to ensure
improved and sustainable yields. As reported
previously, monitoring for this indicator is conducted on ongoing basis. Surveyed farmers have
already side-grafted an average of 80 cacao
trees (or averaging 10% of the farms) based on
SCPP post-line data.
This bi-annual report also updates as per June
2015 on cumulative outcome indicators from the
farmer capacity building in cocoa Good Agriculture Practices. Measuring farmer adoption of
improved technologies remains a key challenge
within the cocoa sector. Alignment with industry
partners and associations is an ongoing task to
ensure we have credible and feasible methodologies in place on evaluating individual farm
improvements. So far, we are reporting GAP outcomes with measuring three indicators related to
farm rehabilitation, regeneration, and replanting,
with results as follows:
9,036 hectares rehabilitated: Total hectare of
farms where good agricultural practices have
been successfully applied to improve productivity
and soil fertility. For this indicator the Program
counts all farms which produce at least 750 kg/
ha/year with the assumption that the farmers
have rehabilitated their farms through the application of better agriculture practices and added
organic material. Further yield increases are
possible on good managed farms with improved
planting material and agro-inputs. Farm rehabilitation needs to be performed by all supported
farmers to achieve the overall Program target of
1,000 kg/ha/year.
1,337 hectares replanted: Total hectare of
farms where so far 1.25 million cacao seedlings, produced in the 370 Program supported
nurseries, are planted as replacements for old
and diseased unproductive trees. The nurseries
have reached a capacity to produce annually 1.1
million cacao seedlings, but production, distribution, and planting of these seedlings still lacks
behind the potential.
16,000
Target
Result
Target
Result
South
Sulawesi
Target
Result
Central
Sulawesi
Target
Result
Southeast
Sulawesi
Target
Result
Despite of IDDS currently being used in many
areas of the world to measure dietary intake, it
is not yet possible to compare the results with
other projects and countries due to different
groupings of the foods thus score range, small
samples, and its common seasonality (variations
in rainy and dry seasons often bring different
results).
To do so, the Program sums the number of
nine food groups consumed by the individual
respondent over the 24-hour recall period. The
Program remained cautious when collecting the
baseline and post-line IDDS data due to in some
areas there is an increasingly common practice
to consume meals and snacks outside the home
such as in traditional occasions around the
village. This has significantly created higher IDDS
from the respondents.
West
Sumatera
Target
As per chart below, since the beginning of the
GNP component in 2013, the IDDS increased on
average by 16% (meaning by one more IDDS
food group consumed).
The Program has been utilizing the Individual
Dietary Diversity Score (IDDS) to reflect the
women’s nutrient adequacy in cocoa farming
households. By collecting the IDDS, The Program
is able to assess changes in women’s diet before
and after the GNP training to gauge improvement expected in dietary intake.
Aceh
West
Sulawesi
South
Sulawesi
*
Central
Southeast
Sulawesi Sulawesi
West
Sumatera
SCPP
Total
Result
7.0
14,000
6.0
IDDS Score
12,000
10,000
8,000
6,000
5.0
4.0
3.0
4,000
2.0
2,000
1.0
0
N/A
Aceh
West
Sulawesi
Nutrition Program Outcome
0.0
Rehabilitated
Replanted
Regenerated
Baseline IDDS
* In Central Sulawesi, GNP training is started in the
12 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015
1st
Post-Line IDDS
semester of 2015
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 13
Key Program Outputs
Besides the main outcome numbers, the Program has reached the following cumulative key output
numbers until the end of June 2015:
53,386 smallholder cocoa farmers were
trained on average 8 days through Farmer Field
Schools (FFS) in Good Agricultural Practices
(GAP), post-harvest handling, professional farm
management, nursery management, and certification, including 18.6% women participation.
Output achievement to date is 89%.
29,126 households (one member of the
family) of smallholder cocoa farmers were
trained in Good Nutrition Practices (GNP) with
79.6% women participation. The trainings were
conducted for 3 days: 2 days directly after the
GAP FFS and 1 day self-organized by the groups
during the harvesting period of the produce a
few weeks after the first training sessions.
Output achievement to date is 73%.
After GAP and GNP trainings, 14,055 selected
members of smallholder cocoa farmer households received capacity building through financial literacy trainings in Good Financial Practices
(GFP) with 51.8% women participation.
Output achievement to date is 47%.
677 extension officers (agriculture, nutrition,
and finance) from private sector and government agencies participated in SCPP’s training to
become master trainers.
Output achievement to date is 85%.
256 Cocoa Producer Groups (CPG) were newly
established in the 1st semester 2015, resulting
in 1,747 CPG in total. Towards the end of 2015,
the program will be working to achieve the overall target to facilitate the establishment of 2,000
CPG across the implementation areas.
Output achievement to date is 87%.
370 nurseries for planting materials have an
installed production capacity of 1.1 million high
quality seedlings and approximatively 370,000
cacao seedlings were produced and distributed/
planted in the first half of 2015 across Sumatra
and Sulawesi.
Output achievement in Nursery establishment/support to date is 74%.
3 producer organizations/cooperatives were
newly supported in the 1st semester 2015,
resulting to 15 in total since Program start. 13
Business Models for cooperatives are developed,
including certification holding, cocoa bean trade,
fertilizer retail business and others.
Output achievement to date is 50%.
10,872 cocoa producers are currently certified for the 2015 cocoa season by voluntary
standards of UTZ Certified in Aceh and Southeast
Sulawesi and Rainforest Alliance label in South
Sulawesi. One cooperative in Kolaka Timur,
Southeast Sulawesi distributed as certification
holder IDR 2.4 billion (ca. USD 200,000) to farmers and capitalized itself with IDR 570 million .
Output achievement to date is 54%.
14 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015
53,386
18.6%
29,126
79.6%
14,055
51.8%
Smallholder
cocoa farmers
were trained on
average 8 days
through Farmer
Field Schools
(FFS)
Women
participation
in Good
Agricultural
Practices
(GAP)
Households
(one member
of the family)
of smallholder
cocoa farmers
were trained in
Good Nutrition
Practices
(GNP)
Women
participation
in Good
Nutrition
Practices
(GNP)
Selected members of smallholder cocoa farmer
households
received capacity
building through
financial literacy
trainings in Good
Financial Practices
(GFP)
Women
participation
in Good
Financial
Practices
(GFP)
677
256
370
1.1 million
15
10,872
Extension
officers (agriculture, nutrition,
and finance)
from private
sector and
government
agencies
participated in
SCPP’s training
to become
master trainers
Cocoa
Producer
Groups
(CPG) were
newly
established
in the 1st
semester
2015
Nurseries for
planting
material
established
Installed
capacity for
high quality
cacao
seedlings
Producer
organizations and
cooperatives
providing
services to
their members
Cocoa
producers
are currently
certified for
the 2015
cocoa
season
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 15
Farming Good Practices
& Technology Transfer Systems
Master Trainings for Staff and Extension Officers
SCPP periodically provides Master Trainings for private sector and SCPP field staff (Field Facilitators,
Field Coordinators and Interns) and extension officers. The purpose of the Master Training is to equip
them with knowledge and facilitation skills so that they can play their role during Farmer Field
Schools. Extension officers are government officers who execute SCPP trainings while Field Facilitators
and Coordinators facilitate and supervise the Farmer Field School. SCPP attempts to ensure that a
lasting knowledge and skill transfer to farmers beyond the program implementation period occurs. In
addition to that, engaging government extension staff is part of SCPP’s lobbying efforts to encourage
the government to adopt the modules hence the sustainability of the program.
During Master Training participants learn the good agriculture techniques, the management of nursery, how to evaluate a cocoa farm, the techniques of assisting cocoa farmer groups and others. In the
1st semester of 2015 SCPP has executed 32 Master Trainings: 9 in GAP, 8 in GFP, 9 in GNP, 2 in Group
and Cooperative Development, 2 in ICS, Traceability and Certification, and 2 in Post-Harvest and Market Access Training of Trainers. Aside from technical skills, the field staff and extension officers learn
to work together and share experiences. Monitoring from the field showed that participants of the
ToTs (Training of Trainers) found the Master Trainings very helpful. Especially field staff who initially
lacked confidence to facilitate FFS gain confidence to facilitate farmer training in technical matters.
In the first semester of 2015, SCPP has trained 164 master trainers with 145 of them were government officers and 19 private sector staffs. The master trainers collaborate with Program Field Facilitators to assist farmers during farmer field school.
Extension Staff Trained
Annually
2015
Target
Cumulative
2012 - 2015
Result
Target
Result
800
700
155
52
600
500
400
300
200
100
0
645
15
19
119
145
625
Private
Public
Findings from the field indicate that one major challenge to the extension officers is how to teach
farmers who do not know how to read or write. In the Master Trainings, the extension officers and
field staff from the private sector can learn how to teach and facilitate such farmers.
16 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 17
Cocoa Farmer
Trainings
Cocoa Farming &
Greenhouse Gas Emissions
Delivering farmer trainings remains a focus of the
Program. As 2015 is the final year of SCPP phase 1,
the Program works to ensure target achievements
in the implementation areas. In addition to Master Trainings, SCPP also provides trainings for key
farmers (KF) so that they can better prepare before
FFS begins. During the reporting period, the Program
has executed Training of Trainers (ToT) of GAP, GFP,
GNP, Post-Harvest and Market Access and Group, ICS,
and Cooperative Development. Chart 4 on the right
shows the number of key farmers involved in each
ToT during the 1st semester of 2015. As of the 30th
of June 2015, 694 newly selected key farmers
have been trained with 35% of them being female
key farmers. After the key farmers are trained, they
will be executing FFS together with extension officers and field staffs.
Greenhouse Gas (GHG) emissions from agriculture activities are significant drivers of the global
climate change. In line with this issue, SCPP and
its partners aim to minimize the rate of GHG
emissions in cocoa sector through Good Agriculture Practices (GAP) and new Good Environment
Practices (GEP). Nitrogen oxide – as one of the
largest GHG emitter in cocoa sector – is expected
to increase due to cocoa’s intensification mainly
from fertilizer.
The FFS are conducted following the KF training. In
the reporting period, 7,376 farmers in total (including KFs) were trained in GAP. This brings the total
number of cocoa farmers who received training
from SCPP since the beginning of the Program until
the first semester of 2015 to 53,386 farmers (with
18.6% female participants). Since the beginning of
the program in 2012, 427,712 training days in GAP
have occurred across all implementation areas. In
average, a farmer receives 8 training days in GAP
modules. The farmers received 7-10 days training in
various modules such as pruning, soil fertility and
fertilizing, integrated pest and disease management, harvesting and sanitation, post-harvest practices and quality (sorting, fermenting, and drying)
and pesticides management.
Number of Key Farmers in ToT modules
GAP Good
Agriculture
Practices
GFP Good
Financial
Practices
GNP Good
Nutrition
Practices
Group and
Cooperative
Development
ICS,
Traceability
and
Certification
Post-Harvest
and Market
Access
400
350
300
17
250
150
Female
Male
257
200
324
76
100
50
94
69
0
13
49
7
15
66
89
As a leader in the PISAgro Cocoa Working Group,
SCPP commits to develop a methodology for
measuring and monitoring GHG emissions
within the cocoa intensification. SCPP intends to
integrate targets for monitoring and mitigation
of GHG emissions in its program activities and
monitoring plan to increase its positive environmental impact.
GAP Participants
Annually
2015
Target
Result
Cumulative
2012 - 2015
Target
Result
60,000
12,000
50,000
9,934
40,000
30,000
20,000
48,000
2,590
10,000
0
10,360
1,176
6,191
43,452
Female
Male
1
Equivalent CO2 (CO2e) is
the concentration of CO2 that
would cause the same level of
radiative forcing as a given type
and concentration of greenhouse gas. Examples of such
greenhouse gases are methane,
perfluorocarbons, and nitrous
oxide (Source: Wikipedia August
4, 2015).
2
C´ecile Bessou, Laurence
Chase, Ian Henson, Amir F.N.
Abdul-Manan, Lloren¸c Mil`aI-Canals, et al. Palm GHG, the
RSPO greenhouse gas calculator
for oil palm products. 8th International Conference on LCA in
the Agri-Food Sector, Oct 2012,
Saint-Malo, France. pp.498-504,
2012
18 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015
SCPP implements a holistic approach for sustainable, environment-friendly agricultural practices.
The ultimate goal is to reduce GHG emissions
and increase carbon sequestration. The Program
has been estimating and quantifying GHG emission from cocoa intensification through baseline
and post-line surveys. Based on the data until
the end of June 2015, in total 3,273,714 shade
trees such as other estate crops, hard woods,
fruit, and N-fixing trees are planted in SCPP cocoa farms resulting in average of 65 shade trees
per farm securing higher biodiversity, carbon
sequestration, more variable income and better
food security.
The utilization of chemical fertilizer also significantly increases GHG emissions from nitrogen
oxide (Equivalent carbon dioxide). Until the end
of the reporting period, in SCPP participating
farmers used in average around 229 kg/ha of
chemical fertilizers (Urea, ZA, TSP, NPK, KCl),
Farms
54,000
while the organic fertilizer use (compost, manure, granules) was recorded at around 143 kg/
ha in average. Our data (based on baseline from
54,000 farmers) show that the baseline average
emission of CO2 equivalent is 1.02 tCO2eq/
MT cocoa produced. If compared to every MT
of crude palm oil produced, this figure is similar
(1.03 tCO2eq/MT ). Nevertheless, when calculated per hectare, taking average smallholder
yields into account, the effect of cocoa farming
clearly shows 8.8 times lower GHG emissions
of 0.44 tCO2eq/ha compared to oil palm with
3.88 tCO2eq/hectare.
When comparing the baseline and post line data,
total GHG emission reduction, if applied to the
54,000 farmers, currently amounts to 3,565 tCO2eq per year. Such amount of CO2eq equals to
taking 120,000 cars off the road, which would
drive an average of 20,000 km a year each or
avoiding 2,187 round-trip flights from Zurich to
Jakarta.
The average content of organic carbon is 0.24
tc/MT cacao trees (carbon sequestration). SCPP
is currently in process of researching a formula
for calculation the carbon sequestration also
from the shade trees. The Program has been
actively involved in climate change mitigation
of reducing GHG emission through modules in
FFS. A number of agricultural approaches such as
pruning, planting shade trees, reducing excessive
chemical fertilizer use, proper soil, water management, or combining the usage of chemical
and organic fertilizer are efficient and effective
techniques to reduce the GHG emissions and
increase carbon stock in cocoa farms. Moreover,
new modules on Good Environmental Practices
to raise even more awareness on the importance
of the environment among cocoa farmers are
being developed at the moment.
Surveys
tCO2e/Farm
tCO2e
Baseline
680
36,746
Post-Line
614
33,181
Reduction in tCO2e
3,565
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 19
Nutrition & Gender
Sensitivity Integration
Good Nutrition Practices Trainings
The poor nutritional status of farmers and their households members is still an issue, which influences rural communities in Indonesia including cocoa-growing regions. The lack of knowledge on
balanced diet and proper feeding of children affects current and future household’s health, thus
productivity and often leads to higher poverty level.
Malnutrition of children is not always a matter of availability of food but sometimes also a choice
of the mothers to feed the children instead of nutritious food with any low nutritious one such as
instant noodles or chips. A combination of lack of knowledge on balanced nutrition importance and
poor discipline often leads to children’s malnourishment even outside the poorest households. SCPP is
addressing this issue by stressing the importance of well-fed children and reminding the households
on the effects of malnutrition.
The ongoing monitoring provides deeper view into the food intake choices and feeding habits of
SCPP households and continuously serves to improve the trainings in order to be more effective. As
reported previously, farmers reduce their expenses on food by intercropping and home-gardening,
increase their income by selling the surplus’ vegetables and improving their nutrition intake. However, the sustainability of keeping the nutritious vegetables’ gardens remains a challenge as farmers
provided by hybrid seeds that cannot be propagated further, often stop maintaining their gardens
after the first harvesting. SCPP has learned and in order to overcome this and other issues, new
learning materials such as flipcharts have been designed and used in FFS and new training modules
such as local nutritious vegetables’ seeds conservation and propagation and fish pond’s management
to improve protein intake in highland areas are being developed.
During the reporting period, the Program continued the effort to reach 40,000 households in providing capacity building for smallholder cocoa farmer households on nutrition and better dietary
intake. This semester, the Program expanded the training activities to Luwu, East Luwu, and North
Luwu districts in South Sulawesi (in partnership with Mars Inc.), and Parigi Moutong district in Central
Sulawesi (in partnership with Ecom). All SCPP implementation areas already had the GNP Training
implemented.
GNP Participants
Annually
2015
Target
Cumulative
2012 - 2015
Result
Target
Result
40,000
35,000
30,000
25,000
32,000
20,000
15,000
10,000
5,000
0
23,195
2,400
9,600
Female
Male
1,526
5,806
8,000
5,931
In the first half of 2015, the Program has trained 7,332 household members in the GNP training
with 79% women attendance. This brings the total number of GNP training participants since the
nutrition component started in December 2012 to 29,126 households or 73% of the targeted number.
The accumulated training days until June 2015 have reached 16,836, which brings the total number
to 62,025 training days since the beginning of the Program.
20 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 21
Engaging Women in SCPP
For Swisscontact, gender inclusion is key for program success. 29% of management and staff positions are held by women, ensuring gender integration on program level. Overall women participation
in key SCPP trainings reached 43% by the end of June 2015.
Gender in Program Staff
Gender in Program Participants
GAP
GNP
GFP
CLT
60,000
50,000
SCPP acknowledges that women are also center-stage in cocoa farming and therefore it has been
designed to integrate women across all activities. Nonetheless, in most areas in Indonesia where the
patriarchal culture is one of the social belief, women’s contribution is often being challenged. The
Program thus tries to see four aspects that contribute to the increased scale of women engagement
in SCPP i.e. access, participation, control and benefit:
Managers
Officers
Assistants/
Field Staff
200
180
9,934
160
40,000
62
140
120
30,000
20,000
80
43,461
23,195
10,000
0
Female
Male
100
7,283
5,931
Female
Male
6,772
22 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015
60
123
40
20
0
8
3
4
12
17
23
Access
Being aware that
agriculture in Indonesia is often perceived
as male-dominated
sector, the Program
sees the importance to
provide equal opportunity for women to
have increased access
to the sector. Hence
in group formation
activity, SCPP encourages women membership in the group
as well as women
leadership. Furthermore, to provide an
equal opportunity for
women and men, the
Program prerequisite
at least 30% women
respondents in the
post-line;
Participation
In line with the above
mechanism, SCPP is
consistently putting the
effort to involve women in the training activities; targeting 20%
women participants
in GAP trainings, 80%
in GNP trainings, and
50% in GFP trainings.
In the first half of 2015,
women participation
reached 16% across
7,367 GAP participants,
which include training
for master trainers,
extension officer, and
farmers. While from
the 7,332 GNP training
and 10,859 GFP
training participants,
women participation
reached 79% and 53%
respectively. Based on
the targeted number,
the Program is on track
and has been able to
promote women’s involvement throughout
the program activities
at individual level,
within participating
smallholder cocoa
farmer households;
Control
At group level, the
Program urges women’s significant role
in the farmer groups
such as the group
head, treasury, and
secretary. In 2015
SCPP successfully included 33% women in
Key Farmers trainings.
Moreover, until June
2015, around 6.25%
of women have been
holding leadership
positions in their respective farmer organization including 28%
of women becoming
Head of CPG (Cocoa
Producer Group). This
creates prominent
avenue for women’s
voice to be heard and
women’s participation
in the control function
during decision-making process in their
communities;
Benefit
The Program is also
aware of the multiple
benefits of engaging
males into typically
female’s activities such
as food preparation.
In predominantly
male led households
the involvement of
men in GNP trainings
(until June 2015 20%)
often results in better
understanding of the
importance of better
and balanced nutrition
for the whole family
and allows the female
family members
to spend more on
healthy foods by
changing the feeding
habits as necessary.
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 23
Farmer Organization,
Market Access & Certification
Farmer Groups and Organizations
SCPP works with Cocoa Producer Groups (CPG) and strengthens farmer organizations. In Indonesia,
farmers are generally not organized, leading to, among others, inefficient access to and adoption of
technical assistance provided. Many groups were established to get funding from the government,
as this is usually a requirement to access government’s support. For SCPP farmer organizations the
first and foremost step is efficient farmer’s capacity building and emancipation of farmers in engaging with the industry. The Program training packages were designed to build group cohesiveness to
enable better collaboration between farmers in the group.
Between January and June 2015, the Program has facilitated the establishment of 256 new CPGs
in Sulawesi and Sumatra. Since the Program started in 2012, the Program has registered a total of
1,747 CPGs, or around 87% of the overall Program target.
Supported Cocoa Producer Groups
Annually
2015
Target
Cumulative
2012 - 2015
Result
Target
Result
2,000
1,800
1,600
1,400
1,200
1,000
2,000
1,747
800
600
400
200
0
423
256
The Program has been supporting farmer organizations at district level to provide additional benefits to their members. Efforts towards this direction have been initiated since last year but until June
2015, progress was still at a very early stage.
Until the end of the reporting period, the Program concluded that more focused support is needed to
improve the farmer organization capacity to the level that SCPP expected. The Program is currently
working to also establish a manual for farmer organization development.
24 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 25
Smallholders Farm
Certification
ICT for Certification &
Traceability
SCPP trusts that certified and traceable cocoa
is one of the paths to further strengthen cocoa
production and make it sustainable. The Program
believes that farmers’ willingness to participate
in the certification process is a determining
factor to the success of the certification process.
Despite the fact that farmers are sitting at the
very end of the verification and certification
chain, their contribution is fundamental to the
overall certification process.
The Program has been working
with CocoaTrace application in
the database management.
Through collaboration with
PT. Koltiva, SCPP built a state
of the art data management
application, web-based as well
as with Android application for
handheld tablets.
Benefits of certification for smallholder
cocoa farmers include direct benefits such
as premiums paid and diffused benefits
such as conservation of ecosystems, increased farm yield, employment opportunities and improved labor conditions
Benefits of certification for smallholder cocoa
farmers include direct benefits such as premiums paid and diffused benefits such as conservation of ecosystems, increased farm yield,
employment opportunities and improved labor
conditions. The Program also perceives that
certification fosters better group collaboration by
ensuring regular checks from IMS or other members. The certification process requires costs that
shall be absorbed by cocoa traders and buyers
through the premium payment.
In the 1st semester 2015, the Program supported
certification in Aceh with UTZ Certified; 359 first
year farmers and 2,237 second year farmers.
Similar to the last round certification process, in
Aceh, two cooperatives serve as certificate holder. In Sulawesi, the Program collaborated with
ADM Cocoa to start the re-certification process
for 1,797 farmers and 1,651 first year farmers
in Southeast Sulawesi with UTZ Certified. Until
the end of the reporting period, the internal audit process was still ongoing for the finalization
of Q3 2015. In South Sulawesi, where the certificate is also hold by farmer organizations and/
or farmer enterprises, the number of Rainforest
Alliance certified farmers increased until June
2015 to 4,878. The Program has also initiated
the certification process in West Sulawesi with
Nestlé Cocoa Plan and is currently preparing the
farmers for the internal audits.
26 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015
During the reporting period,
the Program was continuously updating the CocoaTrace
application to meet the sector’s
need of a reliable farmer
database system. Based on
continuous consultation with
the private sector partners,
the Program has been working
hands in hands with PT. Koltiva
to add more features on the
CocoaTrace.
The work with one private sector
company required the Program
to provide polygon data mapping of cocoa farm of the participating farmers. To adjust with
the requirement, CocoaTrace was
updated and added the polygon
mapping capability using the
Android version. The trial period
went until the end of 2014, and
the full operational feature was
added later in early 2015. So far
the team has already collected
and finalized around 2,900 farm
polygons in the database from
Soppeng district. The requirement to collect the polygon map
may be expanded to other areas
as this type of map provides a
more accurate size of the farms
to calculate farm productivity
and might help the farmers with
certifying their land.
The application also added
traceability and certification
features on the web-based application. The feature enables
the industry to trace the source
or history of a cocoa product
and monitor the processes
throughout the supply chain.
Through the new feature,
CocoaTrace becomes a tool to
record the traceability information all the way to financial
receipts, and premium and
bonus calculation. The certification feature helps the overall
process to certify farms through
the code of conduct installment
on the software to ensure full
compliance with responsible,
sustainable and traceable cocoa
bean productions. In April, ADM
Cocoa distributed premium and
loyalty bonus to 1,961 farmers,
4 cocoa buying stations and
KGG as the cocoa farmers’
organization and certification
holder using the traceability
feature on CocoaTrace.
The web dashboard also undergoes continuous refinement
so that the users can easier
navigate to get necessary information, to measure progress,
and to establish plans.
In April, ADM Cocoa distributed premium
and loyalty bonus to 1,961 farmers, 4
cocoa buying stations and KGG as the
cocoa farmers’ organization and certification holder using the traceability feature
on CocoaTrace.
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 27
Integrated Agribusiness
Financing Facility (AFF)
Financial Literacy Trainings
The AFF was implemented in full scale in the first semester 2015. Following an initial solid preparation in 2014, the component continued its implementation with the focus on financial literacy
training for farmers, collaborating with financial institutions, strengthening farmer organizations with
some exciting achievements and sharing gained knowledge. Entering AFF’s second year, a mid-term
evaluation was conducted in June 2015 and further knowledge was shared with the stakeholders.
Cumulative 14,055 cocoa farmer household members were trained in Financial Literacy (Good Financial Practices - GFP) within the reporting period, concentrating on cash flow planning and record
keeping, loans and savings. The household member who manages the household finances is participating in the training. 10,139 household members, in total 51.8% women, were trained during the
first semester. The modules are delivered during one day. Trainings are held by SCPP’s field facilitators
in collaboration with three BDS providers.
GFP Participants
Annually
2015
Target
Result
Cumulative
2012 - 2015
Target
Result
30,000
25,000
15,000
20,000
15,000
11,700
10,000
5,000
0
11,700
5,769
5,090
7,283
Women
Men
15,000
6,772
Collaboration with Financial Institutions
Last year AFF tried out inviting bank staff to the GFP trainings. The idea behind was that banks could
explain much better about their products than SCPP field facilitators. Surprisingly that worked out
very well and AFF decided to replicate that approach in all GFP trainings. During the test of the approach, between 16% and 50% of the training participants opened saving accounts.
28 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 29
Cooperative
Strengthening
There were some exciting results in strengthening cooperative, especially in Aceh and Southeast
Sulawesi highlighted with the two stories below:
Koka Jaya, the supported cooperative in Pidie
Jaya received a financing of 130,000,000 IDR (ca.
10,000 USD) as working capital for their cocoa
bean trade, under a profit sharing scheme, from
the Aceh revolving fund established under the
SPAN project. This fund is managed by Politeknik
Aceh, PINBIS, and Yayasan Sahabat Cipta collectively, and decided to offer the financing to the
cooperative, based on the cooperatives business
planning. That is a first start, with which the
cooperative can show that they are able to manage the funds, using it productively, and create a
profit. Although being a short-term financing, an
extension is in discussion as well as additional
funding. Their equity still limits their operations,
since financial institutions require a certain equity share when they provide financing.
30 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015
Koperasi Gabungan Gapoktan (KGG) in Kolaka
received IDR 2.2 billion, which were distributed to 1,961 farmers, 4 cocoa buying stations
and KGG as the cocoa farmer’s organization
and certification holder. The amount of IDR 2.5
million (or USD 200) per metric ton of cocoa is
paid to the cooperative to finance operations,
internal control systems, external audits, costs of
certification, and premiums to the certified cocoa
farmers. Of the total amount of IDR 2.2 billion,
1.9 billion are UTZ certification premiums and
300 million are loyalty bonuses.
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 31
Stakeholder Management and
Networking Platforms
Role and Contribution of Governments
The Program works closely with central and local governments in implementing the activities. At
the national level, the Program is in consultation with the Ministry of Home Affairs (MoHA) and the
Ministry of Agriculture (MoA). The cooperation with MoHA is through the Advisory Board governance,
while the link to MoA is realized through a private and public stakeholder platform on agricultural development (PISAgro). These national institutions provide inputs and advices to improve the program
implementation. At subnational level, the Program intensively works with provincial and district government to run program activities. The Program is especially focused on collaboration with Forestry
and Estate Crop Agency to train government extension staff in order to retain the knowledge and
skill at the local level beyond SCPP implementation period. The cooperation also involves selection of
program location and farmer identification.
Further form of cooperation with the government stakeholders is the capability for SCPP in shaping
the government’s programs in promoting cocoa farmers. Farmers’ promotion program via seeds supply has involved SCPP intensively.
During the first half of 2015, SCPP received the following specific support from local Government for
Program related activities:
•
Government contributions in the form of extension staff, office space, and land for learning
center;
•
Several districts agreed to allocate matching funds to support SCPP initiated activities through
the government regional financial management mechanism of Work Plan Development (RKPD)
and Regional Annual Budget (APBD) in 2015;
•
The Agency of Trade and Cooperative (Dinas Perindustrian, Perdagangan dan Koperasi) supported the Program for capacity-building activities and warehouse for farmers;
•
The Health Agency (Dinas Kesehatan) provides technical assistance in nutrition to promote good
nutrition practices as well as skill to handle first aid cases. This skill is to fulfill requirements of
the certification program;
•
The Forestry and Estate Agency (Dinas Kehutanan dan Perkebunan) provides tools and equipment for demo-plots, extension officers, and some follow-up coaching to cocoa farmers on farming techniques. In some districts, the agencies also started to replicate SCPP training method for
their staff and introduced SCPP best practices to farmers in their sub-districts;
•
The Regional Development and Planning Agency (Badan Perencanaan Pembangunan Daerah)
supports the Program with local statistical data, land-use shape files for ArcGIS software and
office space for Program staff. Furthermore, in all implementation areas, Bappeda as the leading
agency of local government has facilitated a good coordination between SCPP and relevant
stakeholder in terms of reporting, monitoring and evaluating of SCPP;
•
MoHA and inter-ministerial team which consists of State Secretary, Ministry of Foreign Affairs,
and the Strategic Intelligence Agency, stated the root cause of Poso conflict and provided hints
that Swisscontact might be able to continue the Program implementation in Poso. However, no
decision has been taken yet as discussion is still ongoing.
32 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 33
Conclusions
Entering 2015, the last year of the first SCPP
phase, the Program has again proved to be closer to the fulfillment of its targets.
SCPP continues to improve the Program through
innovations, collaborations and monitoring and
evaluation. Throughout the first semester, the
Program continues aiming to deliver improved
planting material and training to cocoa farmers.
It continuously strengthens the training programs
by improvement in training modules and approach. The successful approach of the Program
is verified by a fact, that in the 1st semester
of 2015, SCPP commenced a new phase with
receiving further funding first from IFAD and then
MCA-I. By collaborating with more partners, expanding to new areas and widening its training
modules, SCPP is on track for its scaling up plan
until 2020. To be able to cope with this challenging growth, vast recruitment and restructuring
have taken place.
SCPP has continued working hard towards
improving the certification transparency and
ensuring traceable beans from farmers to
partners supply chains. Therefore, new unique
and efficient CocoaTrace feature “Traceability” including premium price calculation has been fully
implemented and piloted in Southeast Sulawesi.
The Program is committed in making CocoaTrace
a reliable tool for transparency and traceability in
the cocoa sector.
SCPP believes in sustainability through cooperatives’ development, therefore new farmer
organizations were set up and existing ones
have been further strengthened by provision of
more capacity building, continuous monitoring,
and management assistance. Moreover, SCPP
used innovative approach to secure the financial
situation and business model of cooperatives so
that the cooperatives can be a professional organization and support center to their members.
SCPP undertakes Monitoring and Evaluation periodically and evaluates its approaches through
studies, consultations with government and partners, post-line surveys and improved program
monitoring. SCPP also employed shared measurement of progress around common indicators
with its donors for continuous learning.
The monitoring activities indicate the Program is
on track with fulfillment of its targets; nevertheless, a large-scale program such as SCPP cannot
exist without experiencing various challenges
and needs for continuous improvements. To be
able for constant learn out of difficulties and occasional failures and disappointments, the new
Research & Development unit was established to
safeguard proper knowledge management within and outside SCPP including learning lessons’
sharing.
SCPP collaborates with government, financial
institutions and donors to pool expertise and resources and develop most effective interventions
for greatest impacts. In addition to collaboration with government for farmer field schools,
throughout this semester, SCPP consistently
strengthens the cocoa sector in Indonesia by
establishing regional cocoa forums that involve
multiple stakeholders by giving inputs to regional governments and other organizations working
in the cocoa sector.
34 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 35
THE VIDA Building
5 Floor 01-04 Kebon Jeruk, Jakarta Barat 11530
Tel.: +62-21-2951-0200
th
Swisscontact - SCPP Sumatera
Komplek Taman Setia Budi Indah I
Jl. Chrysant Blok E No. 76 Medan 20132
Tel.: +62-61-822-9700
Swisscontact - SCPP Sulawesi
Gedung Graha Pena lantai 11, Kav. 1108 -1109
Jl. Urip Sumoharjo, No. 20 Makassar 90234
Tel./Fax: +62-411-421370
www.swisscontact.org/indonesia
36 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015