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