From the Fragrant Highlands to The Netherlands

The Adoption of Ethical Value Chains of an Indonesian Cinnamon Commodity

Sila Wikaningtyas | DevNet Conference | 7 December 2016

Overview

• Kerinci Cinnamon

ethical value chains

(EVC)

– Spicy Facts

– Key Findings

• Fieldwork Experience

– Positionality

– Lessons Learned

Aim of Study

To investigate the nature and evolution of

the adoption of ethical value chains for the

Kerinci Cinnamon commodity.

Some Spicy Facts

(about Kerinci Cinnamon)

• Indonesia contributes to 66% of the global

cinnamon supply [1]

• Kerinci cinnamon (Cinnamomum burmannii)

make up most of the Indonesian cinnamon

export

• The biggest market for Kerinci cinnamon:

The Netherlands

Case Study

Key Findings

• How EVC is adopted:

Establishment of “TAKTIK Farmers’ Organisation”

Key Findings

• How EVC is adopted:

Organic Certification

Key Findings

• How EVC is adopted:

Geographical Indications

Fieldwork Experience

• Positionality

Outsider in my own country

Practitioner vs Academic – “Pracademic?”*

* A term I first heard from my lecturer, Gerard Prinsen

Fieldwork Experience

• Lessons Learned

Have an open mind

Being reflexive is important!

(independent) Evaluation and continued

support are crucial!

Some Quotes from Interviewees

On the conventional value chains:

• “They [toke] can control the farm gate price.

When the cinnamon piled up in their storage,

they can push the price even lower. But farmers

already harvested their farm so whether you

want it or not you are going to sell it at a low

price, rather than letting your products go bad.”

On the knock-on effect of ethical value chains:

• “Following TAKTIK’s establishment, price of

cinnamon increased. Now there is a competition.

Back then, toke used to buy the KM grade

cinnamon [thick bark, highest quality] only for

IDR 17,000 per kg. After TAKTIK they buy it for

IDR 18,000 or 19,000. The price is more

competitive now”

• “Back then, around 3 or 4 years ago, there

were almost no women working locally in

this village. Most of the women in our

community worked in the farms. Now

there are many women working locally at

TAKTIK. [TAKTIK] has opened up job

opportunities and created employment”

References

[1] Iskandar, S., Jauhari, H., Mulyana, A., Dewata, E., Yamin, M., & Marwa,

T. (2012). Analysis of Determinant Factors Influencing Cinnamon Export

and Prices in Indonesia. Retrieved from http://eprints.unsri.ac.id/3096/

[2] Indonesian Map from:

http://www.indonesiamatters.com/images/indonesia-map.gif

[3] Ardi, H., Raesi, S., Evalia, N. A., & Paloma, C. (2015). Laporan Riset

Rantai Pemasaran Kulit Manis Kerinci. Padang, Indonesia: VECO

Indonesia & Fakultas Pertanian Universitas Andalas.

[4] Kula, O., Downing, J., & Field, M. (2006). Globalisation and the Small

Firm: An Industry Value Chains Approach to Economic Growth and

Poverty Reduction. USAID. Retrieved from

http://www.ruralfinanceandinvestment.org/sites/default/files/119384593

0128_Globalisation_and_the_small_firm___an_in1878960308.pdf

[5] “Kayumanis Koerintji” logo from Buku Persyaratan Indikasi Geografis

Kayumanis Koerintji by Masyarakat Perlindungan Indikasi Geografis

Kayumanis Koerintji Jambi (MPIG-K2J)

[6] All photos are owned by the author, unless otherwise stated.

THANK YOU

Sila Wikaningtyas Email: Sila.Wikaningtyas@vuw.ac.nz

Development Studies Program Victoria University of Wellington