popular report veco indonesia 2013
DESCRIPTION
During 2013 VECO Indonesia worked in the rice, cocoa, coffee and cinnamon sub sectors in 13 districts with 29 partner organizations, including 11 Farmer Organizations. A selection of the results of our work during 2013 are presented in this publication.TRANSCRIPT
POPULAR REPORT 2013
Foreword
About VECO Indonesia
Important changes
Increase and (more) secure income
Improved influence of family farmers
Reduced vulnerability
Improved food sovereignty
Food sovereignty hero from village
Increase in sales of healthy rice
Learning and knowledge sharing
Lessons learned
Finance
Contents
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Economic growth in Indonesia is on a
positive note since the last 5 years with
rates between 5-8 per cent per year. Most
of this growth is based on extractive
industries and a growing domestic
consumption. Specifically for the food
sector this significant domestic
consumption growth offers good
opportunies for small-holder farmers as
consumers are buying increased quantities
and demand better quality food products.
At the same time there is also a growing
awareness of the importance of
healthy/safe food among the expanding
Indonesian middle class.
These growing markets offer opportunities
for small-holder farmers to enjoy better
prices and sell larger volumes of their
products. However this is far from
automatically achieved since both direct
market access and capacity of organized
farmers are often limited which suppresses
prices for farmers. We need to develop
inclusive market models along with fair
agriculture value chains for farmers and at
the same time strengthen the (business)
capacities of farmer organizations. On the
other hand we also need to think about an
enabling environment in which the
different Value Chain actors/facilitators
(farmers, private sector, service providers,
banks, government, etc.) can build these
inclusive markets and where farmer
organizations can develop themselves. We
should think about good certification
standards, agri-finance, government
collaboration, etc. supporting small-holder
farmers.
The new 6-year VECO Indonesia programme
that officially started in 2014 largely
builds on the activities, results and
networks already being implemented by
VECO Indonesia and its partners for the
last 30 years. This new programme focuses
its strategies and activities exactly on
what is described above in the second
paragraph and is a direct result of
extensive consultations with both internal
and external stakeholders in Indonesia and
at the Southeast Asian level during 2013.
In 2013 we worked in the Rice, Cocoa,
Coffee and Cinnamon sub sectors in 19
districts with 29 partner organizations,
including 11 Farmer Organizations. A
selection of the results of our work during
2013 is presented in this publication. If
you are interested more detailed
information can be found on our web site
or in our “Lontar” newsletter
http://www.veco-ngo.org/veco-indonesia
I hope you like our writings and please do
send us your feedback.
Rogier Eijkens
Regional Representative
VECO Indonesia
Foreword
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About Us
VECO Indonesia is as part of Vredeseilanden, an international NGO
headquartered in Leuven, Belgium. For more than 25 years, we have
worked continuously to achieve one goal: a better deal for farmers.
Vredeseilanden also has regional offices in West Africa, East Africa,
South America, Cental America, and Southeast Asia.
Our Mission
Improving livelihoods of small-holder farmers in Indonesia through
agriculture value chain development and inclusive business
development.
Where We Work
1. VECO Indonesia was running programme in 19 districts of 9
provinces.
2. East Nusa Tenggara in East Flores, Sikka, Ende, Nagekeo, Ngada,
Manggarai and East Manggarai for rice, coffee, and cacao
commodity.
3. Jambi in Kerinci for cinnamon commodity.
4. West Sulawesi in Polewali Mandar for cacao commodity.
5. South Sulawesi in Toraja, Enrekang, East Luwu Timur and North
Luwu Utara for coffee and cacao commodity.
6. Central Sulawesi in Parigi Moutong for cacao commodity.
7. West Java in Tasikmalaya for organic rice.
8. East Java in Malang and Lumajang for coffee commodity.
9. Central Java in Boyolali for healthy and organic rice commodity.
10. Great Jakarta for healthy food campaign and government
purchasing price (HPP) of multiquality rice.
About VECO Indonesia
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2013 is a very important year for VECO Indonesia because this
year, VECO Indonesia ended programme phase 2010-2013. In 2014,
VECO Indonesia will start new phase for 2014-2020 period.
There were some important changes in the programme during
2013.
Cinnamon-Kerinci
Private company (Cassia Coop) and IDH from the Netherlands
requested that VECO Indonesia facilitate development of Rainforest
Alliance organic cinnamon in Kerinci, and initiate the
establishment of a cinnamon farmer organisation in order to
change the cinnamon trading system in favour of cinnamon
farmers.
Food Sovereignty (DMP DS Programme)
The DMP-DS program has been adopted by the NTT government and
replicated in several districts, such as TTU, Belu and Sumba Timur.
Sumba Timur district government has provided additional support
for the DMP-DS program for 2014 of IDR 90 million, and in TTU,
IDR 40 million per village has been allocated for the community
food stock program. A formal, legal framework is still required to
ensure the sustainability of this program in the coming years.
This Popular Report 2013 explains more about VECO Indonesia
achievements in 2013.
Important changes
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The results of the analysis of the incomes of 2013
program participants using 20 sample farmers for each
chain indicate that as of the end of 2013, farmer
incomes in several commodity chains had exceeded
the program target. These chains were: (1) Sulawesi
cocoa, (2) Manggarai/Ngada Robusta coffee, and (3)
Manggarai/Ngada Arabica coffee.
The increase in farmer incomes in certain commodity
chains, such as Sulawesi cocoa, and Robusta and
Arabica coffee in Manggarai, was due to increased
production volumes and good prices in 2013 (Sulawesi
cocoa sold at premium prices) . For coffee in Flores,
the income increase was more due to a rise in
production volumes, as prices remained much the same
as in 2012 (IDR 20,000 – IDR 21,000/kg) for Robusta,
and were very low for Arabica (average IDR 19,400/kg
in 2013 compared with IDR 28,100 – IDR 33,400 in
2012).
The impact of program interventions were evident in
Sulawesi, notably in the improved cocoa cultivation
system thanks to the adoption of good agricultural
practices (GAP) for sustainable cocoa, and the
premium prices secured as a result of lobbying private
companies (PT Mars, PT Armajaro, Petrafood).
Increased and (more)
secure income
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The collective marketing created a shorter chain and
the high volume of sales of good quality cocoa beans
through collective marketing made farmers receiving
prices above the normal price.
Good cooperation has been established with major
exporters who are committed to develop cocoa as a
sustainable commodity. Apart from the better price,
farmers also received facilitation related to sustainable
cocoa farming practices and quality control. There is an
increased number of certified farmer groups and groups
applying ICS.
In addition, cacao farmers have better access to
information (about price, sustainable farming
practices) and can use the information to negotiate
with the traders to get a good price.
The program enables Amanah and Masagena farmer
organisation conducting collective marketing of quality
cocoa beans. This is done at all levels from the farmers
(better cocoa farming practices, harvest and
processing, and introducing quality control) , farmer
organisations (setting up the structure and improving
the capacity to facilitate collective marketing including
ICS and to conduct other businesses) , and exporters
(lobbying for good terms for all parties) .
Improved influence
of family farmers
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Farmers have applied sustainable coffee farming practices that
helped to reduce (not fully) the production loss brought about
by the infestation of crop diseases and pests and the natural
shocks/trends.
Farmers have increased the coffee yield and received a higher
price from the collective marketing. It has enabled them to
receive a higher income and helped them to better cope with
the economic shocks/trends (that lead to increased living
costs and production costs) . More farmers have been able to
access more reliable sources of finance.
Because of their good work, members of Asosiasi Petani Kopi
Manggarai (Asnikom) and Perhimpunan Petani Watu Ata
(Permata) have started to gain recognition and trust from
other parties (government, private actors and farmers) .
In Kerinci, Jambi, 25% of farmers who have been intensively
facilitated by the program have started to adopt sustainable
agriculture practices with intercropping. This has led to
improved soil fertility and capacity to absorb water and
reduced air pollution brought about by chemical inputs.
The increased production as shown by these farmers has
attracted the interest of other farmers to learn about
sustainable agriculture practices and to apply organic
fertilizers, as shown from their high demand for the organic
fertilizers produced by TAKTIK farmers.
Reduced vulnerability
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A major change happened to the APPOLI farmers
whose farms are certified. This allows them to
receive prices above the market price. The adoption
of organic farming practices has increased the
production and reduced the costs, and therefore
farmers receive higher incomes and as a result, food
is more secured.
Farmers also benefit from consuming organic rice
every day and some claimed to get healthier, and
less people suffer from diabetes and gout.
The improved access to the government makes the
farmer groups receive more support such as
livestock, irrigation, machinery and working
equipment, financial support for the application of
System of Rice Intensification (SRI), vegetable
garden, etc. All these have increased the security of
the rice farming as the main source of income.
Farmers are more self reliant for growing their own
food, and livestock raising provides a backup during
harvest failure.
The success of the program in Boyolali, Central Java
has proven that farmers can increase income,
securing their source of food, as well as enabling
the support of the government to the farmers.
Improved food
sovereignty
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Jacob Tanda received a "Heroes for Indonesia" award on
Heroes’ Day, 10 November 2013. Head of Mbatakapidu
Village, Kota Waingapu District, East Sumba, East Nusa
Tenggara, Jacob was one of ten winners of this award,
according to MNC, Indonesia’s largest TV network.
These heroes received awards from MNC for their dedication
in their respective field. Jacob Tanda won his for fighting
for food sovereignty in his village. This award was presented
by a panel of judges including sociologist Imam Prasodjo
and former Muhammadiyah chair, Ahmad Syafi’i Ma’arif.
"Heroes for Indonesia" are awards presented by MNC group,
owner of RCTI, MNC TV and Gobal TV television stations and
other broadcast media. The awards committee selected
people from across Indonesia whose dedication is an
inspiration to others. The awards include economics, social
affairs and culture categories.
This achievement would not have been possible without the
support of Koalisi Rakyat untuk Kedaulatan Pangan, VECO
Indonesia advocacy partner. For the past five years, KRKP
has been running the Desa Mandiri Pangan Desa Sejahtera
(DMPDS) program, including in Mbatakapidu. Thanks to the
hard work of Jacob and the villagers, Mbatakapidu now has
food stores at three levels: in the fields, in the hamlets and
in the village.
Food sovereignty
hero from a village
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As of the end of 2013, total healthy rice sales
of our partners amounted to 100.8 tons.
Konsorsium Solo Raya sold 95.2 tons, Yayasan
Pangan Sehat Indonesia (Yapsi) sold 0.31
tons, Perhimpunan Indonesia Berseru (PIB)
sold 5 tons, and Yayasan Lembaga Konsumen
Indonesia (YLKI) sold 0.25 tons.
This figure was lower than in 2012, when
healthy rice sales amounted to 142.2 tons.
However, this volume of sales is far larger
than in 2011, when only 40 tons of rice was
sold to consumers in Solo and Bali, as the
graph below shows:
The number of consumers buying healthy rice
products as of the end of 2013 was 1,635, as
follows:
1,484 consumers bought rice through KSR, 56
through YAPSI, 55 through PIB, and 40
through YLKI.
This is larger than the number of consumers
who bought healthy rice products in 2012
(1,571) and 2011 (1,500). So, in the three-
year period, there has been a slight increase
in the number of consumers buying healthy
rice products, as shown in the graph below:
Increase in sales of healthy rice
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Progress of healthy rice saleduring 3 years
160
140
120
100
80
60
40
20
0
Saleston/year
2011 2012 2013
1,650
1,600
1,550
1,500
1,450
1,400
Number
ofCustomer
Progress of consumer who purchasedhealthy rice during 3 years
2011 2012 2013
40
142,2
100,8
1,500
1,635
1,571
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Sharing about strengthening farmer
organisations as business organisations
(APPOLI’s experience of exporting organic rice to
Belgium)
Sharing lessons learned about farmer
organisations as certificate holders (Masagena’s
experience of securing sustainable cocoa
certification from Rainforest Alliance)
Annual Farmer Meeting, with the theme
“Indonesian Coffee Farmers Business” with a
specialty coffee exhibition in Surabaya.
All learning activities are integrated in the year
calendar, such as Knowledge Café, staff team
meetings (Home week, B3), VECO program
steering meetings (mid-year & end-of-year) and
Regional Learning initiative.
Workshop and experiments using the Farmer
Business School modules by VECO Indonesia staff
(Field Coordinators and Field Officers)
Learning and
knowledge sharing
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Achievments in several programme areas serving as
lessons learned for VECO Indonesia.
Sustainable Supply and Eco Friendly Products
The private sector and local government have a major
role to play to ensure the sustainability of the program
in the long term, because these two actors will work
with farmer organisations over a long period of time.
The production and product quality are crucial to
providing good products, thereby ensuring the
sustainability of supply.
The application of Good Agricultural Practices (GAP)
such as low external input sustainable agriculture
(LEISA) and agroforestry systems, SRI, Organic
agriculture are very beneficial to maintaining soil
fertility and availability of water, and reduce erosion,
thereby improving the environmental sustainability of
production.
VECO as chain facilitator
VECO Indonesia staff have developed capacity and
expertise as commodity chain development
facilitators, particularly in sustainable cocoa, coffee
and organic rice. VECO Indonesia is becoming an
increasingly important actor in value chain
development in Indonesia.
Cooperation with farmer organisations
The greatest challenge working with farmer
organisations, in particular those that are still
developing, is pursueing common aim of making
business organisations out of the farmer organisations.
The limited capacity of rural farmers to manage
business organisations is another challenge in
strengthening farmer organisations, while many young
people are not interested in working in the agricultural
sector, which they consider unprofitable.
Cooperation with private-actors
To find new opportunities to convince private
companies to work with farmer organisations, VECO
Indonesia needs to be more involved in business
meetings organised by the private sector in Jakarta
and at provincial level. These opportunities could be
used to invite them to come and see for themselves
the results of the programs in the field, and to invite
them to the VECO Indonesia meetings. This has been a
quite effective strategy so far.
Upscaling
Positive results, such as with cocoa in Polman, where
Wasiat and Amanah have been able to build
partnerships with private companies and their
members are able to produce cocoa with sustainable
certification, has supported replication of the program
in other regions. This success is also evident from the
response from PT Mars Symbioscience, which has asked
VECO to develop cocoa programs in North Luwu, East
Luwu and Palopo, which are important cocoa
producing areas.For 2014 new cocoa programs are
started in Parigi and Tinombo districts of Central
Sulawesi.
Lessons learned
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FinanceIn 2012, VECO Indonesia managed program funding of EUR 1,389,690 or around
IDR 19.73 billion.
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Use of funds, VECO Indonesia 2013
EUR Rp %TOTAL
MISEREOR 100,000 1,262,503,100 6.4%
DGOS 813,378 11,345,777,290 57.5%
IDH 37,500 470,250,000 2.4%
CORDAID 178,558 2,915,240,000 14.8%
ZUIDDAG 46,105 583,971,677 3.0%
HO - Inov Fund 44,948 564,101,512 2.9%
NOVIB 55,539 848,855,392 4.3%
AUSAID 32,865 453,457,750 2.3%
RA 39,128 612,763,906 3.1%
SNV 28,668 477,614,575 2.4%
CORDAID CINNAMON 13,000 203,190,000 1.0%
TOTAL 1,389,690 19,737,725,202 100%
EUR IDR %TOTAL
Source of Funds, VECO Indonesia 2013
VECO Indonesia (648,207) (9,206,478,021) 48.0%
Partners (701,851) (9,968,380,986) 52.0%
Total (19,174,859,00) 100%
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VECO Indonesia
Jl Kerta Dalem No 7 Sidakarya
Denpasar, Bali 80024 Indonesia
Telp: +62 361- 7808264, 727378
Fax: +62 0361- 723217
Email: [email protected]
Website www.vecoindonesia.org