Popular Report 2014 VECO Indonesia

Page 1

P PULAR REP RT 2014



Content List Content List....................... 3

Java.................................. 18

Foreword............................4

Flores................................ 20

About VECO Indonesia ......... 6

Sulawesi............................ 22

Program Area...................... 8

Collective Marketing............ 24

Summary............................10

Finance............................. 26

Activities........................... 12

Testimonial........................ 28

Kerinci.............................. 14

Contact............................. 30

Jakarta.............................. 16


Foreword

Production In 2014 VECO Indonesia started implementing the new program 2014-2016. The value chains program continue with several additional partners and Structural Change Agendas (SCA) have been introduced. The experience and learning from the pilot chains will become evidences to be used by SCA partners at the national level to contribute to SCA’s (policies, practices) that are more favourable to smallholder farmers. The target group (direct beneficiaries) in 2014 is 23,898 farmers (15% female), increased by 49

Farmers Organisation percent from 2013. The wider program coverage area and higher trust of farmers in farmer organisations contribute to this increase. The new program areas are: Luwu Utara, Parigi Moutong, and Sikka for cocoa chain, Ende for coffee chain, and Tasikmalaya for rice chain. Cocoa program in Flores Timur has also expanded to Adonara Island and in Ende to Liu Timur Sub-district. Our new farmer organisations (FO) are: Cahaya Sehati, Parimo, FO Ende, FO Sikka, Simpatik, and P3LL.


Agribusiness VECO Indonesia has facilitated partnerships between farmer organisations (FOs) and private actors for Cocoa Sulawesi, Cocoa Flores, Coffee Sulawesi, Coffee Flores, Rice Flores, Rice Central Java, Rice West Java and Cinnamon Kerinci with the objective of improving the business capacity of FOs to engage and comply with the requirement of modern markets. In general there has been an increase in the yearly incomes of farmers, thanks to a large degree to the higher price of the commodities. Increasingly

unpredictable weather conditions pose risks to the production, especially rice. Farmers’ resilience to cope with this condition continues to be tested. In this Popular Report, you can read more about our achievements together with partners in 2014. We hope you enjoy reading it and learn from it as well.

Rogier Eijkens

Regional Representative VECO Indonesia


About VECO Indonesia

The inclusion of smallholder farmers

Main Program

Sustainable rice production of good standard quality

8 Regional Offices Globally

Head Office in Leuven, Belgium

Part of Vredeseilanden


Increasing the capacity of business and organization of farmers

Improving the capacity of partners and local institutions

Goals of Program Continuously increasing the capacity if VECO Indonesia staff

Strengthening farmer organizations


Program Area

Kerinci

Jambi

Solo Boyolali Greater Jakarta

Polman Enrekang

West Java Central Java

East Java

Tasikmalaya Malang Lumajang

Denpasar

Gianyar


INDONESIA Parigi Moutong

North Toraja

West Sulawesi East Luwu

South Sulawesi

North Luwu

Makassar Palopo Tana Toraja

Ende

NTT East Flores Sikka Nagakeo

Manggarai

Ngada East Manggarai

Legends Office

Rice

Cocoa

Healthy Food

Coffee

Cinnamon


Summary

85%

Direct Beneficiaries

20,313

15% 3,685

Total

23,898 farmers increased by 49% from 2013


Partners Farmer Organisations

NGOs and Forums

Private Sector

Local Government

Total

70

Partners

18 18 16 18


Facilitating improved production of farmers

2014 was a year of change for Indonesia and for this organisation, VECO Indonesia. In this year, Indonesia got a new leader and a new cabinet. For VECO Indonesia, 2014 marked the beginning of change with a new programme.

Building the business capacity of farmer organisations

Main Activities 2014

Last year, we started a more intensive phase of introducing farmer organisation as business entities. So, during 2014, we focused more on programmes to build the business capacity of farmer organisations.

Facilitating quality standard training


Supporting gender integration

Linking private companies and smallholder farmers

Facilitating links with financial institutions

Performing monitoring and evaluation

Organising business meetings between farmers and private companies

Facilitating specific training to strengthen business

Promoting farmer products

Facilitating trademark packing and labelling workshops


Kerinci

Jambi Kerinci Commodity: Cinnamon

In 2014, TAKTIK officially became a farmer organisation with legal status that focuses on sustainable agriculture development activities and programmes. Having this legal status makes it easier for TAKTIK to build partnerships with others, such as buyers and government.


Partners

TAKTIK farmer organization

PT Agripro Tridaya Nusantara

Mitra Aksi Foundation

Partnerships Members

70%

The partnership between TAKTIK and PT Agripro Tridaya Nusantara (ATN) included the purchase of 8 tons of cinnamon and working capital support.

(707 of 1,014)

of TAKTIK members Have adopted organic farming practices. Using organic fertiliser and pesticide. Creating terraces to save water and prevent erosion.

Increase farmers' income

Achievements

Semester I:

Gross Income

13.5 million per1.5 hectares

IDR

Semester II:

Gross Income

16,5 million per 1.5 hectares

IDR


Jakarta

Jakarta

The programme focused on advocacy related to the multi-quality national standards for rice, strengthening the national rice producer organisation, inclusive retail business, and raising consumer awareness about healthy food.


Alliance of Indonesian Farmers (API)

Partners

Indonesian Consumer Foundation (YLKI), Perkumpulan Indonesia Berseru (PIB), Environment Education Centre (PPLH) Bali, Healthy Food Foundation of Indonesia (YAPSI), Organic Alliance of Indonesia (AOI), Specialty Coffee Association of Indonesia (SCAI), dan Cocoa Sustainability Partnership (CSP).

Farmer organisations have a good relationship with the district governments. They have been invited to take part in dialogues on sustainable agricultural themes.

2014 SCAI Coffee Auction: 144 speciality coffees registered, 31 samples got high scores, five of them from VECO Indonesia partners, Permata (Ngada), Asnikom (Manggarai) and Benteng Alla (Enrekang).

Achievements The government agreed to get involved the Cocoa Sustainability Partnership activities and in harmonising the CSP Cocoa Roadmap with government plans for cocoa.

On 17 September 2014, 17 farmer organisations established the Indonesian rice farmer association Amartapadi in Boyolali, Central Java. The aim of the organisation is to provide a forum and enhance the negotiating position of rice farmers.


Java West Java Tasikmalaya

Central Java Boyolali

Solo

East Java Malang

Lumajang

The programme focused on rice development by farmer organisations in Boyolali, Central Java, and in Tasikmalaya, West Java. VECO Indonesia has also just started a coffee development programme in Lumajang and Malang, East Java.

Commodities:

Rice and Coffee


Partners

Asosiasi Petani Padi Organik Tasikmalaya (Simpatik), Asosiasi Petani Padi Organik Boyolali (APPOLI), Aliansi Petani Organik Boyolali (APOB), Paguyuban Petani Pengelola Lahan Lestari (P3LL)

Simpatik and APPOLI formed a cooperative in 2014. As legal entitities, these cooperatives are platforms for marketing organic rice on the domestic and foreign markets.

Lembaga Studi Kemasyarakatan dan Bina Bakat (LSKBB), Gita Pertiwi Indonesian Retail Merchant Association (APRINDO), PT Bloom Agro

Farmer organisations signed contracts with private companies: APPOLI with Sembada Inti Pangan, BSN, Quasinde and SMESCO, and Javara and Simpatik with Bloom Agro.

Achievements Volume of rice sold through collective marketing (in tons):

APPOLI APOB Simpatik P3LL

110.34 8.9 120.37 16.15

Total

255.76 tons

Two farmer organisations received organic and fair trade certification. Simpatik received organic certification from IMO, and APPOLI received fair trade and national organic standard certification.


Flores

Flores

East Manggarai Ngada Manggarai

Nagakeo

East Flores Ende

Sikka

The focus of the programme in Flores is development of coffee, cocoa and rice in seven districts on Flores Island. The main support is for building the business capacity of farmer organisations in this area.


Partners

Yayasan Tana Nua Flores (YTNF), Mitra Tani Mandiri (MTM) Ngada, Ayu Tani, Delsos Ruteng, and Lembaga Advokasi dan Pendampingan Masyarakat (Lapmas) Ngada

Jaringan Petani Wulan Gitang (JANTAN), Asosiasi Petani Kakao Nangapenda (SIKAP), Asosiasi Tani Organik Mbay (ATOM), Asosiasi Petani Kopi Organik Manggarai (Asnikom), Perhimpunan Petani Watuata (Permata), Farmer Organisation in Ende and Sikka.

Support from the Finnish Embassy for ATOM of

Comextra Mayora, PT Indokom Citra Persada, PT SBN, and Volkopi

Memorandum of Understanding (MoU) between VECO Indonesia and Bank NTT to support rice, cocoa and coffee farmer organisations in Flores.

IDR 601,184,000

Achievements

IDR 300 million support for cocoa processing facilities from the Ministry of Cooperatives for JANTAN multi-business cooperative.

Support in the form of coffee grinding and other equipment for ASNIKOM coffee processing unit in Manggarai, and a commitment to provide working capital to buy coffee in 2015.


Sulawesi Parigi Moutong

West Sulawesi Polman

North Toraja

North Luwu

Tana Toraja Enrekang

South Sulawesi Makassar

East Luwu

Central Sulawesi The programme focused on cocoa development in three provinces (West Sulawesi, South Sulawesi and Central Sulawesi) and on coffee development in Tana Toraja, North Toraja, and Enrekang, South Sulawesi.


Mitra

Amanah, Masagena, Cahaya Sehati, Perhimpunan Petani Kopi Toraja (PPKT), dan Benteng Alla

Amanah, Masagena and Cahaya Sehati received certification from Rainforest Alliance for sustainable cocoa. They covered the cost of certification themselves.

Wahana Sukses Pertanian Terpandang (Wasiat), Jalesa Toraja ECOM, PT Mars Symbioscience Indonesia, Continaf/Nedcommodities, Sulatco, Toarco Jaya

Farmers' price negotiating skills are improving. Sulatco and Toarco Jaya provide PPKT daily price information. Benteng Alla receives a higher than market price.

Achievements Net income per month per hectare Volume of coffee marketed collectively:

Polman:

332 Benteng Alla 18.8 tons PPKT

tons

North Luwu: East Luwu: Parimo:

IDR 2.5 million IDR 2.9 million IDR 576,000 IDR 946,000


Collective Marketing in 2014 Amanah

276

Masagena

181

Cahaya Sehati

161.7 Parimo

202.4

Jantan

43.5 Sikap

PPKT

Permata

Sikka

Benteng Alla

Asnikom

332

22.5

18.8

0.22 Total cocoa of Sulawesi

821.14

Total cocoa of Flores

66.22 in tons

Total coffee of Sulawesi

350.8

13.86

35.77 Total coffee of Flores

49.63


Appoli

110.34

APOB

8.9

P3LL

16.15

Total rice of Flores

13.43

Total rice of Central Java

135.39

Total rice of West Java

120.38

Total cinnamon of Kerinci

8.83


Finance Triple 11

2.09% 515,751,210

TRDS

CORDAID

1.96% 482,057,838

ZUIDDAG

0.89% 218,990,007

2.68% 660,000,000

NOVIB

5.33% 1,313,226,578

FAO

0.76% 188,179,387

MISEREOR

Income (in IDR)

DGD (Belgium)

64.49% 15,900,942,452

8.58% 2,116,169,368

DFAT / AUSAID

13.23% 3,262,040,241


General operation

4%

825,991,302

Training and meeting

25%

4,752,064,404

Personnel

19%

3,602,624,333

Expenses (in IDR)

51%

Partners Activities 9,725,720,001

1%

Investment 98,709,000


Testimonial Initially, JANTAN and SIKAP had no knowledge of good quality cocoa beans. However, thanks to support from VECO Indonesia and Comextra Mayora, in 2014 they learned to produce very good quality cocoa beans.

With support from VECO Indonesia, we are able to produce better quality cinnamon.

Junaidi , Romanus Nong Rewo,

Vice Lead, Coordination Team, PT Comextra Mayora, Maumere

Farmer in Kerinci, Jambi


On behalf of the district government, I would like to thank VECO Indonesia for motivating coffee farmers to improve the quality of their coffee; Benteng Alla coffee now meets the market standards to be sold as speciality coffee.

Muslimin Bando ,

Regent of Enrekang, South Sulawesi


Contact Regional Office

FA Jawa

Jl Kertadalem No. 7 Sidakarya Denpasar, Bali 80224 Telp +62 361 727378 Faks +62 361 723217

Perumahan Galaxy Permai Blok B No. 9 (Utara Terminal Boyolali), Boyolali, Jawa Tengah HP: 08113854464

FA Kerinci

FA Sulawesi

Jl. Depati Parbo, Rt. 03 Desa Kumun Mudik Kecamatan Kumun Debai, Sungai Penuh, Jambi HP: 08117454330

Jl. Gunung Rinjani I no 7 Perumahan New Jasmin Tanjung Bunga Makassar, Sulawesi Selatan HP: 08113854464

FA Jakarta

Jl. Gatot Subroto no 7 Ende, Flores, Nusa Tenggara Timur HP: 08113854463

Jl Saleh Abud No. 18-19 Otto Iskandardinata Jakarta HP: 08113854465

FA Flores


This report printed in 50 percent of recycle paper as commitment of VECO Indonesia to environment.



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