Bi-Annual Report 2015 Sustainable Cocoa Production Program Indonesia
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 1
Bi-Annual Report 2015
Sustainable CocoaProduction Program Indonesia
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Table of ContentProgram BackgroundTimelineCluster MapHolistic Approach
Program Results until June 2015Measuring Program ImpactProgram Outcome MonitoringOutcome on Farm RehabilitationNutrition Program OutcomeKey Program Outputs
Farming Good Practices and Technology Transfer SystemsMaster Trainings for Staff and Extension OfficersCocoa Farmer TrainingsCocoa Farming & Greenhouse Gas Emissions
Nutrition and Gender Sensitivity IntegrationGood Nutrition Practices TrainingsEngaging Women in SCPP
Farmer Organization, Market Access and CertificationFarmer Groups and OrganizationsSmallholders Farm CertificationICT for Certification and Traceability
Integrated Agribusiness Financing Facility (AFF)Financial Literacy TrainingsCollaboration with Financial InstitutionsCooperative Strengthening
Stakeholder Management and Networking PlatformsRole and Contribution of Governments
Conclusions
4468
101011121314
17171819
212123
25252627
29292931
3333
34
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 3
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2011 2012 20132010 2015 2016 2017 20182014
PEKA
SCPP - SECO
CPQP 1 - IDH
GNP - EKN
CPQP 2 - IDH
Kementerian Dalam NegeriRepublik Indonesia
STMF - IDH
AFF-SECO
READ-IFAD
GP-SCPP MCA-I
Phase 2
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
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-In-donesia (MCA-I). At national level SCPP works with the Indonesian Ministry of Home Affairs, while for partnerships with private sector companies the Pro-gram 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.
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 inter-est 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 Sulawe-si. 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
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 Vre-desEilanden (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 organi-zations and cooperatives, promotes the establishment of superior clone nurseries, creates transparency in a sustainable supply chain, provides access to local fi-nancial service providers, improves the nutrition intake of the cocoa farming families, and reduces greenhouse gas emission in the cocoa sector.
Program BackgroundTimeline
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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 es-tablished so far for the period from 2012 to 2018.
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28Toli-Toli Buol29
252627
10
11
21
20
17
18
19Mamasa
SouthwestSumba
Ende
SikkaEast Flores
Luwu
1314
9
121011
Provinces7Districts29Private Sector Partners8
16
24North Kolaka
East Kolaka
22
Banggai
East Luwu
Investing in rural people
27
25
26 28
29
5
4
32
1
24
South-East SulawesiCentral Sulawesi
2726
Central SulawesiAceh
West Sumatera
West Sulawesi
14
15
16
13
East Nusa Tenggara
17
18
South Sulawesi
19
20
21
South Sulawesi
South-East Sulawesi
22
23
23PolewaliMandar 12
15
Cluster Map
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Holistic Approach
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Program Resultsuntil June 2015
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 201510
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 liv-
ing 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 farm-
ers’ households were in an extremely vulnerable
condition. One year after the program interven-
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 pover-
ty circle in four years after the intervention.
Over the course of the implementation, SCPP
regularly collects data from at least 10% partic-
ipating 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%.
Measuring Program Impact
Pove
rty
Rate
- 1
.25$
/day
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Aceh WestSulawesi
SouthSulawesi
CentralSulawesi
SoutheastSulawesi
WestSumatera
SCPPTotal
Baseline 1.25$/day Post-line 1.25$/day
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 big-
gest 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 signifi-
cantly, 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.
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
in learning centers, they regain motivation and
start maintaining their old farms thus increase
again their yields and with it their income.
SCPP is continuously monitoring its approach and
its effect on the farming practices and farm-
ers’ 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.
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, collect-
ed 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%.
Program Outcome Monitoring
0
100
200
300
400
500
600
700
800
900
Aceh WestSulawesi
SouthSulawesi
CentralSulawesi
SoutheastSulawesi
WestSumatera
SCPPTotal
Baseline Post-Line
Kg/H
ecta
re/Y
ear
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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 improve-
ment expected in dietary intake.
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.
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).
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).
Nutrition Program Outcome
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Aceh WestSulawesi
SouthSulawesi
CentralSulawesi
SoutheastSulawesi
WestSumatera
SCPPTotal
Baseline IDDS
In Central Sulawesi, GNP training is started in the 1st semester of 2015
*
*
Post-Line IDDS
N/AID
DS
Scor
e
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Target Result
Aceh WestSulawesi
SouthSulawesi
CentralSulawesi
SoutheastSulawesi
WestSumatera
Rehabilitated Replanted Regenerated
Target Result Target Result Target Result Target Result Target Result
This bi-annual report also updates as per June 2015 on cumulative outcome indicators from the farmer capacity building in cocoa Good Agricul-ture 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 method-ologies in place on evaluating individual farm improvements. So far, we are reporting GAP out-comes with measuring three indicators related to farm rehabilitation, regeneration, and replanting, with results as follows:
1,337 hectares replanted: Total hectare of farms where so far 1.25 million cacao seed-lings, 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, distribu-tion, and planting of these seedlings still lacks behind the potential.
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 con-ducted 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.
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 appli-cation 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 rehabil-itation needs to be performed by all supported farmers to achieve the overall Program target of 1,000 kg/ha/year.
Outcome on Farm Rehabilitation
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Smallholder cocoa farmers
were trained on average 8 days through Farmer Field Schools
(FFS)
53,386
677
Extension officers (agricul-ture, nutrition, and finance) from private sector and
government agencies
participated in SCPP’s training
to become master trainers
18.6%
Women participation
in Good Agricultural Practices
(GAP)
256
Cocoa Producer Groups
(CPG) were newly
established in the 1st semester
2015
29,126
Households (one member of the family) of smallholder cocoa farmers were trained in Good Nutrition
Practices (GNP)
370
Nurseries for planting material
established
79.6%
Women participation
in Good Nutrition Practices
(GNP)
1.1 million
Installed capacity for high quality
cacaoseedlings
14,055
Selected mem-bers of smallhold-er cocoa farmer
households received capacity building through financial literacy trainings in Good Financial Practices
(GFP)
15
Producer organiza-tions and
cooperatives providing
services to their mem-
bers
51.8%
Women participation
in Good Financial Practices
(GFP)
10,872
Cocoa producers
are currently certified for the 2015
cocoa season
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 certifi-
cation, 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 house-
holds received capacity building through finan-
cial 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 govern-
ment 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 over-
all 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 establish-
ment/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 certi-
fied 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 farm-
ers and capitalized itself with IDR 570 million .
Output achievement to date is 54%.
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Key Program Outputs
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 201516 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 17
Farming Good Practices& Technology Transfer Systems
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 nurs-
ery, 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 Mar-
ket 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 govern-
ment officers and 19 private sector staffs. The master trainers collaborate with Program Field Facilita-
tors to assist farmers during farmer field school.
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.
Extension Staff Trained
PrivatePublic
0
100
200
300
400
500
600
700
800
Annually2015
Cumulative2012 - 2015
Target Result Target Result
625
52
645
155
15
119
19
145
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 201516
Master Trainings for Staff and Extension Officers
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Cocoa Farmer
Trainings
Cocoa Farming &
Greenhouse Gas EmissionsDelivering 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 Mas-
ter 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 offi-
cers and field staffs.
The FFS are conducted following the KF training. In
the reporting period, 7,376 farmers in total (includ-
ing 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 manage-
ment, harvesting and sanitation, post-harvest prac-
tices and quality (sorting, fermenting, and drying)
and pesticides management.
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 green-
house 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`a-
I-Canals, et al. Palm GHG, the
RSPO greenhouse gas calculator
for oil palm products. 8th Inter-
national Conference on LCA in
the Agri-Food Sector, Oct 2012,
Saint-Malo, France. pp.498-504,
2012
Greenhouse Gas (GHG) emissions from agricul-
ture 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 Agricul-
ture 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.
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 environ-
mental impact.
SCPP implements a holistic approach for sustain-
able, environment-friendly agricultural practices.
The ultimate goal is to reduce GHG emissions
and increase carbon sequestration. The Program
has been estimating and quantifying GHG emis-
sion 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 co-
coa 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 signifi-
cantly 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),
while the organic fertilizer use (compost, ma-
nure, 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 calcu-
lated 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 tCO-
2eq 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 man-
agement, 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.
0
50
100
150
200
250
300
350
400
FemaleMale
324
17
69 9449 66 89
7
13
15
257
76
GAP Good Agriculture Practices
GFP Good Financial Practices
GNP Good Nutrition Practices
Group and Cooperative
Development
ICS,Traceability
andCertification
Post-Harvest and Market
Access
Number of Key Farmers in ToT modules
GAP Participants
0
10,000
20,000
30,000
40,000
50,000
60,000
Annually2015
Cumulative2012 - 2015
Target
10,360
Result
FemaleMale
6,191
1,1762,590
Target Result
48,000 43,452
9,93412,000
Farms Surveys tCO2e/Farm tCO2e Reduction in tCO2e
54,000Baseline 680 36,746
3,565Post-Line 614 33,181
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Nutrition & GenderSensitivity Integration
The poor nutritional status of farmers and their households members is still an issue, which influ-ences 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. How-ever, 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 pro-viding 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.
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.
GNP Participants
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Annually2015
Cumulative2012 - 2015
Target Result
FemaleMale
Target Result
8,000 5,931
23,195
32,000
9,600
2,400
1,526
5,806
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 21Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 201520
Good Nutrition Practices Trainings
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 201522 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 23
Engaging Women in SCPPSCPP 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:
ACCeSS
Being aware that
agriculture in Indone-
sia is often perceived
as male-dominated
sector, the Program
sees the importance to
provide equal oppor-
tunity for women to
have increased access
to the sector. Hence
in group formation
activity, SCPP encour-
ages women mem-
bership in the group
as well as women
leadership. Further-
more, to provide an
equal opportunity for
women and men, the
Program prerequisite
at least 30% women
respondents in the
post-line;
PARTICIPATIONIn line with the above mechanism, SCPP is consistently putting the effort to involve wom-en in the training ac-tivities; 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 in-volvement throughout the program activities at individual level, within participating smallholder cocoa farmer households;
CONTROl
At group level, the
Program urges wom-
en’s significant role
in the farmer groups
such as the group
head, treasury, and
secretary. In 2015
SCPP successfully in-
cluded 33% women in
Key Farmers trainings.
Moreover, until June
2015, around 6.25%
of women have been
holding leadership
positions in their re-
spective farmer orga-
nization 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-mak-
ing 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.
Gender in Program Sta�
0
20
40
60
80
100
120
140
160
180
200
FemaleMale
12 23
17
Assistants/Field Staff
OfficersManagersCLT
3 48
123
62
Gender in Program Participants
0
10,000
20,000
30,000
40,000
50,000
60,000
FemaleMale
43,461
9,934
5,931 6,772
7,283
23,195
GAP GNP GFP
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 23Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 201522
For Swisscontact, gender inclusion is key for program success. 29% of management and staff posi-
tions 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.
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 201524 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 25
Farmer Organization,Market Access & Certification
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 engag-
ing 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.
The Program has been supporting farmer organizations at district level to provide additional bene-
fits 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.
Supported Cocoa Producer Groups
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
1,7472,000
423256
Annually2015
Cumulative2012 - 2015
Target Result Target Result
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 201524
Farmer Groups and Organizations
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 201526 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 27
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.
Benefits of certification for smallholder cocoa
farmers include direct benefits such as premi-
ums paid and diffused benefits such as con-
servation 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 mem-
bers. 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 hold-
er. 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 au-
dit process was still ongoing for the finalization
of Q3 2015. In South Sulawesi, where the certif-
icate 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.
Smallholders Farm
Certification
Benefits of certification for smallholder cocoa farmers include direct benefits such as premiums paid and diffused benefits such as conservation of ecosystems, in-creased farm yield, employment opportu-nities and improved labor conditions
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 certifica-tion holder using the traceability feature on CocoaTrace.
ICT for Certification &
TraceabilityThe 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.
During the reporting period,
the Program was continuous-
ly 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 map-
ping of cocoa farm of the partic-
ipating 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 require-
ment 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 ap-
plication. 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 infor-
mation all the way to financial
receipts, and premium and
bonus calculation. The certifi-
cation 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 un-
dergoes continuous refinement
so that the users can easier
navigate to get necessary infor-
mation, to measure progress,
and to establish plans.
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 27Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 201526
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 201528 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 29
Integrated AgribusinessFinancing Facility (AFF)
The AFF was implemented in full scale in the first semester 2015. Following an initial solid prepa-
ration 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 Fi-
nancial 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 partic-
ipating 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.
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 ap-
proach, between 16% and 50% of the training participants opened saving accounts.
GFP Participants
0
5,000
10,000
15,000
20,000
25,000
30,000
Annually2015
Cumulative2012 - 2015
Target Result
WomenMen
Target Result
15,000
6,772
7,283
15,000
11,700
11,700
5,090
5,769
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 29Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 201528
Financial Literacy Trainings
Collaboration with Financial Institutions
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 201530 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 31
Cooperative
StrengtheningThere 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 collec-
tively, 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 man-
age 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 equi-
ty share when they provide financing.
Koperasi Gabungan Gapoktan (KGG) in Kolaka
received IDR 2.2 billion, which were distribut-
ed 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 31Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 201530
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 201532 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 33
Stakeholder Management andNetworking Platforms
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 de-velopment (PISAgro). These national institutions provide inputs and advices to improve the program implementation. At subnational level, the Program intensively works with provincial and district gov-ernment 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 sup-ply 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) support-
ed 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 equip-
ment for demo-plots, extension officers, and some follow-up coaching to cocoa farmers on farm-
ing 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.
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 201532
Role and Contribution of Governments
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 201534 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 35
Entering 2015, the last year of the first SCPP
phase, the Program has again proved to be clos-
er 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 ap-
proach. 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, ex-
panding 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 challeng-
ing 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” in-
cluding 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 coop-
eratives’ 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 orga-
nization and support center to their members.
SCPP undertakes Monitoring and Evaluation pe-
riodically and evaluates its approaches through
studies, consultations with government and part-
ners, post-line surveys and improved program
monitoring. SCPP also employed shared mea-
surement 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; neverthe-
less, 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 oc-
casional failures and disappointments, the new
Research & Development unit was established to
safeguard proper knowledge management with-
in and outside SCPP including learning lessons’
sharing.
SCPP collaborates with government, financial
institutions and donors to pool expertise and re-
sources and develop most effective interventions
for greatest impacts. In addition to collabora-
tion 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 region-
al governments and other organizations working
in the cocoa sector.
Conclusions
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 201534
Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 201536
Swisscontact - SCPP SumateraKomplek Taman Setia Budi Indah I
Jl. Chrysant Blok E No. 76 Medan 20132Tel.: +62-61-822-9700
THE VIDA Building5th Floor 01-04 Kebon Jeruk, Jakarta Barat 11530
Tel.: +62-21-2951-0200
Swisscontact - SCPP SulawesiGedung Graha Pena lantai 11, Kav. 1108 -1109
Jl. Urip Sumoharjo, No. 20 Makassar 90234Tel./Fax: +62-411-421370
www.swisscontact.org/indonesia