1604 ICP Indonesia, Sumatra - Annual Report · x Additional staffing (Agronomist, Commercial Coordinator, OD expert, Project Assistant, M&E Officer). Country director on contract

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Executive Summary Project Objective To improve the profitability and climate change resilience of coffee production for 5,000 Indonesian smallholder Robusta farming households in Sumatera Selatan province in an economically, environmentally and socially sustainable way. Main activities of project in past year

x Additional staffing (Agronomist, Commercial Coordinator, OD expert, Project Assistant, M&E Officer). Country director on contract.

x Registration of 72 additional farmer groups. Total 246 groups registered as of end 2015, of which 165 are active.

x Support for farmers to form 8 KPBs (Kelompok Pemasaran Bersama, joint marketing groups) for joint marketing.

x Support and coaching for group savings schemes in 57 farmer groups. 23 saving groups active as of end 2015.

x Ongoing training and capacity building of key farmers (KF) and district/sub-district extension officers (EOs); 12 KFs and 16 EOs supporting the project as of end 2015. EOs and KFs taking over more and more training responsibilities from the field officers.

x Farmer Field Schools implemented in 171 producer organizations (4,019 farmers) x 20,056 additional training contacts in 2015, 81% on GAP and 19% on OD. x Market study on supply & demand of planting material has been conducted, one field

level nursery under establishment which will be part of a KBP x Climate change triangulation study conducted, implementation of ground cover started. x Stakeholder dialogue deepened. Highlights: participation in SCOPI and IDH national

coffee platform, engagement and dialogue with district extension services. Main achievements in 2015 x Successes booked in changing the mindset of farmers to become entrepreneurial. x Formation of 8 KPBs of which 4 bulk marketed coffee representing 24 farmer organizations

and approximately 107 farmers. Farmers jointly marketed a total of 101 MT of green coffee of which 50% went directly to exporters in Bandar Lampung. Farmers received an average price difference of IDR 1,446 per kg (USD 0.11 per kg) in these transactions compared to the local price in their villages at the time of sale. Resulting in net income increase of 6.4%.

Main challenges encountered in 2015 x Despite already achieved successes, changing the mindset of the farmer to become

entrepreneurial remains an ongoing challenge. x El Niño event caused extreme drought and high temperatures which will have a negative

effect on production coming season. Main lessons learnt so far x Bulk marketing has a significant positive effect on farmer income, mindset and trust. x The multiple angle approach already shows success. Increased focus will be on successful

elements of the project to create a snowball effect. x Including farmer exchanges and demo plots is an important catalyst for success.

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Content Executive Summary.......................................................................................................................... 1

Content ............................................................................................................................................. 2

High Level Progress & Project Outreach ......................................................................................... 3

Project Objective .......................................................................................................................... 3 Project Outreach .......................................................................................................................... 5

Progress on Specific Objectives ...................................................................................................... 7

Specific Objective I ....................................................................................................................... 7 Specific Objective II .................................................................................................................... 11 Specific Objective III ................................................................................................................... 14 Specific Objective IV .................................................................................................................. 15 Specific Objective V ................................................................................................................... 17

Project Finance & Strategic Partners ............................................................................................. 18

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High Level Progress & Project Outreach

Project Objective To improve the profitability and climate change resilience of coffee production for 5,000 Indonesian smallholder Robusta farming households in Sumatera Selatan province in an economically, environmentally and socially sustainable way.

Indicator Season 13/14

Season 14/15 Progress Project

Target 1 Average Gross Margin per hectare

(in kIDR / ha) n/a 6,215 12,000

2 Average Unit Cost (kIDR / metric ton) n/a 6,813 +3,005

3 Average productivity (metric ton FAQ / ha) 0,710 0.530 -0.180 1

Production decreased, there are two reasons that explain the decrease:

1) Production in season 13/14 was measured by a baseline survey, whereas the production in season 14/15 is calculated based on data from the farmer field book. Data from the FFB is probably more accurate.

2) The overall production in Southern Sumatra decreased with about 15-20% because of climatic conditions and the bi-annual production cycle..

We do not have comparison figures for unit costs and gross margin for previous seasons but follow a sample for farmers using the Farmer Field Book technique. Subsequent reports will yield insights in how profitability develops over time. Farm Economics

Figure 1: labour input cost per activity per ha

2.586 807

0 1.000 2.000 3.000 4.000

TOTAL (100%)

Other (8%)

Pruning (8%)

Fertilizing (20%)

Weeding (27%)

Harvesting (36%)

kIDR

External Labor CostInput Costs

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Labour time The amount of man-days spent on coffee farming activities per ha and season is only 67 days of which 35 (53%) is external labour. Most of the labour time is spent on harvesting, followed by weeding and pruning. Other activities in terms of labour time are almost insignificant. For some activities such as processing and transporting we have to find out the core reasons for the limited time spent. It could be that farmers included, for example, hulling and drying under harvesting. Farmers often pay in cherries to use a huller machine. This is a hidden cost. Input cost Total input cost per ha is about 3.6 mln IDR (about $265). 36% of the input cost is for labour to help with the harvesting. 27% of the cost is for weeding and 20% for fertilizing. Apparently, farmers also use external labour to do (part of) the pruning. In general, input cost other than for external labour is very low.

Figure 2: Production cost and farmer income per hectare

Production and sales price Farmers produce on average about 2,400 kg of fresh cherries which is about 530 KG of green beans/ asalan per ha. Asalan means “as it is”, this is coffee that is partially dried and hulled by farmers. Farmers will receive a price which depends on the quality and the loss in weight (on foreign matter and moisture). On average it is estimated that farmers received 18,500 IDR/kg for their asalan which gives a gross income on coffee of almost 10mln IDR ($721) per ha. Realized prices fluctuate over the year, depending on the future market, (local) supply and demand and market access. Farmer income The gross margin on coffee is 6.2mln IDR ($455) per ha. Farmers earn almost 200,000 IDR ($14.50) per working day per HA on the time they spend on coffee activities.

Figure 3: Amount of specified fertilizer input

Figure 3 above shows that too much Nitrogen (N) is used and too little Potassium (K2O). The project should further focus on nutrient management to make sure that farmers use the right product with the right composition. In cooperation with Yara, trials with better fertilizer mixtures have been established and the project will look into options to trial organic fertilizers such as bio char.

kg asalan kIDR USDProduction / ha 530Price / kg asalan 18.5 1.36Revenues 9,807 721Operational Costs 3,611 265Gross Margin / ha 6,196 455Gross Margin / manday family labor 198 15

Application (a) Extraction (b) Balance (a-b)Nitrogen (kg N) 34.7 21.4 13.3 Phosphorous (kg P2O5) 0.6 3.6 - 2.9Potassium (kg K2O) 9.4 23.1 - 13.8

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Project Outreach

Indicator 1.1.2015 31.12.2015 Progress Project Target

1 Ongoing Beneficiaries (#HH) 4,023 4,037 +14 5,000 2 Total Beneficiaries (#HH) 5,468 5,842 +374 5,000

3 Total Household Members (ongoing) 12,989 18,467 +5,478 20,000

4 Ongoing Farmer Organizations 169 165 -4 200 5 Total Farmer Organizations 174 246 +81 200

6 Total of Impacted Farmland (ha, ongoing) 7,614 8,003 +389 9,100

7 Area under Coffee (ha, ongoing) 7,614 7,475 -139 8,190



Target 1 Coffee sold through farmer

organizations (metric tons FAQ) 0 101 +101

2 Total production of project coffee (metric tons FAQ) 5,406 3,637 -1,769

Beneficiaries In June and July 2015, HRNS stopped registering farmers, even though still slightly short of the 5,000 farmer target. This is because new farmer registration, community sensitization, forming agreements with community and farmer organization leaders, etc. is a time and labor intensive process, and it was taking away from the field officers’ time to conduct training. HRNS decided to focus on the professional capacity building of the number of farmers reached so far to show impact and create successful examples which will then motivate both, inactive farmer groups and new groups to request inclusion in the project and thereby arrive at the 5,000 target.

Coffee Quantity and marketing Total production in the active project area is about 3,637 Mt of Robusta coffee. About 3% of this production has been sold through farmer organizations. HRNS supported the formation of 8 KPBs (Tier 2 farmer organizations), 4 of which bulk marketed coffee in the 2014/15 season (representing 24 farmer organizations and approximately 107 farmers). Farmers jointly marketed a total of 101 MT of asalan to Bandar Lampung (direct-to-exporter), Fajar Bulan (large collectors), and Liwa (trader buying stations). Farmers received an average price difference of IDR 1,446 per kg (USD 0.11 per kg) in these transactions compared to the local price in their villages at the time of sale.

For 2015 the goal is to sell at least 500 Mt in bulk marketing through farmer organizations which is almost 15% of the current project coffee production. Coffee Quality Coffee quality improved because of one significant external factor, the weather. The weather was optimal during and after the harvest which resulted in a lower loss in value in post-harvest practices. In particular, drying the coffee was easy resulting in low moisture. The average moisture received by exporters in Bandar Lampung over the last 9 years is 19%, this year it was about 16%. HRNS did not measure the quality in terms of defects, but the good weather in combination with training on good harvesting and post harvesting resulted most likely in less black beans. For 2016

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HRNS plans to support FOs by facilitating access to drying and hulling equipment in order to improve the coffee quality.

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Progress on Specific Objectives

Specific Objective I Smallholder farmers have been organized into well-functioning, well- governed, transparent, and member-oriented farmer organizations that provide them on-going support, help break supply chain dependencies and improve their access to input and output markets, credit, and technical, managerial, and market information.



Target 1 Amount of coffee bulked via farmer

organizations (mt FAQ) 0 101 + 101 2500

2 Amount of coffee bulked via farmer organizations (% total production) 0% 3% + 3% 50%

3 Total Value addition due to bulk marketing (kIDR) 0 146,046 +146,046 3,615,000


1 Number of active first-tier farmer organizations supported 169 165 -4 200

2 Number of active second-tier farmer organizations (KPBs) supported

0 8 +8 8

3 Training Contacts Organizational Development 0 3,725 + 3,725 10,000

4 Total amount of savings in group saving schemes (kIDR) 0 154,532 + 154,532 4,000,000

To date HRNS has achieved the most substantial results under SO1, and made significant progress in year 2 on bulk marketing and value addition. HRNS’ strategy remains building on existing farmer groups instead of creating new ones – which has allowed HRNS to advance faster than expected. HRNS supported farmer groups to revise by-laws and statutes, strengthen internal control and democratic governance procedures, and integrate marketing into their core operations by naming a marketing manager within each organization. Farmer motivation in these pre-established organizations remains high. Unmotivated farmer organizations are those classified as ‘inactive’ and are not receiving attention. HRNS’s commercial coordinator’s efforts to cluster farmer groups into marketing units (KPBs) proved highly effective in the 2014/15 season: HRNS supported the formation of 8 KPBs throughout the project region (Figure 4), 4 of which bulk marketed coffee in the 2014/15 season (representing 24 farmer organizations and approximately 107 farmers). Farmers jointly marketed a total of 101 MT of asalan to Bandar Lampung (direct-to-exporter), Fajar Bulan (large collectors), and Liwa (trader buying stations).

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Figure 4: Map of KPB locations and volumes, 2014/15 season

KPBs marketed coffee between June and August of 2015, with a spike in sales towards the end of the period when prices corrected to the upside (Figure 5). Farmers received an average price difference of IDR 1,446 per kg (USD 0.11 per kg) in these transactions compared to the local price in their villages at the time of sale. Price differentials were higher at the beginning of the marketing season than the end.

Figure 5: Volume sold and price differentials, 2014/15 season

13.715 Kg

0 Kg0 Kg

1.182 Kg

49.890 Kg36.607 Kg

0 Kg

0 Kg

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

16,000

17,000

18,000

19,000

20,000

21,000

22,000

23,000

Vo

lum

e so

ld:

kg a

sala

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/kg

Bulk marketing prices & volumes, 2014/15 season

volume Local price Final price

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On average, each participating farmer received about USD 53 (USD 5700 /107 farmers) in added value per transaction, net of costs. Net income from coffee was estimated at USD 1,365 per family in the baseline study, but recent FFB data shows an income of about USD 830 on coffee this year (because of the 40% lower USD/IDR compared to baseline). Therefore, the USD 53 might look relatively small on an individual basis, however, over the total net income it means an increase by 6.4%. Moreover, on the aggregate it is significant: bulk marketing of the entire 101 MT generated a cumulative total of USD 9,500 in gross value addition and USD 5,700 in net value addition for the 24 farmer groups involved – in other words, in total farmers received an additional $9,500 above what they would have received had they delivered to local traders, as in past years, and $5,700 when costs (primarily transport) are taken into account (Figure 6). Most importantly, it is an important first step that has caught farmers’ attention and will contribute to further project success.

Figure 6: Gross and net value addition, cumulative, 2014/15 season

HRNS has also been supporting group savings and credit schemes within the participating farmer groups since Year 1, and to date HRNS has supported 57 of the 187 active farmer groups to establish group savings programs. The most advanced 23 organizations have mobilized a total of IDR 154,532,250, or approximately USD 11,358 – an average of IDR 6.7 million (USD 94) per organization and IDR 1.3 million (USD 92) per farmer. While these amounts remain small, they represent approximately 8% of the average farmer’s net income, which HRNS estimated at baseline at Rp 15.4 million (about USD 1,1351), and mark an important starting point. . Main challenges encountered The main challenge is changing the mindset of the farmer. Farmers have bad experience in setting up farmer organizations, because of various reasons such as bad leadership and corruption. Slowly but surely HRNS staff is building trust among farmers by teaching them on proper statutes and by-laws as well as roles and responsibilities. Besides this, introducing saving

1 As above Rp are converted to USD at Rp 13,605.40 per 1 USD per www.oanda.com on October 31, 2015. Note that in the baseline Rp was converted at Rp 11,312.20 per 1 USD.

-

2,000

4,000

6,000

8,000

10,000

12,000

USD

, cu

mu

lati

ve

Value addition from bulk marketing, 2014/15 season

Added value (gross), cumulative Added value (net), cumulative

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schemes and bulk marketing result in quick wins that make farmers enthusiastic and hopeful for the future. Some farmer organizations have asked our support to provide warehouse space, hulling and drying equipment. In 2016, the KPBs will be further strengthened by OD training. Besides this the project will provide quality improvement equipment on T2 level to further boost margins and bulk marketing volumes which will consequently boost the attractiveness of the KPB and the trust and vision among the members.

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Specific Objective II Smallholder farmers have increased coffee yields in an environmentally friendly manner and improved economic efficiency via improved practices in production, farm management, harvesting, and post-harvest processing.


1 Training Contacts Agronomy 4,765 16,331 +11,566



Target 1 % applying at least 50% of GAPs in

coffee +00

2 % applying at least 50% of harvest & post-harvest practices in coffee +00

Training and technical assistance related to improved production practices has been a focus of the intervention since its inception. Extensive training activities began in May 2014 and accelerated significantly in the second half of 2015 (Figure 7). By the end of 2015 HRNS had made 20,056 training contacts over 2015 which is average of about 1,671 training contacts per month. Training covered topics related to Good Agricultural Practices (GAP) and Organizational Development (OD), with 81% of trainings dedicated to the former and 19% to the latter (Figure 7).

Figure 7: training contacts over the year 2015

Adoption rates HRNS has conducted a survey in December 2015. One of the objectives is to measure the adoption rate of GAPs.

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Method: x 250 farmers selected by random sampling divided over 4 areas. This gives a sample group of

over 5% of the population. x Team of surveyors interviewed farmers and conducted a field control check to make sure the

answers of the farmers correspond with the reality in the field. x Adoption rate is measured in 3 categories:

i. Not applied: 0% adopted ii. Applied rudimentary: 1-50% adopted, depending on variable it can be % of trees or % of

ha iii. Applied well: 51-100% adopted, depending on variable it can be % of trees or % of ha

(fertilizer). Only those are counted as adopters in the below graph. We observe a marked uptake in adoption if compared with baseline values for both farm management practices and practices relating to harvest and postharvest treatment of coffee. The largest increase can be observed in the topics in which the trainings focused. The notable exception from that is rejuvenation which only 8% of farmers applied correctly, despite the 3,175 training contacts on the topic. The project will investigate further on how to increase the uptake of good rejuvenation techniques.

Figure 8: Adoption rates of Good Agricultural Practices (GAP)

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Figure 10: adoption rate of good harvest & post-harvest practices

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Specific Objective III Smallholder farmers improve their capacity to adapt their livelihoods and farming systems to climate change.


1 Training Contacts Climate Change 0 0 +0

2 Number of Case Studies generated from the Project 0 0 +0



Target

1 % applying at least two recommended adaptation practices2

N/A N/A N/A

There are no results to report on SO3 at this time since climate adaptation activities began at the end of the reporting period with a triangulation study carried out by Dr. Peter Baker, the scientific advisor to the Initiative for Coffee & Climate. Indonesia’s Robusta regions faced a severe El Niño event in September and October 2015, which materialized as a prolonged dry season and unseasonably warm temperatures. At this exact time HRNS conducted the project’s climate change risk assessment and drafted the initial design of the project’s climate change adaptation strategy. Herewith a summary of the main findings: 0. Extreme coffee: through the field trip to southern Sumatran coffee farms during the great

2015 El Niño (ENSO) event, it became evident that the lower coffee zones (150 to 800 m asl) are extremely stressed due to a combination of high temperatures and prolonged drought. Coffee at higher elevations was less severely affected but by no means in rude health.

1. Serious degradation: it became clear too that in many cases, the diverse variants of the coffee agrosystem are quite seriously degraded, a common sight being an ageing tree stock growing on exposed infertile soil, under light shade. The often extreme temperature signatures that were recorded confirmed the visual appraisal. The upshot is uncompetitive, low yielding coffee that suffers from berry borer infestations and a range of other problems including stem borers and disease.

2. Long term decline: the current state of coffee in southern Sumatra is not just a result of the present crisis, but a probable long decline driven by a range of factors that includes incremental temperature rise over the past 30 years.

3. Not a ‘Black Swan’: even when the present crisis ends, there is no doubt that temperatures will continue to rise and farmers will be vulnerable to equally bad or worse climate shocks in the future with effects felt at progressively higher altitudes. Recent research also suggests that future ENSO events will become more frequent.

4. A paradigm shift: the reality is that coffee in the region exhibits low resilience; the challenge is how to rebuild it; the mistake would be to continue with a conventional GAP package that

2 While this is an important indicator for the project, there is no final curriculum of adaptation practices agreed yet. That is why, it is not yet possible to report on adoption rates.

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does not take into account long term chaotic change; the solution would be a shift to an adaptive management approach

5. Never let a crisis go to waste: the immediate task is to document more comprehensively the state of coffee farms through the present crisis – losses, recoveries, farmers’ actions and attitudes, costs – as well as more data on the condition of soils in particular. Attention should be paid also to farms that have, through accident or design, managed more successfully to cope with the crisis to see what might be learned from them.

6. Collaboration is essential: a second task is to consult widely with local and regional experts; a range of studies have been carried out on the agroforest of this zone and many of the authors are still active in the region who possess considerable knowledge and important ideas about potential future directions.

7. Embracing complexity: through comprehensive data collection and widespread consultation over the next few months, the HRNS team should develop a range of potential approaches to discuss with farmers, which would lead to diverse field trials that would variously improve soil cover and fertility, trial new varieties or grafts and explore alternative shade regimes and diversification options.

8. Tooling up: to accomplish this, HRNS Indonesia will need to learn a range of new skills (especially greatly enhanced quantitative field measurements), become familiar with existing adaptation tools and be willing to try out new ones. Fortunately the team there can count on a growing c&c toolkit and an increasing level of field experience from other pilot countries.

9. Ready to roll: if the above points are actions, the HRNS Indonesia team can make a strategically important contribution towards developing more resilient coffee agrosystems in this remarkable and globally significant region.

The full report is available on request. In the last quarter of 2015 HRNS has started implementing ground cover at demoplot level. Furthermore, more resilient and suitable robusta varieties for the area have been identified. Nurseries will be set-up to produce these good varieties in combination with Exelsa rootstock for stronger and deeper reaching roots. These strategies will be put into place starting in early 2016.

Specific Objective IV Critical cross-cutting issues (e.g. gender equity; environmental conservation; youth empowerment) have been addressed to ensure maximum impact is generated at the household and landscape levels.


1 % Female Training Contacts 15% 20% +5% 30% 2 % Female Registered Farmers 10% 17% +7% 30% HRNS commissioned a gender analysis in November/December 2014 and received the results and recommendations in March 2015. HRNS did not incorporate any of the report’s recommendations in the remainder of year 2, but determined instead to compare the report’s findings and recommendations to a second gender analysis commissioned under the JDE/IDH intervention in nearby regions, to be carried out in January 2016. Once it receives this report HRNS will determine what concrete actions it will take to ensure the project is benefitting both men and women in an equitable manner and that project activities are not contributing to further gender inequality.

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As of end of 2015, 17% of the active farmers in the project were female. This is an increase compared to the beginning of 2015 when only 10% of registered farmers were female, but remains below HRNS’ target of 30%. Nonetheless, women were participating in training in higher proportion than registration indicates: approximately 20% of the projects 20,056 training contacts in 2015 were female (from 15% in 2014), demonstrating that the team is indeed nearing the 30% female inclusion target. HRNS did not advance on the issue of environmental conservation in the reporting period beyond promoting sustainable coffee production and conservation of on-farm natural resources during farmer training. HRNS will pursue several strategic alliances with donors and NGOs focused on southern Sumatra in 2016 and beyond, some of which may materialize as projects focused on conservation and protection of off-farm natural resources, ecosystems, and wildlife habitat.

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Specific Objective V The project has demonstrated to relevant stakeholders an effective, efficient, and high-impact development and investment model for the smallholder Robusta sector in Indonesia and is positioned for expansion, scaling-up, and replication.

x Target 1: active in at least 1 task force within SCOPI (stands for Sustainable Coffee Platform Indonesia)

x Target 2: active in FLP (field level partners) workshops and dialogues x Target 3: organize event to promote our work in Indonesia

HRNS made some good progress in 2015 on the strategic and stakeholder dialogue. Much of HRNS’ progress materialized as interaction with, cooperation with, and participation in SCOPI. HRNS remains optimistic that SCOPI can make a positive contribution to the Indonesian coffee sector by convening multiple important sector stakeholders, serving as a forum for discussing the sector’s challenges and opportunities, enabling dissemination of experiences and lessons learned related to rejuvenating and improving the sector, and focusing attention on Indonesian Robusta and the key Robusta producing regions in southern Sumatra. The second most important progress HRNS made in the stakeholder dialogue was with the district extension service of OKU Selatan. HRNS maintains a strong and constructive working relationship with BP4K and BP3K, the district and sub-district extension services, respectively, which materializes as training of district and sub-district extension agents in technical and methodological topics, use of extension officers as farmer trainers, and dialogue with the head of the extension service about how to effectively and efficiently provide ongoing technical assistance to farmer populations in the target region. This cooperation remains an extremely important contribution to the Indonesian coffee sector, since it is building the technical and methodological capacity of a permanent institution that will continue to support the rejuvenation of the OKU Selatan Robusta sector after the project concludes and can support scaling and replication. HRNS made other important progress on the stakeholder dialogue in the reporting period by formalizing a technical cooperation with the head of the AEKI Lampung research station (Pak Herwanto) to pilot strategies for improving farmer access to high quality tree stock, and with Norwegian fertilizer company Yara which will provide technical support for multiple demo plots in the project regions. Pak Herwanto is now hired as a consultant to guide the process on nursery establishments starting in Q1 2016. HRNS also continued its dialogue with USAID Indonesia; with the U.S. Department of State; with the Royal Norwegian Embassy and their Norway-Indonesia REDD+ Partnership; and with the administrating agency of the U.S. Treasury Department’s Tropical Forest Conservation Act (TFCA) Sumatra program, Yayasan KEHATI. HRNS has identified opportunities for engaging in potentially interesting and mutually beneficial strategic alliances on natural resource conservation (with the Norwegians, USAID, and/or under TFCA Sumatera) and on access to finance (with MicroSave Indonesia and the Rabobank Foundation). Other more recent stakeholder dialogues are with 1) Bina Swadaya, a local NGO with good government connections and many years of experience in community development and 2) Conservation International with presence in Indonesia. These dialogues focus on resp. biodiversity and income diversity, coffee & climate and conservation.

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Project Finance & Strategic Partners Financial contributions to project Project Financing Key Project Partners ICP Contribution 800,000 EUR (43%) International Coffee Partners

J.M. Smucker Company Other Parties 1,080,000 EUR (57%)* *Majority of funds is in USD. A lower EUR/USD, as per current condition, means the available funds in EUR will be higher

Annex 1: ICP KPI Reporting Sheet

ProjectLocation

Project Outreach Indicator Unit 01.01.2015 01.01.2016 Change

Ongoing beneficiaries # households 4.023 4.037 + 14 Total beneficiaries # households 5.468 5.842 + 374 Total household members # individuals 12.989 18.467 + 5.478 Area under arabica hectare 0 0 + 0 Area under robusta hectare 7.614 7.475 - 139Area under cocoa hectare 0 0 + 0 Total of impacted farmland hectare 7.614 8.003 + 389

Training Contacts (TC) data relates to the TCs in the calendar year previous to reporting date

Indicator Unit 01.01.2015 01.01.2016 ChangeTC org. dev. male training contacts 0 2.663 + 2.663 TC org. dev. female training contacts 0 1.062 + 1.062 TC agronomy male training contacts 4.059 13.426 + 9.367 TC agronomy female training contacts 706 2.905 + 2.199 TC climate male training contacts 0 0 + 0 TC climate female training contacts 0 0 + 0 TC other male training contacts 0 44 + 44 TC other female training contacts 0 6 + 6

Coffee Agronomy - Adoption RatesIndicator Unit 2013/14 2014/15 Change

Good agricultural practices % of ongoing benef. n/a 33% ----Harvest / post-harvest practices % of ongoing benef. n/a 57% ----Climate change adaptation % of ongoing benef. n/a 0% ----Hectare under GAP hectare n/a 2093 ----

ICP IndonesiaLampung, Indonesia

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Total Production and Bulking of target cropIndicator Unit 2013/14 2014/15 Change

Arabica: total production 60 kg bags gbe + 0 Arabica: sold via FOs. 60 kg bags gbe + 0 Robusta: total production metric tons faq 5.406 3.637 - 1.769Robusta: sold via FOs. metric tons faq 0 101 + 101 Cocoa: total production metric tons faq + 0 Cocoa: sold via FOs. metric tons faq + 0

Farmer Organizations - First Tier organizations by sustainability statusIndicator Unit 01.01.2015 01.01.2016 Change

Exceptional (A) # organizations + 0 Sustainable (B) # organizations + 0 Transition phase (C ) # organizations + 0 Inception phase (D) # organizations + 0 Dysfunctional # organizations 5 38 + 33 TOTAL # organizations 174 189 + 15

Farmer Organizations - Second Tier organizations by sustainability statusIndicator Unit 01.01.2015 01.01.2016 Change

Exceptional (A) # organizations + 0 Sustainable (B) # organizations + 0 Transition phase (C ) # organizations + 0 Inception phase (D) # organizations + 0 Dysfunctional # organizations 0 0 + 0 TOTAL # organizations 0 8 + 8

Farmer Organizations - Third Tier organizations by sustainability statusIndicator Unit 01.01.2015 01.01.2016 Change

Exceptional (A) # organizations + 0 Sustainable (B) # organizations + 0 Transition phase (C ) # organizations + 0 Inception phase (D) # organizations + 0 Dysfunctional # organizations + 0 TOTAL # organizations + 0

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Farmer Organizations - Value Addition Total value added directly by farmer organizations to beneficiaries

Indicator Unit 2013/14 2014/15 ChangeBulk marketing local currency / IDR 0 146.046.000 + 146.046.000 Input bulking local currency 0 0 + 0 Access to finance local currency 0 0 + 0 TOTAL local currency 0 146.046.000 + 146.046.000

Profitability - Arabica All values in the below table are on per hectare basis Indicator Unit 2013/14 2014/15 Change

Yield 60 kg bags gbe + 0,0 Planting Density produc. trees / ha + 0 Variable Production Costs local currency + 0 Cost reduction through value addition local currency + 0

Avg. farm gate price loc curr / 60kg gbe + 0 Avg. Price via FO loc curr / 60kg gbe + 0 Share sold via FO % total production + 0 %

Profitability - Robusta All values in the below table are on per hectare basis Indicator Unit 2013/14 2014/15 Change

Yield metric tons 0,710 0,530 - 0,180Planting density produc. trees / ha n/a 1.205 ----Variable production costs local currency n/a 3.611.000 ----Cost reduction through value addition local currency n/a 0 ----

Avg. farm gate price local curr / mt n/a 18.500.000 ----Avg. price via FO local curr / mt n/a 19.946.000 ----Share sold via FO % total production n/a 3% ----

Profitability - Cocoa All values in the below table are on per hectare basis Indicator Unit 2013/14 2014/15 Change

Yield ton dried cocoa + 0,0 Planting density produc. trees / ha + 0 Variable production costs local currency + 0 Cost reduction through value addition local currency + 0

Avg. farm gate price local curr / ton dried cocoa + 0

Avg. price via FO local curr / ton dried cocoa + 0

Share sold via FO % total production + 0 %

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Gross Margin CalculationIndicator Unit 2013/14 2014/15 Change

Arabica / ha local curr / ha n/a 0 ----Arabica / lbs green local curr / lbs gbe n/a 0 ----Arabica / tree local curr / prod tree n/a 0 ----Robusta / ha local curr / ha n/a 6.215.365 ----Robusta / metric ton local curr / mt n/a 11.727.103 ----Robusta / tree local curr / prod tree n/a 5.158 ----Cocoa / ha local curr / ha n/a 0 ----Cocoa / ton dried cocoa local curr / ton dry n/a 0 ----Cocoa / tree local curr / prod tree n/a 0 ----

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Documents

1604 ICP Indonesia, Sumatra - Annual Report · x Additional staffing (Agronomist, Commercial Coordinator, OD expert, Project Assistant, M&E Officer). Country director on contract