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swisscontact st 1 Semester 2014 Sustainable Cocoa Production Program Biannual Report

Sustainable Cocoa Production Program Biannual Report · Aceh Tamiang Pidie Jaya Kota Padang Padang Pariaman Tanah Datar Mamuju Majene Bone Soppeng Luwu North Luwu Parigi Moutong Poso

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swisscontact

st1 Semester 2014

Sustainable CocoaProduction Program

Biannual Report

Table Table Tof Content Tof Content Table of Content able Table T

of Content Table T

01 02

Table of Content

Background and Approach ....................................................................

Achievements First Semester 2014 ..........................................................

Farming Good Practices and Technology Transfer Systems ......................Best Practice Training Manuals and Publications ..................................Master Trainings for Government Extension Officers, Private Sector staff and SCPP staff ......................................................................................Cocoa Farmer Capacity Building ...........................................................Demo-plots and Clonal Gardens ............................................................Seedling Production through Farmer Managed Nurseries .......................

Nutrition and Gender Sensitivity Integration ..........................................Good Nutritional Practices (GNP) Trainings ..........................................Improving the GNP Training Module .....................................................Engaging Women in GAP ......................................................................Engaging Men in GNP ..........................................................................

Farmer Organizations, Market access and Certification ..........................Farmer Organization through Cocoa Producers Group (CGP) .................Certification ..........................................................................................Cocoa Traceability .................................................................................

Integrated Agribusiness Financing Facility .............................................Capacity building for farmers ................................................................Capacity building for Financial Institutions (FIs) ...................................Cooperative Strengthening .....................................................................Savings Promotion ................................................................................Sector Facilitation ..................................................................................

Stakeholder Management and Networking Platforms .............................Local Government Involvement ...............................................................Better Networking towards Sustainable Cocoa Production ......................

FIELD SCHOOL, SCPP facilitates field school to train farmers in best practices of cocoa cultivation to increase productivity and quality of cocoa beans

6

8

1010

10121214

1616161616

18181820

222222222424

262628

stSustainable Cocoa Production Program Biannual Report - 1 Semester 2014

Table Table Tof Content Tof Content Table of Content able Table T

of Content Table T

01 02

Table of Content

Background and Approach ....................................................................

Achievements First Semester 2014 ..........................................................

Farming Good Practices and Technology Transfer Systems ......................Best Practice Training Manuals and Publications ..................................Master Trainings for Government Extension Officers, Private Sector staff and SCPP staff ......................................................................................Cocoa Farmer Capacity Building ...........................................................Demo-plots and Clonal Gardens ............................................................Seedling Production through Farmer Managed Nurseries .......................

Nutrition and Gender Sensitivity Integration ..........................................Good Nutritional Practices (GNP) Trainings ..........................................Improving the GNP Training Module .....................................................Engaging Women in GAP ......................................................................Engaging Men in GNP ..........................................................................

Farmer Organizations, Market access and Certification ..........................Farmer Organization through Cocoa Producers Group (CGP) .................Certification ..........................................................................................Cocoa Traceability .................................................................................

Integrated Agribusiness Financing Facility .............................................Capacity building for farmers ................................................................Capacity building for Financial Institutions (FIs) ...................................Cooperative Strengthening .....................................................................Savings Promotion ................................................................................Sector Facilitation ..................................................................................

Stakeholder Management and Networking Platforms .............................Local Government Involvement ...............................................................Better Networking towards Sustainable Cocoa Production ......................

FIELD SCHOOL, SCPP facilitates field school to train farmers in best practices of cocoa cultivation to increase productivity and quality of cocoa beans

6

8

1010

10121214

1616161616

18181820

222222222424

262628

stSustainable Cocoa Production Program Biannual Report - 1 Semester 2014

6

Cocoa

R

TM

Cocoa

R

10

9

12

3

4

5

6

7

8

9

10

12

11

1314 15

1617

19

18

Bireuen

South-East Aceh

South-WestAceh

Aceh Tamiang

Pidie Jaya

Kota Padang

Padang Pariaman

Tanah Datar

Mamuju

Majene

Bone

Soppeng

LuwuNorth Luwu

Parigi MoutongPoso

Kolaka

East Kolaka

East Luwu

ACEH WEST SUMATRA WEST SULAWESI SOUTH SULAWESI I SOUTH SULAWESI II CENTRAL SULAWESI SOUTH EAST SULAWESI

03 04

stSustainable Cocoa Production Program Biannual Report - 1 Semester 2014

PT. TMCI

6

Cocoa

R

TM

Cocoa

R

10

9

12

3

4

5

6

7

8

9

10

12

11

1314 15

1617

19

18

Bireuen

South-East Aceh

South-WestAceh

Aceh Tamiang

Pidie Jaya

Kota Padang

Padang Pariaman

Tanah Datar

Mamuju

Majene

Bone

Soppeng

LuwuNorth Luwu

Parigi MoutongPoso

Kolaka

East Kolaka

East Luwu

SCPP Implementation Implementation SCPP Implementation SCPP AreaAreaImplementation AreaImplementation

ACEH WEST SUMATRA WEST SULAWESI SOUTH SULAWESI I SOUTH SULAWESI II CENTRAL SULAWESI SOUTH EAST SULAWESI

03 04

SCPP Implementation AreastSustainable Cocoa Production Program Biannual Report - 1 Semester 2014

PT. TMCI

The Indonesian cocoa sector faces a number of challenges including small farm sizes, low farm and labor

productivity, and low cocoa quality. This is mainly due to many interlinked factors such as lack of cultivation know-how among the farmers, unproductive, old trees, and high level of pest and disease infestation. Initial focus of the cocoa sector should be directed at creating awareness on better farming practices, value addition, and empowering the farmers with better market linkages. The enabling environment thus foster for overall development of the cocoa sector in Indonesia. Sustainable Cocoa Production Program (SCPP) is working to overcome the aforementioned problems.

SCPP is a large Public-Private Partnership (PPP) implemented by Swisscontact and the Indonesian Ministry of Home Affairs (MoHA), between 2012-15 with a main focus to build capacity among the cocoa farmers to improve the farm productivity and quality of cocoa production. The program donors include Swiss State Secretariat for Economic Affairs (SECO), the Sustainable Trade Initiative (IDH), the Embassy of the Kingdom of the Netherlands (EKN), and private cocoa sector companies namely Nestlé, Mars, ADM Cocoa, Cargill, Ecom (replacing Armajaro) and Barry Callebaut. These funding and implementing partners aim to have sufficient cocoa bean supply to meet the growing processing demand in Indonesia and to strengthen a sustainable supply chain. The program targets to increase the cocoa business income of the participating 60,000 cocoa farmer families by 75%.

SCPP introduced a holistic approach which involves professional trainings to targeted farmers and supports in the following

interrelated areas of cocoa farming to increase the farm productivity and quality of cocoa beans. These are:

Ÿ Farming good practices and technology transfer system

Ÿ Nutrition and gender sensitivity integration

Ÿ Farmer organization, market access and certification

Ÿ Integrated agri-business financingŸ Stakeholder management and

networking platform

SCPP is implemented in 19 Districts in six provinces namely Aceh, West Sumatra, West Sulawesi, South Sulawesi, Central Sulawesi, and Southeast Sulawesi in the islands of Sumatra and Sulawesi.SCPP started on January 1st 2012 as a follow up project of the, by that time still ongoing, PEKA project in Aceh. During the planning phase with Seco, several private sector companies expressed interest to work with Swisscontact in Sulawesi, which lead to the inclusion of IDH as additional funding partner to Seco. By the start of the Program, three companies have joined SCPP under the CPQP component in Sulawesi.

In December 2012, EKN joined the Program with the Good Nutrition Practice component, adding huge value to activities to improve farmers' livelihood. In March 2014, WEIF (another department from Seco) in addition to WEHU who supported SCPP from the beginning joined the Program with the Agribusiness Financing Facility (AFF).

CLOCKWISE, Cocoa pod infected by Cocoa Pod Borer (CPB) pest, The fruit pulp becomes hard and fermentation process used to produce the cocoa flavor precursors is ineffective, Farmers are capacitated to overcome challenges in farm such CPB pest, A cocoa tree produces many healthy pods as result of side grafting technique application obtained through the field school.

05 06

Background and Approach

Background and ApproachBackground and ApproachBackground

The Indonesian cocoa sector faces a number of challenges including small farm sizes, low farm and labor

productivity, and low cocoa quality. This is mainly due to many interlinked factors such as lack of cultivation know-how among the farmers, unproductive, old trees, and high level of pest and disease infestation. Initial focus of the cocoa sector should be directed at creating awareness on better farming practices, value addition, and empowering the farmers with better market linkages. The enabling environment thus foster for overall development of the cocoa sector in Indonesia. Sustainable Cocoa Production Program (SCPP) is working to overcome the aforementioned problems.

SCPP is a large Public-Private Partnership (PPP) implemented by Swisscontact and the Indonesian Ministry of Home Affairs (MoHA), between 2012-15 with a main focus to build capacity among the cocoa farmers to improve the farm productivity and quality of cocoa production. The program donors include Swiss State Secretariat for Economic Affairs (SECO), the Sustainable Trade Initiative (IDH), the Embassy of the Kingdom of the Netherlands (EKN), and private cocoa sector companies namely Nestlé, Mars, ADM Cocoa, Cargill, Ecom (replacing Armajaro) and Barry Callebaut. These funding and implementing partners aim to have sufficient cocoa bean supply to meet the growing processing demand in Indonesia and to strengthen a sustainable supply chain. The program targets to increase the cocoa business income of the participating 60,000 cocoa farmer families by 75%.

SCPP introduced a holistic approach which involves professional trainings to targeted farmers and supports in the following

interrelated areas of cocoa farming to increase the farm productivity and quality of cocoa beans. These are:

Ÿ Farming good practices and technology transfer system

Ÿ Nutrition and gender sensitivity integration

Ÿ Farmer organization, market access and certification

Ÿ Integrated agri-business financingŸ Stakeholder management and

networking platform

SCPP is implemented in 19 Districts in six provinces namely Aceh, West Sumatra, West Sulawesi, South Sulawesi, Central Sulawesi, and Southeast Sulawesi in the islands of Sumatra and Sulawesi.SCPP started on January 1st 2012 as a follow up project of the, by that time still ongoing, PEKA project in Aceh. During the planning phase with Seco, several private sector companies expressed interest to work with Swisscontact in Sulawesi, which lead to the inclusion of IDH as additional funding partner to Seco. By the start of the Program, three companies have joined SCPP under the CPQP component in Sulawesi.

In December 2012, EKN joined the Program with the Good Nutrition Practice component, adding huge value to activities to improve farmers' livelihood. In March 2014, WEIF (another department from Seco) in addition to WEHU who supported SCPP from the beginning joined the Program with the Agribusiness Financing Facility (AFF).

CLOCKWISE, Cocoa pod infected by Cocoa Pod Borer (CPB) pest, The fruit pulp becomes hard and fermentation process used to produce the cocoa flavor precursors is ineffective, Farmers are capacitated to overcome challenges in farm such CPB pest, A cocoa tree produces many healthy pods as result of side grafting technique application obtained through the field school.

05 06

Background and Approach

Achievements First Semester

2014Number of Producers trained in Farming Good Practices and/or certification modules

Women participating in GAP and related farm capacity building activities

Training days in Farming Good Practices and/or certification modules

Smallholder Cocoa Farmer Households trained in Good Nutrition Practice (GNP)

Women participation in GNP activities

Training days in GNP activities

Best Practice Manuals developed and shared with the cocoa sector

Agriculture and Nutrition extension officers from private/public institutions trained

Cocoa Producer Groups supported and active

Regional Cocoa Forum established and supported in Sumatera and Sulawesi

Cocoa seedling nurseries established within producer groups and farmers enterprises

Seedlings produced

Jan - June 2014 Total since 2012

8,785

16.2%

47,048

4,523

81.3%

9,138

0

132

272

1

72

258,000

39,633

18.6%

262,365

12,799

83.8%

25,690

3

566

1,279

4

287

659,495

08

Achievements First Semester 2014

POST-HARVEST PROCESSING: Fermented and properly dried cocoa beans are highly demanded as it affects the quality and natural flavor of chocolate.

07

stSustainable Cocoa Production Program Biannual Report - 1 Semester 2014

Achievements First Semester

2014Number of Producers trained in Farming Good Practices and/or certification modules

Women participating in GAP and related farm capacity building activities

Training days in Farming Good Practices and/or certification modules

Smallholder Cocoa Farmer Households trained in Good Nutrition Practice (GNP)

Women participation in GNP activities

Training days in GNP activities

Best Practice Manuals developed and shared with the cocoa sector

Agriculture and Nutrition extension officers from private/public institutions trained

Cocoa Producer Groups supported and active

Regional Cocoa Forum established and supported in Sumatera and Sulawesi

Cocoa seedling nurseries established within producer groups and farmers enterprises

Seedlings produced

Jan - June 2014 Total since 2012

8,785

16.2%

47,048

4,523

81.3%

9,138

0

132

272

1

72

258,000

39,633

18.6%

262,365

12,799

83.8%

25,690

3

566

1,279

4

287

659,495

08

Achievements First Semester 2014

POST-HARVEST PROCESSING: Fermented and properly dried cocoa beans are highly demanded as it affects the quality and natural flavor of chocolate.

07

stSustainable Cocoa Production Program Biannual Report - 1 Semester 2014

Farming Good Practices and

TechnologyTransfer Systems

Best Practice Training Manuals and Publications

SCPP continues to develop and improve good practices manuals to transfer knowledge and new technology to supported cocoa farmer households. The manuals ensure consistency of the training contents, guide the overall processes, and provide necessary information to perform new farming techniques in one place. The program has developed several modules (training books and reading materials) namely the second edition of GAP, Post-Harvest Practices, and GNP module. The modules have been distributed to all partners in the cocoa sector. Until the end of the reporting period, the program has published the following modules in Indonesian:

Ÿ Manual #1 – Best Cocoa Cultivation Practices (2nd edition published in 2014)

Ÿ Manual #2 – Post-Harvest, Cocoa Beans Quality and Fermentation (2nd edition in review)

Ÿ Manual #3 – Household Nutrition and Food Preparation

These manuals have been widely used in all SCPP implementation, including by the private sectors and government partners. Currently the formulation of two more modules for farmer group, cooperative strengthening and certification, and Good Financial Practice (GFP) are still underway.

The program also published various program reports, success stories, flyers, learning video series, journals, and brochures. SCPP is frequently covered in newsletter articles in partners or other mass-media publications.

Publications are available at

http://www.swisscontact.org/eng/indonesia/media/publications.html

Master Trainings for Government Extension Officers, Private Sector staff and SCPP staff

Training for master trainers is a pivotal starting point to SCPP overall farming techniques and technology transfer approaches. The program has designed an efficient tiered training system which starts from in-house training for SCPP staff, government officers, and private sector staff down to key farmers (KF) and Cocoa Producer Group (CPG). The efficient training system ensures an effective delivery of SCPP ample trainings in its vast implementation areas.

SCPP agriculture best practice modules received a good response from the government partners and encouraged their participations in the master trainers. In the first half of 2014, a total of 146 field staff joined specific trainings for master trainers. Participants included 14 SCPP field staff, 130 government extension officers and 2 private sector staffs. The achievement is well exceeding the targeted number of 177 officers in 2014, however, training of private sector staff is lacking behind target. Since the Program started, a total of 516 Government Extension Officers and 50 Private Sector staff went through and concluded Master Trainings. In the coming months, the program will continue training for master trainers in Good Financial Practice (GFP) and training in GAP and GNP for government and private sector extension officers.

09 10

Farming Good Practices and Technology Transfer Systems

TRAINING MANUALS, SCPP provides thousands of master trainers and lead farmers with reliable training materials to ensure consistency of the training contents, guide the overall processes, and provide necessary information to perform good practice farming techniques.

stSustainable Cocoa Production Program Biannual Report - 1 Semester 2014

Farming Good Practices and

TechnologyTransfer Systems

Best Practice Training Manuals and Publications

SCPP continues to develop and improve good practices manuals to transfer knowledge and new technology to supported cocoa farmer households. The manuals ensure consistency of the training contents, guide the overall processes, and provide necessary information to perform new farming techniques in one place. The program has developed several modules (training books and reading materials) namely the second edition of GAP, Post-Harvest Practices, and GNP module. The modules have been distributed to all partners in the cocoa sector. Until the end of the reporting period, the program has published the following modules in Indonesian:

Ÿ Manual #1 – Best Cocoa Cultivation Practices (2nd edition published in 2014)

Ÿ Manual #2 – Post-Harvest, Cocoa Beans Quality and Fermentation (2nd edition in review)

Ÿ Manual #3 – Household Nutrition and Food Preparation

These manuals have been widely used in all SCPP implementation, including by the private sectors and government partners. Currently the formulation of two more modules for farmer group, cooperative strengthening and certification, and Good Financial Practice (GFP) are still underway.

The program also published various program reports, success stories, flyers, learning video series, journals, and brochures. SCPP is frequently covered in newsletter articles in partners or other mass-media publications.

Publications are available at

http://www.swisscontact.org/eng/indonesia/media/publications.html

Master Trainings for Government Extension Officers, Private Sector staff and SCPP staff

Training for master trainers is a pivotal starting point to SCPP overall farming techniques and technology transfer approaches. The program has designed an efficient tiered training system which starts from in-house training for SCPP staff, government officers, and private sector staff down to key farmers (KF) and Cocoa Producer Group (CPG). The efficient training system ensures an effective delivery of SCPP ample trainings in its vast implementation areas.

SCPP agriculture best practice modules received a good response from the government partners and encouraged their participations in the master trainers. In the first half of 2014, a total of 146 field staff joined specific trainings for master trainers. Participants included 14 SCPP field staff, 130 government extension officers and 2 private sector staffs. The achievement is well exceeding the targeted number of 177 officers in 2014, however, training of private sector staff is lacking behind target. Since the Program started, a total of 516 Government Extension Officers and 50 Private Sector staff went through and concluded Master Trainings. In the coming months, the program will continue training for master trainers in Good Financial Practice (GFP) and training in GAP and GNP for government and private sector extension officers.

09 10

Farming Good Practices and Technology Transfer Systems

TRAINING MANUALS, SCPP provides thousands of master trainers and lead farmers with reliable training materials to ensure consistency of the training contents, guide the overall processes, and provide necessary information to perform good practice farming techniques.

stSustainable Cocoa Production Program Biannual Report - 1 Semester 2014

Cocoa Farmer Capacity Building

Improving cocoa sector in Indonesia starts at the foundational-grass root level. One of the focuses should be building capacity of cocoa farmers in farming best practices to increase productivity. Utilizing SCPP tested methods which distilled in the manuals, the program capacitated farmer's capacity in agriculture best practices. Starting with Training of Trainers (ToT), the program has provided capacity building measures to 482 key farmers (KF) during the reporting period. The participants include 272 new key farmers trained in GAP, 112 key farmers involved in refresher GAP training, 75 key farmers trained in farmer group development and 23 key farmers trained in ICS and certification.

The KF have gained knowledge in cocoa farming with GAP and farm rehabilitation modules, skills to facilitate Farmer Field School (FFS) within their farmer groups, and better understanding how to access the market.

Following the ToT, the program conducted GAP modules training across all SCPP implementation areas with a new batch in 1st semester 2014. A total of 8,785 carefully selected farmers participated in FFS held in Aceh, West Sulawesi, South Sulawesi, Central Sulawesi and Southeast Sulawesi; 1,438 are women. This brings the total number of cocoa farmers received training and coaching from SCPP from start of program until end of June 2014 to 39,633 with 18.6% women participants. Overall SCPP has achieved 66% of the 60,000 farmers targeted by the end of 2015. The program has facilitated 262,365 training days since January 2012 to improve cocoa farm management as designed with the private sector implementing partners.

The Program continued to collect baseline data from all new farmers such as household demographics, cocoa farm location, GAP practices, and post-harvest practices. The baseline data are also used to trace the most recent situations of cocoa sector development in SCPP implementation for comparison with future surveys.

Demo-plots and Clonal Gardens

One of the main constraints of the cocoa sector are low producing trees. There are several factors for that: aged cacao trees, clone types of the existing tree stock, and lack of good quality planting material. As solutions to the issues, SCPP encourages farmer to rehabilitate their cocoa farms. The program provides on-farm trainings to enhance farmer groups' capacity to undertake their own cocoa farm rehabilitation and rejuvenation. The activities are organized through establishing and managing demo-plots, budwood gardens, and clonal gardens at District Cocoa Clinics (DCC) and Learning Centers. In the facilities, the farmers receive training on new farming technologies such as the establishment of nurseries, pruning, fertilizer application, farm sanitation, side grafting, top grafting, seedling management, and integrated pest management.

During the 1st semester 2014, the program continued to maintain the more than 1,000 demo plots and 3 clonal gardens facilities for better performance. The facilities were used as community hubs for farmers to exchange knowledge, source their seedlings for improved types of clonal material, and practice various training modules. The program also arranged local exchange visits for farmers to learn from their counterparts and share good quality seedlings.

11 12

Farming Good Practices and Technology Transfer Systems

100

200

300

400

500

600

700

800

Target Result Target Result

Annually 2014 Cumulative 2012-2015

137

40

1302

607

177

516

50

177

132

784

566

Public and Private Extension Master Trainers

CAPACITY BUILDING (left), Farmers are provided with capacity building in farming best practices through field school to achieve better cocoa productivity and quality. NURSERIES (right), SCPP trained farmers maintain hundreds of nurseries in the implementation areas to provide farmers with better planting materials and serve as a communication and education center for farmers in the area.

stSustainable Cocoa Production Program Biannual Report - 1 Semester 2014

Cocoa Farmer Capacity Building

Improving cocoa sector in Indonesia starts at the foundational-grass root level. One of the focuses should be building capacity of cocoa farmers in farming best practices to increase productivity. Utilizing SCPP tested methods which distilled in the manuals, the program capacitated farmer's capacity in agriculture best practices. Starting with Training of Trainers (ToT), the program has provided capacity building measures to 482 key farmers (KF) during the reporting period. The participants include 272 new key farmers trained in GAP, 112 key farmers involved in refresher GAP training, 75 key farmers trained in farmer group development and 23 key farmers trained in ICS and certification.

The KF have gained knowledge in cocoa farming with GAP and farm rehabilitation modules, skills to facilitate Farmer Field School (FFS) within their farmer groups, and better understanding how to access the market.

Following the ToT, the program conducted GAP modules training across all SCPP implementation areas with a new batch in 1st semester 2014. A total of 8,785 carefully selected farmers participated in FFS held in Aceh, West Sulawesi, South Sulawesi, Central Sulawesi and Southeast Sulawesi; 1,438 are women. This brings the total number of cocoa farmers received training and coaching from SCPP from start of program until end of June 2014 to 39,633 with 18.6% women participants. Overall SCPP has achieved 66% of the 60,000 farmers targeted by the end of 2015. The program has facilitated 262,365 training days since January 2012 to improve cocoa farm management as designed with the private sector implementing partners.

The Program continued to collect baseline data from all new farmers such as household demographics, cocoa farm location, GAP practices, and post-harvest practices. The baseline data are also used to trace the most recent situations of cocoa sector development in SCPP implementation for comparison with future surveys.

Demo-plots and Clonal Gardens

One of the main constraints of the cocoa sector are low producing trees. There are several factors for that: aged cacao trees, clone types of the existing tree stock, and lack of good quality planting material. As solutions to the issues, SCPP encourages farmer to rehabilitate their cocoa farms. The program provides on-farm trainings to enhance farmer groups' capacity to undertake their own cocoa farm rehabilitation and rejuvenation. The activities are organized through establishing and managing demo-plots, budwood gardens, and clonal gardens at District Cocoa Clinics (DCC) and Learning Centers. In the facilities, the farmers receive training on new farming technologies such as the establishment of nurseries, pruning, fertilizer application, farm sanitation, side grafting, top grafting, seedling management, and integrated pest management.

During the 1st semester 2014, the program continued to maintain the more than 1,000 demo plots and 3 clonal gardens facilities for better performance. The facilities were used as community hubs for farmers to exchange knowledge, source their seedlings for improved types of clonal material, and practice various training modules. The program also arranged local exchange visits for farmers to learn from their counterparts and share good quality seedlings.

11 12

Farming Good Practices and Technology Transfer Systems

100

200

300

400

500

600

700

800

Target Result Target Result

Annually 2014 Cumulative 2012-2015

137

40

1302

607

177

516

50

177

132

784

566

Public and Private Extension Master Trainers

CAPACITY BUILDING (left), Farmers are provided with capacity building in farming best practices through field school to achieve better cocoa productivity and quality. NURSERIES (right), SCPP trained farmers maintain hundreds of nurseries in the implementation areas to provide farmers with better planting materials and serve as a communication and education center for farmers in the area.

stSustainable Cocoa Production Program Biannual Report - 1 Semester 2014

Seedling Production through Farmer Managed Nurseries

SCPP encourages farmer to establish group- or personal managed nurseries to produce seedlings at the locations where they are needed. This brings a twofold benefit for the farmers. First, the seedlings are utilized to rejuvenate farms that are no longer producing high yields, and it saves the farmer money, because it is cheaper than buying seedlings from traders. About 50% of the seedlings are used for the farmers own plantations and distributed amongst group members. Second, the farmers can sell the seedlings to get additional income.

SCPP has supported farmers and farmer organizations to establish 72 nurseries with cumulative annual capacity of 258,000 high quality cacao seedlings. Sale of improved planting materials is conducted to show the communities how farmers can improve their income through independent nursery business.

Two main lessons were learned from the nursery establishment activity through a group-based approach. First, the group-based approach simplifies the material delivery and accelerates the spread of seedlings also to farmers outside the group. Second, as the group members collaborate more active, nurseries help to strengthen the groups.

The farmers faced a number of obstacles, such as pest invasion, but also poor maintenance due to the lack of group ownership and commitment towards the nurseries. The program learned that a more rigorous selection method for farmers and farmer groups to manage nurseries, and intensive follow up/monitoring is needed.13 14

Farming Good Practices and Technology Transfer Systems

10,000

20,000

30,000

40,000

50,000

60,000

Target Result Target Result

Annually 2014 Cumulative 2012-2015

11,600

2,900

7,3471,438

48,000

12,000

32,248

7,385

14,500

Public and Private Extension Master Trainers

8,785

60,000

39,633

SEEDLINGS, Growing good cacao seedlings is the first step of producing good cocoa beans

stSustainable Cocoa Production Program Biannual Report - 1 Semester 2014

Seedling Production through Farmer Managed Nurseries

SCPP encourages farmer to establish group- or personal managed nurseries to produce seedlings at the locations where they are needed. This brings a twofold benefit for the farmers. First, the seedlings are utilized to rejuvenate farms that are no longer producing high yields, and it saves the farmer money, because it is cheaper than buying seedlings from traders. About 50% of the seedlings are used for the farmers own plantations and distributed amongst group members. Second, the farmers can sell the seedlings to get additional income.

SCPP has supported farmers and farmer organizations to establish 72 nurseries with cumulative annual capacity of 258,000 high quality cacao seedlings. Sale of improved planting materials is conducted to show the communities how farmers can improve their income through independent nursery business.

Two main lessons were learned from the nursery establishment activity through a group-based approach. First, the group-based approach simplifies the material delivery and accelerates the spread of seedlings also to farmers outside the group. Second, as the group members collaborate more active, nurseries help to strengthen the groups.

The farmers faced a number of obstacles, such as pest invasion, but also poor maintenance due to the lack of group ownership and commitment towards the nurseries. The program learned that a more rigorous selection method for farmers and farmer groups to manage nurseries, and intensive follow up/monitoring is needed.13 14

Farming Good Practices and Technology Transfer Systems

10,000

20,000

30,000

40,000

50,000

60,000

Target Result Target Result

Annually 2014 Cumulative 2012-2015

11,600

2,900

7,3471,438

48,000

12,000

32,248

7,385

14,500

Public and Private Extension Master Trainers

8,785

60,000

39,633

SEEDLINGS, Growing good cacao seedlings is the first step of producing good cocoa beans

stSustainable Cocoa Production Program Biannual Report - 1 Semester 2014

Nutrition and Gender SensitivityIntegration

Good Nutritional Practices (GNP) Trainings

SCPP targets to improve farmer household nutrition by encouraging them to maintain small vegetable and fruit gardens. Through the GNP module, the program promotes a balanced diet, nutrition rich food and home gardening and provides important nutritional facts for cocoa farmer households. The program promotes male inclusion into the nutrition component to effectively share the importance of nutrition on farmer households across genders.

In the first semester 2014, 4,523 household members participated in the GNP training with 16% men attendance. This brings the total number of GNP trainings participants since the nutrition component start in December 2012 to 12,799 of the targeted 40,000 Smallholder Cocoa Farmer Households. The cumulated training days in the 1st semester 2014 reached 9,046 which brings the total number to 25,598 days since the beginning of the program. Both, the training participants and training days have now achieved 32% of the overall program target. With regular production in their newly established home gardens, many farmers have also earned additional incomes from selling the vegetables produced.

Improving the GNP Training Module

In the coming semester, the GNP module implementation will be evaluated by independent consultants through a mid-term evaluation mission. The aim of the evaluation is to gauge the effectiveness of the SCPP nutrition capacity building in improving the quality of cocoa farmer household life. The evaluation will be conducted in four key

areas namely effectiveness of interventions, appropriateness of methodology, gender inclusion and implementing staff capacity.

Engaging Women in GAP

SCPP aims to promote women's inclusion and achieve 20% female participation in the agricultural best practices training. The program found that the average farm productivity usually does not much differ between male and female farm owners. Nevertheless women tend to have smaller cocoa farms and in men-headed cocoa farmer households, women usually have little access to the income from cocoa farming.Until June 2014, 18.6% of all program participants of the GAP training are women. To reach the targeted 20% women, SCPP will further increase efforts to include women in the trainings through more intense village socialization processes. Moreover, the number of female key farmer remains low. This is due to the mainly patriarchal culture across Indonesia including in SCPP implementations areas. In addition, most groups are already established with male leaders prior to participating in SCPP trainings.

Engaging Men in GNP

Until the end of June, only 2,071 (16%) men participated in the GNP module training which brings the overall program achievement to 26% of the targeted 8,000 male participants. Despite efforts to involve men in the nutrition training, the program still faces a number of challenges to ensure their participation. One of the most prominent challenges is Indonesian's patriarchal culture where family's food intake, cooking, and kitchen are women's domain. Thus men are usually reluctant to involve in such activities.

15 16

Nutrition and Gender Sensitivity Integration

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2,900

11,600

8483,675

8,000

32,000

GNP Participants

14,500

4,523

40,000

2,071

10,728

12,799

Target Result Target Result

Annually 2014 Cumulative 2012-2015

NUTRITION, SCPP's Nutrition component brings out many benefits for farmer households to improve nutritional status and source of additional income through establishment of home gardens

stSustainable Cocoa Production Program Biannual Report - 1 Semester 2014

Nutrition and Gender SensitivityIntegration

Good Nutritional Practices (GNP) Trainings

SCPP targets to improve farmer household nutrition by encouraging them to maintain small vegetable and fruit gardens. Through the GNP module, the program promotes a balanced diet, nutrition rich food and home gardening and provides important nutritional facts for cocoa farmer households. The program promotes male inclusion into the nutrition component to effectively share the importance of nutrition on farmer households across genders.

In the first semester 2014, 4,523 household members participated in the GNP training with 16% men attendance. This brings the total number of GNP trainings participants since the nutrition component start in December 2012 to 12,799 of the targeted 40,000 Smallholder Cocoa Farmer Households. The cumulated training days in the 1st semester 2014 reached 9,046 which brings the total number to 25,598 days since the beginning of the program. Both, the training participants and training days have now achieved 32% of the overall program target. With regular production in their newly established home gardens, many farmers have also earned additional incomes from selling the vegetables produced.

Improving the GNP Training Module

In the coming semester, the GNP module implementation will be evaluated by independent consultants through a mid-term evaluation mission. The aim of the evaluation is to gauge the effectiveness of the SCPP nutrition capacity building in improving the quality of cocoa farmer household life. The evaluation will be conducted in four key

areas namely effectiveness of interventions, appropriateness of methodology, gender inclusion and implementing staff capacity.

Engaging Women in GAP

SCPP aims to promote women's inclusion and achieve 20% female participation in the agricultural best practices training. The program found that the average farm productivity usually does not much differ between male and female farm owners. Nevertheless women tend to have smaller cocoa farms and in men-headed cocoa farmer households, women usually have little access to the income from cocoa farming.Until June 2014, 18.6% of all program participants of the GAP training are women. To reach the targeted 20% women, SCPP will further increase efforts to include women in the trainings through more intense village socialization processes. Moreover, the number of female key farmer remains low. This is due to the mainly patriarchal culture across Indonesia including in SCPP implementations areas. In addition, most groups are already established with male leaders prior to participating in SCPP trainings.

Engaging Men in GNP

Until the end of June, only 2,071 (16%) men participated in the GNP module training which brings the overall program achievement to 26% of the targeted 8,000 male participants. Despite efforts to involve men in the nutrition training, the program still faces a number of challenges to ensure their participation. One of the most prominent challenges is Indonesian's patriarchal culture where family's food intake, cooking, and kitchen are women's domain. Thus men are usually reluctant to involve in such activities.

15 16

Nutrition and Gender Sensitivity Integration

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2,900

11,600

8483,675

8,000

32,000

GNP Participants

14,500

4,523

40,000

2,071

10,728

12,799

Target Result Target Result

Annually 2014 Cumulative 2012-2015

NUTRITION, SCPP's Nutrition component brings out many benefits for farmer households to improve nutritional status and source of additional income through establishment of home gardens

stSustainable Cocoa Production Program Biannual Report - 1 Semester 2014

FarmerOrganization, Market Accessand Certification

Farmer Organization through Cocoa Producers Group (CGP)

Farmer organization is the first step in SCPP capacity building approaches. Each farmer is part of a Cocoa Producer Group (CPG) that consists of 20-30 cocoa farmers at village level. The group is headed by a Key Farmer, who is well trained at the commencement of the program. The CPGs and their members receive various trainings such as GAP, GNP, post-harvest, farm rehabilitation, and financial literacy trainings. Over the course of SCPP implementation, eligible CPGs will be facilitated to transform into Smallholders Cocoa Enterprise (SCE) based on economic and personal indicators. The main objective for SCE is to become business incubators for producer groups, and provide embedded services to farmers. One SCE manages a number of CPG at sub-district level, further aggregated at district level into District Cocoa Clinics (DCC).

To provide a greater support to the members, DCCs expanded their activities to:Ÿ Initiate a business unit through

cooperative. For instance in Pidie Jaya, the DCC provide various services ranging from saving and loan program, skill trainings in good agriculture practices, and trading agricultural inputs

Ÿ Collaborate with local university to provide the GAP training modules for students

Ÿ Develop business with private sector to gain revenues. One of the DCCs has sold 100 tons cocoa beans to private sector

Ÿ Function as learning center with clonal garden, nursery and nutrition garden. The members can practice the new

techniques in the DCC as well as sourcing superior clone budwood for their farm.

Recent monitoring found out that the CPGs trained in 2013 are still implementing their own follow up plans formulated after the Farmer Field School (FFS). Currently the groups are practicing top grafting at the group's nurseries, composting, and producing bio-pesticides. The 'arisan tenaga', where farmers form smaller groups and maintain all their farms together, also continued in some of SCPP implementations areas.

New CPGs were also formed along the GAP module training. During the first semester 2014, 272 new CPGs were established across Sulawesi and Sumatera. Overall achievement until June registered a total of 1,279 CPG which is 115% of the overall program target.

Certification

Principally, the program aims at aiding farmers to meet certification or external verification requirements. The ability to sustainably train, verify and certify the farmers in the future will be enhanced by the training of master trainers and trainers of trainers.

During 1st semester 2014, a farmer organizations East Kolaka (2,033 farmers) has been certified by UTZ in addition to the two DCC in Southeast Aceh (1,071) and Pidie Jaya (1,380), respectively, who were UTZ certified by the end of 2013.

17 18

Farmer Organization, Market Access and Certification

200

400

600

800

1000

1200

1400

1800

Target Result Target Result

Annually 2014 Cumulative 2012-2015

510

272

1,800

1,279

Farmer Organizations, Market access and Certification

COCOA TRACE, A member of farmer group in West Sulawesi shows his cocoa trace ID that grants him better market access.

stSustainable Cocoa Production Program Biannual Report - 1 Semester 2014

FarmerOrganization, Market Accessand Certification

Farmer Organization through Cocoa Producers Group (CGP)

Farmer organization is the first step in SCPP capacity building approaches. Each farmer is part of a Cocoa Producer Group (CPG) that consists of 20-30 cocoa farmers at village level. The group is headed by a Key Farmer, who is well trained at the commencement of the program. The CPGs and their members receive various trainings such as GAP, GNP, post-harvest, farm rehabilitation, and financial literacy trainings. Over the course of SCPP implementation, eligible CPGs will be facilitated to transform into Smallholders Cocoa Enterprise (SCE) based on economic and personal indicators. The main objective for SCE is to become business incubators for producer groups, and provide embedded services to farmers. One SCE manages a number of CPG at sub-district level, further aggregated at district level into District Cocoa Clinics (DCC).

To provide a greater support to the members, DCCs expanded their activities to:Ÿ Initiate a business unit through

cooperative. For instance in Pidie Jaya, the DCC provide various services ranging from saving and loan program, skill trainings in good agriculture practices, and trading agricultural inputs

Ÿ Collaborate with local university to provide the GAP training modules for students

Ÿ Develop business with private sector to gain revenues. One of the DCCs has sold 100 tons cocoa beans to private sector

Ÿ Function as learning center with clonal garden, nursery and nutrition garden. The members can practice the new

techniques in the DCC as well as sourcing superior clone budwood for their farm.

Recent monitoring found out that the CPGs trained in 2013 are still implementing their own follow up plans formulated after the Farmer Field School (FFS). Currently the groups are practicing top grafting at the group's nurseries, composting, and producing bio-pesticides. The 'arisan tenaga', where farmers form smaller groups and maintain all their farms together, also continued in some of SCPP implementations areas.

New CPGs were also formed along the GAP module training. During the first semester 2014, 272 new CPGs were established across Sulawesi and Sumatera. Overall achievement until June registered a total of 1,279 CPG which is 115% of the overall program target.

Certification

Principally, the program aims at aiding farmers to meet certification or external verification requirements. The ability to sustainably train, verify and certify the farmers in the future will be enhanced by the training of master trainers and trainers of trainers.

During 1st semester 2014, a farmer organizations East Kolaka (2,033 farmers) has been certified by UTZ in addition to the two DCC in Southeast Aceh (1,071) and Pidie Jaya (1,380), respectively, who were UTZ certified by the end of 2013.

17 18

Farmer Organization, Market Access and Certification

200

400

600

800

1000

1200

1400

1800

Target Result Target Result

Annually 2014 Cumulative 2012-2015

510

272

1,800

1,279

Farmer Organizations, Market access and Certification

COCOA TRACE, A member of farmer group in West Sulawesi shows his cocoa trace ID that grants him better market access.

stSustainable Cocoa Production Program Biannual Report - 1 Semester 2014

One important thing that can be learned from the certification process in the program area is the farmers contribution to the success of this program is enormous, even though the farmers sits at the bottom of the verification and certification chain.

The program is set-up on the premise of the farmer as the ultimate beneficiary. All the benefits of training the master trainers and trainers of trainers are expected to trickle down to the farmers in terms of producing sustainable cocoa using good agriculture practice. It is expected that this shall improve on quality, which shall result into a price appreciation as well as an increase in output.

Cocoa Traceability

SCPP is one of the first cocoa development programs using a Management Information System (MIS) to collect, evaluate, and report relevant data from every smallholder farmer involved in the Programs capacity building and technology transfer activities. The MIS is called CocoaTrace and has been used in its new cloud based version since January 2014 to record all Program activities and collect farmer baselines and surveys.

During the first semester, SCPP has gradually shifted data collection process from paper-based to app-based using Android Tablets in all implementation regions. Evaluation is ongoing to improve

the CocoaTrace user interfaces and improve data submission processes. In order to ensure data quality, the program continuously provides training for all field facilitators to properly use the application and accompanying Tablets both through class session as well as directly during data collection process.

Recent progress achieved was the formulation of traceability structure and procedure to record and trace cocoa deliveries from farmers through buying units and traders to the participating industry. Several discussions with relevant stakeholder and observation of the selected fields have been conducted by Koltiva, the CocoaTrace developer. Until the end of June, several systems regarding traceability process has been finalized particularly the barcode system and the traceability procedure from farm to industry. It is targeted that by the end of October, the first traceability system will be finalized and tested.

The software can be used for various purposes for instance to create a more efficient farmer's business analyses when it applied for a loan, or facilitating audits and program evaluations.

19 20

Farmer Organization, Market Access and Certification

TRACEABILITY, Cocoa Traceability system called 'CocoaTrace' initiated by SCPP and developed by PT. Koltiva allows the industry to trace the origin of cocoa beans in Program implementation areas.

stSustainable Cocoa Production Program Biannual Report - 1 Semester 2014

One important thing that can be learned from the certification process in the program area is the farmers contribution to the success of this program is enormous, even though the farmers sits at the bottom of the verification and certification chain.

The program is set-up on the premise of the farmer as the ultimate beneficiary. All the benefits of training the master trainers and trainers of trainers are expected to trickle down to the farmers in terms of producing sustainable cocoa using good agriculture practice. It is expected that this shall improve on quality, which shall result into a price appreciation as well as an increase in output.

Cocoa Traceability

SCPP is one of the first cocoa development programs using a Management Information System (MIS) to collect, evaluate, and report relevant data from every smallholder farmer involved in the Programs capacity building and technology transfer activities. The MIS is called CocoaTrace and has been used in its new cloud based version since January 2014 to record all Program activities and collect farmer baselines and surveys.

During the first semester, SCPP has gradually shifted data collection process from paper-based to app-based using Android Tablets in all implementation regions. Evaluation is ongoing to improve

the CocoaTrace user interfaces and improve data submission processes. In order to ensure data quality, the program continuously provides training for all field facilitators to properly use the application and accompanying Tablets both through class session as well as directly during data collection process.

Recent progress achieved was the formulation of traceability structure and procedure to record and trace cocoa deliveries from farmers through buying units and traders to the participating industry. Several discussions with relevant stakeholder and observation of the selected fields have been conducted by Koltiva, the CocoaTrace developer. Until the end of June, several systems regarding traceability process has been finalized particularly the barcode system and the traceability procedure from farm to industry. It is targeted that by the end of October, the first traceability system will be finalized and tested.

The software can be used for various purposes for instance to create a more efficient farmer's business analyses when it applied for a loan, or facilitating audits and program evaluations.

19 20

Farmer Organization, Market Access and Certification

TRACEABILITY, Cocoa Traceability system called 'CocoaTrace' initiated by SCPP and developed by PT. Koltiva allows the industry to trace the origin of cocoa beans in Program implementation areas.

stSustainable Cocoa Production Program Biannual Report - 1 Semester 2014

IntegratedAgribusiness Financing Facility

In April 2014, the AFF subcomponent of SCPP was commenced. With an objective to increase farmer's income

through improved access to commercial finance, AFF used the Making Markets Work for the Poor (M4P) approach to overcome the existing bottlenecks. From the banking standpoint, cocoa is an interesting crop because of its continuous harvesting cycles. It creates permanent cash flows which is an important precondition for most financial institutions to grant access to loans. Final steps to establish an implementing team was concluded in the 2nd quarter of 2014, the team is now operational. An implementation strategy has also been developed. AFF focuses its activities on several strategic interventions in capacity building, cooperative strengthening, savings promotion, and sector facilitation.

Capacity building for farmers

AFF will capacitate farmers with financial literacy training to enhance their understanding on requirements for loans, why they have to repay their loans, and how to plan cash flows. The intervention aims to build farmer's understanding of prerequisite factors to make them bankable as well as to demonstrate that farmers possess basic financial understanding hence may reduce risks for financial institutions. The topics will be delivered in conjunction with SCPP other modules as part of the farmer field school. SCPP has conducted AFF training of trainers in June, while the manual is currently being developed

Capacity building for Financial Institutions (FIs)

It is of paramount importance for FIs to have knowledge about the cocoa sector before providing their services to the sector. AFF will provide Cocoa Sector Training and Training on Cocoa Financials for FIs to enable them to recognize opportunities in cocoa sector and evaluate associated risks properly. Through their increased knowledge in the cocoa sector, FIs will be able to develop suitable commercial products for the farmers. With the available expertise, SCPP will support the product development as needed.

Cooperative Strengthening

Cooperatives play a vital role in farmer's self-organization. They can be a mean as farmers' voice, trader, service provider, or microfinance institutions. As microfinance institution, cooperatives keep farmer's savings and disburse loans. To support cooperative development, SCPP will develop Standard Operating Procedure (SOP) for cooperatives, develop tailor-made financial products for farmers, link cooperatives to social/commercial lender, and provide staff training in various topics such as loan analysis, risk management and administration. SCPP aims to have active cooperatives to provide farmers with a better access to financial services and higher income through joint marketing/sales activities.

21 22

Integrated Agribusiness Financing Facility

INCOME, Cocoa farming nowadays can be a source of reliable cash flow for farmers to improve their economy.

stSustainable Cocoa Production Program Biannual Report - 1 Semester 2014

IntegratedAgribusiness Financing Facility

In April 2014, the AFF subcomponent of SCPP was commenced. With an objective to increase farmer's income

through improved access to commercial finance, AFF used the Making Markets Work for the Poor (M4P) approach to overcome the existing bottlenecks. From the banking standpoint, cocoa is an interesting crop because of its continuous harvesting cycles. It creates permanent cash flows which is an important precondition for most financial institutions to grant access to loans. Final steps to establish an implementing team was concluded in the 2nd quarter of 2014, the team is now operational. An implementation strategy has also been developed. AFF focuses its activities on several strategic interventions in capacity building, cooperative strengthening, savings promotion, and sector facilitation.

Capacity building for farmers

AFF will capacitate farmers with financial literacy training to enhance their understanding on requirements for loans, why they have to repay their loans, and how to plan cash flows. The intervention aims to build farmer's understanding of prerequisite factors to make them bankable as well as to demonstrate that farmers possess basic financial understanding hence may reduce risks for financial institutions. The topics will be delivered in conjunction with SCPP other modules as part of the farmer field school. SCPP has conducted AFF training of trainers in June, while the manual is currently being developed

Capacity building for Financial Institutions (FIs)

It is of paramount importance for FIs to have knowledge about the cocoa sector before providing their services to the sector. AFF will provide Cocoa Sector Training and Training on Cocoa Financials for FIs to enable them to recognize opportunities in cocoa sector and evaluate associated risks properly. Through their increased knowledge in the cocoa sector, FIs will be able to develop suitable commercial products for the farmers. With the available expertise, SCPP will support the product development as needed.

Cooperative Strengthening

Cooperatives play a vital role in farmer's self-organization. They can be a mean as farmers' voice, trader, service provider, or microfinance institutions. As microfinance institution, cooperatives keep farmer's savings and disburse loans. To support cooperative development, SCPP will develop Standard Operating Procedure (SOP) for cooperatives, develop tailor-made financial products for farmers, link cooperatives to social/commercial lender, and provide staff training in various topics such as loan analysis, risk management and administration. SCPP aims to have active cooperatives to provide farmers with a better access to financial services and higher income through joint marketing/sales activities.

21 22

Integrated Agribusiness Financing Facility

INCOME, Cocoa farming nowadays can be a source of reliable cash flow for farmers to improve their economy.

stSustainable Cocoa Production Program Biannual Report - 1 Semester 2014

Savings Promotion

SCPP recommends farmers to accumulate usable large lump sums through savings for re-investing or maintaining their farms. The program promotes savings of 1 kg cocoa beans per week. After six months, the farmers can use the accumulated amounts for regular fertilizer purchasing thus increase productivity without the burden to pay interests charged by FIs as it would be in the case when taking a loan. Moreover, the savings account can be utilized to pay quality, traceability, or certification premiums straight to the farmers. With saving accounts, not only the capacity of farmers to pay regularly can be demonstrated, but also farmer can take responsibilities to increase their own funding capacity.

Sector Facilitation

SCPP has started sector facilitation and participation through sector events. It aims to bring together a number of stakeholders such as the Central Bank, banks/FI, farmers, farmer organizations, national and regional governments, various value chain stakeholders, input suppliers, and so on, because this raises awareness and sensitizes all stakeholders for the challenges of the others. In particular, SCPP actively participates in the PISAgro working group and has organized a workshop attended by 70 stakeholders in Mamuju, West Sulawesi. Workshops in the remaining provinces are will be conducted along the program implementation period.

The main strategies mentioned above are required to realize lasting and practicable solutions for cocoa farmers.

23 24

Integrated Agribusiness Financing Facility

RECORD, Farmers are encouraged to make simple record of yields as basic information of farmers' farm productivity

stSustainable Cocoa Production Program Biannual Report - 1 Semester 2014

Savings Promotion

SCPP recommends farmers to accumulate usable large lump sums through savings for re-investing or maintaining their farms. The program promotes savings of 1 kg cocoa beans per week. After six months, the farmers can use the accumulated amounts for regular fertilizer purchasing thus increase productivity without the burden to pay interests charged by FIs as it would be in the case when taking a loan. Moreover, the savings account can be utilized to pay quality, traceability, or certification premiums straight to the farmers. With saving accounts, not only the capacity of farmers to pay regularly can be demonstrated, but also farmer can take responsibilities to increase their own funding capacity.

Sector Facilitation

SCPP has started sector facilitation and participation through sector events. It aims to bring together a number of stakeholders such as the Central Bank, banks/FI, farmers, farmer organizations, national and regional governments, various value chain stakeholders, input suppliers, and so on, because this raises awareness and sensitizes all stakeholders for the challenges of the others. In particular, SCPP actively participates in the PISAgro working group and has organized a workshop attended by 70 stakeholders in Mamuju, West Sulawesi. Workshops in the remaining provinces are will be conducted along the program implementation period.

The main strategies mentioned above are required to realize lasting and practicable solutions for cocoa farmers.

23 24

Integrated Agribusiness Financing Facility

RECORD, Farmers are encouraged to make simple record of yields as basic information of farmers' farm productivity

stSustainable Cocoa Production Program Biannual Report - 1 Semester 2014

StakeholderManagement and Networking Platforms

Local Government Involvement

SCPP consistently involves local government agencies across all program activities. Between January and June 2014, a number of coordination meetings at national and sub national levels were organized as advocacy efforts for a greater contribution from governments towards cocoa sector development, especially in SCPP activities.

One of the challenges to ensure continuous support from trained extension officer to SCPP's cocoa farmers is the high rotation within the government. To overcome the situation, SCPP intensifies lobbying activities to the specific agencies to encourage them to retain their staff, especially those who have received training from SCPP. The program also strengthened its structure with capable government relation officer and solid field teams to undertake continuous advocacy to the government.Government supports for the program during the first half of 2014 are as follows:

Ÿ The local governments in SCPP implementation areas have contributed own funding with a total of IDR 486,490,000

Ÿ In-kind government contributions such as technical assistance through various agencies, office space, and pruning shears and tool for FFS participants

Ÿ Several Districts agreed to allocate more matching funds to support SCPP initiated activities through the government regional financial management mechanism of Regional Government Work Plan (Rencana Kerja Pemerintah Daerah) and Regional Annual Budget (APBD) in 2015

Ÿ The Agency of Trade and Cooperative (Disperindagkop) in SCPP implementation areas agreed to support capacity building activities for farmer's cooperative to enable them to manage their cooperatives

Ÿ The Health Agency (Dinkes) in SCPP implementation areas agreed to provide technical assistance through their extension officers in nutrition to promote good nutrition practice and points out the negative impact of pesticide to cocoa farmer households

Ÿ The Agriculture Agency (Dishutbun) agreed to provide tools and equipment for demo-plots, extension officers, and some follow on coaching to cocoa farmers on farming techniques

Ÿ The Regional Development and Planning Agency (Bappeda) agreed to support local statistical data, land-use shape files for ArcGIS software and office space for program staff.

 

25 26

Stakeholder Management and Networking Platforms

MEMORANDUM of UNDERSTANDING, SCPP is implemented with local governments and private sectors involvement through equation of perspectives set forth in a Memorandum of Understanding for a better cocoa sector.

StakeholderManagement and Networking Platforms

Local Government Involvement

SCPP consistently involves local government agencies across all program activities. Between January and June 2014, a number of coordination meetings at national and sub national levels were organized as advocacy efforts for a greater contribution from governments towards cocoa sector development, especially in SCPP activities.

One of the challenges to ensure continuous support from trained extension officer to SCPP's cocoa farmers is the high rotation within the government. To overcome the situation, SCPP intensifies lobbying activities to the specific agencies to encourage them to retain their staff, especially those who have received training from SCPP. The program also strengthened its structure with capable government relation officer and solid field teams to undertake continuous advocacy to the government.Government supports for the program during the first half of 2014 are as follows:

Ÿ The local governments in SCPP implementation areas have contributed own funding with a total of IDR 486,490,000

Ÿ In-kind government contributions such as technical assistance through various agencies, office space, and pruning shears and tool for FFS participants

Ÿ Several Districts agreed to allocate more matching funds to support SCPP initiated activities through the government regional financial management mechanism of Regional Government Work Plan (Rencana Kerja Pemerintah Daerah) and Regional Annual Budget (APBD) in 2015

Ÿ The Agency of Trade and Cooperative (Disperindagkop) in SCPP implementation areas agreed to support capacity building activities for farmer's cooperative to enable them to manage their cooperatives

Ÿ The Health Agency (Dinkes) in SCPP implementation areas agreed to provide technical assistance through their extension officers in nutrition to promote good nutrition practice and points out the negative impact of pesticide to cocoa farmer households

Ÿ The Agriculture Agency (Dishutbun) agreed to provide tools and equipment for demo-plots, extension officers, and some follow on coaching to cocoa farmers on farming techniques

Ÿ The Regional Development and Planning Agency (Bappeda) agreed to support local statistical data, land-use shape files for ArcGIS software and office space for program staff.

 

25 26

Stakeholder Management and Networking Platforms

MEMORANDUM of UNDERSTANDING, SCPP is implemented with local governments and private sectors involvement through equation of perspectives set forth in a Memorandum of Understanding for a better cocoa sector.

Better Networking towards Sustainable Cocoa Production From the onset, the program has weaved public and private sectors partnership to support its implementation. The initiative is further intensify during the last semester through the programs active participation in various platforms for cocoa sector development and know-how sharing.

At national level, SCPP provides the Chairman of the Cocoa Sustainability Partnership (CSP) Supervisory Board and the Partnership for Indonesia Sustainable Agriculture (PISAgro) leader of the cocoa working group. At both forums, SCPP brought its strong presence to contribute lessons from the program implementation to the forum to foster cocoa production sustainability.

At regional level, the program initiated a new cocoa forum, combining three districts namely Luwu, Luwu Utara and Luwu Timur, as a networking forum for stakeholders in the South Sulawesi province. SCPP organized workshops to formulate strategic plans for sustainability of the so far four established forums. The program also continues to provide support as needed by the forums and maintains close coordination for actions in cocoa sector developments in each region. All forums have been linked to CSP and participated in the periodic meetings.

27 28

Stakeholder Management and Networking Platforms

PARTNERSHIP, SCPP is actively participating in National and International Platforms to share lessons learned and increase stakeholder commitment to sustainable support solutions for cocoa farmers

Better Networking towards Sustainable Cocoa Production From the onset, the program has weaved public and private sectors partnership to support its implementation. The initiative is further intensify during the last semester through the programs active participation in various platforms for cocoa sector development and know-how sharing.

At national level, SCPP provides the Chairman of the Cocoa Sustainability Partnership (CSP) Supervisory Board and the Partnership for Indonesia Sustainable Agriculture (PISAgro) leader of the cocoa working group. At both forums, SCPP brought its strong presence to contribute lessons from the program implementation to the forum to foster cocoa production sustainability.

At regional level, the program initiated a new cocoa forum, combining three districts namely Luwu, Luwu Utara and Luwu Timur, as a networking forum for stakeholders in the South Sulawesi province. SCPP organized workshops to formulate strategic plans for sustainability of the so far four established forums. The program also continues to provide support as needed by the forums and maintains close coordination for actions in cocoa sector developments in each region. All forums have been linked to CSP and participated in the periodic meetings.

27 28

Stakeholder Management and Networking Platforms

PARTNERSHIP, SCPP is actively participating in National and International Platforms to share lessons learned and increase stakeholder commitment to sustainable support solutions for cocoa farmers

SCPP Regional Office SumatraKomplek Taman Setia Budi Indah I

Jl. Chrysant Blok E No.76, Medan 20132Ph: +62-61-82229 700. Fax: +62-61-82229 600

Swisscontact Indonesia Country OfficeThe VIDA Building 5th Floor 01-04

Jl. Raya Perjuangan No.8, Kebun Jeruk, Jakarta 11530Ph: +62-21-2951 0200. Fax: +62-21-2951 0210

SCPP Regional Office SulawesiGedung Graha Pena lantai 11, Ruang 1108-1109

Jl. Urip Sumoharjo, No.20, Makassar 90231Ph/Fax: +62-411-421370