Sustainable Cocoa Production Program Indonesia · 2016-02-09 · 12 Sustainable Cocoa Production...

Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 1

Bi-Annual Report 2015

Sustainable CocoaProduction Program Indonesia

Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 20152 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 3

Table of ContentProgram BackgroundTimelineCluster MapHolistic Approach

Program Results until June 2015Measuring Program ImpactProgram Outcome MonitoringOutcome on Farm RehabilitationNutrition Program OutcomeKey Program Outputs

Farming Good Practices and Technology Transfer SystemsMaster Trainings for Staff and Extension OfficersCocoa Farmer TrainingsCocoa Farming & Greenhouse Gas Emissions

Nutrition and Gender Sensitivity IntegrationGood Nutrition Practices TrainingsEngaging Women in SCPP

Farmer Organization, Market Access and CertificationFarmer Groups and OrganizationsSmallholders Farm CertificationICT for Certification and Traceability

Integrated Agribusiness Financing Facility (AFF)Financial Literacy TrainingsCollaboration with Financial InstitutionsCooperative Strengthening

Stakeholder Management and Networking PlatformsRole and Contribution of Governments

Conclusions

4468

101011121314

17171819

212123

25252627

29292931

3333

34



2011 2012 20132010 2015 2016 2017 20182014

PEKA

SCPP - SECO

CPQP 1 - IDH

GNP - EKN

CPQP 2 - IDH

Kementerian Dalam NegeriRepublik Indonesia

STMF - IDH

AFF-SECO

READ-IFAD

GP-SCPP MCA-I

Phase 2

The Indonesian cocoa sector provides opportunities for farmers to improve their livelihood. This is in line with Joko Widodo administration’s goal to make Indonesia the largest cocoa production country in the world. Nevertheless, the sector faces a number of challenges, which affect the cocoa production. Small farm sizes, low productivity, lack of access to formal finance, and competition from other crops are some of the challenges encountered. The challenges can be traced back to many factors such as lack of cultivation expertise, unproductive and aging trees, limited access

to quality farm inputs, and a high incident of pest and disease infestation.

The Sustainable Cocoa Production Program (SCPP) is a large public-private partnership between Swisscontact and the Swiss State Secretariat for Economic Affairs (SECO), the Sustainable Trade Initiative (IDH), the Embassy of the Kingdom of the Netherlands (EKN), the International Fund for Agricultural Development (IFAD), and the Millennium Challenge Account-In-donesia (MCA-I). At national level SCPP works with the Indonesian Ministry of Home Affairs, while for partnerships with private sector companies the Pro-gram is currently collaborating with ADM Cocoa, Barry Callebaut, BT Cocoa, Cargill Cocoa and Chocolate, Ecom, Mars Inc., Mondeléz International, and Nestlé. Each of the SCPP operational regions has a slight variation in market-related interventions, which depends on the private sector partners’ support and infrastructure.

SCPP started on January 1, 2012 as a continuation of the Economic Development Financing Facility Project (PEKA) in Aceh. During the planning phase with SECO, several private sector companies expressed their inter-est to work with Swisscontact in Sulawesi, which led to the inclusion of IDH as additional funding partner to SECO. When the Program started, three companies have joined SCPP under the IDH component in Sulawe-si. In December 2012, EKN joined the Program with the Good Nutrition Practices (GNP) modules, adding huge value to the Program’s activities to improve farmers’ livelihood. In March 2014, SECO expanded its commitment in SCPP with the Agribusiness Financing Facility (AFF) component.

In January 2015, the Program welcomed IFAD to work with SCPP implementation in five districts in Central Sulawesi as part of the READ program bridging onto the next phase. In March 2015, Swisscontact – as part

of the GP-SCPP Consortium – signed an agreement with MCA-Indonesia Green Prosperity to add additional districts. The total number of districts increased from 19 to 29 and adds with East Nusa Tenggara one more province to SCPP’s umbrella. Through the Consortium, SCPP is also partnering with the Belgium NGO Vre-desEilanden (VECO) and the World Cocoa Foundation (WCF) in the implementation of the Green Prosperity component.

The Program, among others, offers cocoa farmer field school trainings, builds the capacity of farmer organi-zations and cooperatives, promotes the establishment of superior clone nurseries, creates transparency in a sustainable supply chain, provides access to local fi-nancial service providers, improves the nutrition intake of the cocoa farming families, and reduces greenhouse gas emission in the cocoa sector.

Program BackgroundTimeline


SCPP targets as one of the main objectives to reduce the poverty level of 98,000 families of cocoa farmers by 2018, with further expansion planned until 2020. The Program design is over several funding phases, with 31 funding expansion planned until 2020, reaching 130,000 and implementing contracts es-tablished so far for the period from 2012 to 2018.


28Toli-Toli Buol29

252627

10

11

21

20

17

18

19Mamasa

SouthwestSumba

Ende

SikkaEast Flores

Luwu

1314

9

121011

Provinces7Districts29Private Sector Partners8

16

24North Kolaka

East Kolaka

22

Banggai

East Luwu

Investing in rural people

27

25

26 28

29

5

4

32

1

24

South-East SulawesiCentral Sulawesi

2726

Central SulawesiAceh

West Sumatera

West Sulawesi

14

15

16

13

East Nusa Tenggara

17

18

South Sulawesi

19

20

21

South Sulawesi

South-East Sulawesi

22

23

23PolewaliMandar 12

15

Cluster Map


Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 20158 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 9Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 20158 Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 9

Holistic Approach


Program Resultsuntil June 2015

Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 201510

SCPP uses the latest update of Progress out

of the Poverty Index (PPI) developed by the

Grameen Foundation and recommended by the

Committee on Sustainability Assessment (COSA).

By collecting data using simple questionnaires,

SCPP estimates the cocoa farmer household’s

likelihood of having an income per household

member per day below the national poverty line

(7,893 IDR/day) and two international poverty

lines of 1.25 USD/day or 2.50 USD/day.

Using a different categorization, the farmers liv-

ing below the national or 1.25 USD/day poverty

line are considered as poor whereas the ones

living between the national and 2.5 USD/day

line are classified as extremely vulnerable.

Before joining the Program (farmers have been

joining the Program continuously since PEKA

start in Aceh 2010), more than 63% of the farm-

ers’ households were in an extremely vulnerable

condition. One year after the program interven-

tion, this number has already dropped to 56%.

The situation is traditionally the most critical in

West Sulawesi where every fifth household is

classified as poor.

In most parts of the world, cocoa farming is

often linked with poverty. SCPP believes that

its holistic approach will contribute to move the

cocoa farming households from the poor to the

vulnerable category and finally out of the pover-

ty circle in four years after the intervention.

Over the course of the implementation, SCPP

regularly collects data from at least 10% partic-

ipating farmers for post-line survey to measure

changes including income increase. As per data

available until June 30th, 2015 around 33%

of the assisted farmers, amounting to 19,875

households, have increased their income by at

least 75%.

Measuring Program Impact

Pove

rty

Rate

- 1

.25$

/day

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Aceh WestSulawesi

SouthSulawesi

CentralSulawesi

SoutheastSulawesi

WestSumatera

SCPPTotal

Baseline 1.25$/day Post-line 1.25$/day

Most cocoa farmers started to plant cocoa in the

1990s during the Indonesian cocoa boom. Since

then not many of the trees have been replanted,

therefore the age of the trees is one of the big-

gest issues in cocoa production. Old trees attract

more pests and diseases and if not regenerated

or replanted, the farmers’ income from cocoa

drops significantly. With only applying GAP,

named farm rehabilitation, yields at the younger

cocoa farms can be already improved signifi-

cantly, whereas at the older farms replanting

and/or side or top-grafting is recommended

(regeneration). With increased yields farmers

earn better income thus provide better education

for their children and more job opportunities are

generated.

When monitoring the outcomes, SCPP realizes

how important the technical assistance and

follow up after the trainings are to make the

Program effective. Farmers often still hesitate

to replant their farms with new and improved

planting material. But if encouraged by field staff

and other farmers’ successes and examples seen

in learning centers, they regain motivation and

start maintaining their old farms thus increase

again their yields and with it their income.

SCPP is continuously monitoring its approach and

its effect on the farming practices and farm-

ers’ livelihood by frequent visits and constant

data collection. Until June 2015, the Program

has collected rolling baseline data from all the

trained farmers and post-line data from more

than 10,000 farmers (18% sample). The data are

analyzed on a regular basis to provide insight on

farmers’ changing practices and strategies and

often shared with partners or public.

One of the results shows increased farmers’

productivity to 699 kg/ha/year. These data are

from farm surveys that were conducted at least

one year after the first support, compared to

overall baseline data of 450 kg/ha/year, collect-

ed from farm evaluations before farmers joined

training activities. As per now, SCPP promotion

of sustainable cocoa production has resulted in

among others, a productivity increase of 55.3%.

Program Outcome Monitoring

0

100

200

300

400

500

600

700

800

900

Aceh WestSulawesi

SouthSulawesi

CentralSulawesi

SoutheastSulawesi

WestSumatera

SCPPTotal

Baseline Post-Line

Kg/H

ecta

re/Y

ear



The Program has been utilizing the Individual

Dietary Diversity Score (IDDS) to reflect the

women’s nutrient adequacy in cocoa farming

households. By collecting the IDDS, The Program

is able to assess changes in women’s diet before

and after the GNP training to gauge improve-

ment expected in dietary intake.

To do so, the Program sums the number of

nine food groups consumed by the individual

respondent over the 24-hour recall period. The

Program remained cautious when collecting the

baseline and post-line IDDS data due to in some

areas there is an increasingly common practice

to consume meals and snacks outside the home

such as in traditional occasions around the

village. This has significantly created higher IDDS

from the respondents.

As per chart below, since the beginning of the

GNP component in 2013, the IDDS increased on

average by 16% (meaning by one more IDDS

food group consumed).

Despite of IDDS currently being used in many

areas of the world to measure dietary intake, it

is not yet possible to compare the results with

other projects and countries due to different

groupings of the foods thus score range, small

samples, and its common seasonality (variations

in rainy and dry seasons often bring different

results).

Nutrition Program Outcome

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Aceh WestSulawesi

SouthSulawesi

CentralSulawesi

SoutheastSulawesi

WestSumatera

SCPPTotal

Baseline IDDS

In Central Sulawesi, GNP training is started in the 1st semester of 2015

*

*

Post-Line IDDS

N/AID

DS

Scor

e

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

Target Result

Aceh WestSulawesi

SouthSulawesi

CentralSulawesi

SoutheastSulawesi

WestSumatera

Rehabilitated Replanted Regenerated

Target Result Target Result Target Result Target Result Target Result

This bi-annual report also updates as per June 2015 on cumulative outcome indicators from the farmer capacity building in cocoa Good Agricul-ture Practices. Measuring farmer adoption of improved technologies remains a key challenge within the cocoa sector. Alignment with industry partners and associations is an ongoing task to ensure we have credible and feasible method-ologies in place on evaluating individual farm improvements. So far, we are reporting GAP out-comes with measuring three indicators related to farm rehabilitation, regeneration, and replanting, with results as follows:

1,337 hectares replanted: Total hectare of farms where so far 1.25 million cacao seed-lings, produced in the 370 Program supported nurseries, are planted as replacements for old and diseased unproductive trees. The nurseries have reached a capacity to produce annually 1.1 million cacao seedlings, but production, distribu-tion, and planting of these seedlings still lacks behind the potential.

7,319 hectares regenerated: Total hectare of farms where old or/and less productive trees were side or top grafted with improved planting material to rejuvenate the farm thus to ensure improved and sustainable yields. As reported previously, monitoring for this indicator is con-ducted on ongoing basis. Surveyed farmers have already side-grafted an average of 80 cacao trees (or averaging 10% of the farms) based on SCPP post-line data.

9,036 hectares rehabilitated: Total hectare of farms where good agricultural practices have been successfully applied to improve productivity and soil fertility. For this indicator the Program counts all farms which produce at least 750 kg/ha/year with the assumption that the farmers have rehabilitated their farms through the appli-cation of better agriculture practices and added organic material. Further yield increases are possible on good managed farms with improved planting material and agro-inputs. Farm rehabil-itation needs to be performed by all supported farmers to achieve the overall Program target of 1,000 kg/ha/year.

Outcome on Farm Rehabilitation



Smallholder cocoa farmers

were trained on average 8 days through Farmer Field Schools

(FFS)

53,386

677

Extension officers (agricul-ture, nutrition, and finance) from private sector and

government agencies

participated in SCPP’s training

to become master trainers

18.6%

Women participation

in Good Agricultural Practices

(GAP)

256

Cocoa Producer Groups

(CPG) were newly

established in the 1st semester

2015

29,126

Households (one member of the family) of smallholder cocoa farmers were trained in Good Nutrition

Practices (GNP)

370

Nurseries for planting material

established

79.6%

Women participation

in Good Nutrition Practices

(GNP)

1.1 million

Installed capacity for high quality

cacaoseedlings

14,055

Selected mem-bers of smallhold-er cocoa farmer

households received capacity building through financial literacy trainings in Good Financial Practices

(GFP)

15

Producer organiza-tions and

cooperatives providing

services to their mem-

bers

51.8%

Women participation

in Good Financial Practices

(GFP)

10,872

Cocoa producers

are currently certified for the 2015

cocoa season

Besides the main outcome numbers, the Program has reached the following cumulative key output

numbers until the end of June 2015:

53,386 smallholder cocoa farmers were

trained on average 8 days through Farmer Field

Schools (FFS) in Good Agricultural Practices

(GAP), post-harvest handling, professional farm

management, nursery management, and certifi-

cation, including 18.6% women participation.

Output achievement to date is 89%.

29,126 households (one member of the

family) of smallholder cocoa farmers were

trained in Good Nutrition Practices (GNP) with

79.6% women participation. The trainings were

conducted for 3 days: 2 days directly after the

GAP FFS and 1 day self-organized by the groups

during the harvesting period of the produce a

few weeks after the first training sessions.


After GAP and GNP trainings, 14,055 selected

members of smallholder cocoa farmer house-

holds received capacity building through finan-

cial literacy trainings in Good Financial Practices

(GFP) with 51.8% women participation.


677 extension officers (agriculture, nutrition,

and finance) from private sector and govern-

ment agencies participated in SCPP’s training to

become master trainers.


256 Cocoa Producer Groups (CPG) were newly

established in the 1st semester 2015, resulting

in 1,747 CPG in total. Towards the end of 2015,

the program will be working to achieve the over-

all target to facilitate the establishment of 2,000

CPG across the implementation areas.


370 nurseries for planting materials have an

installed production capacity of 1.1 million high

quality seedlings and approximatively 370,000

cacao seedlings were produced and distributed/

planted in the first half of 2015 across Sumatra

and Sulawesi.

Output achievement in Nursery establish-

ment/support to date is 74%.

3 producer organizations/cooperatives were

newly supported in the 1st semester 2015,

resulting to 15 in total since Program start. 13

Business Models for cooperatives are developed,

including certification holding, cocoa bean trade,

fertilizer retail business and others.


10,872 cocoa producers are currently certi-

fied for the 2015 cocoa season by voluntary

standards of UTZ Certified in Aceh and Southeast

Sulawesi and Rainforest Alliance label in South

Sulawesi. One cooperative in Kolaka Timur,

Southeast Sulawesi distributed as certification

holder IDR 2.4 billion (ca. USD 200,000) to farm-

ers and capitalized itself with IDR 570 million .


Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 2015 15Sustainable Cocoa Production Program Indonesia - Bi-Annual Report 201514

Key Program Outputs


Farming Good Practices& Technology Transfer Systems

SCPP periodically provides Master Trainings for private sector and SCPP field staff (Field Facilitators,

Field Coordinators and Interns) and extension officers. The purpose of the Master Training is to equip

them with knowledge and facilitation skills so that they can play their role during Farmer Field

Schools. Extension officers are government officers who execute SCPP trainings while Field Facilitators

and Coordinators facilitate and supervise the Farmer Field School. SCPP attempts to ensure that a

lasting knowledge and skill transfer to farmers beyond the program implementation period occurs. In

addition to that, engaging government extension staff is part of SCPP’s lobbying efforts to encourage

the government to adopt the modules hence the sustainability of the program.

During Master Training participants learn the good agriculture techniques, the management of nurs-

ery, how to evaluate a cocoa farm, the techniques of assisting cocoa farmer groups and others. In the

1st semester of 2015 SCPP has executed 32 Master Trainings: 9 in GAP, 8 in GFP, 9 in GNP, 2 in Group

and Cooperative Development, 2 in ICS, Traceability and Certification, and 2 in Post-Harvest and Mar-

ket Access Training of Trainers. Aside from technical skills, the field staff and extension officers learn

to work together and share experiences. Monitoring from the field showed that participants of the

ToTs (Training of Trainers) found the Master Trainings very helpful. Especially field staff who initially

lacked confidence to facilitate FFS gain confidence to facilitate farmer training in technical matters.

In the first semester of 2015, SCPP has trained 164 master trainers with 145 of them were govern-

ment officers and 19 private sector staffs. The master trainers collaborate with Program Field Facilita-

tors to assist farmers during farmer field school.

Findings from the field indicate that one major challenge to the extension officers is how to teach

farmers who do not know how to read or write. In the Master Trainings, the extension officers and

field staff from the private sector can learn how to teach and facilitate such farmers.

Extension Staff Trained

PrivatePublic

0

100

200

300

400

500

600

700

800

Annually2015

Cumulative2012 - 2015

Target Result Target Result

625

52

645

155

15

119

19

145


Master Trainings for Staff and Extension Officers


Cocoa Farmer

Trainings

Cocoa Farming &

Greenhouse Gas EmissionsDelivering farmer trainings remains a focus of the

Program. As 2015 is the final year of SCPP phase 1,

the Program works to ensure target achievements

in the implementation areas. In addition to Mas-

ter Trainings, SCPP also provides trainings for key

farmers (KF) so that they can better prepare before

FFS begins. During the reporting period, the Program

has executed Training of Trainers (ToT) of GAP, GFP,

GNP, Post-Harvest and Market Access and Group, ICS,

and Cooperative Development. Chart 4 on the right

shows the number of key farmers involved in each

ToT during the 1st semester of 2015. As of the 30th

of June 2015, 694 newly selected key farmers

have been trained with 35% of them being female

key farmers. After the key farmers are trained, they

will be executing FFS together with extension offi-

cers and field staffs.

The FFS are conducted following the KF training. In

the reporting period, 7,376 farmers in total (includ-

ing KFs) were trained in GAP. This brings the total

number of cocoa farmers who received training

from SCPP since the beginning of the Program until

the first semester of 2015 to 53,386 farmers (with

18.6% female participants). Since the beginning of

the program in 2012, 427,712 training days in GAP

have occurred across all implementation areas. In

average, a farmer receives 8 training days in GAP

modules. The farmers received 7-10 days training in

various modules such as pruning, soil fertility and

fertilizing, integrated pest and disease manage-

ment, harvesting and sanitation, post-harvest prac-

tices and quality (sorting, fermenting, and drying)

and pesticides management.

1 Equivalent CO2 (CO2e) is

the concentration of CO2 that

would cause the same level of

radiative forcing as a given type

and concentration of green-

house gas. Examples of such

greenhouse gases are methane,

perfluorocarbons, and nitrous

oxide (Source: Wikipedia August

4, 2015).

2 C´ecile Bessou, Laurence

Chase, Ian Henson, Amir F.N.

Abdul-Manan, Lloren¸c Mil`a-

I-Canals, et al. Palm GHG, the

RSPO greenhouse gas calculator

for oil palm products. 8th Inter-

national Conference on LCA in

the Agri-Food Sector, Oct 2012,

Saint-Malo, France. pp.498-504,

2012

Greenhouse Gas (GHG) emissions from agricul-

ture activities are significant drivers of the global

climate change. In line with this issue, SCPP and

its partners aim to minimize the rate of GHG

emissions in cocoa sector through Good Agricul-

ture Practices (GAP) and new Good Environment

Practices (GEP). Nitrogen oxide – as one of the

largest GHG emitter in cocoa sector – is expected

to increase due to cocoa’s intensification mainly

from fertilizer.

As a leader in the PISAgro Cocoa Working Group,

SCPP commits to develop a methodology for

measuring and monitoring GHG emissions

within the cocoa intensification. SCPP intends to

integrate targets for monitoring and mitigation

of GHG emissions in its program activities and

monitoring plan to increase its positive environ-

mental impact.

SCPP implements a holistic approach for sustain-

able, environment-friendly agricultural practices.

The ultimate goal is to reduce GHG emissions

and increase carbon sequestration. The Program

has been estimating and quantifying GHG emis-

sion from cocoa intensification through baseline

and post-line surveys. Based on the data until

the end of June 2015, in total 3,273,714 shade

trees such as other estate crops, hard woods,

fruit, and N-fixing trees are planted in SCPP co-

coa farms resulting in average of 65 shade trees

per farm securing higher biodiversity, carbon

sequestration, more variable income and better

food security.

The utilization of chemical fertilizer also signifi-

cantly increases GHG emissions from nitrogen

oxide (Equivalent carbon dioxide). Until the end

of the reporting period, in SCPP participating

farmers used in average around 229 kg/ha of

chemical fertilizers (Urea, ZA, TSP, NPK, KCl),

while the organic fertilizer use (compost, ma-

nure, granules) was recorded at around 143 kg/

ha in average. Our data (based on baseline from

54,000 farmers) show that the baseline average

emission of CO2 equivalent is 1.02 tCO2eq/

MT cocoa produced. If compared to every MT

of crude palm oil produced, this figure is similar

(1.03 tCO2eq/MT ). Nevertheless, when calcu-

lated per hectare, taking average smallholder

yields into account, the effect of cocoa farming

clearly shows 8.8 times lower GHG emissions

of 0.44 tCO2eq/ha compared to oil palm with

3.88 tCO2eq/hectare.

When comparing the baseline and post line data,

total GHG emission reduction, if applied to the

54,000 farmers, currently amounts to 3,565 tCO-

2eq per year. Such amount of CO2eq equals to

taking 120,000 cars off the road, which would

drive an average of 20,000 km a year each or

avoiding 2,187 round-trip flights from Zurich to

Jakarta.

The average content of organic carbon is 0.24

tc/MT cacao trees (carbon sequestration). SCPP

is currently in process of researching a formula

for calculation the carbon sequestration also

from the shade trees. The Program has been

actively involved in climate change mitigation

of reducing GHG emission through modules in

FFS. A number of agricultural approaches such as

pruning, planting shade trees, reducing excessive

chemical fertilizer use, proper soil, water man-

agement, or combining the usage of chemical

and organic fertilizer are efficient and effective

techniques to reduce the GHG emissions and

increase carbon stock in cocoa farms. Moreover,

new modules on Good Environmental Practices

to raise even more awareness on the importance

of the environment among cocoa farmers are

being developed at the moment.

0

50

100

150

200

250

300

350

400

FemaleMale

324

17

69 9449 66 89

7

13

15

257

76

GAP Good Agriculture Practices

GFP Good Financial Practices

GNP Good Nutrition Practices

Group and Cooperative

Development

ICS,Traceability

andCertification

Post-Harvest and Market

Access

Number of Key Farmers in ToT modules

GAP Participants

0

10,000

20,000

30,000

40,000

50,000

60,000

Annually2015


Target

10,360

Result

FemaleMale

6,191

1,1762,590

Target Result

48,000 43,452

9,93412,000

Farms Surveys tCO2e/Farm tCO2e Reduction in tCO2e

54,000Baseline 680 36,746

3,565Post-Line 614 33,181



Nutrition & GenderSensitivity Integration

The poor nutritional status of farmers and their households members is still an issue, which influ-ences rural communities in Indonesia including cocoa-growing regions. The lack of knowledge on balanced diet and proper feeding of children affects current and future household’s health, thus productivity and often leads to higher poverty level.

Malnutrition of children is not always a matter of availability of food but sometimes also a choice of the mothers to feed the children instead of nutritious food with any low nutritious one such as instant noodles or chips. A combination of lack of knowledge on balanced nutrition importance and poor discipline often leads to children’s malnourishment even outside the poorest households. SCPP is addressing this issue by stressing the importance of well-fed children and reminding the households on the effects of malnutrition.

The ongoing monitoring provides deeper view into the food intake choices and feeding habits of SCPP households and continuously serves to improve the trainings in order to be more effective. As reported previously, farmers reduce their expenses on food by intercropping and home-gardening, increase their income by selling the surplus’ vegetables and improving their nutrition intake. How-ever, the sustainability of keeping the nutritious vegetables’ gardens remains a challenge as farmers provided by hybrid seeds that cannot be propagated further, often stop maintaining their gardens after the first harvesting. SCPP has learned and in order to overcome this and other issues, new learning materials such as flipcharts have been designed and used in FFS and new training modules such as local nutritious vegetables’ seeds conservation and propagation and fish pond’s management to improve protein intake in highland areas are being developed.

During the reporting period, the Program continued the effort to reach 40,000 households in pro-viding capacity building for smallholder cocoa farmer households on nutrition and better dietary intake. This semester, the Program expanded the training activities to Luwu, East Luwu, and North Luwu districts in South Sulawesi (in partnership with Mars Inc.), and Parigi Moutong district in Central Sulawesi (in partnership with Ecom). All SCPP implementation areas already had the GNP Training implemented.

In the first half of 2015, the Program has trained 7,332 household members in the GNP training with 79% women attendance. This brings the total number of GNP training participants since the nutrition component started in December 2012 to 29,126 households or 73% of the targeted number. The accumulated training days until June 2015 have reached 16,836, which brings the total number to 62,025 training days since the beginning of the Program.

GNP Participants

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Annually2015


Target Result

FemaleMale

Target Result

8,000 5,931

23,195

32,000

9,600

2,400

1,526

5,806


Good Nutrition Practices Trainings


Engaging Women in SCPPSCPP acknowledges that women are also center-stage in cocoa farming and therefore it has been

designed to integrate women across all activities. Nonetheless, in most areas in Indonesia where the

patriarchal culture is one of the social belief, women’s contribution is often being challenged. The

Program thus tries to see four aspects that contribute to the increased scale of women engagement

in SCPP i.e. access, participation, control and benefit:

ACCeSS

Being aware that

agriculture in Indone-

sia is often perceived

as male-dominated

sector, the Program

sees the importance to

provide equal oppor-

tunity for women to

have increased access

to the sector. Hence

in group formation

activity, SCPP encour-

ages women mem-

bership in the group

as well as women

leadership. Further-

more, to provide an

equal opportunity for

women and men, the

Program prerequisite

at least 30% women

respondents in the

post-line;

PARTICIPATIONIn line with the above mechanism, SCPP is consistently putting the effort to involve wom-en in the training ac-tivities; targeting 20% women participants in GAP trainings, 80% in GNP trainings, and 50% in GFP trainings.In the first half of 2015, women participation reached 16% across 7,367 GAP participants, which include training for master trainers, extension officer, and farmers. While from the 7,332 GNP training and 10,859 GFP training participants, women participation reached 79% and 53% respectively. Based on the targeted number, the Program is on track and has been able to promote women’s in-volvement throughout the program activities at individual level, within participating smallholder cocoa farmer households;

CONTROl

At group level, the

Program urges wom-

en’s significant role

in the farmer groups

such as the group

head, treasury, and

secretary. In 2015

SCPP successfully in-

cluded 33% women in

Key Farmers trainings.

Moreover, until June

2015, around 6.25%

of women have been

holding leadership

positions in their re-

spective farmer orga-

nization including 28%

of women becoming

Head of CPG (Cocoa

Producer Group). This

creates prominent

avenue for women’s

voice to be heard and

women’s participation

in the control function

during decision-mak-

ing process in their

communities;

BeNeFIT

The Program is also

aware of the multiple

benefits of engaging

males into typically

female’s activities such

as food preparation.

In predominantly

male led households

the involvement of

men in GNP trainings

(until June 2015 20%)

often results in better

understanding of the

importance of better

and balanced nutrition

for the whole family

and allows the female

family members

to spend more on

healthy foods by

changing the feeding

habits as necessary.

Gender in Program Sta�

0

20

40

60

80

100

120

140

160

180

200

FemaleMale

12 23

17

Assistants/Field Staff

OfficersManagersCLT

3 48

123

62

Gender in Program Participants

0

10,000

20,000

30,000

40,000

50,000

60,000

FemaleMale

43,461

9,934

5,931 6,772

7,283

23,195

GAP GNP GFP


For Swisscontact, gender inclusion is key for program success. 29% of management and staff posi-

tions are held by women, ensuring gender integration on program level. Overall women participation

in key SCPP trainings reached 43% by the end of June 2015.


Farmer Organization,Market Access & Certification

SCPP works with Cocoa Producer Groups (CPG) and strengthens farmer organizations. In Indonesia,

farmers are generally not organized, leading to, among others, inefficient access to and adoption of

technical assistance provided. Many groups were established to get funding from the government,

as this is usually a requirement to access government’s support. For SCPP farmer organizations the

first and foremost step is efficient farmer’s capacity building and emancipation of farmers in engag-

ing with the industry. The Program training packages were designed to build group cohesiveness to

enable better collaboration between farmers in the group.

Between January and June 2015, the Program has facilitated the establishment of 256 new CPGs

in Sulawesi and Sumatra. Since the Program started in 2012, the Program has registered a total of

1,747 CPGs, or around 87% of the overall Program target.

The Program has been supporting farmer organizations at district level to provide additional bene-

fits to their members. Efforts towards this direction have been initiated since last year but until June

2015, progress was still at a very early stage.

Until the end of the reporting period, the Program concluded that more focused support is needed to

improve the farmer organization capacity to the level that SCPP expected. The Program is currently

working to also establish a manual for farmer organization development.

Supported Cocoa Producer Groups

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

1,7472,000

423256

Annually2015


Target Result Target Result


Farmer Groups and Organizations


SCPP trusts that certified and traceable cocoa

is one of the paths to further strengthen cocoa

production and make it sustainable. The Program

believes that farmers’ willingness to participate

in the certification process is a determining

factor to the success of the certification process.

Despite the fact that farmers are sitting at the

very end of the verification and certification

chain, their contribution is fundamental to the

overall certification process.

Benefits of certification for smallholder cocoa

farmers include direct benefits such as premi-

ums paid and diffused benefits such as con-

servation of ecosystems, increased farm yield,

employment opportunities and improved labor

conditions. The Program also perceives that

certification fosters better group collaboration by

ensuring regular checks from IMS or other mem-

bers. The certification process requires costs that

shall be absorbed by cocoa traders and buyers

through the premium payment.

In the 1st semester 2015, the Program supported

certification in Aceh with UTZ Certified; 359 first

year farmers and 2,237 second year farmers.

Similar to the last round certification process, in

Aceh, two cooperatives serve as certificate hold-

er. In Sulawesi, the Program collaborated with

ADM Cocoa to start the re-certification process

for 1,797 farmers and 1,651 first year farmers

in Southeast Sulawesi with UTZ Certified. Until

the end of the reporting period, the internal au-

dit process was still ongoing for the finalization

of Q3 2015. In South Sulawesi, where the certif-

icate is also hold by farmer organizations and/

or farmer enterprises, the number of Rainforest

Alliance certified farmers increased until June

2015 to 4,878. The Program has also initiated

the certification process in West Sulawesi with

Nestlé Cocoa Plan and is currently preparing the

farmers for the internal audits.

Smallholders Farm

Certification

Benefits of certification for smallholder cocoa farmers include direct benefits such as premiums paid and diffused benefits such as conservation of ecosystems, in-creased farm yield, employment opportu-nities and improved labor conditions

In April, ADM Cocoa distributed premium and loyalty bonus to 1,961 farmers, 4 cocoa buying stations and KGG as the cocoa farmers’ organization and certifica-tion holder using the traceability feature on CocoaTrace.

ICT for Certification &

TraceabilityThe Program has been working

with CocoaTrace application in

the database management.

Through collaboration with

PT. Koltiva, SCPP built a state

of the art data management

application, web-based as well

as with Android application for

handheld tablets.

During the reporting period,

the Program was continuous-

ly updating the CocoaTrace

application to meet the sector’s

need of a reliable farmer

database system. Based on

continuous consultation with

the private sector partners,

the Program has been working

hands in hands with PT. Koltiva

to add more features on the

CocoaTrace.

The work with one private sector

company required the Program

to provide polygon data map-

ping of cocoa farm of the partic-

ipating farmers. To adjust with

the requirement, CocoaTrace was

updated and added the polygon

mapping capability using the

Android version. The trial period

went until the end of 2014, and

the full operational feature was

added later in early 2015. So far

the team has already collected

and finalized around 2,900 farm

polygons in the database from

Soppeng district. The require-

ment to collect the polygon map

may be expanded to other areas

as this type of map provides a

more accurate size of the farms

to calculate farm productivity

and might help the farmers with

certifying their land.

The application also added

traceability and certification

features on the web-based ap-

plication. The feature enables

the industry to trace the source

or history of a cocoa product

and monitor the processes

throughout the supply chain.

Through the new feature,

CocoaTrace becomes a tool to

record the traceability infor-

mation all the way to financial

receipts, and premium and

bonus calculation. The certifi-

cation feature helps the overall

process to certify farms through

the code of conduct installment

on the software to ensure full

compliance with responsible,

sustainable and traceable cocoa

bean productions. In April, ADM

Cocoa distributed premium and

loyalty bonus to 1,961 farmers,

4 cocoa buying stations and

KGG as the cocoa farmers’

organization and certification

holder using the traceability

feature on CocoaTrace.

The web dashboard also un-

dergoes continuous refinement

so that the users can easier

navigate to get necessary infor-

mation, to measure progress,

and to establish plans.



Integrated AgribusinessFinancing Facility (AFF)

The AFF was implemented in full scale in the first semester 2015. Following an initial solid prepa-

ration in 2014, the component continued its implementation with the focus on financial literacy

training for farmers, collaborating with financial institutions, strengthening farmer organizations with

some exciting achievements and sharing gained knowledge. Entering AFF’s second year, a mid-term

evaluation was conducted in June 2015 and further knowledge was shared with the stakeholders.

Cumulative 14,055 cocoa farmer household members were trained in Financial Literacy (Good Fi-

nancial Practices - GFP) within the reporting period, concentrating on cash flow planning and record

keeping, loans and savings. The household member who manages the household finances is partic-

ipating in the training. 10,139 household members, in total 51.8% women, were trained during the

first semester. The modules are delivered during one day. Trainings are held by SCPP’s field facilitators

in collaboration with three BDS providers.

Last year AFF tried out inviting bank staff to the GFP trainings. The idea behind was that banks could

explain much better about their products than SCPP field facilitators. Surprisingly that worked out

very well and AFF decided to replicate that approach in all GFP trainings. During the test of the ap-

proach, between 16% and 50% of the training participants opened saving accounts.

GFP Participants

0

5,000

10,000

15,000

20,000

25,000

30,000

Annually2015


Target Result

WomenMen

Target Result

15,000

6,772

7,283

15,000

11,700

11,700

5,090

5,769


Financial Literacy Trainings

Collaboration with Financial Institutions


Cooperative

StrengtheningThere were some exciting results in strengthening cooperative, especially in Aceh and Southeast

Sulawesi highlighted with the two stories below:

Koka Jaya, the supported cooperative in Pidie

Jaya received a financing of 130,000,000 IDR (ca.

10,000 USD) as working capital for their cocoa

bean trade, under a profit sharing scheme, from

the Aceh revolving fund established under the

SPAN project. This fund is managed by Politeknik

Aceh, PINBIS, and Yayasan Sahabat Cipta collec-

tively, and decided to offer the financing to the

cooperative, based on the cooperatives business

planning. That is a first start, with which the

cooperative can show that they are able to man-

age the funds, using it productively, and create a

profit. Although being a short-term financing, an

extension is in discussion as well as additional

funding. Their equity still limits their operations,

since financial institutions require a certain equi-

ty share when they provide financing.

Koperasi Gabungan Gapoktan (KGG) in Kolaka

received IDR 2.2 billion, which were distribut-

ed to 1,961 farmers, 4 cocoa buying stations

and KGG as the cocoa farmer’s organization

and certification holder. The amount of IDR 2.5

million (or USD 200) per metric ton of cocoa is

paid to the cooperative to finance operations,

internal control systems, external audits, costs of

certification, and premiums to the certified cocoa

farmers. Of the total amount of IDR 2.2 billion,

1.9 billion are UTZ certification premiums and

300 million are loyalty bonuses.



Stakeholder Management andNetworking Platforms

The Program works closely with central and local governments in implementing the activities. At the national level, the Program is in consultation with the Ministry of Home Affairs (MoHA) and the Ministry of Agriculture (MoA). The cooperation with MoHA is through the Advisory Board governance, while the link to MoA is realized through a private and public stakeholder platform on agricultural de-velopment (PISAgro). These national institutions provide inputs and advices to improve the program implementation. At subnational level, the Program intensively works with provincial and district gov-ernment to run program activities. The Program is especially focused on collaboration with Forestry and Estate Crop Agency to train government extension staff in order to retain the knowledge and skill at the local level beyond SCPP implementation period. The cooperation also involves selection of program location and farmer identification.

Further form of cooperation with the government stakeholders is the capability for SCPP in shaping the government’s programs in promoting cocoa farmers. Farmers’ promotion program via seeds sup-ply has involved SCPP intensively.

During the first half of 2015, SCPP received the following specific support from local Government for Program related activities:

• Government contributions in the form of extension staff, office space, and land for learning

center;

• Several districts agreed to allocate matching funds to support SCPP initiated activities through

the government regional financial management mechanism of Work Plan Development (RKPD)

and Regional Annual Budget (APBD) in 2015;

• The Agency of Trade and Cooperative (Dinas Perindustrian, Perdagangan dan Koperasi) support-

ed the Program for capacity-building activities and warehouse for farmers;

• The Health Agency (Dinas Kesehatan) provides technical assistance in nutrition to promote good

nutrition practices as well as skill to handle first aid cases. This skill is to fulfill requirements of

the certification program;

• The Forestry and Estate Agency (Dinas Kehutanan dan Perkebunan) provides tools and equip-

ment for demo-plots, extension officers, and some follow-up coaching to cocoa farmers on farm-

ing techniques. In some districts, the agencies also started to replicate SCPP training method for

their staff and introduced SCPP best practices to farmers in their sub-districts;

• The Regional Development and Planning Agency (Badan Perencanaan Pembangunan Daerah)

supports the Program with local statistical data, land-use shape files for ArcGIS software and

office space for Program staff. Furthermore, in all implementation areas, Bappeda as the leading

agency of local government has facilitated a good coordination between SCPP and relevant

stakeholder in terms of reporting, monitoring and evaluating of SCPP;

• MoHA and inter-ministerial team which consists of State Secretary, Ministry of Foreign Affairs,

and the Strategic Intelligence Agency, stated the root cause of Poso conflict and provided hints

that Swisscontact might be able to continue the Program implementation in Poso. However, no

decision has been taken yet as discussion is still ongoing.


Role and Contribution of Governments


Entering 2015, the last year of the first SCPP

phase, the Program has again proved to be clos-

er to the fulfillment of its targets.

SCPP continues to improve the Program through

innovations, collaborations and monitoring and

evaluation. Throughout the first semester, the

Program continues aiming to deliver improved

planting material and training to cocoa farmers.

It continuously strengthens the training programs

by improvement in training modules and ap-

proach. The successful approach of the Program

is verified by a fact, that in the 1st semester

of 2015, SCPP commenced a new phase with

receiving further funding first from IFAD and then

MCA-I. By collaborating with more partners, ex-

panding to new areas and widening its training

modules, SCPP is on track for its scaling up plan

until 2020. To be able to cope with this challeng-

ing growth, vast recruitment and restructuring

have taken place.

SCPP has continued working hard towards

improving the certification transparency and

ensuring traceable beans from farmers to

partners supply chains. Therefore, new unique

and efficient CocoaTrace feature “Traceability” in-

cluding premium price calculation has been fully

implemented and piloted in Southeast Sulawesi.

The Program is committed in making CocoaTrace

a reliable tool for transparency and traceability in

the cocoa sector.

SCPP believes in sustainability through coop-

eratives’ development, therefore new farmer

organizations were set up and existing ones

have been further strengthened by provision of

more capacity building, continuous monitoring,

and management assistance. Moreover, SCPP

used innovative approach to secure the financial

situation and business model of cooperatives so

that the cooperatives can be a professional orga-

nization and support center to their members.

SCPP undertakes Monitoring and Evaluation pe-

riodically and evaluates its approaches through

studies, consultations with government and part-

ners, post-line surveys and improved program

monitoring. SCPP also employed shared mea-

surement of progress around common indicators

with its donors for continuous learning.

The monitoring activities indicate the Program is

on track with fulfillment of its targets; neverthe-

less, a large-scale program such as SCPP cannot

exist without experiencing various challenges

and needs for continuous improvements. To be

able for constant learn out of difficulties and oc-

casional failures and disappointments, the new

Research & Development unit was established to

safeguard proper knowledge management with-

in and outside SCPP including learning lessons’

sharing.

SCPP collaborates with government, financial

institutions and donors to pool expertise and re-

sources and develop most effective interventions

for greatest impacts. In addition to collabora-

tion with government for farmer field schools,

throughout this semester, SCPP consistently

strengthens the cocoa sector in Indonesia by

establishing regional cocoa forums that involve

multiple stakeholders by giving inputs to region-

al governments and other organizations working

in the cocoa sector.

Conclusions



Swisscontact - SCPP SumateraKomplek Taman Setia Budi Indah I

Jl. Chrysant Blok E No. 76 Medan 20132Tel.: +62-61-822-9700

THE VIDA Building5th Floor 01-04 Kebon Jeruk, Jakarta Barat 11530

Tel.: +62-21-2951-0200

Swisscontact - SCPP SulawesiGedung Graha Pena lantai 11, Kav. 1108 -1109

Jl. Urip Sumoharjo, No. 20 Makassar 90234Tel./Fax: +62-411-421370

www.swisscontact.org/indonesia

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