Program for sustainable production in the cacao sector in Indonesia, Phase II
Indonesia is third largest cocoa producer in the world with 15% market share mainly in mass market cocoa. Growing global demand for cocoa, as well as increasing competition for a declining supply of Indonesian cocoa are catalysts for greater private sector investment and development initiatives to strengthen the cocoa industry.
Private sector and entrepreneurship
|Background||Cocoa production is an important source of income for approximately one million Indonesian households. Cocoa farmers face serious competitiveness challenges, particularly in terms of quality and sustainability of production. Meanwhile, traceability and certification are now becoming increasingly important. Major players in the Indonesian cocoa industry have agreed to ensure that 80% of cocoa sourced from Indonesia are certified until 2020 according to international sustainability standards. This ambitious goal can only be achieved with a joint effort between key stakeholders including the farmers, the industry, and national and government.|
|Objectives||The main goals of the Sustainable Cocoa Production Program SCPP are the reduction of poverty (through more and better jobs) among smallholder cocoa farmers and the reduction of greenhouse gas emissions in the Indonesian cocoa sector. The overall objective of the SCPP is to reduce poverty by increasing farmer household income from cocoa by 75%, and to reduce greenhouse gas emissions from the cocoa sector by 30%. To achieve this, the outcome of the program is to increase competitiveness of an environmentally responsible and inclusive cocoa value chain. The Program is structured as a public private partnership for building capacities of smallholder farmers, involving multinational companies.|
|Medium-term outcomes||Increased competitiveness of an environmentally responsible and inclusive cocoa value chain is achieved by contributing to the following three outcomes:a) Transparency, farm profitability and cocoa quality are enhanced- b) The cocoa sector adopts climate-smart agriculture and environmentally friendly measures- and c) The cocoa sector supports local communities to enhance their living standards.|
Expected results: Good farming management practices- significant better access to financial products- services and agri-inputs- professionalization of Micro Small Medium Enterprises (MSME) as well as of farmer organizations- strengthening of exchange and learning between national and international stakeholders. Environmental friendly farming and sustainable land use practices promoted- the cocoa sector's awareness on environmental issues increased. Enhanced working conditions. Work is productive and delivers a fair income, security and social protection, better prospects and social integration.Good nutrition practices and access to nutrition increased- gender equality facilitated- access to education and youth participation in the communities- and the capacity of the communities to plan and advocate their own social development strengthened.
Results from previous phases: In the previous phases (SCPP I and AFF SCPP), the Program's overall targets could successfully be achieved. By the end of 2015, the SCPP is implemented in 29 districts within 7 cocoa producing provinces and has directly supported 60,000 cocoa smallholder households. Monitoring data shows a progressing improvement of farming practices and enhanced farm economics. Farmers' average productivity from 450 to 721 kg/ha/year.
|Directorate/federal office responsible||
|Budget||Current phase Swiss budget CHF 9'600'000 Swiss disbursement to date CHF 0 Budget inclusive project partner CHF 60'000'000|
|Project phases||Phase 2 15.04.2016 - 31.12.2020 (Current phase)|