Howcansustainable

productiondeliver
maximumimpactfor
livelihoods?CaseStudy
ofCoffee
Suyanto, Hendratmo and Beria Leimona
SustainableLandscapeforSustainableLivelihood
Bali1718November2016

MainIssues:
CoffeeCertification
Extensionofcoffeegardenintoforestarea
Lowproductivity ofcoffeeproduction

Coffee certification: common issues and

approaches
Global:
Progressonglobalenvironmentalgovernanceinagrifood
industriesandgrowingsignificanceofspecialtycoffeeinworld
market

National
Moreaccessformarketinformation,transparencyinbusiness
contractandeconomicgovernanceforsmallholders
Betterregulationssupportingmarketchainstoexportcertified
commodities

Local
Goodagriculturalandpostharvestingpractices lackofcapacity
andextensions
Farmergroupsandcollectiveness:ensuringmonitoringsystem
andtraceabilityprinciples

Dynamics of coffee certification in Indonesia

1st partycorporatesectordriven:Starbucks(Sulawesiand
Sumatra)
3rd party
Corporatesectordriven:UtzKapeh (15certifiedcompanies)
InteractionsbetweenNGOsandpublic
Rainforest(Aceh,NorthSumatra) 2certifiedcompanies
FairTradeandOrganic(AcehGayo)

4th party
Interactionsbetweenexporterandpublic:4C(Lampung)
Source:Arifin,B.2014.TheDynamicsofCoffeeEcocertificationinIndonesia:
directionsforthefuture.Wageningen,1416October2016

Coffee in Forest Area:

Research Site: Sumberjaya
Current public
investment scheme:
land rehabilitation

Dam

55,000 ha sub-district comprising a

40,000 ha upper Way Besai
watershed
Land status: about 40% protection
forest and 10% national park
in reality forest cover <10%
2004: 87,000 people
Density: 161 people/km 2
A benchmark for conflicts of forestwatershed functions in Indonesia
Myth-understanding regarding
watershed functions led to often violent
evictions of thousands of people

Hydro Electric
Company, 90 MW
Potential mechanisms
for reward transfer in
near future
Coffee is a major
crops
Agroforestry system
(shade coffee & fruit
trees) could maintain
watershed function

Sumberjaya _Lampung
Province Timeline
Introduction of
HKM
Eviction

Shifting
cultivation
Starting of
Coffee era

Hkm
groups
was
formed in
many Some
Hkm
area approved
by MoF

1973 1978
Coffee
price Rp
2400/kg

1989
Forest
rehabilitatio
n program

199719992000

2002 2005

Forest and Agroforest in Sumberjaya Watershed La

Forested area initially covered 28.8% of the total watershed area in

the beginning of study period and reduced to 8.9% in 2005.
Presently coffee agroforest is the most dominant landcover type in the
area. Initially covered less than 20% of the watershed, it rapidly
increases into remarkably 50.1% (22,000 ha) of Sumberjaya
watershed.

Conditional Land Tenure :

A Pathway to Healthy Landscapes and
Enhance Livelihoods
Conditional Land Right Trough
Community Forestry (HKm)
Land tenure can be an attractive incentive
(reward) for farmers to get engaged in
sustainable management of protected forest
land. The HKm permits granted land rights to
the farmers for a 5-year trial period, with
possible extensions to beyond 30 years, if they
promised to planting multistrata trees,
conserving remaining natural forest, and
parcticing conservation techniques.
At the July 2006, 18 farmer groups received
community forestry permits. This increase the
area covered by them from 1,367 ha to 11,633
ha (70% of the protection forest now covered
by conditional land use permits). Nearly 6.400
farmers now have permits.

The Activities:
Policy dialogues and negotiations
Empowering farmers groups
Technical assistances
Capacity building
Communication strategy
Supported by technical research from
others projects

The Impacts:
Protected remaining natural forest
Increased land tenure security
Promoted tree planting/agroforestry
Promoted soil and water conservation
Reduced corruption
Increased income
Double the local land value

ThirdIssue:
Lowproductivity(lackofaccess
andknowledgeofgoodseed,
lackofgoodagriculturepractices
information,lackofinput
suppliesknowledgeandlackof
accesstoinputsupplies)
Lackofpostharvesthandlingskill
Lackofqualityknowledgeand
price

TheoryofChange
Less pressure to forest land area

Farmers Welfare has increased

Farmers Income has increased

Productivity per hectare has

increased

Benefit per hectare has increased

Adoption of improve farming

system: Fertilizing and Grafting,
good planting material

Adoption of agroforestry system:

e.x coffee with pepper.

Access to Agricultural Input

Supplies Created

Improved farmers knowledge and

skill

Impactscenarioaverageperyear

Traditional
Farmers
NoFertilizer

Agroforestry
WithFertilizer
(coffee with
&Grafting
pepper)

withFertilizer

TotalRevenue(USD)

674.05

1,107.45

2,997.29

2,132.14

Revenue(coffee)USD

674.05

1,107.45

2,997.29

1,107.45

Productivity(coffee) kg/ha

469

770

2,085

770

Price(coffee) USD

1.44

1.44

1.44

1.44

Revenue(pepper) USD

0.00

0.00

0.00

1,024.69

196

0.00

0.00

0.00

5.23

TotalCost USD

360.16

742.11

1,152.60

1,125.95

Tradables USD

57.87

194.56

202.85

302.24

Labor USD

302.29

547.55

949.75

823.71

ProfitUSD

313.89

365.34

1,844.69

1,006.19

2,067.63

2,835.59

11,210.89

8,801.31

Productivity(pepper) kg/ha
Price(pepper) USD

NPVUSD/ha(30years)

Exchangerate1USD

Rp
13,389.41

ProposedBusinessModel
Seed
certificat
ion
Centre

Facilita
tor

TA
Certification

Organic
Agricult
ural
Input
Supplie
r

Paymen
t
TA

Paymen
t

Nursery
and
Demonstra
tionplot

TA
Organic
Agricultur
einput

TA

Farmer
TA
Qualityseed
Organic
agriculture
input
Paymen
t

TA

Repayment

Microfin
ance
Instituti
ons

TA

Green
coffee
certifica
tion

TA

Lead
Compa
ny

QualityProduce

Credit
TA

Rainfor
est,IG
,UTZ,
etc

Paymen
t
TA

Export
er

QualityProduce

TA

Farmer
Field
School

TA

Plantatio
noffice