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Enhancing farmer engagement with specialty coffee chains in eastern Indonesia
Project ID
SMAR/2007/063
Commissioned Organisation
University of Sydney, School of Geosciences, Australia
Project Leader
Dr Jeff Neilson
j.neilson@usyd.edu.au
Phone:
02 9351 4733
Fax:
02 9351 3644
Project Budget
$677,575.00
Start Date
01/06/2008
Finish Date
31/05/2010
Extension Start Date
01/06/2010
Extension Finish Date
31/12/2012
ACIAR Research Program Manager
Dr Rodd Dyer
Overview Objectives
The rapid growth in the international specialty coffee market is an opportunity for smallholders to improve economic returns in a number of developing countries, including Indonesia. Global consumers and specialty coffee buyers are demanding greater product quality, traceability and compliance with environmental and social standards, however smallholder producers are unable to meet these requirement and government agencies do not have the capability to support smallholders meeting these greater demand. This project will improve the capacity of the smallholder based coffee industry in South Sulawesi and West Timor (NTT) to successfully participate in the international specialty coffee market and improve the capability of Indonesian agencies to support this engagement. Through this improved engagement the livelihood of smallholder coffee farmers in eastern Indonesia will be improved.
Progress Reports (Year 1, 2, 3 etc)
Year 1:
The project seeks to generate value chain solutions that improve the engagement of smallholder farmers in Eastern Indonesia with the international specialty coffee market. The project is active across two provinces in Eastern Indonesia - South Sulawesi and East Nusa Tenggara - and has been operating for 12 months. The project has a strong emphasis on end-user (market-driven) engagement and is actively coordinating with international coffee buyers at various stages of project implementation. There are two principal foci for the project: i) we are examining the socio-economic institutions that underpin smallholder coffee production and trade in eastern Indonesia; and ii) we are conducting a quality assessment that will deepen our understanding of the physical determinants of taste (cup) characteristics of coffee in the region.
A socio-economic survey involving 796 coffee-growing households was completed in March 2009, the data from which is currently being analysed in a statistical software package (SPSS). This survey involved farmers from three Districts in East Nusa Tenggara (Manggarai, Manggarai Barat and Ngada on the island of Flores) and three Districts in South Sulawesi (Enrekang, Tana Toraja and Toraja Utara). The aim of this survey is to generate a comprehensive baseline account of farming practices, household budgets and farm-gate markets in each District. The next stage of the socio-economic component of the project involves a capacity assessment of producer organisations (farmer groups and cooperatives) in the coffee districts and a value-chain study that incorporates interviews with local traders, processors and exporters.
Data has been progressively gathered for the coffee quality assessment, including field observations of existing on-farm and post-harvest practices. The primary activity for this quality assessment component is a controlled processing and cupping trial, which has been prepared for the main 2009 coffee harvest (June to August). The trial will be conducted in both Sulawesi and Flores. Trial protocols have now been developed, and two preliminary field visits to both Sulawesi and Flores have been conducted to identify key variables, including altitude, Arabica varieties, and processing methods. The Flores trial will be conducted in Ngada District, and will assess two primary variables: plant variety and processing method. Four Arabica varieties (Juria, S795, Andung Sari, and Tim Tim) and three processing methods (wet-hulled wet processed, dry-hulled wet processed, and Descascado dry processed) will be assessed in Flores. The Sulawesi trial will assess three variables: altitude, 'District' and processing method (coffee varieties are far more homogenous in Sulawesi - S795 being dominant). Two altitudes (above 1500m and below 1200m), two 'Districts' (Enrekang and Toraja), and two processing methods (wet-hulled wet-processed and dry-hulled wet-processed) will be assessed in Sulawesi.
The research is being conducted by the University of Sydney in collaboration with several institutions across Indonesia, including the Indonesian Coffee and Cocoa Research Institution (ICCRI), the Assessment Institutes for Agricultural Technologies (AIATs) in South Sulawesi and East Nusa Tenggara, District-level Disbun agencies and several Non-Governmental Organisations (NGOs) in the coffee-producing districts.
Year 2:
The project seeks to generate value chain solutions that improve the engagement of smallholder farmers in Eastern Indonesia with the international specialty coffee market. The project is active across two provinces in Eastern Indonesia - South Sulawesi and East Nusa Tenggara - and has been operating for 24 months. The project has a strong emphasis on end-user (market-driven) engagement and is actively coordinating with international coffee buyers at various stages of project implementation. There are two principal foci for the project: i) we are examining the socio-economic institutions that underpin smallholder coffee production and trade in eastern Indonesia; and ii) we are conducting a quality assessment that will deepen our understanding of the physical determinants of taste (cup) characteristics of coffee in the region.
A socio-economic survey involving 796 coffee-growing households was completed in March 2009, the data has been analysed in a statistical software package (SPSS) and a draft report has been prepared. Results from this survey will be presented at the ASIC conference to be held Bali during October 2010. Key findings have related to the influence that localised livelihood strategies have on the potential for value chain engagement. A capacity assessment of producer organisations (farmer groups and cooperatives) in the coffee districts has been compiled along with and a value-chain study that incorporates interviews with local traders, processors and exporters and the division of income along the chain. Action-research methodologies, involving the facilitation of buyer-linkages with producers in Flores and Enrekang, are now being pursued during the 2010 harvest.
Coffee samples were collected from both Sulawesi (Enrekang and Toraja) and Flores (Ngada) during the main 2009 coffee harvest (June to August) for the quality assessment activity. Key variables assessed during the trial were Arabica varieties (Juria, S795, Andung Sari, and Tim Tim) and processing methods (wet-hulled wet processed, dry-hulled wet processed, and Descascado dry processed). Coffee samples were assessed by more than 50 coffee experts within Indonesia, Australia and the United States to identify the determinants of cup quality and to provide feedback to producers and exporters in Indonesia.
The research is being conducted by the University of Sydney in collaboration with several institutions across Indonesia, including the Indonesian Coffee and Cocoa Research Institution (ICCRI), the Assessment Institutes for Agricultural Technologies (AIATs) in South Sulawesi and East Nusa Tenggara, District-level Disbun agencies and private sector actors in Indonesia and abroad.
Year 3:
The project seeks to generate value chain solutions that improve the engagement of smallholder farmers in Eastern Indonesia with the international specialty coffee market. The project is now primarily active across three provinces in Eastern Indonesia - South Sulawesi, East Nusa Tenggara (Flores) and Papua, with a comparative value chain study also being performed in Bali, East Java, Aceh and North Sumatra. The project commenced in May 2008, and was due for completion in May 2010. The subsequent project variation (due for completion in December 2011) has: i) continued some of the original activities in Flores and Sulawesi; ii) commenced new activities in Flores and Sulawesi; and iii) involved an expansion of activities into Papua province. All of these activities are presented here as components of the one project.
The project has a strong emphasis on end-user (market-driven) engagement and is actively coordinating with international coffee buyers at various stages of project implementation. There are two principal foci for the project: i) we are conducting social research that examines smallholder coffee production in eastern Indonesia, poverty alleviation and engagement with international specialty markets; and ii) we are conducting quality assessments that will deepen our understanding of the physical determinants of taste (cup) characteristics of coffee with the objective of developing specific regional taste profiles for the specialty market.
Initial social research has provided a comprehensive baseline of livelihood strategies for coffee growers and value chain structures across 6 Districts of Sulawesi and Flores. Key findings relate to the potential (and limitations) of buyer-driven rural development in Indonesia and will be presented in academic journals. This initial research has led into a series of action-research activities, involving the facilitation of buyer linkages with farmers in Bajawa and Enrekang, pursued during the 2010 and 2011 harvests. These interventions seek to build on the MOTRAMED mediated partnership model of rural coffee development pioneered at ICCRI, and have implications for market-oriented development policy especially at the district (Kabupaten) level. Policy engagement with coffee development at the national-level is also ongoing and a feature of the project.
Coffee sampling and assessment during the 2009 coffee harvest generated technical insights into determinants of cup quality, while acting to promote the local origins within international specialty markets. 2009 findings indicated that the 'Pulped-Natural' processing method was clearly preferred by commercial buyers for Bajawa (Flores) coffee. This research finding was tested in the 2010 season with semi-commercial production and export of Bajawa Pulped-Natural coffee. The commercial response was extremely good and increased production of this coffee is planned for the 2011 season. This development constitutes a potentially highly significant outcome for the project. A trial to further assess 5 processing methodologies under a more controlled environment was conducted at the ICCRI coffee plantation and research station in Jember in the 2010 coffee season to confirm the results of the 2009 field-based assessments.
The research is being conducted by the University of Sydney in collaboration with several institutions across Indonesia, including the Indonesian Coffee and Cocoa Research Institution (ICCRI), the Assessment Institutes for Agricultural Technologies (AIATs) in South Sulawesi and East Nusa Tenggara, District-level Disbun agencies and private sector actors in Indonesia and abroad.
Location
There are no project locations defined for this project.
