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Cocoa Farming in : Present Challenges Cocoa is an engine of national growth in Indonesia, which is poised to become the world’s largest producer of cocoa .

Muhammad Junaid The University of Hasanuddin

hocolate or cocoa is becoming an Indonesia for a production capacity of about Cengine of national economic growth in 70 thousand mt , starting in 2014 (Aldhin, many parts of the world, particularly in 2013). Other cocoa grinders are General Indonesia. By 2012, although a number of Food (), Bumi countries in the target export areas had been Tangerang, Effem Indonesia and Davomas affected by economic crisis, it was obvious Abadi Tbk. A company from , that the world demand for had Guan Chong Berhad, has established a increased significantly. In fact, a more than cocoa factory projected to produce about twofold rise in demand was reported, com - 150,000 mt per year in Batam Island, Suma - tra. Another cocoa grinder from the United Muhammad Junaid is pared to previous years, and it is predicted a junior lecturer and States, , is investing about to continue to increase, reaching more than research plant pathol - US$150 million in this sector in Indonesia. 15 percent of total global production. The ogist at the University Interestingly, cocoa is not a native crop in demand for cocoa beans has grown as well of Hasanuddin. He most of the main production areas in the has received the Nor - (Guest, 2013). world. However, cocoa growing has trans - man Borlaug Pro - As one of Indonesia’s most popular formed communities in many areas. As gram grant and has export , cocoa enables people published several Samuels et al. (2012) state, cocoa is native to to gain profit, provides employment and studies about cacao. the higher zones of Amazonia, but it is now brings well-being to communities. Currently, grown in almost all tropical countries. Cocoa the number of cocoa factories established in has become an economic essential wherever Indonesia, including those processing cocoa it is grown. It is believed that over 15 per - into cocoa powder, and indus - cent of the total world cocoa production trial , is about 18 companies, pre - comes from Indonesia (Natawidjaja, 2009). dicted to grow to 20 cocoa processors Certainly, cocoa farmers play a vital role in by 2015. The cocoa industries require large this sector, with approximately 1.6 million numbers of employees (up to 6,000) as well hectares (ha) of cocoa . as cocoa beans from the farmers. Further - The total area devoted to cocoa planta - more, it has been reported that Com - tions in Indonesia in 2008 was about 1.5 mil - pany, one of the cocoa grinders, is eager to lion ha before rising by about 10 percent in invest seriously in Indonesia. As the presi - recent years. National cocoa dent of Cargill Company, de Loor, claims, totaled over 1.67 million ha, of which about over US$100 million will be invested in 94 percent was held by the cocoa farmers’ ➤

68th PMCA Production Conference, 2014 1 Cocoa Farming in Indonesia

National cocoa community, and 4 percent, or over 57,000 duction, the export volume of cocoa beans bean production is ha, belonged to the government of Indone - has fallen. Meanwhile, it has been claimed likely to peak at sia (Indonesia Investment Coordinating that the cocoa bean supply in is rely - 1.5 million metric Board, 2013). Other private sector entities ing on Indonesian exports (Kompas, 2013). tons. Once this managed only about 51,000 ha or 2 per - Tempo (2013) reports that the export vol - cent of the total area. The majority of the ume was about 210,000 mt in 2011, then production target is cocoa beans come from smallholders with fell by 29 percent in 2012 and is forecasted achieved, Indonesia over 90 percent of the total production, to continue to fall next year. The depletion will most likely while the government contributed over of cocoa bean exports is commonly overtake the 36,000 mt of cocoa beans, or about 4.5 per - believed to be due to the imposition of a biggest world cent, and private plantations produced less 15 percent tax, which has burdened the producers of than 36,000 mt (Natawidjaja 2009 cited in raw material exporters since 2010. cocoa beans. Junaid, et al., 2009). Although this imposition tends to have The average cocoa bean production of drawbacks for certain international cocoa Indonesia is 857,000 mt annually. Cocoa exporters, generally speaking it seems to bean production overall has shown an have enormous benefits for other mem - upward trend during the last decade, stand - bers of the cocoa community such as the ing at 928,000 mt in 2005, falling slightly to farmers, and for the grinders and choco - 712,000 in 2011 –12, before reaching a peak late companies which might potentially at over 1 million mt by 2013 (Directorate settle in Indonesia, stimulating the growth General of Estate Crop of Indonesia) (Fig - of chocolate factories downstream. In fact, ure 1). Cocoa bean production is predicted farmers can sell the cocoa beans directly to to grow to approximately 1.5 million mt by local factories and exporters as well. Also, 2016. In Jawapos (2013), a Minister of Agri - investors can gain noticeable merits in their culture of Indonesia, Suswono, pointed out investment around farmers’ communities that potential national cocoa bean produc - due to the low costs in the supply chains. tion is likely to peak at 1.5 million mt . Once According to the Minister of Trade, Wir - this production target is achieved, Indone - jawan, there was a significant increase in sia will most likely overtake the biggest the number of chocolate factories in recent world producers of cocoa beans in forth - years, from only six factories to about 20 coming years. This is mainly due to cocoa currently, dominated by several interna - revitalization schemes which have been tional companies. Because of the impact promulgated for five years. of regulation, local chocolate factories tend In contrast to national cocoa bean pro - to import enormous quantities of cocoa beans from for ingredient and taste Indonesia Avg. Cocoa Bean Production purposes. The number of chocolate facto - ries investing in Indonesia has increased and also national chocolate companies have imported more cocoa beans from Africa, from 31,000 mt in 2012 to about 100,000 mt by 2013. During the last four years there was a noticeable increase in cocoa grinding, from 130,000 mt in 2009 / 10 to 265,000 mt in 2011 / 12 (Abdoellah, 2013). Meanwhile, Figure 1 Deptan & Ditjenbun, 2013 there was a negative correlation between ➤

2 68th PMCA Production Conference, 2014 Cocoa Farming in Indonesia cocoa bean exports and semifinished prod - ever, it is believed that globally many cocoa- The vast majority of ucts. There were approximately 400,000 mt producing countries are facing a reduction national cocoa of cocoa bean exports in 2010, 200,000 mt in cocoa productivity. Taking and production is from in 2011, then falling slightly to about Côte d’Ivoire as examples, the largest cocoa the island of 130,000 mt in 2012. Semifinished products producers in the world are experiencing a Sulawesi, which grew from about 100,000 mt to 200,000 mt decline in cocoa yield. Similarly, Indonesia produces about in 2012 (Deptan, 2013) (Figure 2). The Vice has cocoa challenges, namely aging trees, 67 percent of total Minister of Trade, Heriawan (n.d), points poor farmer skills and knowledge, pest and national cocoa out that the largest quantity of Indonesian disease management, soil and postharvest cocoa beans is exported to Malaysia with management. These obstacles may have a production. The 47 percent, and then the second largest is significant detrimental effect on production second-largest to the United States with 21 percent. Other in the future. amount is from the countries such as Singapore, and island of Sumatra. are 12 percent, 7 percent and 4 per - CHALLENGES FACING COCOA cent of the total respectively (Kemenperin, Cocoa, both on farm and off farm, is facing 2012). Regarding the volume of factory four main threats. First of all, cocoa plan - capacity, in 2012 it was about 350,000 mt tations suffer from low productivity. Many in cocoa beans and will increase to cocoa plantations are getting older, reach - 600,000 mt during 2013 (Tempo, 2012). In ing over 25 years of cultivation. Second, East Java, cocoa production reached cocoa plantations have been hit by serious 26,000 mt in 2012 and was predicted to rise pests and diseases, in particular cocoa pests to 32,000 mt in 2013. East Java exports such as cocoa pod borer and fruit suckers cocoa beans mainly to Europe (75% of (Helopelthis sp.), and cocoa diseases like total) and the rest is sold on the domestic Exports: Cocoa Beans and market (Deliknews, 2013). Semifinished Goods Looking at Indonesian domestic cocoa bean production by regions (Figure 3), it is clear that the vast majority of national cocoa production is from the island of Sulawesi, which produces about 67 percent of total national cocoa production. The second- largest amount is from the island of Suma - tra, which contributes about 22 percent. Meanwhile, Papua and Maluku and Java combined contribute 4 percent of cocoa Figure 2 Deptan, 2013 productivity. Although their contribution is small, Papua and Maluku and Java are Domestic Cocoa Bean Production potential areas in which to develop cocoa Cocoa bean production by region, 2008-12 21% Sumatera Island plantations. At the same time, other areas 4% Bali, NTB, NTT 4% Java Island such as Borneo and Bali, NTT and NTB Borneo Sulawesi Island contributed about 3 percent each. It can be Papua & Maluku seen that Sulawesi plays an essential role in national cocoa production. Overall, there 67% 2% Total average: is an upward trend in total cocoa bean pro - 822,101 metric tons duction, from about 803,000 mt to over 3"4)B(+C9#D(1E47?7(>#$1.-0/F& 936,000 mt in 2012 (Ditjenbun, 2013). How - Figure 3 Ditjenbun & Deptan, 2013 ➤

68th PMCA Production Conference, 2014 3 Cocoa Farming in Indonesia

There is a strong black pod disease and vascular streak or less one hectare of cocoa plantation. positive correlation dieback, known as vs d. Third, smallholder However, in fact, production tended to fall between fully cocoa farmers tend to lack skills and from year to year. In this case, lack of skill fermented cocoa knowledge of good agricultural practices. and knowledge of good agriculture prac - beans and Last but not least, the amount of nutrients tices has become a serious problem. For in the soil on the cocoa farms is decreasing instance, to manage cocoa pests and dis - maintaining the and there is a lack of postharvest handling. eases, farmers have relied on synthetic pes - quality of the The combination of these factors poses a ticides and thus they were vulnerable to beans. However, serious threat to cocoa production. These exposure to chemical contaminants. many cocoa issues might lead cocoa to a lower bar - Another problem is a lack of consistency in growers still have gaining position than other crops such as cocoa farm management. Poor sanitation not fully embraced , which is booming, and . and inappropriate fertilizers were often . seen in many cocoa areas. The vulnerabil - Aging Trees ity to pests and disease infestation is mostly A serious problem facing cocoa sustain - caused by poor tree and farm sanitation as ability is aging trees. This applies not only to well as inappropriate soil fertilizer. A - Indonesian cocoa but to all cocoa produc - ther crucial issue related to farmers’ knowl - ers around the world. According to Nataw - edge is poor harvest-handling management idjaja (2009), the average age of cocoa trees such as treatment for bean fermentation. is about 20 years. By 2013 the average cocoa It is believed that fermenting the beans plantation may be about 25 years old. immediately after harvesting the fruits from Because of this, although many efforts have the trees will significantly increase the qual - been made to increase cocoa pods, such as ity of the cocoa beans. It is undeniable that fertilizers, and to control cocoa pests and there is a strong positive correlation diseases, farmers are still left with low pro - between fully fermented cocoa beans and duction compared to previous years. There - maintaining the quality of the beans. How - fore, cocoa revitalization has been put for - ever, many cocoa growers still have not ward to renew cocoa plantations. fully embraced fermentation.

Poor Skill and Knowledge Levels Cocoa Pests and Disease Infestation Among Farmers The invasion of cocoa pests and diseases is The number of Indonesian cocoa farmers one of the most serious problems on cocoa increased between 2000 and 2011 by over farms (Figure 4). As Lass (1999) states, 50 percent, from about 170,000 smallhold - ers to nearly 400,000 smallholders (Wah - Estimated Loss Due to Pests/Diseases yudi et al., 2013). Similarly, as Natwidjaja (2009) states, the number of people, includ - ing farmers themselves, who rely on this sector was nearly 1.5 million people and it is expected to increase in the near future. Over 1.3 million ha of cocoa-producing land is possessed by smallholders while other private sector entities manage only 2 percent of the total and the government has 4 percent. From this it can be calcu - lated that every farmer can manage more Figure 4 H Natawidjaja , 2009 ➤

4 68th PMCA Production Conference, 2014 Cocoa Farming in Indonesia total losses of cocoa production due to diseases, namely vsd and black pod dis - Rejuvenation, pests and diseases were substantial. Simi - ease. The vsd fungus has characteristics rehabilitation and larly, Cramer (1967), cited in Lass (1999), and symptoms that can be identified prop - identification argues that the potential loss from disease erly in the field. In particular cases of vs d, methods have been can reach 39 percent of the total annual the tree can be devastated and the pathogen put forward by the cocoa production, or about 588,000 mt out can be difficult to eradicate with chemical government to of a total of 1,528,000 mt of world cocoa usage. The fungus exists within the xylem solve low cocoa production by 2008. vessel and in a short time can destroy the productivity and One of the main cocoa diseases is vas - host when there is high humidity and low the problem of cular streak dieback ( vs d). It has been esti - temperature. However, while black pod dis - pests and disease. mated that vsd can cause losses of about ease can damage cocoa production due to 30 mt where it occurs, and Indonesia is badly pod mummification and reduce the quality affected . Guest & Keane (2007) point out of beans due to enzyme and mycotoxin that vsd caused heavy losses of mature activities within the pod layers, it does not trees and seedlings in Sulawesi. Vsd is very often kill the trees themselves. caused by Basidiomycete Oncobasidium Cocoa pod borer occurred for first time in theobromae , also known as Thanatephorus Indonesia many years ago. At that time there theobromae (Guest and Keane 2007 and was not much information about the life Samuels et al., 2012) and Junaid et al. cycle, pod symptoms, natural enemies and (2009) found the pathogen of vsd , T. theo - alternative hosts, nor were there extension bromae , in Luwu regency. This disease is specialists and local farmers with skill and predicted to be more dangerous than other knowledge. Nowadays, although these pests cocoa diseases . Samuels, et al. (2012), argue still exist in the cocoa ecosystem, the lost that vsd has a severe long-term effect. The production due to their infestation is not disease can potentially kill all growth stages significant. Outbreaks and the number of of cocoa on the plantation, from seedlings affected trees can be controlled by various to branches to even entire trees, not just techniques. destroy a year’s crop. Another cocoa pest, cocoa pod borer, is Poor Soil Nutrients and Postharvest one of the major constraints to production Handling not only in Indonesia but also in all coun - A main problem of growing plantation tries producing cocoa in South and South - cocoa is that the soil quality tends to dete - east Asia and Melanesia. The cocoa pod riorate over time. Many farmers just har - borer is caused by the insect Conopomor - pha cramerella (Snellen). Damage to beans Efects of Black Pod Disease and VSD Disease in Indonesisa or pods is a characteristic destruction of this pest. Another disease is pod rot phytophthora or black pod disease, which can lead to heavy losses (Natawidjaja, 2009). It is caused by several species of phytophthora (Bowers et al., 2001, cited in Junaid 2009). Overall, most areas in Sulawesi are infected with vsd and black pod disease as well as other main cocoa pests. Black pod phytophthora disease VSD disease Figure 5 shows effects of the main cocoa Figure 5 ➤

68th PMCA Production Conference, 2014 5 Cocoa Farming in Indonesia

If this program vest cocoa pods without making a serious vesting time and fertilizer management, as succeeds, it is effort to maintain the quality of their soil. well as use of chemical manipulation. If this forecasted that As Sari & Baon (2013) argue, because the program succeeds, it is forecasted that Indonesia is going soil fertility has decreased, cocoa produc - Indonesia is going to attain the status of to attain the status tivity has also fallen over the last decade. largest cocoa producer in the world in 2014. Cocoa plantations require macro- and of largest cocoa micronutrients. Renewing Cocoa Plantations and producer in the Development of Promising Clones A further issue related to postharvest world in 2014. handling is the poor quality of the cocoa The success of the cocoa renewal program beans. It is commonly believed that the certainly depends on well-prepared lack of bean treatment after the fruits have seedlings. Sutariati & Khaeruni, (2013) been harvested from the trees is a key studied good preparation and found problem. Marseno (n.d) points out that a that overall there was a significant differ - serious issue of bean quality in Indonesia ence in performance between with is tied to poor postharvest handling and without bio-invigoration. With rhi - (Zakiya & Pramesti, 2012). Consequently, zobacteria and invigoration techniques, poor fermentation treatment of beans can seedlings performed better in terms of via - seriously deplete chocolate flavor when bility and vigor. Cocoa somatic embryo - producing chocolate products. According genesis propagation, known as se , is used to cocoa practitioners, the cocoa farmers to support the national cocoa revitaliza - seem to be reluctant to practice bean fer - tion program (Figure 6). S e has been mentation because they do not get an developed by the ICCRI alone. The program originally aimed to esca - incentive from the buyer. Nonfer - late cocoa production and quality in order mented and fermented pods are not sig - to increase farmer well-being. However, nificantly different in price, but treating some critics, such as the Indonesian Cocoa the pods requires farmers to spend a great Association, contend that the se technique deal of time, cost and attention on their is somewhat doubtful. The performance of pods. Another reason is that they do not this seedling propagation method had not see the difference in quality between non - been tested at the field level. Although se fermented and fermented treatments. was successful in the lab (conducted by DEALING WITH COCOA PROBLEMS ICCRI’s breeders), trials at the cocoa farm Rejuvenation, rehabilitation and identifica - level might not succeed. tion methods have been put forward by the government to solve low cocoa productiv - Somatic Embryogenesis Propagation ity and the problem of pests and disease. First of all, rejuvenation aims to renew cocoa trees with high-yield clones propagated by somatic embryogenesis methods. Next, rehabilitation is aimed at eradicating aging cocoa trees, also with high-yield clones. With this technique, the top part of the cocoa tree is cut down after new flesh comes out. Lastly, poor agri - cultural management is to be improved through regular and intensive application of cocoa pruning, farm sanitation, regular har - Figure 6 ➤

6 68th PMCA Production Conference, 2014 Cocoa Farming in Indonesia

Looking first at the se plantation in the chocolate processing and developing cocoa With the center of cocoa plantations in Sulawesi, machinery in households, Halim added. tactic, the se seedlings that showed growth had Regardless of the main constraints, once the old cocoa dwarf and dead trees in a number of new preparing good seedlings has become a is eradicated and/or cocoa areas. The adaptation at field level serious task in order to reach the national the new cocoa was a major problem. Still, Halim (cited in seedling target. As the ICCRI reported, is rejuvenated, Anonymous, 2013) asserts that the pro - during the last five years, preparing cocoa farmers can gram was unproductive. It was difficult to seedlings with the se method has produced obtain alternative clone the plant with the best resistance to over 90 million seedlings which may help pests and disease while achieving higher counteract the lack of good seedlings (Fig - income through yield. Similarly, the cocoa experts in ure 7). At the least, this simple technique intercropping UNHAS claim that it was difficult to pre - for seed development can accelerate the between cocoa pare and maintain healthy twigs for mater - production of appropriate seedlings to and corn. nal side and shoot grafting. Meanwhile, a achieve the program target. The technique huge number of cocoa plantations suffered has several benefits. It can improve seed from severe disease and the se propaga - viability and vigor, plant growth and plant tion effectively distributed the disease. It resistance to pathogen infection, and it can seems that the distribution of se to other increase the availability of plant nutrients areas in Indonesia spread out vsd disease through N fixation and P solubilization. but the se breeders had to provide as Furthermore, rejuvenation using shoot many healthy twigs as possible for seedling grafting can probably be considered. Cocoa propagation. Consequently, in Bantaeng experts at the Faculty of Agriculture Regency, 100 km from Makassar, based on UNHAS in South Sulawesi, Indonesia, a UNHAS survey in 2010 (prior to the developed this technique to meet the cocoa revitalization program), plenty of demand for good cocoa seedlings in the field. native cocoa trees were not attacked by Shoot grafting is the most popular technique new cocoa vsd disease. to provide healthy seedlings because it needs Another potential issue in relation to neither a high skill level nor a special loca - cocoa revitalization is lenient surveillance tion. Commonly, farmers can produce their of old-cocoa eradication, which might be own seedlings with this technique using sim - highly vulnerable to corruption. It is ple grafting tools. The tip of the young believed that initial data collection of seedling is cut down and replaced with twigs farmer groups, which has become funda - that have resistance against the main pests mental to decision-making by the govern - and diseases. Utilizing this way to grow cocoa Seed Treatment with ment, tends to be manipulated in order to seedlings rapidly in the field, farmers do not Bio-invigoration obtain a greater proportion of subsidy than need to plant seeds. other regions. Also, the government keeps Figure 8 shows the pattern of inter - subsidizing the farmers for agricultural cropping between corn under the rejuve - inputs, such as fertilizers, seedlings and pes - nation method and cocoa immaturity after ticides, with weak assessment and evalua - cutting down the twigs and top branches of tion. In several regencies in Sulawesi, those trees. With the intercropping tactic, once guilty of subsidy corruption have been put the old cocoa is eradicated and/or the new in jail. Consequently, the farmers have cocoa is rejuvenated, farmers can obtain become serious victims of the program. It alternative income from another crop has been strongly suggested that the gov - through intercropping between cocoa and ernment should focus on establishing corn. It is believed that throughout the Figure 7 ➤

68th PMCA Production Conference, 2014 7 Cocoa Farming in Indonesia

During the last five period of rejuvenation, which lasts a few lation pest-control technique has been years, cocoa experts years before a yield can be obtained, cocoa developed. Cocoa experts in UNHAS are have focused on the farmers will be able to gain profit from still focusing on developing an attractant development of growing and producing corn. compound, namely kairomone, that has disease-resistant Another technique aims to replace old cocoa trees that have a low yield with poten - cocoa which also Intercropping with Corn tial clones. The technique has been dissem - has a high yield. inated to some areas in Indonesia to boost Some clones have farmers’ income. Figure 9 shows an example been tested in the of a combination between a low-yield field and one has maternal stem and a high-yield twig being shown tremendous transplanted to accelerate cocoa growth promise. and production. Soon after the twig starts growing and producing pods, the maternal stem above the twig can be removed. During the last five years, cocoa experts have focused on the development of dis -

ease-resistant cocoa which also has a high Figure 8 yield. Some clones have been tested in the field and one of them has shown tremen - Stem with High-yield Twig dous promise. The ICCRI’s cocoa breeder, Susilo & Sari, identified a potential clone (Figure 10). This clone has become a mater - nal crop to side grafting or shoot grafting. These combinations can be adopted to increase yield. The promising clone is expected to sustain cocoa production and to have tremendous yields. This technique can be adopted by farmers and at a low cost. Selection for cpb- and vs d-resistant clones in Sulawesi has been conducted and a promising clone has been identified. Figure 9 A further technique that is more envi - ronmentally friendly is the development Clone Developed by Susilo and Sari of natural products and fungal antagonism. Natural products consist of the manipula - tion of semichemicals from weeds or plants that can attract or repel insect pests. This is one of several tactics in integrated pest management. This chemical manipulation of insects can play an important role in controlling cocoa pests like cp b. First, the development of a sex pheromone aims to attract the male adult insects and to trap them. In the laboratory of the Faculty of Agriculture, UNHAS, a chemical manipu - Figure 10 ➤

8 68th PMCA Production Conference, 2014 Cocoa Farming in Indonesia prospective control for insect pests in the poses some constraints. This tactic is vul - Use of the fungi of field. The natural product technique has nerable to black pod phytophtora disease, trichoderma and potential for success in the agro-ecosys - particularly during the rainy season. Also, Beauveria bassiana tem. It can also be combined with color the environmental issue must be consid - has become traps and odorless glue to increase the ered. The possibility of waste plastic bags popular among effectiveness of pest control. Furthermore, after harvesting has become a heated issue. plant protectors natural enemies have been developed, too. But, since the development of degradable around the world. Use of the fungi of trichoderma and Beau - plastic, this issue can be alleviated. Another These agents can veria bassiana has become popular among issue is that this technique requires tremen - control pests plant protectors around the world. These dous labor. naturally in agents can control pests naturally in many ways. For instance, an emulsion of tricho - Farmer Training in Implementing Pest many ways. derma can simply be spread out by using and Disease Management Methods sprayers which most farmers are familiar By 2008, the Indonesian government had with. These fungi can also be easy to main - trained more than 1,070 farmers and tain. They can be grown in a small farmer groups in many regions including tank near the cocoa field and mixed with Sulawesi, Borneo, Java, Sumatra and NTT , water and organic matter. After a (Figure 12). By 2012, in Bantaeng, South couple of weeks they can be harvested to Sulawesi, the Cocoa Research Group spray on the tree. As microbiologists of (CRG) under the Faculty of Agriculture, plant protection in UNHAS state, using UNHAS, had updated local farmers’ skills microorganisms combined with some sugar and knowledge of rejuvenation techniques, and organic matter could accelerate the good agricultural practices and integrated growth of microorganisms and increase pest management. The target of the project microbial virulence in the fermenter. This was about 500 local people in this regency. indigenous technique has been found This farmer field training program aims acceptable to farmers. to emphasize good agricultural practices Another technique is covering the pods. and to solve the problem of harmful pests A type of plastic bag is crinkled over the and diseases on cocoa plantations. fruits in order to protect them from pest infestation such as cpb and fruit sucker Soil Management (Figure 11). Implementing this technique Over a long period of cocoa farming, soil

Pod Condomization Technique Integrated Pest and Disease Management Training

Figure 11 Figure 12 ➤

68th PMCA Production Conference, 2014 9 Cocoa Farming in Indonesia

It is argued that the nutrients may become undermined ents, producing 44 kg NH 3/ton wet leaves, best way to deal because of the high level of nutrients that 5kg tsp /ton and 10 kg KCl/ton. L. leuco - with the shortage are required. Unfortunately, not many cephala may even produce higher levels of soil fertilizer is inputs are introduced to restore the loss of macronutrients in dry leaves: 118 kg to tackle land of fertilizer from the soil. Recently, Indone - NH 3/ton dry leaves, 13 kg tsp /ton and sia Coffee and Cocoa Research Institute, 27 kg KCl/ ton. Furthermore, using tem - degradation and located in Jember, East Java, conducted a porary and permanent shade trees such as to conserve study of soil fertilizers in Sulawesi and , , , mango and others farmland by found that the main cocoa plantations in protects cocoa trees from exposure to uv implementing this region seem to lack principal soil fer - light. In many cases, twigs on cocoa trees environmentally tilizer components, namely C, N and P. This can suffer from dieback because of uv friendly agriculture. research recommended that certain crop exposure. Burying pod husks after har - nutrient requirements should be imple - vesting can also reduce pests and disease mented. It also suggested introducing effi - because the life cycle is cut before growing. cient and effective fertilizer. The last activity to deal with challenges The management of shade trees may to Indonesian cocoa is organic farming. also conserve soil fertilizer (Figure 13). It It is argued that the best way to deal with is believed that this technique can increase the shortage of soil fertilizer is to tackle cocoa productivity, as well. The usual func - land degradation and to conserve farm - tion of shade trees is to protect the cocoa land by implementing environmentally plantation from sunlight exposure. How - friendly agriculture. It is believed that ever, as many studies have shown, the organic cocoa has the potential to be a shade tree technique not only provides a long-term solution to the main problems good microclimate for cocoa but also acts of productivity. It has been shown that an as a source of macro natural fertilizers in increase in the amount of carbon in the order to develop the cocoa trees. Accord - soil occurred, which could promote nutri - ing to Pujiyanto (1994, in Sari et al., 2013), ent health and provide abundant food for lamtoro ( Leucaena leucocephala) , a kind of soil organisms. A group of soil experts shade tree, can provide huge amounts of from ICCRI surveyed potential cocoa soil fertilizer in the form of macronutri - farmland in Indonesia, and showed that 2 million sq km of land suitable for devel - oping cocoa plantations was still poten - Management of Shade Trees tially available.

Postharvest Management and Added Value It is believed that bean quality is often determined by postharvest handling. Poor quality of cocoa beans tends to be due to poor postharvest management and lack of fermentation. Poor-quality beans mixed with good-quality beans can affect overall bean quality, so that fermentation of cocoa beans is becoming crucial in managing cocoa beans. Fermentation of beans is a Figure 13 serious issue in regard to the quality of ➤

10 68th PMCA Production Conference, 2014 Cocoa Farming in Indonesia beans. The best solution is to give a pre - small pieces and composted. Next, all mate - The best solution is mium price for fermented beans. This leads rials are dried and then they are sorted. to give a premium the farmers to focus more on bean treat - Powdering and packaging are the last steps price for fermented ment. Another solution is to provide a in this process. beans. This leads management instrument for fermentation. Interestingly, producing biogas from the the farmers to The farmers can develop equipment them - useless cocoa husks and waste of livestock focus more on bean selves in which they can modify simple has also become popular in recent years. treatment. technology to overcome quality issues at Such integration between animal breed - the off-farm stage. ing and cocoa farming is an alternative tac - Turning to the off-farm stage, posthar - tic to achieve not merely the main prod - vest handling is a part of cocoa manage - ucts (meat or cocoa pods), but also to reuse ment. It allows farmers to gain extra and recycle cocoa waste into a new source income and reduce the cost of cocoa pro - of energy like and gas for stoves. duction by supplying compost or biogases This natural technology is acceptable for and food for their livestock. In Figure 14, farm communities because the procedure we can see how the waste of cocoa pods is quite simple. Cocoa husks are neutral - is recycled and reused to be more useful ized in a water tank that is buried 2 m deep through postharvest management. As the in the ground and mixed with manure from ICCRI expert in composting, Widyatomo livestock. In the next stage, the substrate is (2013) states, profitable cocoa waste can diluted and homogenized. Afterwards, the be implemented during high harvesting result of substrate immersion passes into a time. First, useless husks are chopped into minireactor producing biogas. From this, small pieces. From this, small materials are energy can be used for liquid fertilizers fermented by using a beneficial fungus, and/or biogas on a small household scale. Aspergillus niger . In the next stage, the small materials are dried for a couple of Organic Cocoa and Certification days. Soon after being dried under sun - Organic products are becoming more and light, these are ground in simple machinery more popular nowadays on cocoa planta - to produce powder. In order to make nutri - tions. It is believed that organic methods tious food, the powder is mixed with some can produce profits for farmers, attract ingredients and the livestock are allowed consumers and preserve the environment. to feed. Cocoa husks, another product of It is also believed that by using organic cocoa waste, are recycled to produce ben - methods, cocoa farm degradation can be eficial compost. The cocoa husks are sep - prevented. In addition, organic methods arated from the beans and shredded into produce sources of natural compost for cocoa production and provide income for Recycling Cocoa Pod Waste cocoa farm communities. The demand for organic agriculture and land certification is increasing among cocoa companies around the world. As Guest (2013) argues, many chocolate producers have a tendency to require more and more certified farmland. This can encourage cocoa producers to increase production through organic methods. It seems that the Figure 14 issue of organic cocoa is becoming vital ➤

68th PMCA Production Conference, 2014 11 Cocoa Farming in Indonesia

Organic farming and consumers are becoming more and (with collaboration among a wide range can also be a good more interested in the organic provenance of stakeholders including ICCRI and solution for poor of the chocolate they buy. According to Cocoa Research Group (CRG) of farmer skills and Tanos & Rivay (2013), demand for certified UNHAS supported by Mars, Inc., the Ford knowledge. The cocoa plantations and cocoa farmers has Foundation, IFC, GEF and others under increased significantly over the last five the ) implemented more farmers that years. In 2008, over 40,700 ha and nearly organic cocoa farming in Sulawesi. The become organic 8,000 cocoa farmers were certified. The program focused on farmer training, such cocoa trainees, the number of both areas and cocoa farmers as composting, biopesticides, good agri - better the quality has since risen sharply, to over 641,000 cultural practice and mapping . of life will be in fields and 198,000 cocoa farmers by 2012. Recently, under the organic cocoa certifi - the cocoa-farming This indicates that the demand for organic cation program, an electronic organic community. cocoa and skilled cocoa workers in the cocoa-training practice was launched on a world is increasing. website, www.sustainableagriculturetraining.org , Looking at certification of cocoa areas in in six languages. Indonesia from 2012 to 2013, the land and Regardless of successful training achieve - farmer certification rate has risen, from ment, there are serious problems facing the nearly 27,000 ha to over 46,000 ha of total successful implementation of organic cocoa. certified areas. In terms of organic cocoa The main problem is the commitment to trainees, the number of farmers reached incentive price, concerning time, thought about 38,000 in June 2013. However, of the and manpower. Another challenge is the countries that have certified organic cocoa, tight procedure for organic farmers and Indonesia has just 6 percent of certified farmland certification. It is argued that the cocoa plantations. The vast majority of procedure seems to be rather difficult to fol - organic cocoa certification is in Côte low. This is because it takes plenty of time d’Ivoire with over 60 percent of land cer - and needs complex efforts. tification. The second largest is and Dominican Republic with 17 percent and National Cocoa Day and Benefits of 9 percent of cocoa plantations respectively. Regulations Meanwhile, some countries, such as Recently, the government has launched , Nigeria, Philippines, , the Hari Kakao Nasional program, the Peru, Tanzania, and Papua New National Cocoa Day program, which is Guinea, are about 7 percent of total. There - generally celebrated every September 16. fore, a serious effort is needed to acceler - This event aims to stimulate cocoa grow- ate the number of organic cocoa trainees ers to improve the quality and quantity of and cocoa farming in Indonesia. cocoa beans and to sustain cocoa produc - Organic farming can also be a good solu - tivity. The program also promotes con - tion for poor farmer skills and knowledge. sumption of chocolate for society so that it The more farmers that become organic may drive the supply and demand of cocoa trainees, the better the quality of life chocolate cocoa beans. In this way, cocoa will be in the cocoa-farming community. farmers can gain enormous benefits from The implementation of organic cocoa the program. farming in Sulawesi has achieved some A further solution for cocoa sustain - success. A good example of this is in Ban - ability was imposition of a 15 percent tax taeng regency. Recently, a Cocoa Alliance on cocoa bean exports in 2010. This regu - project that focused on Sulawesi cocoa lation has greatly stimulated downstream ➤

12 68th PMCA Production Conference, 2014 Cocoa Farming in Indonesia cocoa industries in Indonesia. The cocoa ucts have thrived, growing from 119,214 mt A further growers might gain enormous benefits in 2010 to 215,791 mt in 2012 (Jawapos, solution for cocoa from this new regulation because they 2013). Furthermore, in 2012 and 2013, was could directly sell their cocoa beans to national cocoa bean production reached imposition of a downstream cocoa factories in Indonesia, 310,000 and 400,000 mt respectively. And it 15 percent tax on not just to exporters. According to the Min - is predicted to increase about 800,000 mt in cocoa bean exports ister of Trade, Wirjawan, the government 2014. Another solution, a concept of a rural in 2010. This offers an incentive, a provision of tax cocoa industry which aims to modernize regulation has allowance, for investors to build up their cocoa villages, should be taken into con - greatly stimulated business, especially in the eastern part of sideration, too. n Indonesia. Consequently, the trend of downstream cocoa investment is for factories to grow from REFERENCES industries in year to year, from six factories in the last Abdoellah, S. (2013, 09 18). The Indonesian Indonesia. three years to 17 factories in 2013, and it is Cocoa Workshop 2013 and Indonesian Cocoa And Chocolate Fair 2013 on the Event predicted to grow to 20 factories next year. of Indonesian Cocoa Day. Retrieved Sept. This is because a successful government 8, 2013, from http://dekaindo.org . policy (imposition of a 15% tax on cocoa Aldhin, A. (2013, 07 23). Olahan Cokelat Indonesia-Capai 500 Ribu. Retrieved Sept. bean exports) has stimulated investment 10, 2013, from http://www.tempo.co: http:// in downstream industries in Indonesia. www.tempo.co/read/news. Unfortunately, it has been claimed that the Deliknews. (2013, 07 18). Produksi Kakao Di Jatim-Baru Mencapai 26 Ribu Ton. Retrieved rate of cocoa bean exports has dropped, October 5, 2013, www.deliknews.com but the number of cocoa players putting Deptan, 2013. Produksi kakao menurun up factories in the centers of cocoa pro - provinsi di Indonesia. Retrieved from http:// www.deptan.go.id . duction such as Makassar, Sumatra and Energitoday (2013, 06 17). Produksi Kakao Java has grown. Indonesia is also produc - Indonesia Kembali Bergairah. Retrieved ing good chocolate, despite producing raw October5, 2013, from http://energitoday.com . Guest, D. Helping cocoa farmers manage dis - material only. Another solution is imposi - ease and improve productivity . Faculty of tion of cocoa certification to attract con - Agriculture and Environment, The Univer - sumers. Jawapos (2013) reports that pro - sity of Sydney. Paper presented at the Sulawesi international seminar on cocoa. duction capacity of international exporters Clarion Hotel, Makassar. June 26-27, 2013. absorbing cocoa beans from farmers Guest, D, And P Keane. Vascular-Streak accounted for near 150,000 mt, growing to Dieback: A New Encounter Disease of Cacao in and Southeast about 330,000 mt at the end of the period. Asia Caused by the Obligate Basidiomycete Meanwhile, exports of semiproducts of Oncobasidium theobromae. Phytopathology chocolate made up 50,000 mt in 2009 but 97:1654-1657, 2007. Guest, David. Helping cocoa farmers manage have increased noticeably to 200,000 mt disease and improve productivity. In (Ed.), of semiproducts. It has been reported that Sulawesi International Seminar Cocoa Con - in 2015 the government will target 20 fac - ference, Makassar, 2013. Indonesia Investment Coordinating Board, tories with 950,000 mt of production capac - (2013, 10 10). Ketersediaan Lahan Komoditi ity per year. Also, the government gives Kakao. Retrieved October 15, 2013, from incentives such as a tax allowance for http://regionalinvestment.bkpm.go.id Jawapos. Ambisi Jadi Produsen Kakao Terbesar investors who will invest in the eastern part Dunia. Jawa Pos. Sept. 19, 2013. of Indonesia. Although the export of cocoa Junaid M, GJ Samuels, A Ismaiel, and A Ros - beans has decreased from 430,000 mt in mana A. Detection of Thanatephorus theo - bromae, cause of vascular streak dieback of 2010, to 210,000 mt in 2011, then to cocoa, in cocoa tissues Luwu Regency, South 163,000 mt in 2012, chocolate semiprod - Sulawesi. Paper presented at the Interna - ➤

68th PMCA Production Conference, 2014 13 Cocoa Farming in Indonesia

tional cocoa conference in Grand Hyatt Susilo, AW, and IA Sari. Breeding For VSD Hotel, Bali, 2009. Resistance on Cocoa in Indonesia. Paper pre - Kemenperin. (2012, 09 18). Pemerintah-Gen - sented at the Sulawesi international seminar jot-Produksi. Retrieved 09 8, 2013, from on cocoa. Clarion Hotel, Makassar. June 26- http://www.kemenperin.go.id . 27, 2013. Kompas. (2012,05 19). Dorong produksi kakao. Sari NP, and JB Baon. Sustainable Cocoa Pro - Retrieved 09 8, 2013, from http://bisnis keuan - duction in Indonesia by Optimizing Macronu - gan.kompas.com . trient Cycle in Cocoa Farms. ICCRI. Paper Lass, RA. Cocoa Growing and Harvesting Prac - presented at the Sulawesi international sem - tices in Chocolate. Cocoa Health and Nutri - inar on cocoa. Clarion Hotel, Makassar. June tion Book . International Cocoa Organiza - 26-27, 2013. tion London, Blackwell Science, and Samuels GJ, A Ismaiel, A Rosmana, M Junaid, International Cocoa Research and Educa - D Guest, P McMahon, P Keane. A Purwan - tional Foundation. Pp 11-42, 1999. tara, S Lambert, M la Rodriguez-Carres, MA metrotvnews.com. (2013, 02 18). Dewan Kakao- Cubeta. Vascular streak dieback of cacao in Internasional Dukung Gerakan Kakao- Southeast Asia and Melanesia: in planta Indonesia. Retrieved 10 5, 2013, from detection of the pathogen and a new taxon - http://www.metrotvnews.com omy. Fungal Biology 116(1):11-23, 2012. Natawidjaja H. Current status and control pro - Tanos R, and A Rivay A. Rainforest Alliance: gram of pest and disease on cocoa in Indone - Progress Achievements and Challenges in sia . Paper presented at the International Sulawesi. Paper presented at the Sulawesi cocoa conference in Grand Hyatt Hotel, Bali, international seminar on cocoa. Clarion 2009. Hotel, Makassar. June 26-27, 2013. Purwantara A, S Sukamto, A Iswanto, P McMa - Tempo. (2013, 03 12). Produksi kakao diperki - hon, S Lambert, D Guest, P Keane. New rakanstagnan. Retrieved 10 5, 2013, from symptoms and increased incidence of vascu - http://www.tempo.co/read/ . lar-streak dieback (VSD) of cocoa in Indone - Tempo. (2012, 10 16). Ekspor biji kakao sia – possible causes, studies required and diperkira-kan turun 29 persen. Retrieved control. Paper presented at International 10 5, 2013, from http://www.tempo.co/read/ news . Seminar in Gedung Pertemuan Ilmiah Wahyudi T, Misnawi, and B Drajat B. Cocoa UNHAS, Makassar, 2009. scenario and challenge for Indonesia . Indone - Putri, BP. (2013, 02 15). Harga Biji Kakao Ker - sian Coffee and Cocoa Research Institute. ing Di Aceh Anjlok. Retrieved Oct. 5, 2013, Presented in Sulawesi international seminar from http//www.metrotvnews.com/metronews/ of cocoa. Clarion Hotel, Makassar. June 26- read. 27, 2013. Prastowo E, and JB Baon. Mapping of Soil Widyotomo S. Utilization of cocoa processing Nutrient Status of Cocoa Farms in Sulawesi. wastes for value added products. Indonesian Paper presented at the Sulawesi international Coffee and Cocoa Research Institute. Paper seminar on cocoa. Clarion Hotel Makassar, presented at the Sulawesi international sem - June 26-27, 2013. inar on cocoa. Clarion Hotel, Makassar. June Sutariati GAK, IG Sadimantara and A 26-27, 2013. Khaerun. Effectiveness of Bio-invigoration Zakiya, Z, and OLPramesti. (2012, 07 02). Technologies on Seed Viability and Vigor. Indonesia Targetkan Jadi Penghasil Kakao- Paper presented at the Sulawesi international Terbesar Di Dunia. Retrieved 09 6, 2013, seminar on cocoa. Clarion Hotel, Makassar. from http://nationalgeographic.co.id . June 26-27, 2013.

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