Developing new markets through certified organic coconut sugar The coconut sugar - a sweet Producers stand to gain a 20% As organic certifi cation has become The project is supported by the If the fi rst stage of the intervention opportunity premium by selling organically a pre-requisite for export and is Government of Indonesia and the is successful, it could benefi t of certifi ed product to exporters. seen as a guarantee of quality, Government of Australia, through an estimated 5,500 coconut sugar SNV believes this project could Given the growing levels of obesity this also represents signifi cant the Australia Indonesia Partnership producers by end of 2015 with the transform the lives of thousands and diabetes, the low glycemic potential. Farming practices in for Promoting Rural Income potential to be up-scaled to benefi t of coconut sugar farmers index (GI) of coconut sugar the project’s target areas largely through Support for Markets up to 14,000 producers by 2017. in Indonesia. – around half that of regular conform to organic standards, in Agriculture (AIP – PRISMA) table sugar, is a key reason making certifi cation achievable program, which aims to contribute Project components Coconut sugar has a for its popularity. It is seen as at low cost and on a relatively to a 30% increase in net incomes strong domestic market a healthier substitute for table short timescale. for 300,000 poor rural female The project will focus on: in Indonesia, where over 600,000 sugar and marketed as having and male farmers by the end of production processes and metric tonnes is produced annually; a higher nutrient content and To turn the potential into reality the program. equipment to improve mostly for local consumption. distinctive taste. Organic coconut and to access export markets, effi ciency and product quality; The Indonesian powerhouse brand sugar is largely sold in health food product quality and processing SNV is implementing two projects removing export market barriers of instant noodles, Indofood, shops in North America, Europe, effi ciency needs to be improved. to benefi t coconut farmers and including lack of organic for example, purchases over Australia and North Asia and is three projects benefi ting cassava certifi cation; and develop 30,000 metric tonnes per year and also increasingly used in chocolate farmers under AIP-PRISMA. producer links to exporters. Unilever a signifi cant volume for and bakery products. In this project, Develop New It will contribute to the overall their sweet soy sauce product. Markets though the Organic sector’s competitiveness by Indonesia currently has well Although signifi cant numbers of Certifi cation of Coconut Sugar: increasing the productivity and over 100,000 coconut sugar coconut sugar producers along the supply of coconut sugar to the producers who bring over 50,000 south coast of West and Central • Increase coconut sugar export market. It will also promote Sweeter yields – the benefi t metric tonnes of coconut sugar to Java currently sell coconut sugar processing productivity coconut syrup production as of better processing the domestic market per month. for export, producers in East Java • Increase coconut sugar supply an alternative to dried sugar to

The premium prices fetched are very poorly linked to export to the export market deliver both productivity and SNV is targeting the Indonesian in the export market, markets and not benefi tting from environmental benefi ts. coconut sector because of its particularly in the organic the potential. By working closely with farmers, Improving farmer knowledge promising outlook and potential certifi ed market, present an local implementing partners and and capacity to organise organic to benefi t a signifi cant number opportunity for increased income Districts including Pacitan district governments, the fi rst certifi cation and provide local of poor, smallholder farmers. for Indonesian coconut sugar and Trenggalek in East Java stage of the project, in partnership support services will also be a key producers. In line with the have an established history with Bali company Big Tree Farms, project focus. Good processing SNV will work with international trend of growing global demand of coconut sugar production. aims to improve the livelihoods practices will also be promoted and local partners to increase the for organic coconut sugar, Their mountainous terrain of 5,500 farmers who will benefi t through training to enable farmers income of rural coconut farmers in demand from exporters far provides a natural environment from an average increase in to meet company standards East Java with an initial focus on outstrips the available supply. for organic coconut production. household income from coconut for export. Access to improved Pacitan and Trenggalek districts. sugar of at least 20% by end of 2015. equipment and better hygiene SNV will also be responsible for the Sweeter rewards SNV Indonesia practices is key to meeting these dissemination of the cook stoves. standards. The current processing Improving the cooking methods of The project intervention will deliver SNV is an international not-for- practices of using an open wood coconut sap into coconut sugar is the following outcomes: profi t development organisation. fi re often in unhygienic conditions very important for the fi nal quality. Founded in the Netherlands nearly will be addressed through Too much smoke can damage Increased farmer income 50 years ago, we have built a long- specially designed cook stoves, the sugar and high fuel prices term, local presence in 38 of the training in improved hygiene have an effect on the profi tability • 65% increase in average net poorest countries in Asia, Africa and fuel effi ciency methods of farmers. additional income of targeted and Latin America. Our global and practical access to fi nance. producers by mid-2015 team of local and international • 20 % increase in average price In addition to improved income, The SNV Renewable Energy team Monitoring and evaluation advisors work with local partners achieved for coconut sugar there are signifi cant health will examine how to improve to equip communities, businesses and environmental benefi ts current coconut sugar cooking SNV will monitor and evaluate and organisations with the tools, Better quality coconut sugar to be realised. stoves to become more effi cient progress of project outcomes knowledge and connections they and smoke free. A number of and incorporate local feedback need to increase their incomes • Increased supply of coconut Sustainable partnerships new designs will be tested to see and gain access to basic services sugar that meets export market to facilitate up scaling and what type of improved stoves – empowering them to break the standards – Big Tree Farms buys continuous improvement. SNV will manage the fi rst stage best suits the local situation and cycle of poverty and guide their 180 kilograms/HH per month from Coconut Sugar is produced mainly of the project in partnership with fuel available. own development. targeted producers by men, with women collecting the Big Tree Farms. As specialists • More than 50% of targeted wood for the stoves. With the shift in sourcing and marketing SNV will provide overall farmers implement improved towards the collection of nectar, SNV offi cially opened its offi ce food products made by artisan project management, processing practices for effi ciency there may be a decrease in time doors in Indonesia in 2013. We producers across Indonesia, evaluation and monitoring and and quality spent in wood collecting and SNV work in close partnership with the with a focus on sustainability, technical assistance on coconut will monitor possible impacts and Ministry of Home Affairs across they make ideal partners. sugar processing. It will also Higher productivity evaluate potential social changes three main sectors in Indonesia, Their product lines include organic raise farmer awareness, prepare including who will be selling the water and sanitation, renewable coconut palm sugar, coconut training materials and cover the • 46% reduction in the cost of nectar generated by the project. energy and agriculture as well as water, cashew, cocoa products, cost of training at the farmer sugar production per kilogram the cross-cutting issue of climate and speciality salt and spices. level. SNV will take the lead • 20% reduction of labour change. Our philosophy is to Big Tree farms will take the in designing a purpose built on processing and partner with local organisations lead in Training of Trainers, clean cooking stove for coconut fi rewood collection. and employ local people, believing developing supply chains sugar processing to suit local that lasting change to the lives and arranging access to conditions and the business of the poor has to start with the fi nance. They will also model to enable production. people who live and work here. cover the cost of organic There is signifi cant opportunity to certifi cation for the fi rst year. develop business models for other regions and SNV is looking for up-scaling strategies. Our projects

Aceh

Sumatra Utara Kalimantan Sulawesi Kalimantan Barat Sulawesi Utara Timur Tengah Riau

Irian Jaya Jambi Barat Gorontalo Sumatra Sumatra Maluku Barat Selatan Utara Sulawesi Barat Bengkulu Bangka Sulawesi Tenggara Belitung Kalimantan Lampung Kalimantan Maluku Jakarta Tengah Selatan Jawa Nusa Tengah Tenggara Sulawesi Papua Banten Timur Bali Selatan

Jawa Yogyakarta Barat Jawa Timur Nusa Tenggara Barat

Climate Change Renewable Energy Agriculture Water & Sanitation Harm Van Oudenhoven, Sector Leader Agriculture Email: [email protected]

Contact address: SNV Netherlands Development Organisation Jl. Kemang Timur Raya No. 66 Jakarta Selatan 12730 Indonesia

Tel: +62 21 719 9900 Fax: +62 21 719 7700

Website: www.snvworld.org/indonesia

Ministry of Home Affairs