KSU JATIROGO

Organic Palm Sugar Crystal

Purwokerto, Desember 17 2015 Who is KSU Jatirogo??

• KSU Jatirogo is a producer cooperative of organic gardening/ platation product is built on Nov 26, 2008 by meaning to sertificating organic garden and oproduct, especially organic brown-sugarto increase the presperity of brown coconut sugar farmer in KulonProgo area. KSU Jatirogo get Legalization No 24/BH from Regent of KulonProgo on December 2008

• Opertional KSU Jatirogo includes 26 hamlets 5 villages in 2 districts :Kokap, Samigaluh and Girimulyo. In those areas 1731 of farmers who have cultivated land to with width 792,52 Ha which have ceriticated organic by 3 International organic standart, certification by Control Union Certification (CUC) Where there is KSU Jatirogo? KSU Jatirogo is exist to increase bargain positian of brown coconut sugar farmer in quality, type and price product. So except from the activity which is done by KSU Jatirego and its member is able to make economic changeof society especially for brown coconut sugar farmer and in general and all members of KSU Jatirogo. ORGANIZATION of STRUCTURE

RUA (Publicmeeting Of Member)

ORGANIZER ADVISOR

MANAGER

QUARANTEEING PRODUCTION & MEMBERSHI AND ADM &FINANANCE OF QUALITY LOGISTIC ENERGY SECTION OF SECTION SECTIOIN SECTON FORMATION of ORGANIZER

• Leader : Ngatijo • Secretari : Albani • Freasure : Susanto

• In doing the activites KSU jatirogoorganizer,have responsibility to orrange long and short term programe. • The organizers get compensation from their apligation. FORMATION of CENTIOLER

Leader : Rahmadi Secretari : Surahmad Member : Byartono

• The Controllers makes work programme to do controlling to organizer works • Controlers get compensation from their abligatin/work MANAGEMENT/MANAGER

Manager : TheresiaEkoSetyowati

Kordinator of quality guaranteengsetis: Hendrastuti

Adm and finance coer : Wahyu Widayanti and Ika Rahayu, Muhamad Toil

Logistic and production coor : Nuryanti VISION OF KSU JATIROGO

Realization independence cooperative which is emphasized togetherness in economic, social, culture and organic agriculture to cooperative, farmer and societyprosperity MISSION OF KSU JATIROGO • Give facilities, services and connection to farmer necessity by a fair trading. • Give supervising to increase life quality of the society • Reinforcement of cooperative economy by professionalism of cooperative management and society economy. • Reinforcement of organic product quality all of produced commodities by organic farmers who are organizing by KSU Jatirogo • Strengthen and develop economical cooperation and organic agriculture with all parties. IDENTITY OF KSU JATIROGO

1. Address: Jl. Wates- Purworejo KM 2,2, Tambak, Triharjo, Wates, KulonProgo 2. Email address: [email protected] 3. Incorporation Deed of Cooperative: Number of letter: 24/BH/XV3/2008 Date: December 3, 2008 Real situation nowadays?

• Have farmers of organik coconut sugar organized? • Are the farmers ready to do marketing together? • Are the farmers ready to produce organic coconut sugar by consumer request? • Are the consumers ready to buy the product of organic coconut sugar from the farmers? (Specific product)? • Is there any organization which organized about production and marketing? • Who have responsibility to provide product to be marketed? • Who have responsibility to look for the market and to do marketing of farmer production? Supervision Organization of Quality Product Group level

Organizer of ICS subdistict

Chief of village Chief of village Farmers Farmers Petani anggota Member of Member of ICS ICS ICS

Chief of village Chief of village

Consumer

Consumer Farmers Farmers Member of Member of ICS ICS ICS process flow (Internal Control System)

early identification commodity options Specifically, the area

organizing Product marketing farmers (Organic Products and ICS Organizations Producers Non Organic Products) " Fair Trade"

organizing Products of Application System ICS Product quality management Role QMS (Quality Management System) at ICS

Management Management Organization Production

Organization ICS

Management Managemen Marketing Quality Understanding Market Chain of Product of Organic Coconut Sugar

Supporting Factors Negotiations Mediation Infrastructur e Capitalization Information Information and Communication Private Sector

National / Farmer Local International Merchants Market

Menyusun dan Membangun aturan Policy Law

Norm / rules Standart Community The Goal of Marketing Cooperative Farmers Product

• Increasing farmer’s income incessantly • Corroborating the management system of product quality as product quality assurance which is marketed • Corroborating the farmer organization which becomes coordinating institution of farmer and can defray the organization independently. • Supporting organic agriculture movement which has impact to farmer’s family directly, whether in their social, culture, ecology and economic. • Increasing regeneration of the farmer persistently. • chain of production and distribution are built continuously. Does Quality of Product become te Key of Marketing Sustainability?

• I you want to build a sustainablemarketing, the quality product is the key of cooperative determinant with the consumer, also determinant of price that they want.

• So, quality assurance system is really needed, either organic product or non- organic product. Is That important t build Quality assurance System f Product?

The quality of product cannot be detachable from the price and the sustainable marketing

Understanding Understanding standard o product characteristic of producer, consumer Understanding seller and exporter contract of cooperative

Having powerful Understanding standard of Ability of lobbying and production-processing negotiation Challenge of the farmer of Organic Coconut Sugar (1) • The coconut trees need regeneration with new better variety, first harvest in 4-5 years, with the height is 4-5 m, the extract sap has good quality and much amount, and each tree can produce >5 coconut flower. • Recent condition: local coconut tree, height is 10-20 m, first harvest 7-10 years, have big risk for the tapper, have big number of accident, among 4 persons fell (physically handicapped and died) • How to find variety of superior coconut to the extract sap production? If the coconut tree is short, so the tapper is not only men but also women. They just climb the tree or use the ladder, is it possible in Indonesia? Challenge of the farmer of Organic Coconut Sugar (2) • Young generation haven’t attracted yet to be a tapper -> producer of coconut sugar -> the reasons are about big risk and little income. • Recent condition of unpredictable climate has big influence to the extract sap production - >little amount of the extract sap -> coconut production drastically decreased while the long dry season. The quality of production of farmer level has to be increased, create healthy kitchen on unit. Challenge of the Marketing Cooperative of Organic Coconut Sugar • Marketed cooperative of coconut sugar product has to pay Income Tax 25 and Value Added Tax (VAT) 10%. • VAT 10 % of local market is for kind of business which has had turnover as much 4,8billions. • VAT 10 % become matter for cooperative, this matter causes price product cannot vie with the other, cooperative cannot increase the price because cost production is already high in the market. • Product competitiveness which is more decreased will make marketing situation of product’s getting weak, so sooner or later the farmer will get bad impact of this. Facilities and infrastructure of the production still imperfect and really need other side to help them (healthy fireplace unit, healthy kitchen, processing unit facilities, detector metal, etc.) Build Sustainable Marketing is Not Easy!

• Product must have wide market opportunity and the marketing must be clear. • have to be ready with many conflicts which happen in all level (farmer, farmer organization, local merchant, entrepreneur, company and other private enterprise) • have to be able to manage a strong organization (kahxjVX) which is done professionally and by applying correct organization management. • Have to be able to interlace cooperative with all parties because the works involve many parties in their success, working alone only earn never ending tiredness. OPPORTUNITY

• Organic Product Market opens up widely (local market, national and international) • Consumer awareness about healthy product becomes greater • More and more exporter of organic product (plantation product export) • Indonesia has wide area for developing cultivation area of organic plants. • Government regulation protects organic product and farmer production by ICS of farmer. Moreover, the non- certificated products have been sold in modern markets, there is regulation about organic agriculture in several regencies. • There is many more organic food outlets which need organic products. • Cooperative with many parties is widely opened up COMMODITY OF MANAGED PLANTATION • Coconut • Coconut sugar ( mold and gulasemut) • Coffe • Cocoa • Clove • Mangosteen

• SUPERIOR SPECIFIC PRODUCT: organic gulasemut MARKETING PERFORMANCE

Development of organic market for plantation product which is in organic certification of KSU Jatirogo are coconut sugar, crystal sugar/gulasemut, coconut, cocoa, clove, coffee and mangosteen. Therefore, the potential main product of KSU Jatirogo since 2008 is crystal sugar/gulasemut. KSU JATIROGO SERVICE TO THE FARMER

• Members of cooperative are 1004 people. • Aspirants of cooperative member are 1500 farmers • Marketing of organic coconut sugar (by numbers of supplier of organic coconut sugar are 1731 farmer) • Organic farmers are free to join in KSU • Jatirogo (without cost of certification) • Savings and loans (service 1% per month) • Insurance of coconut sugar tapper • Help of farmer production facilities (laru container (fermenting agent added to make vinegar), prop of laru container, filter) as many 1300 farmers • Help of healthy fireplace for the organic farmers are 1400 units. INSURANCE WHICH IS GIVEN

• Health and life insurance, because accident risk of the tappers are high. Average of coconut tree is 15-25 m in height, insurance is given to the organic farmer who is actively deposit to KSU Jatirogo, the insurance farmers are 650 people. • The tappers have been given safety tool by the department but they don’t use it because it’s uncomfortable to climb the coconut tree. DESCRIPTION OF THE MAIN PRODUCT

Organic coconut sugar is mold coconut sugar and brown-coconut sugar/crystal sugar made of extract sap from coconut plantation of organic farmers, the producer of coconut sugar, who become member of ICS KSU Jatirogo. ORGANIC CERTIFICATION Organic certification for 3 international organic standards: 1. Organic standard EU-Regulation: for European Market 2. Organic standard NOP-USDA: for American Market 3. Organic standard JAS: for Japan Market

Lembaga Sertifikasi : CUC (Control Union Certification) -- LSPO dari Belanda, berkantor di Jakarta Number of Organized Producer of Organic Coconut Sugar -> ICS KSU Jatirogo

• 2008 : 1260 people • 2009 : 1586 people • 2010 : 1620 people • 2011 :1620 people • 2012 : 1554 people • 2013 : 2024 people • 2014 : 1875 people • 2015 : 1731 people Escort and Advisor of KSU Jatirogo

• Hivos – Netherland • Lesman – Boyolali • KulonProgo Local Government • Bank Indonesia • Ministry of Cooperative  OVOP • Department of Agriculture and Plantation KulonProgo • Department of Cooperative KulonProgo • Department of Industry and Trade KulonProgo • Agriterra – Netherland • Muhammadiyah Yogyakarta University Process of Production Organic Granule coconut sugar Processing Product at KSU Jatirogo Physical aids which have been accepted by KSU Jatirogo

• Storeroom of granule coconut sugar and supporting tool of production in group level by Bank Indonesia at Yogyakarta office area • Supporting tool of quality from Ministry of Economic Affairs Documentation of Aid Distribution to KSU Jatirogo January, 30 2014

Aid distribution of quality supporting tools of Organic Granule coconut sugar by Mr. Hatta Rajasa Inauguration of Granule coconut sugar Storeroom KSU Jatirogo/ February, 6 2014 The inauguration is handled by Deputy Senior of Bank Indonesia “Mr. MirzaAdityaswara” Visit of Ministry of Cooperative and KOTRA October 2014

The power of cooperative is situated on the power of organization and cooperative service to the all its members, activities of cooperative become source of sustainable income. Activities of Farmer and CPU Development of Domestic Market Packaging THANK YOU …