Now Reading
Indonesia launched the PEKA(Peningkatan Ekonomi Kakao Aceh) Program in July 2010 in collaboration with international cocoa industry and NGOs to increase and improve revenue, productivity, and quality standards of the Aceh cocoa sector, a Tsunami recovery
Indonesia launched the PEKA(Peningkatan Ekonomi Kakao Aceh) Program in July 2010 in collaboration with international cocoa industry and NGOs to increase and improve revenue, productivity, and quality standards of the Aceh cocoa sector, a Tsunami recovery
Published 08-04-10
Submitted by World Cocoa Foundation
International cooperation includes Swisscontact, the World Cocoa Foundation, Armajaro Trading Ltd (UK), and Mars Incorporated (US).
21-month US$6.8 million pilot program trains 12,500 farmers directly. Goal: Increase productivity by 50%. 75% of cocoa beans will meet the Indonesian national standard versus 25% currently.
Indonesia is the world's third largest cocoa producer. Cocoa is the main source of income for more than one million farm households. While demand for cocoa is steadily increasing, production of cocoa in Indonesia as well as worldwide has been declining. Since the early 2000s, pests and diseases, tree senescence and deteriorating soil fertility have affected the cocoa production in Aceh and Indonesia and contributed to a fall in production.
In 2009, the Aceh government launched a three-year program, of which PEKA is part, to revitalize cocoa farms. "PEKA seeks to apply national and international best practices for improving cocoa yields and increasing productivity. The program will strengthen and improve the cocoa value chain. PEKA will be working with all market players including the Aceh Cocoa Forum to secure sustainable results," says Mr. Iskandar, Head of the Aceh Province Planning Agency. Aceh, with a population of about 4.5 million, is located in the northwestern tip of Sumatra and was strongly affected by the 2004 Boxing Day Tsunami. The Aceh cocoa sector provides income for around 90,000 smallholder farmers, more than 10% of the farmer population.
A consortium of international NGOs and companies, led by Swisscontact, the Swiss Foundation for Technical Cooperation, will implement the PEKA program and provide their expertise:
PEKA is a sub-project of the Aceh Economic Development Financing Facility (EDFF) Project. EDFF received US$50 million from the Multi Donor Fund for Aceh and Nias, a partnership of the international community, the Indonesian Government and civil society, to promote post-tsunami economic recovery. Sub-projects will be implemented by entities of non-government organizations (NGOs) and supervised by the World Bank. The fund consists of two components; the first component is to support the implementation of sub-project valuing to US$44.5 million, while the second component is to fund facilities and capacity building of Aceh Government staff and the State Ministry of Development of Disadvantaged Regions (KPDT) in project management for economic development.
About the PEKA International Cooperation Members
Swisscontact has designed a project to address three main aspects of the cocoa sub-sector in the Aceh Province, which are as follows:
Swisscontact will support the Government of Aceh in this process by using a leading sector planning tool "“ Triple-A (Atlas, Aturan Main, Agenda), that provides a platform for the public and private sectors to develop a district-based Cocoa Master Plan (DCMP) for Aceh.
2. Improve cocoa-farming skill levels and increase participation in farmer organizations: The first step to increase farmer incomes in the cocoa sub-sector is to raise productivity from presently around 445 kg per ha to at least 667 kg per ha in the short term. This increased average productivity in the selected districts in the Aceh Province is feasible if cocoa farmers adopt best practices in crop husbandry known in other parts of Indonesia. However, at present, most of the more than 38,000 cocoa farmers in the selected five districts of Aceh do not have access to information about best practices for managing cocoa and quality enhancement methodologies.
The project will improve human resources in cocoa research and the cocoa supply chain, at the district, sub-district, and farm level in cooperation with Dishutbun. Through the project, 12,500 farmers will receive a total of 210,000 person days of training on good crop husbandry practices.
3. Improve key business services in the cocoa value chain: The cocoa sub-sector in Aceh requires a well-developed network of business support services, such as input supply (e.g. quality seedlings, appropriate and organic fertilizers, pruning tools, microfinance) services for quality improvement (e.g., fermentation, drying, transparent bean grading), and better access to markets (e.g. direct export and certifications for specialty markets).
Swisscontact has global expertise in facilitating business service development in a number of sectors, and will develop the key services to the cocoa sub-sector of input suppliers, quality improvement, market access, and agriculture finance.
The World Cocoa Foundation (WCF) is an international nonprofit membership foundation that promotes a sustainable cocoa economy by providing cocoa farmers with the tools they need to grow more and better cocoa, market it successfully, and make greater profits. WCF's membership includes more than 90 cocoa and chocolate manufacturers, processors, supply chain managers, and other companies worldwide. Member companies range in size from small and medium size firms to large international corporations and represent over 80% of the global cocoa market. For more information, visit www.worldcocoa.org.
Follow us on our blog, Facebook and Twitter.
More from World Cocoa Foundation