Working Group - Coffee

Context:

Indonesia is the fourth largest coffee producer and exporter in the world. As demand continues to rise - contributed by a growing coffee culture and the rise of middle class – it’s evident that coffee growing has the potential to lift smallholder livelihoods. However, Indonesia suffers from low productivity, yielding around 500 kg per hectare - far below the soil potential and the 2.7 tons per hectare of Vietnam. This is largely because smallholder growers struggle to secure access to the resources needed for replanting, quality agricultural input, and knowledge around good agricultural practice.

Activities:

  • Launched a teaching program on income diversification through intercropping with pepper, avocado and chili.
  • Developing a replanting program to increase productivity and adaptability to climate change.
  • Organizing trainings for farmers to qualify for Common Codes for Coffee Community (4C).
  • Create shorter and transparent supply chain aggregators (KUB) to export markets.
  • Piloted mobile banking and cashless transaction.

 

Impact:

  • 19,227 farmers participating.
  • Program spanning 31,148 ha.
  • 43% increase in baseline yield.
  • 204% increase in baseline income.
  • Mobile bank accounts opened for 17,000 farmers.

 

Member:

  • Nestlé Indonesia.
  • IDH.
  • Yara Indonesia.
  • ICCRI.
  • Rabobank Foundation.
  • Bank BTPN.
  • Telkomsel.
  • Rainforest Alliance.