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Program Implementer

Swisscontact promotes economic, social and ecological development by supporting people to successfully integrate into local commercial life. Swisscontact creates opportunities for people to improve their living conditions as a result of their own efforts. The focus of its systemic interventions in the private sector is the strengthening of local and global value chains. Through its projects, Swisscontact enables access to professional training, promotes local entrepreneurship, creates access to local financial service providers and supports the efficient use of resources with the goal of successfully promoting employment and income generation.

Swisscontact is the main implementer of the Sustainable Cocoa Production Program in collaboration with Private Sector companies and local Government institutions as implementing partners.

SCPP Main Program Office Manfred Borer, Program Director SCPP Komplek Taman Setia Budi Indah Jl. Chrysant, Blok E No. 76 Medan 20132 North Sumatra, Indonesia T: +62 61 822 9700 F: +62 61 822 9600 W: www.swisscontact.or.id Swisscontact Regional Office South East Asia Prashant Rana, Regional Director South East Asia Jl. Terusan Hang Lekir II No. 15 Jakarta 12220, Indonesia T: +62 (0) 21 739 4041 F: +62 (0) 21 739 4039 E: [email protected] W: www.swisscontact.or.id Swisscontact Head Office Peter Bissegger, Director Asia and Eastern Europe Doeltschiweg 39 CH 8055 Zurich Tel. +41 44 454 17 30 Fax +41 44 454 17 97 E: [email protected] W: www.swisscontact.ch

http://www.swisscontact.or.id/

mailto:[email protected]

http://www.swisscontact.or.id/

mailto:[email protected]

http://www.swisscontact.ch/

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Table of Contents

PROGRAM IMPLEMENTER ................................................................................................................................ I

TABLE OF CONTENTS ........................................................................................................................................ II

TABLE OF FIGURES ................................................................................................................................................... III TABLE OF TABLES .................................................................................................................................................... III

TABLE OF ABBREVIATIONS AND ACRONYMS ................................................................................................. IV

EXECUTIVE SUMMARY ..................................................................................................................................... 1

PROGRAM BACKGROUND ......................................................................................................................................... 1 ACHIEVED RESULTS FIRST YEAR .................................................................................................................................. 1 CHALLENGES IN THE FIRST YEAR ................................................................................................................................. 2 OUTLOOK 2013 ..................................................................................................................................................... 3

THE PROGRAM ................................................................................................................................................ 4

PROGRAM FUNDING AND DONORS ............................................................................................................................. 4 State Secretariat for Economic Affairs SECO .................................................................................................. 4 The Sustainable Trade Initiative IDH .............................................................................................................. 4 Embassy of the Kingdom of the Netherlands ................................................................................................. 4

SECTOR COLLABORATION .......................................................................................................................................... 5 Sector Coordination ....................................................................................................................................... 5 Private Sector Companies .............................................................................................................................. 5 Local Government .......................................................................................................................................... 6 Implementing Partners .................................................................................................................................. 7 Financial Institutes ......................................................................................................................................... 8

HOLISTIC PROGRAM APPROACH/STRATEGY .................................................................................................................. 9 PROGRAM METHODOLOGY AND MONITORING ............................................................................................................. 9 PROGRAM IMPACT AND TARGETS ............................................................................................................................. 10

PROGRESS UPDATE ........................................................................................................................................ 11

RESULT AREA 1: TANGIBLE IMPROVEMENTS IN THE ECOLOGY AND THE SOCIO-ECONOMIC CONDITIONS OF PRODUCTION .......... 11 Activity Group 1.1 ........................................................................................................................................ 11 Activity Group 1.2 ........................................................................................................................................ 14 Activity Group 1.3 ........................................................................................................................................ 14 Activity Group 1.4 ........................................................................................................................................ 15

RESULT AREA 2 - TANGIBLE IMPROVEMENTS IN SUSTAINABLE MARKETS .......................................................................... 16 Activity Group 2.1 ........................................................................................................................................ 16 Activity Group 2.2 ........................................................................................................................................ 18 Activity Group 2.3 ........................................................................................................................................ 19 Activity Group 2.4 ........................................................................................................................................ 20 Activity Group 2.5 ........................................................................................................................................ 21

RESULT AREA 3 - EFFECTIVE COLLABORATION AND INSTITUTIONALIZATION AT SECTOR LEVEL ............................................... 21 Activity Group 3.1 ........................................................................................................................................ 22 Activity Group 3.2 ........................................................................................................................................ 22 Activity Group 3.3 ........................................................................................................................................ 23 Activity Group 3.4 ........................................................................................................................................ 24

RESULT AREA 4 - KNOWLEDGE ON SUSTAINABILITY, EFFICIENT AND EFFECTIVE SUPPLY CHAIN APPROACHES DEVELOPED AND

SHARED ............................................................................................................................................................... 25 Activity Group 4.1 ........................................................................................................................................ 25 Activity Group 4.2 ........................................................................................................................................ 26 Activity Group 4.3 ........................................................................................................................................ 26

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Activity Group 4.4 ........................................................................................................................................ 26 SCPP IMPACT LEVEL .............................................................................................................................................. 27

Progress out of Poverty Index (PPI) .............................................................................................................. 28

FINANCIAL PROGRESS .................................................................................................................................... 29

EXPENDITURE SUMMARY 2012 ............................................................................................................................... 29 ANNUAL BUDGET AND EXPENDITURE COMPARISON 2012 ............................................................................................ 29

PROCUREMENT PROGRESS ............................................................................................................................ 31

PROCUREMENT PRINCIPLES AND PLANNING................................................................................................................ 31 PROCUREMENT OF PROGRAM INVESTMENT ................................................................................................................ 31

CONCLUSIONS AND RECOMMENDATIONS ..................................................................................................... 32

PROGRAM CONCLUSIONS 2012 ............................................................................................................................... 32 PROGRAM RECOMMENDATIONS 2013 ...................................................................................................................... 32

REQUEST FOR MODIFICATION ....................................................................................................................... 33

DURATION OF BUDGET AND PROGRAM PERIOD .......................................................................................................... 33 BUDGET ITEMS AND FINANCE .................................................................................................................................. 33 KEY PERFORMANCE INDICATORS .............................................................................................................................. 33

ANNEXES ....................................................................................................................................................... 34

ANNEX 1 – PROGRAM STRUCTURE – ORGANIZATION CHART ......................................................................................... 35 ANNEX 2 – SCPP KEY PERFORMANCE INDICATORS/LOG FRAME .................................................................................... 36 ANNEX 3 – IMPLEMENTATION STRUCTURE ESTABLISHMENT ACTIVITIES ........................................................................... 42 ANNEX 4 –GOVERNMENT RELATION AND REGULATORY ADVOCACY ................................................................................ 43 ANNEX 5 –PROGRAM WORKSHOPS AND PARTNER MEETINGS ....................................................................................... 44 ANNEX 6 –ESTABLISHMENT OF SECTOR DIALOG PLATFORM ACTIVITIES ........................................................................... 45 ANNEX 7 – NETWORKING AND COCOA SUSTAINABILITY CONFERENCES ............................................................................ 45 ANNEX 8 – FINANCIAL BUDGET HEADINGS REPORT 2012 IN CHF .................................................................................. 47 ANNEX 9 – EXAMPLE SUCCESS STORY SUMATRA PROGRAM .......................................................................................... 48 COUNTING ON THE FARMER FIELD SCHOOL ................................................................................................................ 48 ANNEX 10 – EXAMPLE SUCCESS STORY SULAWESI PROGRAM ........................................................................................ 49 FROM DEPLETED SOIL TO NEW HOPE ........................................................................................................................ 49

Table of Figures

FIGURE 1 SCPP ACTIVITY GROUPS AND IMPACT CHAIN .................................................................................................... 10 FIGURE 2 ICCO MONTHLY AVERAGES OF DAILY PRICES IN US$ ......................................................................................... 27 FIGURE 3 SCPP ORGANIZATION CHART ......................................................................................................................... 35

Table of Tables

TABLE 1 KEY FARMER TRAINING OF TRAINERS 2012 ........................................................................................................ 11 TABLE 2 FARMER CAPACITY BUILDING PARTICIPANTS IN GOOD PRACTICES THROUGH FIELD SCHOOLS ........................................ 12 TABLE 3 COCOA FARMER SUMMARY PARTICIPATING IN SCPP ............................................................................................ 13 TABLE 4 DEMONSTRATION PLOTS AND NURSERIES ........................................................................................................... 14 TABLE 5 NURSERY TRAININGS AND SUPPORT .................................................................................................................. 15 TABLE 6 FARM REHABILITATION AND FARM INPUT TRAININGS ........................................................................................... 16 TABLE 7 ESTABLISHED AND SUPPORTED FARMER ORGANIZATIONS ...................................................................................... 16 TABLE 8 STRENGTHENING LINKAGES BETWEEN FARMERS AND TRADERS FOR SUSTAINABLE COCOA PRODUCTION ........................... 18

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TABLE 9 IMPROVING LINKAGES BETWEEN FINANCIAL INSTITUTIONS, FARMER GROUPS AND TRADERS .......................................... 20 TABLE 10 EXTENSION STAFF TRAINING OF TRAINERS IN CERTIFICATION STANDARDS ............................................................... 21 TABLE 11 TOT MASTER TRAINERS FOR PROGRAM AND IMPLEMENTING PARTNER STAFF ......................................................... 24 TABLE 12 BUDGET/EXPENSE COMPARISON SUMMARY ..................................................................................................... 29 TABLE 13 BUDGET COMPARISON PER RESULT AREA ......................................................................................................... 30 TABLE 14 PROGRAM PROCUREMENT AND ASSETS ........................................................................................................... 31

Table of Abbreviations and Acronyms

Abbreviation English Indonesian

ACF Aceh Cocoa Forum Forum Kakao Aceh

ASKINDO Indonesian Cocoa Association Asosiasi Kakao Indonesia

BLPP Agriculture Extension Worker Training Center Balai Latihan Penyuluhan Pertanian

BPTP Research Center for Agricultural Technology Balai Pengkajian Teknologi Pertanian

CHF Swiss Franc Mata Uang Swiss

CPB Cocoa Pod Borer Penggerek Buah Kakao

CPG Cocoa Productive Group Kelompok Tani Produktif

CPQP Cocoa Productivity and Quality Improvement Program

Program Peningkatan Produktivitas dan Kualitas Kakao

CSP Cocoa Sustainability Partnership Kemitraan Kakao Berkelanjutan

DCC District Cocoa Clinics Klinik Kakao Kabupaten

DISHUTBUN Forestry and Plantation Department Dinas Kehutanan dan Perkebunan

EDFF Economic Development Financing Facility

Fasilitas Pembiayaan Pembangunan Ekonomi

EUR Euro Mata Uang Europa

FAQ Fair Average Quality Kakao Kualitas Standar

FFS Farmer Field School Sekolah Lapang

FI Financial Institutions Lembaga Keuangan

GAP Good Agriculture Practices Praktek Pertanian Terbaik

GDP Gross Domestic Product Produk Domestik Bruto

ICCO International Cocoa Organization Organisasi Kakao Internasional

ICCRI Indonesian Coffee and Cocoa Research Institute

Institut Penelitian Kakao dan Kopi Indonesia

ICS Internal Control System Sistem Kendali Internal

IDH Sustainable Trade Initiative Inisiatif Perdagangan Berkelanjutan

IDR Indonesian Rupiah Rupiah (Rp)

KPDT Ministry for Disadvantaged Areas Kementerian Daerah Tertinggal

MOU Memorandum of Understanding Nota Kesepahaman

MT Metric Ton (1,000 Kg – 1 Ton) Ton

PEKA Aceh Cocoa Economy Improvement Program Peningkatan Ekonomi Kakao Aceh

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Abbreviation English Indonesian

PINBIS Business Information Centers Pusat Informasi dan Pengembangan Bisnis

PsPSP Frequent harvest, Pruning, Sanitation, Fertilization

Panen sering, Pemangkasan, Sanitasi, Pemupukan

SCE Smallholder Cocoa Enterprises Usaha Kakao Skala Kecil

SCPP Sustainable Cocoa Production Program Program Produksi Kakao Berkelanjutan

Seco State Secretariat for Economic Development

Sekretariat Negara bagian Pengembangan Ekonomi

SERAP Socially and Environmentally Responsible Agriculture Practices

Praktek Pertanian yang Bertanggung Jawab terhadap Sosial dan Ramah Lingkungan

SME Small and Medium sized Enterprises Usaha Kecil Menengah

SNI Indonesian National Standard Standar Nasional Indonesia

STPP Agriculture Extension Worker High School Sekolah Tinggi Penyuluhan Pertanian

ToR Terms of References Kerangka Acuan

ToT Training of Trainers Pelatihan Menjadi Pelatih

WCF World Cocoa Foundation Forum Kakao Dunia

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Executive Summary

Program Background The Sustainable Cocoa Production Program (SCPP) in Indonesia is a large Public Private Partnership (PPP), initiated and financed by the Swiss State Secretariat for Economic Affairs (SECO) for the duration from 2012 until 2015. The Program targets 60,000 smallholder cocoa farmers for capacity development to improve productivity and quality of cocoa production, and around 1,100 cocoa producer groups and at least 100 formal farmer organizations/cooperatives for strengthening through improved management, organizational capabilities and financial management skills.

The approach and targets set for SCPP are built on the foundation of the successful PEKA project, implemented by Swisscontact in Aceh Province, Indonesia, from 2010 to 2012. PEKA directly trained 12,540 cocoa farmers, increasing productivity by 124% from an average of 330 to 740 kg/ha/year, thereby increasing average cocoa farmer income by 101%, to 1,400 USD/ha/year.

SCPP is directly implemented by Swisscontact in Aceh and five new Provinces with implementing partners from the Private Sector. The projects in the new provinces are part of the Cocoa Productivity and Quality Program (CPQP), with three approved projects for 2012-2015 and three approved inception phase projects for Short Term Matching Fund (STMF) from August 2012 to January 2013. CPQP and STMF are co-financed by The Sustainable Trade Initiative (IDH), Private Sector companies and SECO, coordinated and implemented by SCPP and the Private Sector companies. The Embassy of the Kingdom of the Netherlands (EKN) joined the Program in December 2012 with a supplementary component on better nutrition targeting 40,000 cocoa farming household members (two-third from all 60,000 SCPP beneficiary households).

Achieved Results First Year The Program’s first year (2012) included program socializations, implementing partner negotiations, and the establishment of program structures, followed by the rollout of farmer trainings in all CPQP provinces and farmer group follow-up trainings in Aceh. The implementing team for SCPP was in the 1st semester still busy with completing activities in Aceh under the extended PEKA project, but successfully and officially closed the project in November within budgets, eight months after the planned closing date of the Government led and World Bank supervised facility in Aceh.

For a program as complex as SCPP, the buy-in and cooperation of the Government of Indonesia is a crucial element to its long-term success and sustainability. Signing of contracts and agreements with the District Governments and relevant technical departments, Private Sector and implementing partners were ongoing throughout the year to ensure the above mentioned buy-in and cooperation.

SCPP total Program expenditures in 2012 reached CHF 2,630,234 which is 89% of the modified annual budget of CHF 2,960,254. Seco contribution was 44% and IDH contributed another 30% from the total expenses 2012. The Private Sector expenses for the Program were slightly below target, with so far 23% contribution in the total expenses. Funding from the EKN was accounted for 2%.

Including former PEKA farmers in Aceh participating in SCPP follow-up activities, the total number of farmers involved and benefitting from the Program has reached by the end of 2012 18,746 individual smallholder cocoa farmer households. A total of 65,689 person-training days have been facilitated by the Program during this first year to these in average 41 year old cocoa farmers. In terms of capacity building, Trainings of Trainers (ToT) have been conducted with a total of 205 Cocoa Master Trainers from NGO, local Government, and the Private Sector in the new CPQP provinces. In addition, across these five new provinces 268 Key Farmers have been trained to help facilitate FFS activities on village level.

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Implementation of Farmer Field Schools (FFS1) was conducted in the 2nd semester, with four out of the five provinces completing their respective FFS before the end of the year, while trainings in Central Sulawesi will conclude their 1st batch FFS in January 2013. A total of 5,878 cocoa farmers in 227 farmer groups participated in these new FFS across the five provinces. Training modules included between 7 and 12 days of training for each FFS, depending on agreements with the respective Private Sector partners and need of the participating cocoa farmers.

Across all SCPP provinces, including Aceh, a total of 1,023 FFS demonstration plots and long-term rehabilitation/replanting demonstration plots have been established to help facilitate training and provide a practical guide for continued learning in future follow-up activities. In Aceh, 75 nurseries were established and have produced a total of 194,380 seedlings in 2012. As of December 2012, 44% were sold, 48% were distributed farmer group members and 8% held in stock.

Several workshops regarding the sustainability of District Cocoa Clinics (DCC) have been conducted in Aceh to ensure that these institutions have effective and appropriate technical know-how and planning for commercial activities. Internal Control Systems and structures have been established to enable the five DCC in Aceh to obtain external certification on sustainable production for their members from UTZ Certified and Rainforest Alliance.

The implementing team is progressing on the development a series of training manuals for agriculture extension staff working in the cocoa sector, with technical support and advice from Private Sector partners, Government institutions, research institutions, NGOs, and Program donors. The Good Agriculture Practice manual was completed in the 2nd semester and distributed, while the Post-Harvest Processing manual is now in the final stages of compilation.

Strengthening links between the Aceh Cocoa Forum and the Cocoa Sustainability Partnership continued throughout the year to draw lessons learned for other Provinces regional forum which got established in the last quarter 2012 in West- and South East Sulawesi.

Challenges in the First Year A major challenge faced by the Program over 2012 were delays in the signing of a MoU with the Government of Indonesia for activities to begin on the SCPP/CPQP Program, slowing initial set-up and subsequent cooperation agreements with District Governments for Program implementation. Despite these delays, the Program has socialized all District-level MOUs for SCPP to formalize cooperation and approve implementation of activities on the ground. In addition, due to the varying nature of implementation strategy approaches between Swisscontact (as CPQP Coordinator and Implementing partner) and the private sector, further meetings and negotiations were necessary to develop approaches that effectively aligned the overall Program strategy with the individual needs of the partners. This process also decelerated initial Program implementation, however, general agreement on the strategies have been agreed for all target areas by end of 2012.

During the first semester 2012, the extension of the PEKA project also consumed additional staff resources necessary to ensure the successful closing of the EDFF financed project. Program management and administration staff were still busy with PEKA after conclusion of field activities in June until EDFF has been officially closed in November 2012. Finally, working with Private Sector staff, Government extension and new Program staff in all new Program areas involved a learning process for the implementation of M&E data collection activities, which experienced some challenges in terms of meeting data collection deadlines and quality standards. Detailed planning has been undertaken using lessons learned to ensure smoother implementation of M&E activities and farmer data revisions in 2013.

1 FFS, DCC, Demoplots, Rehabilitation, and other crucial terms are further defined and explained in the

subsequent chapters and respective “Know-How Boxes”.

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Outlook 2013 At national level, Swisscontact as implementer of SCPP is scheduled to sign a new Umbrella MoU with the Ministry of Home Affairs (MoHA) in March 2013, replacing the extended MoU with the Indonesian State Secretariat for its operation in Indonesia.

In January, the three STMF projects, with support from IDH, will be finished. The three projects have been designed as inception phases, starting in August 2012, and are now expected to be continued throughout 2013 until 2015. Concept notes and budgets have been designed with ADM Cocoa to be implemented in West Sumatra, Mars and Cargill in South Sulawesi. IDH Project Appraisal Committee will decide in February 2013 on the further support of the three STMF projects with Mars, Cargill, and ADM under the CPQP 2 facility.

Over the course of 2013, additional trainings will be conducted for existing and new farmers in all SCPP provinces. In total, a further 10,400 farmers in 319 producer groups are targeted for training in Good Agricultural, Social and Environmental Practices through Farmer Field Schools. Outreach training in GAP and nutrition will start in March 2013 to reach an additional 6,250 new cocoa farmers to be included in the existing 403 producer groups in Aceh. Retrospective training in nutrition will also be conducted for 5,350 cocoa producing households already trained in PEKA and first year SCPP. In addition to the 18,736 cocoa producers reported in 2012 a further 16,650 cocoa producers will join the Program in 2013. Therefore, by the end of year two, SCPP will include a total of 35,386 smallholder cocoa farmers, (59% of total Program target).

External audit of the five District Cocoa Clinics in Aceh, new established organizations in South and South East Sulawesi, and trader owned certification in Central Sulawesi will be conducted in April 2013, including 11,000 cocoa farmers to achieve UTZ Certified certification.

Table 1 2013 Cocoa Producer Training Targets

Province #

2012 FFS

# Present Farmers (PEKA +

SCPP 2012)

# new FFS

# new Farmers

through FFS incl.

Nutrition

# new Farmers through

"outreach" incl.

Nutrition

# Nutrition Participants from PEKA and SCPP

2012

# Farmers Certified

Aceh 403 12,616 0 0 6,250 3,750 2,600

Central Sulawesi

56 1,282 110 3,300 0 5,400

South East Sulawesi

49 1,054 33 1,000 0 500 2,000

South Sulawesi (N)

67 2,078 40 2,000 0 1,000

South Sulawesi (S)

10 310 33 1,000 0 300 0

West Sulawesi

35 1,085 70 2,100 0 500 0

West Sumatra

10 311 33 1,000 0 300 0

Total 630 18,736 319 10,400 6,250 5,350 11,000

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The Program

Program Funding and Donors

The Program main donor and funding agency SECO approved SCPP in December 2011 after six months of Program design and internal approval procedures. In the same time, Swisscontact has started negotiations with IDH as a second funding partner for the “Sulawesi Component” of SCPP which includes match funding from selected private sector companies active in the cocoa sector in Indonesia. Swisscontact signed a letter of agreement with IDH to coordinate the CPQP projects and co-signed tripartite implementation agreement with the companies and IDH in December 2012 as well. One year later, in December 2012, Swisscontact and the Embassy of the Kingdom signed a contract to add the Embassy as a third funding partner to the Program.

State Secretariat for Economic Affairs SECO

SECO is the Swiss federal government's center of expertise for all core issues relating to economic policy. Its aim is to ensure sustainable economic growth by putting in place the necessary regulatory and economic policy conditions. In terms of foreign trade policy, SECO is active in the formulating of efficient, fair and transparent rules for the world economy. SECO is also involved in efforts to reduce poverty in the form of economic development cooperation. SECO is the initiator of the Sustainable Cocoa Production Program and its main donor on the funding side and leading institution in the strategic direction of the Program implementation.

The Sustainable Trade Initiative IDH

The mission of the Sustainable Trade Initiative IDH is the acceleration and up-scaling of sustainability within mainstream commodity markets. The focus is on mainstreaming the social and ecological sustainability of commodity supplies from emerging markets to the Netherlands and Western Europe. IDH convenes coalitions of front running companies, civil society organizations and governments to transform markets towards sustainable production and consumption worldwide. IDH cooperates with Swisscontact to implement the Cocoa Productivity and Quality Program (CPQP) in Indonesia as part of the Sustainable Cocoa Production Program.

Embassy of the Kingdom of the Netherlands

The office of the Ministry of Economic Affairs, Agriculture and Innovation within the Embassy of the Kingdom of the Netherlands promotes economic development in Indonesia and concels for agriculture, nature, and food security. The Embassy joined the Program in December 2012 and is focusing with their financial and technical assistance on Food Security and improved Nutrition of Cocoa Smallholders and their household members.

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Sector Collaboration

To enhance the sustainability and commercial viability of the cocoa sector value chain in the target areas, Public and Private Sector involvement is crucial.

SCPP has built sustainability into the Program by integrating all the relevant value chain actors.

Sector Coordination

World Cocoa Foundation: Swisscontact already worked with the World Cocoa Foundation (WCF) in the PEKA project in Aceh (2010-2012) to provide exchange and research fellowships in the United States. Further collaboration on the follow up of Aceh Fellowships will be decided and agreed upon in the first semester 2013.

Cocoa Sustainability Partnership: The Cocoa Sustainability Partnership (CSP) is a public/private forum for the advancement of communication and collaboration between stakeholders /organizations actively engaged in cocoa development initiatives Swisscontact is a member of the CSP and is representing IDH on the Executive board.

Private Sector Companies

Armajaro established up country buying stations in Aceh Tenggara and Lhokseumawe to support and buy directly from PEKA beneficiaries. Armajaro as international exporter brings in huge experience to support the program in warehouse management, Total Quality Management trainings and the introduction of Internal Control Systems (ICS) in farmer organizations. Armajaro links its activities in Central Sulawesi Province to the Program.

Mars Inc. provided technical knowledge on GAP and knowhow transfer to PEKA staff and government extension workers through the projects training of trainer activities. Furthermore, as the leading company in promoting cocoa sustainability and intensified production, Mars has been supporting PEKA in the farm rehabilitation efforts and the supply of best yielding clones for the clone gardens. Mars Inc. further support SCPP both, in Aceh and South Sulawesi in the capacity building activities for staff, extension workers and lead farmers.

Nestlé and SCPP are partners in the Nestlé Cocoa Plan program in West Sulawesi, where Nestlé has committed a lot of support, financially and in-kind to support cocoa communities. The Experimental and Demonstration Farm (ED Farm) established by Nestlé brings in the Nestlé’s R&D Plant Science Center in Tours (France) in collaboration with the Indonesian Coffee and Cocoa Research Institute. This ensures an innovative project approach to train smallholder cocoa farmers in an integrated approach within SCPP.

Archer Daniels Midland (ADM), with their Cocoa Division Head Office in Rolle (VD), partners with SCPP to support cocoa farmers in Southeast Sulawesi and West Sumatra in the establishment of farmer organizations and cocoa buying stations. Their customers of raw beans or processed cocoa products are interested and committed to buy traceable and certified cocoa from SCPP trained cocoa farmers and farmer organizations.

Cargill is including their cocoa sustainability program in South Sulawesi to SCPP. Cargill, alongside ADM, is one of the three biggest cocoa processors worldwide and is establishing a new processing factory in Indonesia in 2013. Therefore, Cargill’s support for sustainable cocoa farming is increasing tremendously in Indonesia and is a committed partner for Swisscontact.

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Local Government

The Program works directly with local governments to ensure alignment of Program activities with government strategies on cocoa cultivation and integrate Government staff into the implementation of the Program. Through the involvement of Government extension workers as lead facilitators/trainers in the Program’s technology transfer and group development activities, SCPP lays the foundation for the Government to take-over similar activities in the future, with capable and knowledgeable extension staff. Working together with the private sector also builds strong working relations between the public and private sector on cocoa sector development in the target provinces and encourages the continued development of the sector in a complimentary manner.

National Government: Although formal signing of an umbrella MoU between Swisscontact and the Ministry of Home Affairs (MoHA) has taken longer than planned, it is expected that the MoU will be completed and signed within the first quarter of 2013. Discussions with MoHA took place over Program implementation strategies, its synergy with the Government of Indonesia’s cocoa strategy, and the viability of undertaking activities in Aceh and Central Sulawesi, due to occasional political disturbances. Scheduling challenges led to a slowing of the process when key signatories have been required, but this is not anticipated to delay the process past the target signing period.

Aceh: SCPP works in Aceh as a direct follow up of PEKA, focusing on the revitalization of cocoa farms. The Program will strengthen and improve the cocoa value chain in Aceh so that the cocoa sector grows and provides additional income for around 25,000 smallholder farmers in five Districts, which represents more than 25% of Acehnese cocoa farmers.

Aceh Province has 18 Districts and 5 major cities, with a total of 78,800 Ha of land cultivated with cocoa and 90,000 cocoa farmers. Annual production is approximately 28,500 metric tons.

West Sumatra: SCPP is undertaken in West Sumatra in collaboration with ADM Cocoa, who acts as the Program implementing partner. The parties have agreed to work together in a pilot program targeting cocoa farmers in the adjoining Districts of Kota Padang, Padang Pariaman and Tanah Datar.

This province has 12 Districts and 7 major cities, with a total of 81,800 Ha of land cultivated with cocoa and 75,000 cocoa farmers. Annual production is approximately 34,000 metric tons.

West Sulawesi: SCPP is implemented in West Sulawesi with Nestlé, who acts as the Program implementing partner. Nestlé Indonesia works with Swisscontact to build farmer capacities, under the Nestlé Cocoa Plan, and set up technical assistance and to develop a Cocoa Experimental and Demonstration Plot, as a cocoa learning center for the farmers in implementing GAP to produce high yielding cocoa through sustainable practices.

This province has 5 Districts with a total of 181,600 Ha of land cultivated with cocoa and 19,000 cocoa farmers. Annual production is approximately 96,000 metric tons.

Central Sulawesi: SCPP is implemented in Central Sulawesi with Armajaro, who acts as implementing partner. In 2012, Armajaro worked with Swisscontact, targeting farmers in both Poso and Parigi Moutong Districts. Due to unrests in Poso, the parties have agreed to focus on Parigi Moutong only in 2013.


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South East Sulawesi: SCPP is implemented in South East Sulawesi with ADM Cocoa as implementing partner under the SERAP project. The parties have agreed to work together to target cocoa farmers in the Kolaka District.


South Sulawesi: SCPP is implemented in South Sulawesi: with Mars and Cargill as implementing partners, the parties have agreed to work together in a pilot program targeting cocoa farmers in Bone District and further up scaling with Mars in Luwu, North and East Luwu.

This province has 21 Districts and 3 Cities with a total of 270,000 Ha of land cultivated with cocoa and 295,000 cocoa farmers. Annual production is approximately 172,000 metric tons.

Implementing Partners

UTZ Certified: UTZ CERTIFIED’s vision is to achieve sustainable agricultural supply chains, where farmers are professionals implementing good practices, which lead to better businesses, where the food industry takes responsibility by demanding and rewarding sustainably grown products, and where consumers buy products which meet their standard for social and environmental responsibility.

Swisscontact and UTZ Certified signed a cooperation agreement in May 2012 to create an efficient certification program for socially and environmentally responsible cocoa production that meets the need of both producers and markets.

Rainforest Alliance: Rainforest Alliance certification ensures that farms comply with comprehensive standards covering all aspects of sustainable farming, including soil and water conservation, protection of wildlife and forests, and ensuring that farm workers, women and children have all the proper rights and benefits, such as good wages, clean drinking water, access to schools, health care and security.

Swisscontact and the Rainforest Alliance signed a cooperation agreement in September 2012 to facilitate the set up of an efficient certification program for socially and environmentally responsible cocoa production that addresses threats to biodiversity and meets the needs of both producers and markets in Indonesia.

Rabobank Foundation: Rabobank Foundation is one of the main pillars of the Rabobank Group's cooperative and sustainability policy. It was founded in 1973 by the local Rabobanks as an independent foundation within the Rabobank organization. The Rabobank Foundation supports small farmers and their cooperatives in rural areas of 24 Latin American, African and Asian countries by helping them improve production, distribution and sales.

Swisscontact and the Rabobank Foundation work together to create a) credit unions, giving the farmers and their families’ access to financial services and b) supporting the nutrion and food security component of the Program together with the University of Wageningen. An MoU is planned to be signed in the first semester 2013.

Input Suppliers: Swisscontact and selected input suppliers (including Syngenta) have expressed interest in collaboration to help improve Good Agricultural Practices, especially related to integrated pest management, among cocoa farmers to help improve their livelihoods. The goal is to create shared value for the cocoa farmers and the private sector partners.

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Indonesian Cocoa and Coffee Research Institute: The Indonesian Coffee and Cocoa Research Institute (ICCRI) was established in 1911 by the plantation owners under the Dutch named Besoekisch Proefstation. Since 1981, under the decree of the Minister of Agriculture, it was promoted as a national research institute under the Agency for Agriculture Research and Development (AARD). ICCRI has the national mandate to conduct research and development on coffee and cocoa. The activities cover agronomy, breeding, soil and fertilization, plant protection, physiology, post-harvest technology, economy and statistics, and biotechnology. ICCRI has signed agreements with Nestle to support the establishment of the Experimental and Development Farm in West Sulawesi and with ADM Cocoa to support the implementation of their SERAP Project in Southeast Sulawesi and the West Sumatra.

Financial Institutes

The Program already collaborates with several financial institutes and is planning to work with a larger number of banks under the proposed Agribusiness Finance Facility. Collaboration has mainly started with Bank Indonesia to reach out on a later stage to all interested financial institutes to support cocoa farmers access to finance.

Bank Indonesia has one single overarching objective: to establish and maintain rupiah stability. This objective incorporates two key aspects: the first is a stable rupiah for goods and services, reflected by the inflation rate. The second is exchange rate stability against other foreign currencies, which is reflected by rupiah performance against other foreign currencies. As an independent state institution, Bank Indonesia is fully autonomous in formulating and implementing each of its task and authority as stipulated by law. External parties are strictly prohibited from interfering with Bank Indonesia's implementation of its tasks, and Bank Indonesia has the duty to refuse or disregard any attempt of interference in any form by any party.

Bank Rakyat Indonesia (BRI) is one of the largest government-owned Banks in Indonesia. Since August 1, 1992 by the Banking Law No. 7 of 1992 and Government Regulation No. RI. 21 in 1992, BRI’s status changed to a limited liability company. Prior to 2003, BRI was and entirely government owned institution, however, in 2003 the Indonesian Government decided to sell a 30% offering to public shareholders, leading to it becoming a public company with the official name of PT. Bank Rakyat Indonesia (Persero) Tbk.

Bank Aceh is helping and encouraging economic growth and regional development in order to improve people's lives through the development of business and corporate world empowerment and economic empowerment of the people, provide added value to their owners and welfare to their employees.

"Trust" is a manifestation and form of the Bank as a fiduciary of the Customer, Owner and society broadly to maintain confidentiality and secure the trust. In order to achieve the vision and mission, PT. Bank Aceh focuses on sound bank management, improving the public economic welfare and regional development efforts by banks that prioritize the optimization of the supply of credit, financing and banking services for the smooth and sustainable development in the region.

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Holistic Program Approach/Strategy SCPP takes a holistic approach to the development of the cocoa sector in selected regions in Indonesia, by not only focusing on improving farming practices, but also through a number of interrelated areas, including:

Enhancing farmer welfare through improved nutrition and income generation;

Strengthening community-based and business-oriented farmer group development;

Facilitating access to price premiums through internationally recognized certification systems;

Enhancing the availability and access farmer groups have to credit and loan facilities;

Improving business linkages throughout the value chain to increase efficiency in the trading system and providing better market mechanisms for all cocoa sector actors.

The above approaches facilitate improved sustainable earning potential for all actors in the value chain, with a particular focus on smallholder cocoa farmers, and generating job opportunities.

SCPP includes five successfully tested core “tools”, integrating government and private sector actors, encouraging sector-wide involvement to build in long-term sustainability. These five core elements of the Program approach are summarized as follows:

Farming Good Practice and Technology Transfer Systems: SCPP uses successfully tested approaches for technology transfer and training in agriculture, environment, social, and business practices, leading to measurable increases in cocoa farmer incomes.

Nutrition and Gender Sensitivity Integration: Malnourishment can cause lower labor output and physical

productivity, and lower levels of women’s empowerment often lead to inadequate resource allocation for nutritional foods in the farmers’ home. SCPP integrates nutrition and gender sensitivity into its farmer field school activities, to improve comprehension about, and access to, nutritional foods.

Farmer Organization, Market Access and Certification: Strong farmer organizations can facilitate the spread of improved farming practices, improved quality standards, and access to inputs. Also, by implementing Internal Control Systems and farmer group trainings at district level, groups can be certified and may access price premiums for certified cocoa.

Integrated Agri-Business Financing: Access to finance for cocoa farmers is a significant challenge and severely reduces potential cocoa business expansion. SCPP is working with several public and private banks to provide easier access to finance for farmer organizations, assisting farmers who wish to grow their business. Outreach and up-scaling is planned to achieve with additional funding as proposed from SECO-WEIF.

Stakeholder Management and Networking Platforms: Improving coordination and cooperation between major stakeholders in the cocoa value chain is crucial to its sustainable development. SCPP uses multi stakeholder approaches to help improve strategic alignment among cocoa sector actors and develop common approaches.

Program Methodology and Monitoring The Program follows clearly defined training methodologies in its implementation and has established a state of the art monitoring and evaluation system, which incorporates the CPQP Key Performance Indicators as well as the overall SCPP objective, goal, and purposes which is in Annex 2. Detailed descriptions of all steps, from planning to implementation and to evaluation where explained in the 1st semester report Annexes 3 and 4.

Figure 1 Program Tools

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Program Impact and Targets The Program targets 60,000 cocoa farmer households for capacity development, to improve the productivity and quality of cocoa production. Around 1,100 Cocoa Producer Groups and at least 100 Smallholder Cocoa Enterprises (SCE), at sub-district level, have been targeted for strengthening through improvements to managerial, financial and organizational capacities. The Program also targets certification of smallholder cocoa farmers, based on international sustainability standards, in order to improve the long-term prospects of the Indonesian cocoa sector. A core target of SCPP is for every cocoa farmer involved in the Program to achieve productivity levels of at least 1,000 kg/ha/year of cocoa through improved farm management, increasing incomes of cocoa farmers and boosting job creation the Indonesian cocoa sector.

SCPP’s overall objective is to increase income and job creation in the cocoa sector in selected areas in Indonesia. Both, Sulawesi and Sumatra have a tradition of cocoa cultivation, making the focus on cocoa naturally relevant to the farming communities in these regions. It is foreseen that by improving the competitiveness of the cocoa value chain in the targeted areas, SCPP will be able to enhance household incomes and living quality through cocoa cultivation, and promote job creation through the increased profitability and scale of cocoa-related businesses.

SCPP activities are clustered in 17 Activity Groups under 4 Result Areas, leading to the desired Program Impact as depicted in the figure below. Progress reporting in the next chapter will follow the impact chain structure with detailed information per activity group.

Figure 1 SCPP Activity Groups and Impact Chain

Result Area 4Knowledge on sustainability, efficient and effective supply chain approaches developed

and shared

Result Area 1Tangible improvements in the ecology and the socio-

economic conditions of production

Result Area 3

Effective collaboration and institutionalization at sector

level

Result Area 2

Tangible improvements in sustainable markets

Activity Group 4.2Supporting stakeholders in

establishing an effective platform for public private

dialogue for the cocoa sector

Activity Group 4.3Supporting stakeholders and

participation of regional cocoa forums in national and

international networks

Activity Group 1.1Farmer training in Good Agriculture-, Nutrition-,

Social-, Environment-, and Business Practices for

sustainable cocoa farming

ImpactIncreased income and job creation in the cocoa sector in Indonesia

Activity Group 3.2Supporting regional cocoa

forums with advocating means of addressing

regulatory and infrastructure constraints

Activity Group 3.3Facilitating appropriate

research and technology transfer systems

Activity Group 2.2Strengthening market

linkages between farmers and traders for sustainable

cocoa production

Activity Group 2.1Strengthening organizational

capacity of cocoa farmer groups/organizations

Activity Group 2.4Supporting internal control, traceability and certification

systems

Activity Group 1.2Training and supporting

cocoa farmers in state-of-the-art post-harvest

processing to meet National Quality Standards

Activity Group 2.3Improving linkages between

financial institutions or credit providers and farmer groups/organizations and/or traders

Activity Group 4.4Developing and sharing of

public relation material and documentation of best

practices

Activity Group 3.4Developing best practice for

effective extension models in the cocoa sector

Activity Group 1.3Establishment of

demonstration plots and nurseries

Activity Group 1.4Farmer training in

rehabilitation techniques and promoting sustainable

use of inputs

Activity Group 2.5Support farmer groups/

organizations with infrastructure and equipment

Activity Group 4.1Donor, Program, and

Program Partner Meetings and workshops

Activity Group 3.1Establish implementation

structures to strengthen local institutions

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Progress Update

Result Area 1: Tangible Improvements in the Ecology and the Socio-Economic Conditions of Production

This Result Area contributes to the overall objective of the project through the strengthening of socio-economic conditions for the beneficiaries and supporting the sustainability of local ecology and natural resources. This includes the training of farmers in good practices for cocoa production, cocoa farm rehabilitation, as well as good environmental and social practices to promote environmental sustainability and community cohesion. Training in post-harvest practices promotes value-added production from which farmers can gain higher margins and the development of cocoa tree nurseries, providing additional entrepreneurial possibilities and improved household financial security. Interactive learning using demonstration plots also improves technology transfer and provides practical opportunities for beneficiaries to apply the training techniques.

Activity Group 1.1

Farmer Training in Good Agriculture-, Nutrition-, Social-, Environment-, and Business Practices for sustainable cocoa farming

In 2012, the program started trainings in all six Program provinces. Training of Program Master Trainers in new implementation regions of Sulawesi and Sumatra had to be conducted as a first step, before Farmer Field Schools (FFS) can start. Training of Trainers (ToT) for these Master Trainers is further elaborated in Result Area 3. ToT of Key Farmers (Village Lead farmers of Farmer Groups) on the following core topics were conducted between June and December 2012 in all six Provinces:

Participatory Rural Appraisal (for needs assessment and planning);

Good Agricultural Practices (GAP), within which are integrated Good Environmental Practices (GEP) and Good Social Practices (GSP);

Nursery management and top grafting techniques;

Cocoa farm rehabilitation for unproductive trees, and replanting;

Post-harvest processing, quality control, fermentation, and Good Business Practices (GBP);

Introduction to sustainable cocoa production certification and ICS;

Facilitation and presentation skills for training delivery.

Table 1 Key Farmer Training of Trainers 2012

Province Start Date

End Date

Total Participants

Participants

Male Female % Female

Aceh 14-Dec 31-Dec 267 250 17 6%

Central Sulawesi 11-Jul 28-Sep 93 82 11 12%

South East Sulawesi 10-Oct 16-Oct 34 29 5 15%

South Sulawesi (N) 2-Oct 16-Oct 76 72 4 5%

South Sulawesi (S) 22-Sep 28-Sep 10 10 0 0%

West Sulawesi 25-Jun 1-Jul 35 29 6 17%

West Sumatra 2-Oct 11-Oct 20 16 4 20%

Total ToT Key Farmer Participants 535 488 47 9%

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Key Farmers received seven consecutive days of focused Training of Trainers (ToT) from the earlier trained Programs Master Trainers (see Result Area 3). The Program facilitated trainings for a total of 535 Key Farmers, including 268 Key Farmers from the new Program regions (CPQP) and 267 Ex-PEKA Key farmers from Aceh. Female participation was just 9%, which is significantly below target, especially in South Sulawesi projects, and necessary corrective actions are in place for the next training batch.

To ensure effectiveness of FFS implementation activities in the new target Provinces, several coordination meetings were held with Key Farmer representatives, private sector partners, and government agencies. In the meetings, participants discussed the Program implementation strategy, local constraints and conditions, and the best ways of ensuring participation and sustainability in the Program. A total of 631 participants (more than 50% farmers) took part in the discussions and details of the participation in these meetings can be found in the table below.

FFS were successfully conducted in only five out of the six SCPP targeted provinces, as in Aceh the FFS were concluded with 16 training days under PEKA. These new FFS varied in length between 5 and 12 days, depending on agreements with the private sector partners in each province. For further details, please see the table below. In Central Sulawesi FFS are expected to be concluded in February 2013. The new FFS in CPQP areas were attended by 5,878 cocoa farmers. In Aceh 2,191cocoa farmers received follow up trainings on specific topics related to best practices and ICS. Therefore, farmers involved in trainings related to activity group 1.1 reached by end of 2012 a total of 8,069 cocoa farmers, including 14% female participants.

In Aceh, the Government Extension Services and Department of Estate Crops has budgeted for internal ToT for their own staff on GAP to expand outreach under government cocoa programs and to follow-up this with farmer trainings, using the knowledge and skills developed from working with SCPP. This not only shows the strong integration of government agencies in the Program implementation, but also points to the expanding use and application of know-how gained by involved government staff in the general implementation of cocoa development in the province. A similar knock-on effect is expected to be seen in the coming years in other provinces as roll-out of the Program continues.

Table 2 Farmer Capacity Building Participants in Good Practices through Field Schools

Province Start Date

End Date

# Training

Days

Total Partici-pants

By Gender

Male Female %

Female

Aceh 14-Dec 31-Dec 1-2 2,191 1,837 354 16%

Central Sulawesi 15-Aug 31-Dec 5 1,189 1,098 91 8%

South East Sulawesi 20-Sep 30-Nov 12 1,020 836 184 18%

South Sulawesi (N) 22-Aug 22-Dec 7 2,011 1,747 264 13%

South Sulawesi (S) 8-Aug 15-Dec 9 300 234 66 22%

West Sulawesi 6-Sep 12-Dec 12 1,050 942 108 10%

West Sumatra 23-Oct 27-Dec 8 311 221 90 29%

Total Farmers Trained in GAP 8,069 6,914 1,155 14%

Farmer Field Schools (FFS) are a training system used to impart technical and practical know-how and skills to farmers through technical training, physical demonstration in the field and learning-by-doing exercises. The FFS take place once a week for a farmer group (usually 25-30 farmers), whose members are encouraged to apply the techniques they learn on their farm in-between the weekly meetings, immediately apply learned skills and identifying relevant questions and clarifications that facilitate the learning process. FFS usually take place on a demonstration plot, where demonstration of GAP can be conducted.

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In above table, trainings on farm inputs, rehabilitation, and post-harvest are not included as they are reported separately in activity groups below. But for reporting purpose on the total number of farmers trained in capacity building measures, we also include the 12,540 PEKA cocoa farmers involved in the follow activities within SCPP.

As can be seen from the table below, SCPP is active in six Provinces, 17 Districts, and 92 Sub-Districts, working directly with 18,746 smallholder cocoa farmers. Average age of all SCPP participants is 41 years (as per mid 2012) with the youngest farmers participating in West Sulawesi.

Table 3 Cocoa Farmer Summary Participating in SCPP

Province District # Sub

Districts Average

Age

Total Partici-pants

By Gender

Male Female %

Female

Aceh 5 51 41 12,616 9,964 2,652 21%

Central Sulawesi 2 8 36 1,282 1,180 102 8%

South East Sulawesi 1 3 41 1,054 865 189 18%

South Sulawesi (N) 3 13 44 2,078 1,811 267 13%

South Sulawesi (S) 1 1 40 310 244 66 21%

West Sulawesi 2 6 38 1,085 971 114 11%

West Sumatra 3 8 47 321 229 92 29%

Total SCPP 18,746 15,264 3,482 19%

The Program did not yet fully reached its overall ambitious gender inclusiveness target of 20% female inclusion. For all cocoa farmers and key farmers including all farmers from Aceh, the 19% achieved is not that far from the target. But for Key Farmers there was a greater short-fall, reaching just 9%. In some areas, particularly in Central and West Sulawesi, female participation was extremely low, partly due to cultural conditions. In the remaining three regions female participation was very close to, or in excess of the target. Notably, West Sumatra, with its matrilineal land ownership culture had 29% female participation, well in excess of the Program target. The Program plans to continue and improve its efforts for gender inclusion in 2013 and beyond.

In the first semester 2012, an extensive survey of 1,102 former PEKA project trained farmers was undertaken in Aceh to collect the PEKA post line and a detailed SCPP baseline for this target group of approximately 12,500 farmers. In addition, this survey provided both a comprehensive testing of the Program’s Monitoring and Evaluation data collection system as well as a thorough evaluation of the impact and adoption of recommended practices, which allowed lessons learned to be drawn from the results. These results and lessons learned have been fed into the continuous improvement of the SCPP Program, which uses a training and implementation system developed from the approaches used in the PEKA project.

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Activity Group 1.2

Training and supporting cocoa farmers in state of the art post-harvest processing to meet National Quality Standards

Training of farmers in state of the art post-harvest processing is integrated into FFS activities. In Aceh 186 selected farmer group representatives received post FFS trainings on cocoa fermentation as the Indonesian cocoa grinding industry increased its capacity and is short of fermented bean supply. The cocoa grinding industry is highly committed to source directly from these farmer groups, if the fermented cocoa meets agreed quality standards. A summary of these trainings can be seen in the table below. In provinces where FFS were held in the 2nd semester of 2012 SCPP will undertake follow-up trainings in state of the art post-harvest processing over 2013 and beyond.

Activity Group 1.3

Establishment of demonstration plots and nurseries

The Program supported ICCRI (Indonesian Cocoa and Coffee Research Institute) in the Experimental and Development (ED) Farm in West Sulawesi. The ED Farm (3 ha) is intended to be a learning center and demonstration unit for Nestlé Cocoa Plan farmer trainings, similar to the District Cocoa Clinics (DCC) established under PEKA, and maintained under SCPP, in Aceh.

These demonstration plots are farms owned by a Key Farmer or a supported Farmer Group member. These plots are supported with key inputs and basic pruning tools necessary to carry out all recommended Good Agricultural Practices (GAP). The SCPP team (including Swisscontact staff, Private Sector Partner staff and the Government Extension workers) work together to support the demonstration plot owners correctly apply all the recommended practices on the plot. These plots are then used by the SCPP team and Key Farmers as areas where practical demonstrations and learning-by-doing exercises can be conducted, so that trainings pass on practical know-how and skills, as well as technical knowledge.

Demonstration plots for recommended practices (GAP) and training have already been established and maintained in 558 FFS locations. A total of 1,023 demonstration plots have been established, which also includes 465 longer term rehabilitation and/or replanting demonstration plots. In Aceh 75 nurseries were established at, and are maintained by, Smallholder Cocoa Enterprises (SCEs) and DCC as part of their business development strategies. In the new Program areas, only two additional nurseries have been established by the end of 2012, as the support of nurseries is part of the farmer organization activities in 2013. A breakdown of the total number of demonstration plots and seedling production facilities established and maintained so far can be seen below:

Table 4 Demonstration Plots and Nurseries

Province FFS Demo

Plot Long-Term Demo Plot (Replanting/Rehab)

Total Demo Plot Nurseries

West Sulawesi 35 1 36 1

South East Sulawesi 34 1 35

South Sulawesi 2 10 1 11 1

South Sulawesi 1 66 36 102

Central Sulawesi 0 6 6

West Sumatra 10 10 20 5

Aceh 403 410 813 75

Total Demo Plots 558 465 1,023 82

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Cocoa farmer group and SCE representatives were trained on cocoa nursery development as they received nursery equipment during the PEKA project, based on clear selection criteria. Follow up trainings for these farmers was conducted during 2012 in to strengthen SCE nursery management and marketing and were attended by 207 farmer group representatives, as shown in the table below:

Table 5 Nursery Trainings and Support

Activities Province Start Date

End Date

Total Participants

By Gender


SCE Nursery Training Aceh 4-Jan 25-May 207 178 29 14%

Seedling Marketing Aceh 1-Nov 1-Nov 26 2 24 92%

Total Farmers Rehabilitation and Farm Input Trained 233 180 53 23%

The 75 nurseries in Aceh have produced in 2012 a total of 194,380 seedlings. 44% were sold to NGO, local Government, input traders, or other farmers. 48% were distributed to members of the respective farmer organization and by December 8% were on stock. Buds for the production of top-grafted seedlings must be sourced from certified cacao trees. The supported nurseries use necessary bud wood from Program and Government supported clonal gardens and side grafted trees throughout the Program areas.

Activity Group 1.4

Farmer training in rehabilitation techniques and promoting sustainable use of inputs

Master Trainers and Key Farmers were trained on specific modules regarding rehabilitation and farm inputs during ToT for the five provinces conducting FFS. These topics were embedded into the FFS trainings in all of these provinces. These trainings took place toward the end of the 1st semester, meaning that the implementation and results of rehabilitation, replanting and regeneration will be evaluated in the first annual survey to be conducted in the 2nd semester 2013, following the conclusion of the 1st batch farmer trainings and the subsequent implementation of the relevant GAP.

In Aceh, without new FFS under SCPP so far, specific one day follow-up trainings were held for Ex-PEKA farmers on rehabilitation and compost production. These trainings were conducted for a total of 7,880 cocoa farmers, to follow-up rehabilitation/replanting support provided in the PEKA project, consolidate learning and application of recommended practices. Additional training was also provided to 126 cocoa farmers in composting processes.

47 farmer organizations have been supported so far with mechanical choppers and compost production units. Some of the farmer organizations have submitted their samples for laboratory testing and have been approved by the government to sell their compost on the open market. So far they produced 34,000 kg organic compost. 19% were sold and 81% distributed to their farmer organizations members.

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Table 6 Farm Rehabilitation and Farm Input Trainings


End Date

Total Participants

By Gender


Follow up training on cocoa rehabilitation

Aceh 16-Jan 27-Mar 7,754 5,977 1,777 23%

Compost production and training

Aceh 14-May 1-Nov 126 112 14 11%

Total Farmers Rehabilitation and Farm Input Trained 7,880 6,089 1,791 23%

An evaluation of the clonal gardens in Aceh Tenggara and Pidie Jaya was conducted by the Program to identify the most effective clones for the districts and thereby provide recommendations to farmer groups on the various characteristics of different clones. This evaluation can now be used by the farmer groups to inform their nursery activities and clone selection. Lessons were also drawn from these two clonal gardens to establish a clonal garden and demonstration farm at the ADM Cocoa warehouse in Kolaka, South East Sulawesi. Farmers supplying their cocoa to the buying station can benefit from a showcase farm, using and testing the best clonal material available to the Program.

Result Area 2 - Tangible Improvements in Sustainable Markets

This result area contributes to the overall objective of the project through the development of capacities and systems for the development of sustainable cocoa-related markets. This includes the development of capacity among cocoa farmer groups so that they are better able to manage their group activities in an entrepreneurial manner and make the most of economic opportunities when they arise, such as the increased margins and sustainability linked to the adoption of UTZ/RFA certification. Strengthening market linkages between farmer groups, local and international cocoa sector actors, as well as facilitating and supporting improved availability of credit mechanisms provide systemic strengthening of the cocoa sector in the target regions, enhancing competitiveness, reducing bottlenecks and promoting the development and growth of the sector, thereby creating new job opportunities and improving the earning power of all actors in the value chain.

Activity Group 2.1

Strengthening organizational capacity of cocoa farmer groups/organizations

Strengthening of selected farmer groups/organizations, or Cocoa Producer Groups (CPG), is both part of the FFS process and also an ongoing process of farmer empowerment following the FFS. This activity will be followed up in cooperation with the Private Sector Implementation Partners over the entire length of the Program. The table below shows that a total number of 630 farmer groups have been established and supported by the end of 2012:

Table 7 Established and Supported Farmer Organizations

Province Producer Groups Gapoktan or SCE District Farmer

Association or DCC

Aceh 403 60 5

Central Sulawesi 56 0 0

South East Sulawesi 49 15 0

South Sulawesi (N) 67 0 0

South Sulawesi (S) 10 0 0

West Sulawesi 35 0 0

West Sumatra 10 0 0

Total Groups 630 75 5

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In the five targeted districts in Aceh, a total of 403 Cocoa Producer Groups were developed in the PEKA project. Those farmer groups participated in the FFS process, receiving training on GAP topics, and if capable of meeting selection criteria, were supported to develop their groups into Smallholders Cocoa Enterprises (SCE). One SCE manages a number of CPG (on average 8) at sub-district level. The main development objective of SCE is to become a business incubator for the producer groups, and provide embedded services to the farmers. These SCE are similarly referred to as Gabungan Kelompok Tani (called GAPOKTAN)

at national Government program level. The 75 SCE in Aceh and South East Sulawesi received training in Group Management and Administration and Good Business Practices. At district level, five District Cocoa Clinics (DCCs) were established in PEKA, comprising all supported SCE and CPG in the respective District. These structures will be strengthened during SCPP, building upon the existing foundations of PEKA, to create strong, sustainable and well-managed organization structures.

Over the course of 2012, various organizational strengthening, coordination and development activities were conducted to both DCC board members and SCE group representatives. A total of 907 participants received trainings in the enhancement of management skills, administrative development and coordination meetings to improve interactions and implementation of both DCC and Program activities.

As part of the further development of the DCCs, the board members, with support from the Program, have worked with relevant government agencies to formalize their legal status and develop robust and appropriate administrative systems. 15 DCC board members and 5 farmer representatives participated in the process, leading to the legalization of the DCCs as “Associations”. The five so far established DCCs now have the option to pursue registration as a cooperative or as a registered business, which will be followed-up over the course of 2013 and beyond by the Program.

The Rabobank Foundation conducted in December 2012 assessments of the five DCC in Aceh to ascertain credit-worthiness, long-term viability and identify eventual shortcomings in the capacity building support from the Program. The assessment report will be available in early 2013 and recommendations will be considered to improve the DCC performance and organizational strength. A copy of the assessment will be submitted to SECO, together with the proposal for the additional agribusiness financing facility.

District Cocoa Clinics (DCC) are institutional structures set up at district level to provide long-term support to farmer groups in the district with access to improved clonal seedlings (through clone gardens), compost (through composting activities), training services in GAP, and management of Internal Control Systems (ICS) for certification processes. These DCC are run by a management board, steered by an advisory board made up of local government representatives and key stakeholders. The supported DCCs plan to be registered with the Government of Indonesia as either Private Organizations or Cooperatives by the end of the Program, to ensure their ability to support farmers after the completion of the Program

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Activity Group 2.2

Strengthening of market linkages between farmers and traders for sustainable cocoa production

This is an ongoing activity from Private Sector implementing partners, as part of their commercial activities. Over the course of 2012, special workshops and trainings were undertaken in Aceh and West Sumatra to strengthen linkages between farmers and traders for sustainable cocoa production. As part of group development and strengthening activities following FFS, similar activities will be conducted in the other target provinces over the course of 2013.

These workshops focused on access to markets and collective marketing of products by farmer groups. In Aceh, 115 cocoa farmers and 12 traders participated in workshops on access to markets and nursery management. A one day workshop was also held for 14 farmer group representatives on how cocoa producer groups can develop collective marketing approaches.

In West Sumatra a two day workshop was also conducted on access to markets to traders, intended to improve linkages between traders and farmers in the target districts. This training was attended by 6 trader representatives. Farmer field days were also held to facilitate knowledge sharing between cocoa producer groups and improve linkages between groups and supply chain actors. The field days included 264 farmers and 12 traders.

Specific technical trainings were also conducted in 2012 for traders in Aceh, to strengthen capacities for quality control (including use of moisture testing equipment and scales) and sorting by bean quality, Indonesian National Quality Standards (SNI), bagging, handling and warehousing. This training was provided to 31 participants from trading businesses and also 70 representatives SCE.

Table 8 Strengthening linkages between farmers and traders for sustainable cocoa production


End Date

Total Partici-pants

By Gender By Vocation

Male Female Farmer Trader

Market Access and Nursery Workshops

Aceh 3-Jan 16-Jul 115 110 5 103 12

Trading Technical Training

Aceh 14-

May 25-May 101 99 2 70 31

Collective marketing development meeting

Aceh 20-Sep 20-Sep 14 12 2 14 0

Access to Markets Workshop

West Sumatra

19-Dec 20-Dec 6 4 2 0 6

Farmer Field Day West Sumatra

19-Dec 20-Dec 264 186 78 252 12

Total Farmers Trained in Market Linkage Topics 500 411 89 439 59

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Activity Group 2.3

Improving linkages between financial institutions or credit providers and farmer groups/organizations and/or traders

A liberalization of financial markets introduced by the government in 1988 has brought a number of new rural banks into operation in the Indonesian rural financial system. However, these institutions are mainly concerned with non-agricultural producers (e.g. small off-farm enterprises). Hence, agricultural producers have limited options to access credit through Government credit programs for financial assistance. To address this issue, in March 2012 SCPP signed a MoU with financial institutions, credit providers, and the Bank of Indonesia - Aceh. Collaboration has also started with Bank Indonesia in Sulawesi, first meetings were held during the 2nd semester, and a MoU is planned to be signed in the 1st quarter 2013.

The collaboration under the MoU with Bank Indonesia in Aceh has resulted in significant progress in 2012. Since the MOU signing, 9 banks have begun disbursing loans and actively participating in the cocoa sector. These banks are: BRI, Bank Aceh, Bank Danamon, BTPN, Mandiri Bank, Syariah Mandiri Bank, EXIM Bank, BPR Muttaqien, Mandiri Finance. Over this period a total of IDR 6,530,560,000 (roughly CHF 650,000) has been disbursed to 19 cocoa traders in the five Districts in Aceh.

One cocoa trader in Bireuen was provided credit to develop a loan scheme for fertilizer sales to cocoa producer groups, repayment is based on harvesting time, and interest rates to farmer are just 5% per year.

The Rabobank Foundation has visited Program locations in South East Sulawesi and is preparing financial and technical support for one of the selected CPG. The Program and the Rabobank Foundation held a coordination meeting on the 25th of October, facilitating assessments of District Cocoa Clinics in December for each of the target districts in Aceh, with three bank participants and a total of 103 cocoa farmers taking part in the assessments and discussions. The Program also followed up on its commitment to the Bank of Indonesia agriculture credit revitalization scheme, whereby the Program plans to work with up to 19 local commercial banks to provide necessary loans for farm rehabilitation and farm maintenance.

In April 2012 trainings were held for SCE to strengthen their commercial activities and improve group development. These trainings covered improved business management and leadership skills, administration and bookkeeping, cost-benefit analysis and business plan writing to improve access to finance and resource management as commercial activities are up-scaled. The trainings were attended by 147 SCE representatives (including 5% female participants).

Training of bank account officers from Bank Indonesia and 14 public and private sector banks was also conducted in April, focusing on effective risk management in the cocoa sector, by improving bank understanding of crop cycles, pest and disease issues and credit needs of farmers for agricultural inputs, rehabilitation and replanting schemes. These trainings were attended by 38 bank account officers and 5 farmers, who provided practical advice and inputs on issues related to cocoa farming.

The Rabobank Foundation also conducted assessments on the five District Cocoa Clinics in Aceh to assess their credit worthiness for potential future financing. The assessments, conducted between the 6th and 16th of December 2012 showed significant strengths among the DCC with staff capacity, following PEKA and SCPP trainings, relationships with stakeholders and services offered. There is a clear need for up-scaling of sales and DCC working capital, which SCPP intends to focus on in the future. Improvements in these areas should also significantly improve the product and long-term perspective of the DCCs and also boost membership, as more farmers appreciate the financial benefit of working with the DCCs. The DCCs will also be further strengthened and increase their membership and improve their product through certification processes with UTZ or Rainforest

- 20 –

Alliance, where they will act as the oversight and management body for certified cocoa from Program farmers in the district. The chart below shows the cumulative assessment spider diagram of the Rabobank Foundation’s assessment of the DCCs.

A summary of these activities can be seen in the tables below:

Table 9 Improving linkages between financial institutions, farmer groups and traders


End Date

Total Partici-pants

By Gender By Vocation

Male Female Farmer Banks

ToT SCE Aceh 16-Apr 27-Apr

147 140 7 147 0

Bank Account Officer Training

Aceh 16-Apr 18-Apr

43 42 1 5 38

Financial Institution Assessment Meeting

Aceh 6-Dec 16-Dec

99 91 8 89 10

Coordination for Rabobank Assessment

Aceh 25-Oct 25-Oct

16 13 3 14 2

Total Participants in Linking Farmers to Finance 321 299 22 269 52

A Concept Note/Memo is in preparation to be submitted to SECO-WEIF for additional funding, targeted specifically on improving access to finance of commercial banks and capacity building within the program and the farmer organizations, in line with the focus of this activity group and to achieve the necessary outreach to create sustainable solutions.

Activity Group 2.4

Supporting internal control, traceability and cocoa certification systems

M&E Data collection from all FFS participants (including Key Farmers) was undertaken during the 2nd semester 2012, including GPS positions of all cocoa gardens. The farmer data went through various quality control systems before entry into the SCPP Management Information System (MIS) and provides individual baselines for the farmers in the Program. GPS data points are in the process of being verified and will provide a foundation for traceability in 2013. Traceability (including farm locations of every single member of farmer groups) is a key consideration, and forms a crucial element, for a successful certification program.

For traceability and cocoa certification in Aceh, SCPP collaborates with the Cocoa Sustainability Partnership (CSP) in conducting field tests for training on a new manual developed for both certification body standards (UTZ Certified and Rainforest Alliance) regarding cocoa certification processes. The SCPP team gave significant contributions to the development of the Certification Training Manual through the CSP Farmer Empowerment and Sustainable Supply Working Groups. The Certification Training Manual was launched in Makassar during the CSP General Assembly Meeting in September 2012.

Using the manual and trainers from certification bodies (UTZ and Rainforest Alliance), Master Training of Trainers were held in Aceh, so that Program staff, key private sector partner staff and key Government personnel gained sufficient knowledge and skills to be able to train others on certification processes. This is a necessary element in building a platform for outreach to the Program’s target farmers. A total of 20 participants attended the trainings, gaining the skills necessary to train Key Farmers and extension staff in certification practices. A summary of these trainings can be found in the table below:

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Table 10 Extension Staff Training of Trainers in Certification Standards

Province Activities Start Date

End Date

Total Partici-pants

By Gender By Sector

Male Female NGO Public Private

Aceh UTZ Certification Master ToT

28-Aug

31-Aug

6 5 1 6 0 0

Aceh UTZ Certification Staff ToT

4-Sep 6-Sep 8 7 1 8 0 0

Aceh RFA Certification ToT

4-Sep 6-Sep 2 1 1 0 0 2

Aceh Certification Staff ToT

5-Sep 8-Sep 4 4 0 0 2 2

Total Certification Staff TOT 20 17 3 14 2 4

During the Certification Training Manual field tests in Aceh and West Sulawesi, training on certification standards and processes was held for 36 cocoa farmers, preceding roll-out of certification training in Aceh. Certification training for master trainers and cocoa farmers in the target provinces in Sulawesi is planned to start in the 1st semester 2013.

Activity Group 2.5

Support farmer groups and enterprises with infrastructure and equipment

Through the FFS process, a total of 227 new farmer groups were formed or strengthened in the five target provinces where FFS were held. In Aceh, follow-up support for existing Ex-PEKA groups was provided over the course of 2012. These 403 groups will be further strengthened over the course of the Program and memberships shall be expanded through farmer-to-farmer trainings and technical support and trainings from Program partners and the local Government. In general, the Program does not provide large infrastructure to farmer groups, but small investments to kick start business activities such as input provision and post-harvest services. Larger investments shall be covered through commercial loans, obtained by participating banks in the Program.

Result Area 3 - Effective Collaboration and Institutionalization at Sector Level

This result area contributes to the overall objective of the project through enhancing collaboration and cooperation among key private and public stakeholders in the Indonesian Cocoa sector and institutionalizing agreed upon common strategies to provide a more coherent and unified approach to cocoa development in the country. By establishing cocoa forums at the provincial level, the voice of private and public sector stakeholders at province, district and sub-district level may be heard, ideas may be discussed and provincial strategies formulated to promote enhanced development of the cocoa sector both commercially and for the public good in the respective area. These forums can then be linked to the Cocoa Sustainability Partnership (CSP)2 at national level, thereby providing a common platform through which the ideas, strategies and challenges faced in the provinces represented may be discussed, and through which, national level strategies may be formulated. In addition, the strategies formulated may then act as a basis for policy advocacy and recommendations for national government strategies and planning regarding the cocoa sector. These activities support the development of a strong and economically successful cocoa sector, providing improved economic opportunities and markets to the Program’s beneficiaries.

2 http://www.cspindonesia.org/

http://www.cspindonesia.org/

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Activity Group 3.1

Establish implementation structures to strengthen local institutions

SCPP uses and builds upon existing implementation structures set up during the PEKA project in the five targeted districts in Aceh. Offices for CPQP project implementation teams have been established in all 17 Districts, either in Implementing Partners’ warehouses or Government institution offices.

The table Annex 3 summarizes the 14 activities that were conducted in 2012 to strengthen local institutions and implementation structures. Aceh DCC strengthening activities to improve sustainability are explained in detail in Activity Groups 2.1, 2.2 and 2.3, as related to each section.

Implementation structures for Program implementation, such as offices in the Provinces, are, at present, just offices to support field activities. It is anticipated that DCC structures will be developed in other provinces, similar to Aceh, to provide sustainable implementation structures for the future over the course of the Program.

Activity Group 3.2

Supporting regional cocoa forums with advocating means of addressing regulatory and infrastructure constraints

The development of province level forums is in the early stages of development, with discussions being undertaken and frameworks being established. The forums will be connected to related Government institutions to ensure support and buy-in from the beginning.

In Aceh, where the provincial forum is actively engaged in cocoa sector development, a series of trainings and workshops were conducted by PEKA to support the Aceh Cocoa Forum, particularly to support advocacy to address regulatory and infrastructure constraints in Aceh and also strengthen linkages and networking between key actors in the Aceh cocoa sector. Support for the forum was taken on by SCPP in the 2nd semester 2012.

In West Sulawesi a new Cocoa Forum was initiated through a cocoa stakeholder meeting from the 12th to 14th of November in Mamuju, at the Provincial Governor’s Office The meeting was attended by government institutions (Governor, Bappeda – Regional Development Planning Department, Disbun – Department of Estate Crops, and BP4K – Agriculture Extension Services) private sector cocoa companies (Nestle and BT Cocoa), input suppliers (Syngenta, Saprotan and Sulawesi Subur Sejahtera), research institutes (ACIAR, ICCRI and BPTP), Local Business Service Providers, Farmer Associations and farmer group representatives. Several topics were discussed during the meeting, including Cocoa policy in West Sulawesi, Access market and input supply, and service providers and financial services for farmers. At the end of the meeting, a cocoa forum management board was elected who will proceed with the development of an organizational structure and work plan, leading to the formal legalization of cocoa forum and endorsement by the Governor of West Sulawesi.

A similar meeting of cocoa stakeholders conducted in Kolaka, South East Sulawesi, on the 29th of November at the ADM Cocoa warehouse. The meeting was attended by government institutions (Bappeda, Crop Department and Agriculture Extension Services), ADM Cocoa, research institutes (ICCRI and BPTP), Large-scale farmer group (Gapoktan), Financial institutions (Banks) and Cocoa Farmer Cooperatives. At the end of the meeting, a cocoa forum management board was elected who will proceed with the development of an organizational structure and work plan, leading to the formal legalization of cocoa forum and endorsement by the Governor of Regent of Kolaka.

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A summary of the 7 activities carried out for this activity group can be found in Annex 4.

Government Buy-In and local budget contribution: Although three of the program provinces have yet to budget funds for supporting the Program, it is expected that they will do so by the budget deadline of April 2013. The other four provinces have committed to spend a total of IDR 3,450,000,000 (around 334,500 CHF) to support Program activities in 2013. This includes the participation and integration of government Extension Workers into Program activities and support from other government departments, such as the Department of Estate Crops (Disbun). This indicates the district governments’ commitment to ensure the success of the Program and, in cooperation with the Program, its intent to have Extension Services with strong technical know-how on cocoa cultivation. This will help to facilitate continued government funded cocoa sector development activities in the future. The following shows the respective Districts support to Program activities as a result of addressing constraints in local regulations and budget approvals:

Aceh: The five District Governments in Aceh contributed a total of 2,898,000,000 IDR in 2012 (around 281,000 CHF) and committed to contribute 3,002,000,000 IDR in 2013 (around 291,000 CHF) to support Program activities, pending budget approval in April 2013.

West Sumatra: The three district governments in West Sumatra have not yet had their budget approved and so their planned contributions to the Program are not yet clear for 2013. The budgets for the year should be approved by April 2013.

West Sulawesi: The two District Governments in West Sulawesi have committed to contribute 319,000,000 IDR in 2013 (around 31,000 CHF) to support Program activities, pending budget approval in April 2013.

Central Sulawesi: Due to unrests in Poso, the parties have agreed to focus on Parigi Moutong only in 2013 and closing Program activities in Poso District. The district government of Parigi Moutong has committed to contribute 25,000,000 IDR in 2013 (around 2,400 CHF) to support Program activities, pending budget approval in April 2013.

South East Sulawesi: The district government of Kolaka District, in South-East Sulawesi, has committed to contribute 104,000,000 IDR in 2013 (around 10,000 CHF) to support Program activities, pending budget approval in April 2013.

South Sulawesi: The district governments in South Sulawesi have not yet had their budget approved and so their planned contributions to support Program activities are not yet clear for 2013. The budgets for the year should be approved by April 2013.

Activity Group 3.3

Facilitating appropriate research and technology transfer systems

The ToT for extension staff in the five CPQP provinces both lays the groundwork for Program implementation, and also provides sustainable technical knowhow to Private and Public Sector staff that can, both during and after the Program, actively transfer technology to farmers. The ToT in the new Program regions follows the same approach as successfully tested in PEKA. As can be seen in the table below, a total of 143 government staff, predominantly from the Departments of Estate crops and Government Extension Services participated in the trainings, along with 14 SCPP Program staff and 22 Private Sector Partner Staff. These trainings provide a cadre of master trainers that can then train trainers and key farmers to further expand outreach of the topics covered in the trainings. These trainings cover all core aspects of the recommended practices espoused by the program, from good agricultural, social, environmental and business practices to certification standards, quality control and facilitation techniques.

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Table 11 ToT Master Trainers for Program and Implementing Partner Staff

Province Start Date

End Date

Total Participants

By Gender By Sector

Male Female NGO Public Private

Central Sulawesi 2-Jul 8-Jul 39 35 4 2 30 8

South East Sulawesi 13-Jul 19-Jul 30 25 5 2 27 1

South Sulawesi (N) 25-Sep 16-Dec 62 50 12 6 25 6

South Sulawesi (S) 20-Sep 26-Sep 19 17 2 2 10 5

West Sulawesi 28-May 11-Oct 44 33 11 2 40 2

West Sumatra 2-Oct 11-Oct 11 7 4 0 11 0

Total Master ToT Participants 205 167 38 14 143 22

Over the course of 2012 a number of ToT and workshops were held in Aceh attended by 67 government staff (including 14 female trainers), predominantly from the Departments of Estate crops and Government Extension Services and 11 Private Sector partner representatives, on technical and organizational topics related to the sustainable development of DCC and SCE structures. These topics covered technical areas such as the nursery management, fermentation and composting and the establishment of ICS. In addition, topics such as DCC and SCE sustainability were discussed, along with effective establishment of administrative procedures.

In Aceh, the Government Extension Services have budgeted for providing certification of SCE nurseries to sell and distribute government “certified seedlings”. This is a direct consequence of the SCE strengthening training of government staff by SCPP and is also an indication of the organizational capacities of SCE developed under the PEKA project and further strengthened under SCPP.

In addition, both Government Extension Services and the Department of Estate Crops sit on the advisory board of the established DCC in the five target districts in Aceh. The government representatives on the board use the knowledge gained during trainings on the sustainable development of DCC in their advisory capacity on the board. This further strengthens the long-term sustainability of the DCC and the buy-in of government agencies in ensuring that DCC act as a regular channel for cocoa sector development in each of the districts.

The Program envisages a similar knock-on effect in other target provinces once DCC structures are developed and strengthened over the coming years.

Activity Group 3.4

Developing best practice for effective extension models in the cocoa sector

The good agricultural practices (GAP) for an effective extension model, as developed in Aceh by Swisscontact with coordination and cooperation from cocoa stakeholders is being adapted for local conditions in all SCPP target provinces. Several meetings have been held with respective Government departments and CPQP implementing partners from the private sector to agree on a mutual approach on a flexible and low cost transfer technology transfer system.

In the Program FFS, the trainings are delivered by Government extension officers, supervised and supported by private sector agricultural extension staff, specifically employed by the implementing partners for the CPQP projects, and the SCPP Program staff (Field Facilitators) at District level.

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This unique collaborative approach has been further fine-tuned and well documented over 2012 and already included in first of three best practice manual books, covering GAP. Further information on these manuals can be found in activity group 4.4.

Result Area 4 - Knowledge on Sustainability, Efficient and Effective Supply Chain Approaches Developed and Shared

This result area contributes to the overall objective of the project through building knowledge and awareness of the challenges faced by, potential solutions proposed by, and good practices used by actors in the cocoa sector, leading to an improved common understanding of the risks and opportunities of working in the sector and better coordination in research and technology transfer. In addition, the development of common core approaches and good practices in the sector can strengthen the potential for development of the Indonesian cocoa sector through improving farming practices, enhancing production and quality, improving the efficiency and effectiveness of supply chain linkages, reducing ecological impact and increasing the sustainability of Indonesian cocoa production for the future. Regular meetings among Program stakeholders and related actors help to ensure continuity of vision, provides an opportunity for strategic discussion and realignment, and facilitates communication so that knowledge can be shared and the Program continually improves.

Activity Group 4.1

Donor, Program, and Program Partner meetings and workshops

The scheduled first CPQP Partner meeting took place as planned on the 26th of June and the 27th of September 2012. In the first meeting, the SCPP Program Director, also acting as the de-facto representative of IDH and coordinator of CPQP, and the SCPP Sulawesi Regional Manager presented the Program approach and general progress to the partners (ADM, Armajaro, Nestle). The project managers for the individual private sector Implementing Partner projects presented the progress to date in each of their respective provinces. The SCPP M&E and market Development Advisor also presented the planned approach to monitoring and evaluation which will be used to assess progress towards the

Program’s KPI.

In the second meeting, the IDH Regional Director Asia (Daniel Hazman) presented IDH’s impression of the Program, followed by CPQP coordinator updates, progress presentations by each project manager, KPI, finance issues and action plans. In the second meeting, new CPQP STMF private sector partners from Mars Inc. and Cargill were also introduced. Individual meetings were also held to discuss partner-specific issues.

Annex 1 provides an overview of SCPP staff and its organization per regions and units. By the end of 2012, Swisscontact employs 82 staff for direct implementation of the Program, including expat Program Director and expat M&E Advisor. SCPP implementation is supported by 46 Private Sector management and field staff and as well 184 Government extension officers working full time as technology transfer specialists in the Programs Farmer Field Schools. Therefore, there is a total of 312 staff (298 full time and 14 part time) involved in the SCPP implementation.

The table Annex 5 summarizes the 13 meetings and workshops that were conducted in 2012 to strengthen the Program implementation teams.

Public Sector- Seco Switzerland

- Ministry of Foreign

Affairs Netherlands

- Ministry of Home

Affairs Indonesia

Private Sector- ADM Cocoa

- Armajaro

- Cargill

- Mars

- Nestle

Swisscontact- ROSEA

- SCPP

SCPP Advisory Board

Program Implementation

Steering Board

Program Implementation Team

- Regional

Planning Boards

- Agriculture

Extension Officers

- Regional

Management

- Program Officers

- Field Staff

- Regional

Management

- Project Manager

- Field Staff

Figure 2 Program Structure

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Activity Group 4.2

Supporting stakeholders in establishing an effective platform for public private dialogue for the cocoa sector

Using stakeholder networks, the Program promotes continuous development of the cocoa sector in Indonesia, particularly in the Program target areas. Through these networks, it is possible for the Program and other stakeholders to leverage support for discussions with the Government of Indonesia on policy issues, infrastructure constraints and other strategic issues that may be slowing the development of the sector. The table in Annex 6 highlights the 3 activities taken by the Program that fall under this definition.

Activity Group 4.3

Supporting stakeholders and participation of regional cocoa forums in national and international networks

In order to better align common cocoa sector activities among stakeholders, active participation, collaboration and communication among cocoa sector actors is crucial. SCPP actively engages in a number of national and international forums/networks in order to share knowledge and help to improve the overall conditions for development of the cocoa sector in Indonesia, in particular within the SCPP target provinces. These networks include, but are not limited to, those discussed in the table below. However, in 2012, the 14 main activities under this activity group are summarized in Annex 7.

Activity Group 4.4

Developing and sharing of public relation material and documentation of best practices

Development of three best practice GAP manuals began in the 1st semester 2012, with an initial internal workshop undertaken to identify the basic structure and contents of the manuals, as well as discuss ideas for their design. These manuals draw from previously developed Mars Inc. and other stakeholders manuals and also incorporate lessons learned and further developments from the previously implemented Swisscontact PEKA cocoa development project in Aceh. On the 24th of June, an early design draft was shared internally for inputs and comments. (Cover images for the GAP manuals can be seen on the right hand side of the page)

The Program hosted a sizable workshop with major stakeholders in the cocoa sector, from both private and public sectors, on August 7th to present a draft manual for comments and feedback, so that the manual may become a benchmark in cocoa practices for the cocoa sector in Indonesia. Edition 1 of GAP manual #1, following the inclusion of stakeholder feedback, was approved and distributed in mid-November 2012 to all field staff, Government Extension Services and Key Farmers, although a draft version was already in use during FFS implementation. This edition of GAP manual #1 was also shared with the SCPP advisory board (Inc. donors), all private sector partners and the CSP. The manual will also be shared on the SCPP website in January 2013.

SCPP also developed a flyer describing the Program, its Donors and Implementing Partners, and the Program Strategy, which was shared in stakeholder meetings and uploaded on the SCPP website in September 2012. In addition, a two page article was published in the CSP “Cokelat” newsletter, December edition for quarter 4 2012, outlining the Program approach and providing a success story of one of the Program farmers in West Sumatra.

The Program is developing further publications and videos on GAP and success stories that will be shared with stakeholders over the coming years. Over the course of the year numerous newspaper articles have also been written on various activities or events related to the Program.

Two success stories from the Program may be found in Annexes 8 and 9.

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SCPP Impact Level Increased income and job creation in the cocoa sub-sector in selected areas in Indonesia

Impact will be measured in a later stage of the Program according to the M&E planning. The Program collects baseline from every beneficiary/participant of the program and during the trainings progress and adaption is monitored. The next annual report will include first indications of change on impact level.

Increased income for cocoa producers is depending on several factors including productivity increase, costs of inputs, and the farm gate price offered from their buyers. Productivity and use of inputs data are collected and evaluated by the Program, while the information regarding the prices negotiated are more difficult to obtain.

Cocoa prices are determined at New York and London auctions. Indonesian producers, collectors and small traders receive price information from international traders and exporters. This information flow is not transparent and different prices are paid for the same quality beans in different areas.

Figure 2 ICCO Monthly Averages of Daily Prices in US$

As the political situation in producing countries, harvest seasons and the weather have a huge influence on cocoa production process. One major factor for the volatile cocoa prices is due to the international trade which in the short term directly impacts the income of cocoa producing households. During the last eight years, prices bottomed out in November 2005 at USD$ 1,434 and peaked four years later in January 2010 at USD$ 3,525.

Since PEKA started in July 2010 until after the first year SCPP in December 2012, prices averaged US$ 2,751. Cocoa price in 2012 are constantly below this average, peaking in September at just US$ 2,620 and lowest prices in April at US$ 2,267.

Farm Gate Price for Indonesian Cocoa Farmer is the highest in the world and compared to African farmers, Indonesian farmers receive close to 20% higher share of the world market price. Farm gate prices and quality premiums to cocoa farmers will be monitored as an ongoing activity together with implementing partners as one of the factors measuring increased farmer income during the Program duration.

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Progress out of Poverty Index (PPI)

Progress out of Poverty Index is a simple poverty scorecard for Indonesia developed by the Grameen Foundation, financed by the Ford Foundation.

The PPI uses the Indonesia National Social Economic Survey to construct an easy-to-use scorecard that estimates the likelihood that a household in Indonesia has expenditure below a given poverty line. The scorecard uses 10 simple indicators that field workers can quickly collect and verify. Poverty scores can be computed on paper in the field in about five to ten minutes. The scorecard’s accuracy and precision are reported for a range of poverty lines. The poverty scorecard is a practical way for pro-poor programs in Indonesia to monitor poverty rates, track changes in poverty rates over time, and target services.

Baseline data has been compiled in the SCPP MIS and is being analyzed. Results from the analysis will be presented in the subsequent 2013 semester reports.

In SCPP/CPQP we are using the most credible poverty line, which is widely considered to be the World Bank “International Poverty Line” of UDS 1.25 per day. This is used most often as the measure of poverty globally. The program evaluation will compare the supported cocoa farmers for their likelihood to be below the USD 1.25 per day poverty line, before and after intervention.

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Financial Progress

Expenditure Summary 2012

SCPP total expenses in 2012 reached a total of CHF 2,630,234 with the lion share (44%) by Seco funding. IDH contributed another 30%, while the Private Sector is slightly below target, with just 23% contribution to the total expenses. Funding from the Embassy of the Kingdom of the Netherlands (EKN), joining the Program in December 2012, was accounted for 2%.

Table and Text deleted which includes individual private sector figures!

Annual Budget and Expenditure Comparison 2012

SCPP Overall budget was established in Indonesian Rupiah (IDR) and approved in Swiss Francs (CHF) by SECO, using an exchange rate of IDR 10,000 for 1 CHF. In addition, as SCPP budget includes funding from IDH and EKN, the budget was also established in Euro (EUR), using a rate of 12,000 IDR for 1 EUR. Expenditures are posted using daily updated exchange rates, revaluated end of the year.

Table 12 Budget/Expense Comparison Summary

Donor Budget Expenses

Var IDR CHF EUR IDR CHF EUR

SECO 13,178,196,445 1,317,820 1,098,183 11,452,514,011 1,158,778 960,184 88%

IDH 8,335,798,800 833,580 694,650 7,768,967,408 785,678 654,212 94%

EKN 343,420,000 34,342 28,618 656,281,042 62,704 51,661 183%

PS Cash 2,603,620,840 260,362 216,968 1,968,447,088 193,196 160,361 74%

PS In-Kind 5,141,506,840 514,151 428,459 4,373,686,763 429,878 356,095 84%

Total 29,602,542,925 2,960,254 2,466,879 26,219,896,312 2,630,234 2,182,513 89%

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The 2012 Budget from various sources and approval dates was fixed amounting CHF 2,960,254 for this annual report. Seco modified budget 2012 was approved in March 2012 while the revised IDH coordination fee was approved in November, after the approval and inclusion of the additional STMF funding in August. From CPQP 1, the Armajaro budget for Central Sulawesi was revised and approved in November as well. In December, additional Program funding got confirmed from the Embassy of the Netherlands. In January 2013 IDH will decide on further funding of CPQP in a second batch, which is including STMF programs, therefore, a 2nd major budget modification will be required afterwards from Seco, which includes all revisions in 2012 and the forecasting for 2013 – 2015.

The Program Implementing team and partners managed to spend 89% of the 2012 total budget of CHF 2,960,254. Overspending (by 6%) occurred only under one budget heading – Nr 6, Project Management and Administration – and this was due to full payment (instead of only a down payment in 2012) of the EKN financed procurement in December of an additional car for the Aceh/Medan implementing team. This overspending can also be seen in table 12 above, where EKN budget comparison shows 184%.

Table 13 Budget Comparison per Result Area

Nr Line Items Total

Budget Expenses Balance Var

1 Tangible improvements in the ecology and the socio-economic conditions of production

597,565 540,612 56,953 90%

2 Tangible improvements in sustainable markets

449,232 292,726 156,506 65%

3 Effective collaboration and institutionalization at sector level

728,868 608,200 120,668 83%

4 Knowledge on sustainability, efficient and effective supply chain approaches developed and shared

155,944 151,033 4,911 97%

5 Project Management and Administration 724,872 770,546 -45,674 106%

6 Total Other Cost 303,774 267,118 36,656 88%

Total Program Cost 2,960,254 2,630,234 330,021 89%

Due to delays in Result Area 1, which includes Farmer Field Schools, spending in Result Area 2 only reached 65% as FFS where just completed in December 2012 and farmer organization activities could not yet be conducted as budgeted. Expenses in Result Area 3 were slightly below expectation as the process for the establishment of province-based cocoa forums only began once formal cooperation agreements had been finalized with local governments. This was to ensure their support for, and the suitability of, the cocoa forums. Expenses for Result Area 4 were as expected.

For further details on the spending under each budget line, please refer to Annex 8.

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Procurement Progress

Procurement Principles and Planning The primary concept of the procurement plan is that advanced planning, scheduling, and group buying will result in cost savings, more efficient business operation, and therefore increased efficiency. There are three steps that form the basis of procurement planning: group buying, just in time delivery, negotiated pricing.

Group buying is the process of combining the total resource requirements for different departments and creating one purchase order. The departments can be physically located in a range of areas, with the delivery dates, quantities, and conditions listed in the purchase order. This practice is increasingly common in government and public sector firms, where the same item can be purchased for a range of areas.

Just in time delivery is a central component of procurement planning. Under this model, the cost of storage is carried by the supplier. They are responsible for ensuring the purchased quantities of materials are ready and available for delivery at the specified dates and times. This type of delivery requirement is typically combined with group buying, keeping storage costs down.

Bulk pricing and negotiating is very important when completing procurement planning. Organizations that combine the total quantity

required for a specific period of time are able to get lower pricing, based on a specific level of ordering. Negotiations are typically completed by the procurement manager or senior buying officer.

Procurement of Program Investment Procurement for Program investment as budgeted for 2012, including vehicles, staff and office equipment, has been concluded as planned. Remaining procurement for implementation structure/office investments is ongoing for the newly added nutrition component and will be completed in the 1st semester as budgeted for 2013. Procurement for capacity building measures and training equipment is ongoing and on track as per separate Procurement Plan per Project region and Implementing Partner.

Table 14 Program Procurement and Assets

Program Investment/Asset Budget Expenses Var

Office and Field Cars 247,000 287,417 116%

Field Facilitator Motorbike 74,000 62,266 84%

Staff IT/GPS Equipment 79,800 82,779 104%

Office Equipment 53,000 62,040 117%

Office Furniture 17,500 10,556 60%

Total 471,300 505,058 107%

Fairness Transparency

Value for Money Accountability

Competitive Tender Multiple Sourcing Market Evaluation

Figure 3 Procurement Process

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Conclusions and Recommendations

Program Conclusions 2012 Delays in the signing of a MoU with the Government of Indonesia for activities to begin on the SCPP/CPQP Program slowed initial set-up and subsequent working/cooperation agreements negotiations with District Governments for Program implementation in their respective areas. Despite these delays, the Program has socialized all District-level MOUs for SCPP to formalize cooperation and approve implementation of activities on the ground. Swisscontact Regional Office Southeast Asia has been continuously working with the Indonesian Government on the renewal of the MoU on National level and after almost three years decision had been taken to be aligned with the Ministry of Home Affairs (MoHA).

In addition, due to the varying nature of implementation strategy approaches between Swisscontact (as Program Coordinator) and the private sector Implementation Partners, further meetings and negotiations were necessary to develop approaches that effectively aligned the overall Program strategy with the individual needs of the partners. This process also decelerated initial Program implementation, however, general agreement on the strategies to be used for each Province have now been agreed, allowing for the full implementation of Program activities to be conducted in all target areas. As a foundation for activities, Program implementation structures were set-up, resulting in the establishment of Program offices in all Provinces, as well as regional headquarters in Sumatra and Sulawesi, all of which are now fully equipped to undertake Program implementation. Furthermore, induction trainings and staff capacity development for all existing and new Program and Partner staff have been completed, ensuring that implementation can be undertaken in a coordinated manner, aligned with the overall strategy, rules and regulations of the Program.

The Program is still in a highly dynamic environment with new components planned and added to ensure a holistic approach needed for the most sustainable outcomes, benefitting the whole cocoa sector in targeted areas in Indonesia. By mid-2013 after the decision from Seco-WEIF, the Program will have accomplished its final form and size in terms of numbers and funding contributions of Donors and Implementing Partners.

Program Recommendations 2013 To ensure the success of the Program, further development of working relations with local Governments should be a continuing priority. This includes coordination and cooperation with relevant Government ministries and departments, as well as the continued integration and capacity development of Government and Private Sector extension staff to ensure the future sustainability of the Program. Enhancing the level of coordination and communication between Program partners will be crucial to the successful implementation of the Program and, as such, should be a priority moving forward. Ensuring common understanding of the Program targets, rules, regulations and strategies was a core component of induction trainings and capacity development conducted in 2012, providing an effective platform for this – and shall be continued as such.

The Program will develop clearer information structures to ensure further transparency on its approach and Program content, targets, and achievements towards its main donor SECO, further donors such as IDH, Embassy of the Netherlands, and aligned Implementation Partners. SCPP is developing itself into a state of the art program and blue print to successfully transform the cocoa value chain into a total quality supply chain, including the world’s biggest companies in cocoa trade, processing and manufacturing. To finally achieve this, continuous support from Donors is needed in terms of flexibility to allow the dynamic Program adaption to new and additional needs from the sector.

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Request for Modification

Duration of Budget and Program Period No changes in overall Program and Budget duration from January 2012 until December 2015.

Budget Items and Finance The original SCPP budget has been first modified in March and got approved by Seco in May 2012.

A 2nd modification will be necessary due to final approval of three additional projects under the “Short Term match Funding” (STMF) facility for August – December 2012 from IDH instead of direct approval of CPQP budgets as included in the original budget until end of 2015. The three STMF project got extended by one month until end of January 2013, to enable full usage of committed funding from IDH and the Private Sector partners. Follow up projects have been developed and submitted to IDH for approval in February 2013 under their CPQP 2 facility.

In addition, project budgets from implementing partners have been slightly modified after final implementation contracts have been signed with Swisscontact as implementing partner. These changes include budget movements within budget lines from one funding source to another and also budget movements between activity lines to better reflect real implementation targets in the project implementation.

Last but not least, the additional funding from the Embassy of the Kingdom of the Netherlands in Jakarta has been approved in December 2012 and where included in the annual budget.

The 2nd major budget modification will be submitted to Program donors in the beginning of 2013, after STMF extension is finalized and CPQP 2 project approvals have been taken.

Key Performance Indicators A revised set of Key Performance Indicators (KPI) as per Annex 2 is including all revisions made during the 1st semester 2012 as discussed and agreed by IDH, all Implementing Partners in Indonesia, and the CPQP partners worldwide as well. The revised KPI are now more detailed as compared to the logframe version which was included in the SCPP contract with Seco and include clear definitions on the indicators meaning, content, as well the modified means of verifications.

The KPI will be further checked and compared with COSA and World Cocoa Foundation Cocoa Map indicators during the Program. New indicators for the nutrition component will be added to outputs and outcomes under the existing result areas and eventual changes will be discussed with all Donors for approval in the next Program Advisory Board Meeting in February 2013.

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Annexes

- 35 -

Annex 1 – Program Structure – Organization Chart

Figure 3 SCPP Organization Chart

Main Office Administration

Medan

Regional

Coordination Office

Makassar

Stakeholder

Management and

Networking Platforms

Nutrition and

Gender Sensitivity

Integration

Farming Good

Practice and

Technology

Transfer Systems

Farmer Organization,

Market Access, and

Certification

Integrated

Agri-Business

Financing Facility

Finance

Manager

Edy Suranta

Sebayang

Human Resources

And Administration

Manager

Emilia Syadriah

Regional Manager

Sulawesi

Suharman Sumpala

Regional Manager

Sumatra

Giri Arnawa

Procurement

Manager

Untung Suryo

Atmojo

M&E and Market

Development Advisor

Nicolas Tomecko

Cash Accountant

Supervisor

Andi Aulia

IT Officer

Fachrurazi

M&E and GIS

Officer

Syahmin SukhairiRegional Financial

Officer

Ria Tantri Buna

M&E and Database

Assistant

Siti Aminah

Ferijal

Office Support

Assistant

Yuli Anggraini

Program Officer

Muhammad

Syahrir

Program Officer

Isnaini

Program Officer

Beni LesmanaProgram Officer

Mirza

Cash Accountant

Officer

Vivi Meriaty S

Field Coordinator

ABDYA

Reza Fahlevi

Field Coordinator

AGARA

Helvi Yudho, Sumilia

Field Coordinator

ATAM

Esron Siringoringo

Field Coordinator

BIREUN

Yusrizal, Ramadhan

Field Coordinator

PIJAY

Muhammad Yani,

Nuzul Qudri Amin

Field Facilitator

Safaruddin,

Pasenangi

Field Facilitator

Irwan Sapri, Ramli,

Arief Judiana, R.

Wasis Prayitno

Field Facilitator

Abdul Gafur, Irwan,

Asdar Basri, M.Basir

District Admin &

Financial Officer

Syamsuriani

Office Support

Assistant

(Vacant)

District Admin &

Financial Officer

Andi Musbiati

Office Support

Assistant

Sahid A. Labatjo

Office Support

Assistant

Pratipa Anang

M&E and Database

Officer

Zainal

Driver

Munawar,

Junaidi,

Didik

Mardiansyah,

Darwin,

(vacant)

Program

Accountant

Eva Makassunggal

Office Support

Assistant

Jusak Ruben

Program Officer

Meri Juli Sianturi

Regional Admin &

Procurement Officer

Sri Juwita

Field Facilitator

Masna M,

Misbahuddin,

Henriyanto, Mustari,

Mistianto

District Admin &

Financial Officer

Trisna Kaddas

Office Support

Assistant

Faizal

Public Relations

& Media

Manager

Ade Sonyville

Warehouse and

Logistic Assistant

Robby Cahyadi

PADANG

Field Coordinator

Nofri Yani,

Yul Akhri, Umar

Yanto

Field Coordinator

BONE

Andi Hamsah,

Hidayat

SCPP

Program Director

Manfred Borer

Head of Support

Services

Eddy Sarputra

PR and

Communication

Officer

Megi Wahyuni

Logistic Officer

Ardiansyah

Procurement Officer

Novalinda

Simanjuntak

AdminIstration

Officer

Diah Ayoe WS

Cash Accountant

Assistant

Meyga Siregar

District Admin &

Financial Officer

Astiar

Program Officer

Yusdahema

Program Officer

Faisal

Program Officer

Lukmansyah

District Coordinator

KOLAKA

Ahmad Maulana


PALOPO

Baso A. Parana


MAMUJU

Muhammad Akil


PARIGI

Agus Panji

Program

Officer

(Vacant)

Swisscontact

SwitzerlandSamuel Bon

Peter Bissegger

Swisscontact

South East AsiaPrashant Rana

Elvy Setheono

Program Officer

Haerul NangngarengM&E and Database

Assistant

(vacant)

HR Officer and

Executive Assistant

(vacant)

- 36 -

Annex 2 – SCPP Key Performance Indicators/Log Frame The baseline figure is the situation on the ground prior to the program, i.e. in the case of 1.1.1, there had already been gap training for 4,300 farmers in the target area prior to the start of CPQP. Every indicator is clearly explained, including a definition to ensure correct interpretation and to ensure overall CPQP compatibility worldwide.

Nr Progress indicators Baseline Year

Target Year

Achievement Definition of indicators

1 Result Area 1. Tangible improvements in ecology socio-economic conditions of production

1.1 Progress indicators (output)

1.1.1

Nr of producers trained in GAP, GSP, GEP, GBP, and/or ICS and certification modules

16,800 9,100 18,418

Producers represent only 1 member per household. Each household is required to select only 1 member to attend all the training modules. Training modules are in Good Agricultural Practices (GAP), Good Social Practices (GSP), Good Environmental Practices (GEP), or Good Business Practices (GBP), and/or ICS and certification modules. To consider a producer trained, they must have an attendance rate of at least ≥ 75% in at least one (1) training module, with a minimum of at least five (5) full days of training attended

- Men 13,870 7,280 14,971

- Women 2,930 1,456 3,447

1.1.2

Nr of full training days attended by producers in GAP, GSP, GEP, GBP, and/or ICS and certification modules

251,600 109,200 65,689

Nr. of training full days attended by producers, divided by Male and Female in the following training modules: - GAP - GSP - GEP - GBP - ICS/Certification

- Men 206,440 87,000 55,739

- Women 45,160 22,200 9,950

1.1.3 Nr of producers certified 0 0 2,594 Producers (individual cocoa farmer/household) apply and comply with industry recognized certification standards and are audited by independent/external auditors

1.1.4 Area (ha) certified 0 0 4,667 Number of hectares of all producers certified by industry recognized certification standards and are audited by independent/external auditors

1.2 Change indicators (outcome)

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Target Year


1.2.1

Area (ha) of cacao trees rehabilitated/ replanted/ regenerated

70,927 4,720 0

Number of hectares of cacao trees rehabilitated/regenerated through replanting, or successful side- and/or chuppon grafting. Assumption for calculation: 1 hectare = 800 trees. - Replanted: Nr of ha where seedlings are planted as replacements for old trees - Rehabilitated: Nr of ha where old trees have had side or chuppon grafting conducted to improve productivity - Regenerated: Nr of ha where cocoa GAP has been successfully applied to improve productivity, this includes: 1. Pruning conducted 2. Fertilizer applied 3. Regular harvesting 4. Sanitation practices applied

- rehabilitated 33,350 1,400 0

- replanting 15,700 1,150 0

- regenerated 21,887 2,170 0

1.2.2

Average volume (kg/ha) of fertilizer used per hectare of land

49 122 0 The Average volume (kg/ha) of compost, organic and/or inorganic fertilizer applied by producers per hectare of their cocoa producing areas. - Compost (Kg/Ha) - Organic Fertilizer ((Kg/Ha) - Inorganic Fertilizers (Kg/Ha)

- Compost 7 0 0

- Organic Fertilizer 66 0 0

- Inorganic Fertilizer 62 122 0

1.2.3

Volume (mt) of cocoa produced

12,628 3,220 0 - MT of cocoa produced by all producers certified by industry recognized certification standards - MT of cocoa produced by all producers from non-certified areas

- certified 0 0 0

- non-certified 11,178 3,220 0

1.2.4 Average yield (kg/ha/year) per hectare per year

254 538 0 Annual average calculation of kilograms of dried cocoa beans per hectare produced

- 38 -


Target Year


1.2.5

Average humidity rate (%) that complies to industry recognized quality standards

9 14 0

The percentage of average annual production that complies with industry recognized standards. Country:________________ Standard:_______________ E.g. Country: Indonesia Standard: SNI (Indonesian National Quality Standard 23.23/2008)

1.2.6 School attendance rate (%) in the community

63 100 0 Percentage of target communities' children who attend school on a regular basis

2 Result Area 2. Tangible improvements in sustainable markets


2.1.1 Nr of private institutions offering business services to groups/organizations

8 8 4

The number of private institutions offering business services to producer groups/organizations - E.g. Banks providing financial products and/or credit, microfinance institutions providing micro-loans, NGOs providing support through training, inputs, finances etc., Business Development Service providers supplying training and advisory support, input suppliers providing inputs and training on use of inputs

2.1.2 Nr of producer groups/organizations supported and functional

400 539 607

The number of producer groups/organizations that have been established, trained, and/or supported by the program. Functional groups have an elected management board with planned or ongoing activities and, where possible, legal identity approved by the respective government. Definitions: Established: this includes technical assistance for start-up, development and management of groups, and/or provision of inputs and/or equipment. Trained: As per training criteria for 1.1.1. Supported: this includes technical assistance for group management and/or provision of inputs and/or equipment

2.1.3

Nr of business partners committed to integrating sustainability into their value chains

5 8 11

Value chain business partners of the CPQP program partners, buying or supplying cocoa produced by the program supported producers to or from the CPQP program partners. I.e. small-holder cocoa enterprises, traders, processors, exporters directly involved in the CPQP partners' value chain

- 39 -


Target Year


2.1.4

Nr of producer groups/organizations selling certified cocoa to CPQP program partners

0 58 113 The number of producer groups/organizations that sell their certified cocoa directly or through traders/exporters/processors to the CPQP program partners

2.1.5 Nr of producer groups/organizations receiving credit

1 2 0 The number of producer groups/organizations that receive credit from traders/exporters, CPQP program partners, and/or financial institutions

2.1.6

Value (USD) of financial products provided to producer groups/organizations

15,000 50,000 0 Value (in USD) of loans, credit, and other financial products provided by traders/exporters, CPQP program partners, and/or financial institutions to producer groups/organizations

2.2 Change indicators (outcome) Definition of indicator

2.2.1

Sales of certified cocoa from producer groups/organizations as a percentage of total authorized sales on certificate

0 0 0 What percentage of total certified cocoa sales in the producing country (measured in MT) is from program supported producers to CPQP program partners

2.2.2 Volume (mt) of certified cocoa purchased by CPQP program partners

0 0 0 Volume (mt) of certified cocoa purchased by CPQP program partners from program supported producers

2.2.3

Purchases of certified cocoa, as a percentage of total cocoa purchases made by CPQP program partners

0 0 0 Out of total cocoa purchases from program supported producers by CPQP program partners, what % is certified?

2.2.4

Additional jobs created in targeted cocoa sector value chain

502 345 0 Additional jobs created due to improvements in the cocoa business climate, increased supply and/or demand, improved productivity/quality, certification etc. Additional jobs may be created in traders/exporters, CPQP program partners, - Seasonal at Farm Level 0 200 0

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Target Year


- Full-time at Farm Level 0 50 0 producer groups/organizations, input suppliers, farm laborers, and financial institutions staff hired in relation to cocoa financial products

- Temporary/Part at Business Level

279 55 0

- Full-time at Business Level

223 40 0

3 Result Area 3. Effective collaboration and institutionalization at sector level


3.1.1 Nr of non-private partners involved in the program

12 12 18 Public universities, Government agencies, membership-based non-private organizations/entities in the cocoa sector

3.1.2

Nr of institutions/entities trained

9 17 44

Public or private institutions/entities, not including producer groups/organizations, trained in target areas. To consider an institution/entity trained, they must have received at least five (5) full days of training

- public institutions/entities

3 9 20

- private institutions/entities

6 8 24

3.1.3

Nr of extension officers trained in producing countries

81 139 350 Nr of extension officers trained in producing countries. - public institutions/entities - private institutions/entities To consider a producer trained, they must have an attendance rate of at least ≥ 75% in at least one (1) training module, with a minimum of at least five (5) full days of training attended


77 104 264


4 35 86


3.2.1 Nr of local CPQP program partner implementation structures operational.

2 9 10

The number of locally based offices/structures that are operational and used by CPQP program partners to facilitate field-level program interventions and promote on-the-ground activities to strengthen the cocoa sector development. This could include district-based offices, warehouses, processing centers etc.

- 41 -


Target Year


3.2.2

Nr of extension officers participating sharing knowledge in workshops with global cocoa stakeholders

83 5 15 The number of extension officers, both public and private sector, involved in cocoa sector development who participated in knowledge-sharing workshops with global cocoa stakeholders regarding Good Agricultural Practices (GAP), Good Social Practices (GSP), Good Environmental Practices (GEP), or Good Business Practices (GBP), ICS and certification


77 4 10


6 1 5

4 Result Area 4. Knowledge on sustainability, efficient and effective supply chain approaches developed and shared


4.1.1 Nr of best practices developed and documented

0 1 2

The number of developed and documented best practices for cocoa production, post-harvest processing and storage, packaging, quality control, marketing, access to finance, and other relevant cocoa sector development issues


4.2.1 Nr of best practices shared in sector (through websites, events, etc.)

0 1 2

The number of developed and documented best practices for cocoa production, post-harvest processing and storage, packaging, quality control, marketing, access to finance, and other relevant cocoa sector development issues shared with, and available to cocoa sector actors

4.2.2 Nr of regional cocoa forums established and recognized by the sector

1 0 1

The number of cocoa forums established at regional level to discuss and debate cocoa sector issues and provide credible advocacy for improvements in the enabling environment and enhance collaboration and shared vision among stakeholders

- 42 -

Annex 3 – Implementation Structure Establishment Activities

Date Activities

3rd-5th April Meetings were held in South-East Sulawesi with the Department of Estate Crops, Regent of Kolaka District and the Provincial Governor. The SCPP Program Director introduced the CPQP Program, as well as the SCPP and ADM Cocoa teams.

24th-27th April

The SCPP Regional Operations Manager for Sulawesi and the Armajaro Project Manager visited Poso and Parigi Moutong Districts in Central Sulawesi, conducting meetings with the Department of Estate Crops in both districts to introduce CPQP

22nd-24th May

Follow-up meetings conducted with the Central Sulawesi Government to coordinate preparations for signing of an MOU between the parties.

28th May The SCPP Program Director and the Nestlé Project Manager traveled to West Sulawesi to sign an MOU between SCPP, the Government of West Sulawesi and the Nestlé Cocoa Plan project.

30th May The SCPP Program was formally introduced to the government of Central Sulawesi, with Armajaro presenting its operations and the SCPP Program Director both introducing Swisscontact and also explaining the CPQP Program approach.

4th June The SCPP Program Director signed an MOU between the SCPP Program, the Regent of Kolaka District, South-East Sulawesi, and the ADM Cocoa Commercial and Sustainability Director Asia, representing the ADM Cocoa SERAP project.

11th July The SCPP Program Director and Regional Operations Manager, along with the district government of Parigi Moutong and Poso met to sign an MOU with Armajaro for CPQP (Cocoa Productivity and Quality Program).

3rd-6th September

The SCPP Government Relations Officer traveled to Bone, Luwu, Luwu Utara and Luwu Timur districts in South Sulawesi for discussions with the Department of Estate Crops for each district regarding the content of the MOU between the parties. Preparations for the MOU signing and Program socialization were also discussed.

4th September

An MoU signing event was held between SCPP Swisscontact and the Government of Aceh Tenggara, at which the MOU was signed by the SCPP Program Director and Acting Regent (Drs.Hasanuddin Darjo MM) on behalf of Aceh Tenggara Government.

12th September

An MoU signing event was held between the Program, Cargill and the Regent of Bone District. The SCPP Program Director, Regional Program Manager Sulawesi and Cargill Project Manager signed the MoU and introduced the Program, facilitated by head of the District Department of Estate Crops and Forestry.

13th September

The SCPP Program Director, Government Relations Office, the General Manager Mars Inc. Indonesia, (Ruud Engbers), the Mars Inc. Project Manager (Darna) and the Public Relations Officer (Sari Nurlang) met with the Secretaries of South Sulawesi Province. In the meeting, the SCPP Program Director the Program approach and Mars Inc. General Manager Indonesia presenting Mars Inc.

2nd October

An MOU signing ceremony was held in West Sumatra between the Program, ADM Cocoa and the Government of West Sumatra. The event was attended by the SCPP Program Director, who presented the Program, and Regional Manager Sumatra, as

- 43 -

Annex 4 –Government Relation and Regulatory Advocacy

well as the General Manager ADM cocoa (Peter) , the Governor of West Sumatra (Prof. Dr.Irwan Prayitno), the regent of Tanah Datar District (Ir.M.Shadiq Pasadique,SH), the Regent of Padang Pariaman District (Drs.H.Ali Mukhni) and the Major of Kota Padang (Mahyadi Hansarullah).

In addition, the Minister for Disadvantaged Areas (Mr.Helmi Faihsal) officially launched the Sustainable Cocoa Production Program (SCPP) in West Sumatra.

9th October The SCPP Program Director, Regional Manager Sulawesi and Government Relations Officer, the Mars Inc. Indonesia, (Ruud Engbers), the Mars Inc. Project Manager (Darna) and the Public Relations Officer (Sari Nurlang) attended a program socialization meeting in Luwu and signed an MoU between The Program and Mars with the Regent of Luwu.

10th October

The SCPP Program Director, Regional Manager Sulawesi, the Mars Inc. Indonesia, (Ruud Engbers), the Mars Inc. Project Manager (Darna) and the Public Relations Officer (Sari Nurlang) also attended a Key Farmer ToT in North Luwu and participated in an MoU signing ceremony between the Program and Mars with the Regent of North Luwu. The SCPP Program was also introduced to the attendees.

Date Activities

6th August The Regent of Aceh Barat Daya visited Cocoa Farmer Groups in Babahrot Sub-District. He discussed the impact and success of the cocoa development approach used by Swisscontact previously in the district and also discussed the new SCPP Program.

23rd September

The Vice Governor of Aceh visited the District Cocoa Clinic in Aceh Tenggara to see what actions can be taken to support cocoa farmers in Aceh. He indicated that the visit had provided valuable information that he would pass on to the Government of Aceh for the provincial cocoa development plan.

16th-17th October

The SCPP Government Relations Officer attended meetings with the Departments of Estate Crops and Agricultural Extension Services in both target Districts in Central Sulawesi, to discuss Program implementation.

12th -14th November

A cocoa stakeholders meeting was held in Mamuju, West Sulawesi, attended by The SCPP Program Director, Regional Program Manager Sulawesi, Government Relations Officer and entire SCPP team for the province, the Nestle Supply Chain Director Indonesia (Wisman) and the Nestle Cocoa Plan Manager (Arif), as well as cocoa stakeholders across the province. At the end of the meeting, a cocoa forum management board was elected.

27th November

The SCPP Program Director, Government Relations Officer, Cargill General Manager Indonesia (Diederik van Kraaikamp), Cargill Project Manager (Zainal) and Program Officer (Nawir) held a meeting with the Head of the Department of Estate Crops in Bone, South Sulawesi to discuss and update the government on Program implementation.

29th November

A cocoa stakeholders meeting was held in Kolaka, South East Sulawesi attended by The SCPP Program Director, Regional Program Manager Sulawesi, Government

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Annex 5 –Program Workshops and Partner Meetings

Relations Officer and entire SCPP team for the province, the ADM Cocoa Sustainability Director Asia (Peter Ng) and ADM Cocoa General Manager Indonesia (Philip Ng) as well as cocoa stakeholders across the province. At the end of the meeting, a cocoa forum management board was elected.

18th-19th December

The SCPP Government Relations Officer and Armajaro Project Manager (Hanizam) held meetings with the Deputy Regent in Poso District, as well as the Department of Estate Crops and the Agricultural Extension Services in both target districts in Central Sulawesi to discuss Program implementation and coordination.

Date Activities

26th January The SCPP Regional Manager Sulawesi and Government Relations Officer attended a workshop held by Syngenta, an agricultural input supplier. Syngenta is one of ADM Cocoa’s SCPP partners in Kolaka South East Sulawesi.

25th March The Program held a workshop with Rainforest Alliance to develop an effective strategy for sustainable cocoa cultivation and to promote biodiversity conservation.

26th June The Program met with UTZ Certified management to discuss and agree on Master ToT on cocoa certification, to help Program staff accelerate certification processes for targeted areas.

26th June A CPQP Indonesia Partners Meeting was held in Makassar, Sulawesi. The meeting was attended by Swisscontact, Nestle Indonesia, ADM Cocoa and Armajaro. Topics of discussion included: CPQP implementation and planning for the 2nd semester, Key Performance Indicators, Financial Management Manual, Budgeting and Accounting.

16th-19th July

The SCPP Management team from Medan conducted an induction workshop for Program staff. The four day course focused on HR, Administration, Finance and Procurement, IT, Monitoring and Evaluation as well as other program related topics.

30th July -1st August

The SCPP Management team from Medan along with Sulawesi regional office management conducted an induction workshop for the regional Sulawesi staff. The three day course focused on HR, Administration, Finance and Procurement, IT, Monitoring and Evaluation as well as other program related topics.

10th-12th September

The SCPP Management team from Medan conducted an induction workshop new Program staff. The three day course focused on HR, Administration, Finance and Procurement, IT, Monitoring and Evaluation as well as other program related topics.

27th September

A CPQP Indonesia Partners Meeting was held in Makassar, Sulawesi. The meeting was attended by Swisscontact, Nestle Indonesia, ADM Cocoa, Armajaro, Mars and Cargill. The IDH Regional Director Asia (Daniel Hazman) also attended in the meeting. Topics of discussion included: CPQP coordinator program updates, a presentation by the IDH representative, progress presentations by each project manager, KPI, finance issues and action plans. Individual meetings were held to discuss partner-specific issues.

16th October

In a Coordination meeting between the District Department of Estate Crops in Mamuju, West Sulawesi, the SCPP Program Director and District Coordinator, discussed the progress of activities and the budget for FFS implementation in 2013.

- 45 -

Annex 6 –Establishment of Sector Dialog Platform Activities

Annex 7 – Networking and Cocoa Sustainability Conferences Date Activities

8th February The SCPP Program Director, Regional Manager Sulawesi and M&E and Market Development Advisor attended USAID’s AMARTA II workshop in Makassar, Sulawesi. In the workshop ACDI/VOCA presented itself as AMARTA implementer to cocoa

4th-5th December

The Regional Program Manager Sulawesi attended an Armajaro-CPQP staff meeting in Palu to discuss, among other topics, FFS, demo-plot planning, M&E and action plan for the next month.

17th-20th December

The SCPP Management team from Medan conducted an induction workshop for new Program staff from Sumatra. The three day course focused on HR, Administration, Finance and Procurement, IT, Monitoring and Evaluation as well as other program related topics.

10th-11th December

A staff coordination meeting in Makassar was attended by all District Coordinators, Program Officers and the M&E and Market Development Advisor. Topics of discussion included: an update and review of FFS, M&E, Administration and Finance as well as a work plan for 2013.

11th-14th December

An induction meeting for new staff members from Mamuju, Kolaka and Bone was held in Makassar. In the workshop several topics such as HR, Administration and Finance, M&E as well as other program aspects were addressed.

Date Activities

9th-10th February

In order to enhance stakeholder understanding and promote coordination among cocoa stakeholders globally, a visit by the President of the World Cocoa Foundation (WCF), as well as their Asian Board Members and potential partners of the CPQP Program, to West Sulawesi was organized by the SCPP Program. The trip included visits to Armajaro and BT Cocoa buying stations, the Nestlé Cocoa Plan Experience and Development facility (ED Farm), and visits to cocoa farmers in the area. Further discussions were held with the Regents and Departments of Estate Crops for both Mamuju and Majene Districts, West Sulawesi to finalize discussions on the contents of the planned Program MOU and to confirm arrangements for the signing ceremony with local Governments.

13th November

A Cocoa Stakeholder workshop for West Sulawesi was held in Mamuju to discuss the SCPP Program, cocoa value chain and also establish the West Sulawesi Cocoa Forum. The workshop was attended by the Nestle Value Chain Director and the SCPP Program Director and opened by the Governor of West Sulawesi.

29th November

A Cocoa Stakeholder workshop for Kolaka District was held in Mamuju. The meeting was attended by the SCPP Program Director, ADM South East Asia and Indonesia and was opened by a representative of the Regent.

- 46 -

stakeholders in Indonesia.

12th February

The SCPP Program Director, Regional Manager Sulawesi and Government Relations Officer attended a Cocoa Sustainability Partnership (CSP) management meeting in Makassar.

12th February

and

27th June

The SCPP Program Director, M&E and Market Development Advisor, Regional Program Manager Sulawesi and other Program Staff, as well as all the private sector partners, attended both scheduled CSP general assembly meetings. The SCPP Program Director presented Swisscontact and the SCPP and CPQP approach. Representatives of SCPP and the private sector partners participated in the various working groups during both workshops to strengthen cooperation within the cocoa sector and enhance communication.

13th-16th March

The SCPP Regional Manager Sulawesi and Government Relations Officer travelled to Banda Aceh for the Aceh Cocoa and Coffee Conference and to discuss the project KPI with the Regional Manager Sumatra and M&E and Market Development Advisor.

24th May The SCPP Regional Manager Sulawesi attended the CSP R&D and Technology Transfer (TT) working group meeting in Makassar to identify constrains to technology transfer and research activities in the field. 5 organizations attended in the meeting: Nedcom, Mars Symbioscience, Swisscontact Ende, Armajaro, ACIAR and Swisscontact SCPP.

21st June The Governor of West Sulawesi attended the World Cocoa Foundation (WCF) Partnership Meeting in Washington D.C. to share the successes and challenges of cocoa farming in Indonesia and, in particular West Sulawesi. The Chairman of the Aceh Development and Planning Agency also presented Swisscontact’s successful approach to cocoa sector development in Aceh with the PEKA project.

27th July The SCPP Program Director, M&E and Market Development Advisor and Regional Manager Sulawesi attended the quarterly CSP general assembly meeting in Makassar. The main topics included: stakeholder updates, working group reports, presentations from CSP partners and discussions on sector constraints.

13th September

The SCPP Regional Manager Sulawesi attended the CSP R&D and TT working group meeting in Palu, Central Sulawesi, hosted by Ned Com and attended by Olam, PT Lonsum, Dishutbun, BPTP, Swisscontact, ACIAR and AMARTA. The meeting included working group action plan and discussions concerning Vascular Strait Dieback (VSD).

26th September

The SCPP Program Director, M&E and Market Development Advisor, Government Relations Officer and PR and Media Manager attended the CSP GA meeting. Meeting topics included: updates from the CSP secretariat and organizations, working group updates, presentations from Petra Food and IFC, election a Deputy for the GA, Mr. Iman from Veco was elected for the position.

26th September

The SCPP Government Relations Officer met with the Aceh Cocoa Forum to discuss the progress and development of forum.

24th-25th October

A WCF partnership meeting in Switzerland was attended by the SCPP Program Director and Regional Program Managers. The Program Director shared lessons learned from the SCPP implementation and working in public-private partnerships in Indonesia.

26th-27th November

The SCPP Regional Manager Sulawesi participated in a CSP working group meeting in Bali for both R&D and TT and also Farmer group empowerment and certification. He

- 47 -

participated as both a CSP member and as working group chairman for R&E and TT.

12th December

The SCPP Regional Manager Sulawesi and Government Relations Officer participated in the CSP GA meeting in Makassar, Sulawesi. One SCPP farmer from Aceh also attended the meeting, sharing her experience on the Program and the impact of good agriculture practices on her cocoa farming. In addition, the Chairman of Cocoa Forum of West Sulawesi (Mukhtar Belo) attended the CSP GA meeting in Makassar.

Annex 8 – Financial Budget Headings Report 2012 in CHF

Seco EKN IDH PS Cash PS In-Kind

Budget Spent Var Spent Spent Spent Spent Spent

1.1 Personel 208,060 187,235 90% 72,621 6,157 46,812 7,820 53,825

1.2 Recurrent Cost 51,600 24,617 48% 10,566 0 2,470 0 11,581

1.3 Investments 60,900 55,496 91% 16,059 0 35,590 0 3,847

1.4 Activity Cost 277,005 273,264 99% 30,310 0 103,186 95,994 43,775

1Tangible improvements in the ecology and the

socio-economic conditions of production597,565 540,612 90% 129,555 6,157 188,057 103,814 113,028

2.1 Personel 169,960 159,808 94% 102,152 4,214 23,714 1,421 28,307

2.2 Recurrent Cost 46,261 16,532 36% 10,024 0 2,020 0 4,489

2.3 Output Investments 44,700 41,643 93% 16,610 0 19,988 5,044 0

2.4 Activity Cost 188,311 74,743 40% 25,724 0 6,513 203 42,303

2 Tangible improvements in sustainable markets 449,232 292,726 65% 154,510 4,214 52,234 6,669 75,099

3.1 Personel 171,516 149,426 87% 73,797 0 48,492 0 27,136

3.2 Recurrent Cost 152,813 75,198 49% 20,887 0 41,223 0 13,088

3.3 Output Investments 259,100 266,472 103% 77,533 0 188,939 0 0

3.4 Activity Cost 145,439 117,104 81% 23,927 0 40,610 45,894 6,673

3Effective collaboration and institutionalization

at sector level728,868 608,200 83% 196,144 0 319,264 45,894 46,898

4.1 Personel 61,044 57,175 94% 39,957 0 0 0 17,218

4.2 Recurrent Cost 16,400 1,631 10% 893 0 0 0 738

4.3 Output Investments 2,800 1,490 53% 1,490 0 0 0 0

4.4 Activity Cost 75,700 90,738 120% 35,624 0 51,078 2,394 1,642

4Knowledge on sustainability, efficient and

effective supply chain approaches developed

and shared

155,944 151,033 97% 77,964 0 51,078 2,394 19,598

5.1 Project Management 237,800 261,733 110% 90,579 1,900 35,804 0 133,449

5.2 Project and Office Administration 150,950 147,657 98% 95,358 0 46,595 0 5,705

5.3 Administration Recurrent Cost 74,000 78,340 106% 77,383 0 0 0 957

5.4 Travel and Accommodation 110,772 125,050 113% 78,952 0 10,955 0 35,144

5.5 Other Project Administration Cost 39,600 22,343 56% 22,152 0 191 0 0

5.6 Main Office Investments 111,750 135,422 121% 90,657 44,765 0 0 0

5 Project Management and Administration 724,872 770,546 106% 455,080 46,665 93,545 0 175,256

Total Cost 2,656,480 2,363,116 89% 1,013,253 57,036 704,178 158,771 429,878

6.1 Administrative Overhead 246,462 209,763 85% 128,719 5,668 40,950 34,425 0

6.2 CPQP Fund Transfer Margin 33,344 28,907 87% 0 0 28,907 0 0

6.3 Mid Term Evaluation Seco 0 0 0% 0 0 0 0 0

6.4 Contingency 23,968 28,448 119% 16,806 0 11,642 0 0

6 Total Other Cost 303,774 267,118 88% 145,525 5,668 81,499 34,425 0

Total Project Cost 2,960,254 2,630,234 89% 1,158,778 62,704 785,678 193,196 429,878

Nr Line Items

2012 Budget/Expenses Comparison in CHF

Total

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Annex 9 – Example Success Story Sumatra Program

Counting on the Farmer Field School

Inut Marliani is a 50 year old cocoa farmer who may be small in stature, but is nimble and agile. Inut, lives in Padang Pariaman, West Sumatra Province and enrolled in the Farmer Field School (FFS) held by Swisscontact through its Sustainable Cocoa Production Program (SCPP) in 2012. Inut is well respected and so was nominated by her Cocoa Producer Group (CPG), “Karya Mandiri”, to act as the group treasurer and run their financial accounts. When she was asked about her involvement in the FFS, she enthusiastically answered that she wants to increase her knowledge and skills in cocoa cultivation so that she can produce better higher quality cocoa in bigger amounts. She added that, “if I am given the opportunity, I would really like to be a key farmer for the FFS, so I can share this knowledge with other cocoa farmers in my area, because I believe what I will learn in the FFS will be very valuable and helpful”.

Inut started planting cocoa in 2004 on her 1-hectare cocoa garden, for which she received cocoa seedlings free of charge from the Department of Estate Crops (Disbun) of Padang Pariaman District. She dedicated herself to her cocoa farm over the next two years and by 2006 she was harvesting 40 – 50 kg per month. Unfortunately, in recent years, her cocoa’s yields have declined by 20%, now only harvesting about 30 kg per month from about 500 cocoa trees, receiving the same price (IDR 18,500 per kg for fermented and unfermented beans. “The reason for this decreasing production is constant attacks by pests and diseases in my cocoa garden, such as Helopeltis and Cocoa Pod Borer, and we still have no idea how to prevent this from ruining our cocoa garden”, she added grimly.

By 2012, Inut was very worried about her farm income and was excited to hear that Swisscontact was coming to her hometown in Padang Pariaman with its Sustainable Cocoa Production Program (SCPP) which the agricultural extension officer explained was working to develop cocoa cultivation skills and help farmers develop their farms. She hopes that the good agricultural practices she learned from the agricultural extension officer during the FFS can help her to overcome the problems she is facing in her cocoa farm, and the problems other farmers are facing in their farms. She hopes that improvements in the quality of cocoa and the yields she gets from her farms will improve, so that she can finance the education of her two children. Her two children are pursuing a university education, majoring in Education and the Science of Animal Husbandry. Her ultimate dream is that all the knowledge and skills she has gained in cocoa cultivation from the FFS can be shared from generation to generation for the betterment of all cocoa farmers in West Sumatra especially in Padang Pariaman.

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Annex 10 – Example Success Story Sulawesi Program

From Depleted Soil to New Hope

Saharuddin, a-38 year’s old man, is a cocoa farmer from Mamuju District in West Sulawesi Province. He started his cocoa business in 1996 because of cocoa’s promising money-earning prospects. To start with, he earned a good income from cocoa, covering his family’s expenses, but after some time, his farm came under attack from pests and disease, dramatically affecting his farms productivity. At that time, to overcome these problems he used a lot chemical fertilizers and pesticides, mitigating some of these problems. Unfortunately, this led to other problems, as he found that the quality and nutrition available for his cocoa trees from the soil was declining. This situation caused him to question whether he and his family should continue to grow cocoa and switch to Palm (oil). His wife began weaving handicrafts to help cover their daily expenses and save money to fulfill their dream of offering a better education for their children in the future.

However, before switching to another income source, he registered as a member of the Karya Tani Cocoa Producer Group (CPG) which was selected to be involved in an SCPP/Nestlé Farmer Field School (FFS).Studying hard in the FFS, Saharuddin hoped that the kills he learned would help him to get his farm back up to a yield capable of supporting his family, as it had for many years before. After the FFS, Saharuddin realized how simple the farm management techniques are and how he could use farm and household waste to create compost and organic fertilizers, helping to re-introduce nutrients to the soil of his farm.

In his 1-hectare cocoa farm, with 700 hundred cocoa trees, Saharuddin applied the GAP techniques recommended in the FFS, including Pruning, Fertilizing, Frequent Harvesting, as well as side- and top grafting. In addition, he also made a covered waste pit and plans to make liquid fertilizer from his farm and household waste. He has already adopted pruning and sanitation practices and applied them to most of his farm. Using his knowledge and skills that he obtained through the FFS and with guidance from the government extension officer in his village, Saharuddin is trying to make liquid organic fertilizer by using empty pesticide containers that were lying around in his kitchen.

After applying the GAP, Saharuddin he immediately began to notice improvements in the farm, saying “the lessons I learned I in the FFS are very precious, in particular the materials about making liquid fertilizer and organic insecticide because, in addition to reducing his use of chemical fertilizers, he has seen a dramatic reduction in attacks by pests and diseases. This progress has brought back hope that my farm will now be able to produce more and higher quality cocoa and provide enough income for me and my family and encourages me to continue cultivating cocoa.” He added, “the 1 ton cocoa production target seems realistic, based on what I have seen so far. I have already applied GAP (Good Agriculture Practices) including Pruning, Fertilizing, Frequent Harvest and Sanitation as well as side- and chupon grafting in my cocoa farm.” Jokingly, he added that “I was meant to be a cocoa farmer not a palm oil farmer”.

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