Sustainable Cocoa Production Program (SCPP)

The Indonesian cocoa sector has experienced a steep decline over the past decade. Today, Indonesia is still the world’s third largest cocoa producing country after the Ivory Coast and Ghana, but Indonesia’s share of the global cocoa production has dropped to around 8%. Indonesian cocoa is cultivated across a total of one million hectares, mainly on the islands of Sulawesi and Sumatra. Approximately one million mostly unorganized farmers depend on the cocoa sector as their main source of income.


The Sustainable Cocoa Production Program (SCPP) was initiated in 2012 and is currently the largest Public Private Partnership development program of its kind in Indonesia. It is funded by the Swiss State Secretariat for Economic Affairs (SECO), the Millennium Challenge Account for Indonesia (MCA - Indonesia), and collaborates with ten local and multinational cocoa and chocolate companies. The Program aims to increase farmer household income from cocoa by 75% and reduce greenhouse gas emissions from the cocoa sector by 30%.

Target Operational Areas:

SCPP - Projectmap

Expansion to 11 Provinces: Aceh, North Sumatra, West Sumatra, Lampung, Bali, East Nusa Tenggara, South-east Sulawesi, South Sulawesi, West Sulawesi, Central Sulawesi, and Gorontalo.


Expansion to 57 Districts: Aceh Barat Daya, Aceh Tamiang, Aceh Tenggara, Aceh Timur, Aceh Utara, Banggai, Bireuen, Boalemo, Bone, Buleleng, Bulukumba, Buol, Deli Serdang, Donggala, Ende, Flores Timur, Jembrana, Karo, Kolaka, Kolaka Timur, Kolaka Utara, Konawe,  Konawe Selatan, Limapuluh Kota, Luwu, Luwu Timur, Luwu Utara, Majene, Mamasa, Mamuju, Muna, Padang Pariaman, Parigi Moutong, Pasaman, Pasaman Barat, Pesawaran, Pesisir Barat, Pidie, Pidie Jaya, Pinrang, Pohuwato, Polewali Mandar, Poso, Pringsewu, Sigi, Sikka, Sinjai, Soppeng, Sumba Barat Daya, Sumba Tengah, Tabanan, Tanah Datar, Tanggamus, Tapanuli Utara, Toli-Toli, and Wajo.

The Project

The Sustainable Cocoa Production Program (SCPP) aims to facilitate capacity-building measures for 165,000 smallholder cocoa farmers in 55 selected districts across 11 cocoa producing provinces. The USD 60 million program has already completed two of the four overlapping phases from its 2010 to 2020 timeline.

  • 2010-2012: 1st phase with 12,000 farmers in 5 districts
  • 2012-2015: 2nd phase expansion with 60,000 farmers in 22 districts
  • 2015-2018: 3rd phase expansion with 98,000 farmers in 29 districts
  • 2017-2020: 4th phase with 165,000 farmers in 57 districts

As a large public-private partnership, the program works together with various private sector partners, including Barry Callebaut, Big Tree Farm, Cargill, Ecom, Guittard, JB Cocoa, Krakakoa, Mars, Mondelēz International and Nestlé, to enhance the economic, social and environmental aspects of the cocoa supply chain in Indonesia. It is working towards building the foundation for improved transparency and product traceability to encourage sector change. 11 out of the 17 UN Sustainable Development Goals (SDG) are directly addressed by SCPP, which contributes to improving the livelihood of smallholders, while also protecting the environment and reducing inequalities.


The overall objective of SCPP is to increase the farmer household income from cocoa by 75% and reduce greenhouse gas emissions from the cocoa sector by 30%. It follows a three-dimensional approach: People, Profit, and Planet, meaning the Program facilitates and implements specific activities in the social, economic and environmental dimensions. The Program employs an integrated and well-established approach that incorporates:

  • Good farming practices
  • Technology transfer systems
  • Climate-smart agriculture
  • Nutrition and gender sensitivity integration
  • Farmer organizations
  • Market access and certification
  • Integrated agribusiness financing facility
  • Community development
  • Stakeholder management
  • Networking platforms

The tar­gets of the Program include:

  • USD 43.4 million annual net income increase by 2020
  • 50% reduction of cocoa farmers living below the $1.25 poverty line and a 41% reduction of cocoa farmers living below the $2.5 poverty line (from absolute 10% to 5% for the $1.25 poverty line and from 60% to 35% for the $2.5 poverty line)
  • 30% reduction in Greenhouse gas emissions (tCO2e) from cocoa farms
  • 2,600 additional jobs created in the cocoa sector value chain
  • 0 child laborers in cocoa farmer households
  • 30% of decision-making positions in community groups filled by women
  • 4,800 Cocoa Producer Groups established and linked to sustainable and transparent markets
  • 165,000 smallholder cocoa farmers trained in Good Agricultural Practices and Good Business Practices to increase their income from cocoa by at least 75%
  • 100,000 smallholder cocoa farmers trained to adopt climate smart agriculture to mitigate climate change impacts
  • 90,000 smallholder cocoa farmer households are trained in Good Nutritional Practices to improve nutrition intake and reduce malnutrition
  • 100,000 smallholder cocoa farmers trained in financial literacy and linked to financial institutions for access to finance and saving products

Results

Per December 2016:

  • Since 2010, 77,976 smallholder cocoa farmer households received training on Good Agricultural Practices (GAP) and post-harvest handling, with women constituting 19% of total participants
  • USD 9,367,301 net income increase in 2015, based on yield improvements and constant market prices (average of USD 157/farmer/year net income increase from cocoa)
  • 60% yield improvement from a baseline value of 457 kg/ha/year to a post line value of 729 kg/ha/year after intervention
  • 29,891 smallholder cocoa farmer households (38%) have increased their annual income from cocoa farming by 75% compared to the baseline data
  • Since 2012, 45,285 cocoa farmer household members have received training on Good Nutritional Practices (GNP), with women constituting 76% of total participants
  • Since June 2016, 10,372 cocoa farmers have received training on Good Environmental Practices, with women constituting 15% of participants
  • The Program established 2,627 Cocoa Producer Groups
  • Supported the establishment of 1,268,000 m2 of nutrition gardens
  • 40,629 m2 of nurseries established and maintained to provide cocoa seedlings, planting material and an avenue to additional income for farmers and farmer groups
  • Provided certification for 17,639 cocoa farms by voluntary standards from UTZ Certified and Rainforest Alliance. Farmers apply sustainable farming practices and receive premium prices for their beans
  • Trained 1,088 extension officers from SCPP, the private sector, and government agencies as master trainers

Project partner

  • SECO
  • IFAD
  • MCA-I
  • Barry Callebaut, Big Tree Farm, Cargill, Ecom, Guittard, JB Cocoa, Krakakoa, Mars, Mondelēz International and Nestlé

Project countries

  • Indonesia

Project links

Project duration

2012 - 2020

Funding

  • SECO
  • MCA-I
  • Mars Incorporated, Nestlé, Mondelēz International, Cargill, Barry Callebaut, Big Tree Farm, Ecom, Guittard, JB Cocoa, and Krakakoa

Working area

Enterprise

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