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Projects

Sustainable Cocoa Production Program (SCPP)

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) and collaborates with nine local and multinational cocoa and chocolate companies.

Target Operational Areas:

SCPP - Projectmap

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

In 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) facilitates capacity-building measures for 165,000 smallholder cocoa farmers in 57 selected districts across 11 cocoa producing provinces. The USD 60 million program is in the progress completing three 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

    (as of December 31st, 2017)

    • 717 Master Trainers were trained on GAP, postharvest handling, and certification facilitation. The master trainers are comprised of program and private sector staff (418 staff), and extension officers from government agencies (299 officers).
    • 2,519 Cocoa Producer Groups (CPG) have been established and supported
    • 59,224 cocoa farmers were trained on Good Agricultural Practices (GAP), post-harvest handling, professional farm management, nursery management and certification. Total farmers trained since Program inception is 136,547 (83% of total project target). Cumulative women participation is 18%.
    • In 2017, 66,351 cocoa farmers have received training on Good Environmental Practices (GEP). Total farmers trained since Program inception is 94,142 (94% of total project target). Cumulative women participation is 18%.
    • 13,143 cocoa farmers have received training on Good Financial Practices (GFP). Total farmers trained in GFP since 2013 is 52,981 (53% of total project target). Cumulative women participation is 51%.
    • 15,131 cocoa farmers have received training on Good Nutritional Practice (GNP). Total farmers trained in GNP since 2013 is 59,966 (67% of total project target). Cumulative women participation is 68%.
    • 54.9 ha of nurseries for seedlings nursery gardens have been developed. The support covered training for agriculture technical skill and agribusiness. Up to 2017, this nursery area has produced 1,638,000 seedlings.
    • 136,883 ha of cocoa farmland is supported by Program.
    • 1,493,583 total training days since 2012
    • 32,546 cocoa farmers are now certified with third party sustainability standards.
    • In 2017, IDR 3,578,678,086 of premiums were distributed to farmers, buying stations, and certification holders in Aceh and Sulawesi, generating additional profit for farmers. Since 2014, the total premium payments disbursed amounts to IDR 13,432,534,443.
    • Farm productivity has increased from a baseline value of 513 kg/ha/year to a post-line value of 685 kg/ha/year (productivity increase of 33%) after farmers joined training activities and applied the knowledge to their farms. By 2020, the Program is aiming to increase to 1,000 kg/ha/year.
    • Program activities have positively affected the poverty level of cocoa farmers. The percentage of people living under $PPP 1.25 and $PPP 2.50 are 7.9% and 59%, respectively. These figures surpass SCPP annual target for overall poverty reduction.
    • The amount of GHG emitted from agricultural practices has been reduced to 0.85 tCO2e/MT, surpassing the annual target of 0.87 tCO2e/MT and close to the 2020 target of 0.74 tCO2e/MT. Compared to the new baseline level using the latest data (1.11 tCO2e/MT), there is a 23% decrease in emissions.

     

    Project partner

    • SECO
    • Barry Callebaut, Cargill, Ecom, Guittard, JeBeKoko, Krakakoa, Mars, Mondelēz International and Nestlé
    • Migunani, Rikolto Indonesia, Wahana Visi Indonesia/ WVI and Yayasan Sahabat Cipta/ YSC

    Project countries

    • Indonesia

    Project links

    Project duration

    2012 - 2020

    Funding

    • SECO
    • Barry Callebaut, Cargill, Ecom, JeBeKoko, Krakakoa, Mars, Mondelēz International and Nestlé

    Working area

    Enterprise