The Sustainable Indonesian Patchouli Production (SIPP) program aims to reduce the environmental impact of patchouli production and improve the livelihoods of patchouli producing communities.
Patchouli cultivation and distillation is a source of income for thousands of smallholder producers and their families across Indonesia. Indonesia produces over 80% of the world’s patchouli oil with around 75% of national production coming from the island of Sulawesi.
Lack of understanding about best agricultural practices means that farmers are not producing optimally. After several years, farmers that do not apply best practices see their production fall significantly due to soil nutrient depletion and pest and disease outbreaks. Additionally, distillation machines are not optimal and burn excessive fire wood. This means less income for the patchouli oil producers due to rising fuel costs when wood becomes scarcely available.
SIPP is funded by the Givaudan Foundation and up until March 2018, received public co-funding from the Millennium Challenge Account – Indonesia. Collaborating with Givaudan, the world’s largest flavors and fragrances company, ensures that program beneficiaries have a reliable off-taker that is committed to responsible sourcing.
SIPP improves the sustainable supply of patchouli by:
The partnership will benefit all players in the patchouli value chain:
This project will introduce simple and effective measures for increasing producers’ income while reducing environmental impact. The prospect of increased production gives producers an incentive to use what is shared through the intervention as it will be in their economic best-interest. This is the key to making sure that interventions introduced in an agricultural development program are sustainable.
During the pilot phase of the program, SIPP has benefited:
2017 - 2019