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Production and Marketing of High Premium Rice in Central Java

Countries:
Start project:
  • 2015
Donors:
  • RVO – Agentschap NL
Partners:
  • VECO INDONESIA

The demand for rice in Indonesia is growing from year to year, whereas production is slowly decreasing. Farmers in Central Java are able to increase their supply, however, they produce low quality rice and face many production challenges. In response to this, ICCO Cooperation has established a public private partnership (PPP). Members train and coach 10,000 farmers in using certified seeds, organic fertilizers, and pesticides so as to improve the production and marketing of high premium rice.

Indonesian rice farmers have a weak position in the supply chain. Simultaneously it is difficult to enter new markets independently. The farmers can now join a so-called LDPM, a business organisation of rice farmers. This union increases their chance of strengthening their individual position.

Subsidy
An LDPM receives government funding as part of the Facility for Sustainable Entrepreneurship and Food Security (FDOV), which is a program of the Netherlands Enterprise Agency (RVO.nl). An LDPM assists their members and is responsible for the procurement and marketing of rice. However, there is room for improvement. The LDPMs need further professionalization to become strong business organizations with know-how, capabilities, and influence. The next step is to further develop a B2B relationship among its value chain stakeholders, and to take the financial and marketing capacities to a higher level.

Public Private Partnership
ICCO has identified potential public and private partners to improve the production and marketing of high premium rice in Central Java. The PPP consists of 1 government body, 3 private sectors, and 3 NGOs. Objective of the PPP is program implementation, training, motivation, and coaching of 10,000 farmers to use certified seeds and organic fertilizers and pesticides amongst others. Other topics that are addressed are entrepreneurship, business plan development, institutional management, networking, and marketing.

LDPM program can make a difference
Once an LDPM becomes a strong business organization, farmers can free ride on their know-how, capabilities and influence. The program offers special attention to women. Their work in the harvesting and post-harvesting period is all hand-labor and largely underpaid. It will strengthen their position if they become the owner of harvest equipment.

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Countries:
Project started:
  • 2016
More info
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Understanding of market-systems is believed to be an important part of emergency response. Market-systems play a central role ...

Countries:
Project started:
  • 2018
More info
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Today half of the world's population, about 3.5 billion people, live in cities. It is expected that by 2050 6.5 billion ...

Countries:
Project started:
  • 2016
More info
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