Projects

Production and Marketing of High Premium Rice in Central Java

In Indonesia the demand for rice is increasingly growing, while the production is decreasing. Farmers in Central Java produce low quality rice and face many challenges in the production. Responding to this situation, ICCO identified potential partners, both public and private, to train and coach 10,000 farmers, using certified seeds and organic fertilizers and pesticides in order to improve production and marketing of high premium rice.

  • Location
  • Start project
    2015
  • Projectstatus
    Needs funding
  • ID: NL-KVK-56484038-C_005532
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Background

The position of Indonesian farmers in the supply chain is weak. It is hard for them to enter new markets. Existing business organizations of rice farmers are united in LDPM’s. However, there is room for improvement. Its structure is quite loose, they lack a B2B relationship among its value chain stakeholders, and the financial and marketing capacities is insufficient.

Public Private Partnership.
ICCO has identified potential partners, both public and private, to improve the production and marketing of high premium rice in Central Java. The Public Private Partnership (PPP) consists of one government body (Board of Food Security of Central Java), three private sectors (Bank Jateng, PT. UNS and PT. Smart Berdikari) and three NGOs (YJB, VECO and ICCO).
The objective of the PPP is to motivate, train, and coach 10,000 farmers to use certified seeds and organic fertilizers and pesticides amongst others. The annual growth rate in the market for high premium rice increases.

The LDPM’s program can make a difference
Farmers can obtain a stronger position in the chain when the LDPM'€™s becomes a strong business organization. A professional organization with 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. They ought to become the owner of the harvest equipment, which could strengthen the position of women in LDPM'€™s.

This program is part of FDOV, which is a program of the Netherlands Enterprise Agency (RVO.nl). The project received a subsidy of 946,307 euro of FDOV.
Production and Marketing of High Premium Rice in Central Java

Target group

The target groups are small farmers, employees, entrepreneurs. Within this group, women are especially targeted.

Sustainability

This PPP builds on the success by Belgian NGO VECO, which supported the cooperatives in Boyolali, Central Java to develop a business plan, get access to the premium rice market (90% sales in Indonesia, 10% export to Belgium), and strengthen their organizational capacity. VECO has developed, tested and improved the intervention strategy, methods and activities. In this program VECO will lead the training process and delivery. VECO will also involve in strengthening the farmers who have been trained to share their skills, approach and network so that 10,000 farmers are achieved. Total additional production will be 2,453 tons of rice grain per year (+20%), and the income rise for male and female farmers will be on average 76 euro (+42%) per year. The income of female laborers in threshing will rise 30%.

By increasing rice production, which will contribute to the food security in the country, this project is directly in line with the Multi-Annual Strategic Plan 2016-2020 of ICCO, particularly in supporting the pillar of "Securing Livelihood”. Although there is cash and in-kind contribution, the main role of ICCO in this project is coordinating the direct implementing, facilitating and linking amongst stakeholders.

Goals overview

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