Initiative 4 Climate Smart Supply Chains
Project Concept
Please fill in the following template and submit it with the other proposal document
‘Consortium Members’ via the submission form on the website www.initiative4climate.de
I. General Project Information
Title of the project:
Preserving High Altitude Forest and Biodiversity by Promoting Certified Sustainable Coffee Farming Through Intercropping Agroforestry in Indonesia
Name of the International Company/ies: Madalle International
Name of the Local Entity/ies: Yayasan Pusat Informasi Lingkungan Indonesia (PILI-Green Network)
Name of the International Association/s (optional):
Universitas Insan Cita Indonesia (UICI), Indonesia
Short description of the project (max. 200 words):
Indonesia is the fourth largest coffee bean producer in the world, with total production of 10.7 million sacks weighing 60 kilograms during 2019-2020 from around 1.2 million hectares of coffee plants managed by small farms and independent industries. Smallholder coffee plantations which covers around 96.19% of total plantation area faces a relatively large challenge, i.e. limited application of cultivation, low coffee yield and inadequate post-harvest technologies. Large numbers of
smallholder coffee plantations uses non-recommended coffee variety and the trees have been too old. The aim of the proposed program is to promote adoptions of good agricultural practices (GAP) by more than 100 thousands coffee farmers in 4 (four) provinces in Indonesia (South Sulawesi, East Nusa Tenggara, West Java and Bengkulu). Carrying out from December 2022 to November 2024 (36 months), the long-term goal of the proposed project is to reduce risks faced by smallholder coffee plantations related to low productivity and higher harvest costs, while preventing farmers from clearing new land area which leads to deforestation. In addition, this program will promote wage standards according to applicable regulations and help smallholder coffee plantations to obtain sustainable coffee farming certification from RFA, Fair Trade and EU ORGANIC.
Total project budget (EUR): Project duration (MM/YYYY-MM/YYYY):
2,980,000 December 2022-November 2024
II. Project Outline
Location
In which Partner Country or Partner Countries will the project be implemented?
Indonesia
Targeted agricultural supply chains
Which of the targeted agricultural supply chain/s will the project address? Please tick.
☐ Banana ☐ Cotton ☐ Soy
☐ Cocoa ☐ Natural Rubber ☐ Spices
☒ Coffee ☐ Palm Oil ☐ Tea
Specific objectives
Which of the specified action areas will the project address? Please tick.
☒ 1. Increasing agricultural productivity and incomes sustainability
☒ 2. Adapting farming systems and livelihoods to climate change
☐ 3. Reducing and/or removing greenhouse gas emissions Partner institutions outside the Consortium
Are there institutions (public, private, civil society) outside the Consortium the project plans to collaborate with, e.g., to embed project activities in the Partner Country/ies? If so, please briefly name them here and include their roles in the section ‘Project description’
below.
Yes. Apart from consortium members, this project will also involve other parties including the regional government agencies and community groups. This is to ensure the sustainability of the project in the long term.
Involvement of the Regional Government in 4 (four) target Provinces to be able to synchronize project activities with regional programs.
Community groups, in this case smallholder coffee farmers, are the main target of the project. They will increase their knowledge about climate-smart coffee plantation, as well as adaptation and mitigation measures. South Sulawesi, East Nusa Tenggara, Java and Bengkulu Province are a few provinces in Indonesia that are rich with abundant natural resources which can support the livelihood of the farmers. These areas are prone to land conversion from forest to coffee plantation. So that the project is expected to run smoothly, sustainably and can benefit all.
National linkages
Does the project contribute to National Adaptation Plans (NAPs) or Nationally Determined Contributions (NDCs)? Only tick if applicable.
☒ NAPs
☒ NDCs
☒ Others: Indonesia FOLU Net Sink 2030 of National Target by Ministry of Environment and Forestry (MoEF)
Emission reductions/removals
Does the project generate emission reductions/removals during the funding period?
Please tick.
☒ Yes
☐ No
If emission reductions/removals are anticipated after the funding period, please specify so in the section ‘Expected impacts’ below.
Background and project rational (max. 150 words)
Please describe the challenge/s the project aims to target in the Partner Country/ies.
The lack of concern of forest management and conservation contributes significantly to biodiversity loss. To overcome that issue, there should be a link between natural resources base, management systems, and income. Coffee is one of the principal agricultural products in international trade value.
The high economic value of coffee makes it acts as a source of income for farmers. In Indonesia, most of the coffee plants are smallholder plantations, around 96,19%. South Sulawesi, East Nusa Tenggara, West Java and Bengkulu are a few provinces in Indonesia that are rich with abundant natural resources which can support the livelihood of the farmers. These areas are prone to land conversion from forest to coffee plantation. Therefore, to achieve sustainable forest management in society is not only requiring the awareness of local society but also considering the calculation of business cost and a more precise analysis, in order to maintain forest function.
Project description (max. 500 words)
Please describe who (actors) will do what (activities) and who will benefit (beneficiaries including number, age, gender) in what way from these activities.
There will be 5 division of professional expert which will conduct this project. The division including 1) Education, Training, and Community Service; 2) Agroforestry Engineering and Management; 3) Environmental and Biodiversity Management; 4) Commodity Certification Development; and 5) Commodity Village Development. Each professional expert will be assisted by technical and non- technical experts’ staff to conduct each relevant task.
Expected result of this project are 1) Every region holds Sustainability Certification to enhance competitiveness, 2) Training module and corresponding manuals, 3) Knowledge dissemination of achieved sustainable certification, 4) Big data of agroforestry specialty in coffee agroforestry, and 5) marketing policy for coffee producer: quality policy for coffee production.
The first is coordination with related stakeholders, including central and regional governments, private sector, and communities. This is to build common understanding regarding the importance of regulation related to coffee plantations by farmers. Then, a baseline survey, development of workplan, implementation of various training and technical assistantship, implementation of certification, implementation of technical plantation, and monitoring & evaluation will be conducted.
The method to be used, including vegetation assessment (ASB ecoregional baseline studies) using gradsect sampling, and coffee certification program to promote responsible production by following one or more of the following contributions:
1. Social: to improve the quality of life of workers and farmers
2. Environment: increase environmentally friendly production that enhances and environment
3. Economy: to get appropriate market access and fair prices for farmers 4. Quality: to meet minimum quality standards for coffee beans
Baseline survey will also include aerial survey to determine the zone, plot sample for Eucalyptus,
Sandalwood, Calliandra and Lamtoro with a total of 10 plots, 1 ha each. Light intensity
measurement, beneath and outside the shade. The coordinates of the location are determined by using GPS. Observation on biophysics conditions of the arabica coffee cultivation consist of shade type, shade of biomass, soil macronutrients beneath the shade, and coffee bean yield as well as the type of conducted activity and coffee production data. Soil sampling around the light intensity measurement point by using soil bor in the depth of 0-35 cm. The samples will be composited and analyzed for their macronutrients at the laboratory of soil and water.
The project will also perform a learning process to coffee farmers and stakeholders. This is to enhance their understanding and knowledge through advocation, technical assistance, and implementation for sustainable coffee certification.
To make sure the project is running well, monitoring and evaluation must be done. Monitoring &
Evaluation will be conducted through: 1) Monitoring model based on Internet of Things (IoT) Micro Climate Progress, 2) Monitoring for model Intercropping and Shade Tree Implementation, and 3) Monitoring for preparation of certification.
The expected target groups are coffee farmers from Enrekang-South Sulawesi 50,000 farmers, Bulukumba Regency-South Sulawesi 45,000 farmers, Manglayang Region-West Java 1,300 farmers, Ciwidey Region-West Java 1,200 farmers, Sikka Regency-East Nusa Tenggara 8,00 farmers, Timor Tengah Selatan Regency-East Nusa Tenggara 750 farmers and Kepahiang Region- Bengkulu 1,250 farmers. A total of 100.300 smallholder coffee farmers.
Climate rationale (max. 300 words)
Please describe how the project addresses existing climate change challenges. Briefly point out where/how the project links up with NDCs/NAPs and/or how it builds upon existing climate research.
The coffee industry faces a relatively large challenge. This is indicated by the condition that will be under pressure not only from land use competition, but also the challenges of climate change. It will lead to numerous issues, such as explosion of pests and disease, which will affect to the decline in production. On the other side, there is a shift in consumer preferences where purchases are based on compliance with standards based on health and food safety issues. Coffee certification
consequently is to be an important issue due to address a number of issues related to coffee plantations such as environmental issues, health and social issues of workers, as well as health and food security.
Coffee certification is an evaluation process that ensures the process of planting and processing coffee according to applicable standards. The high demand for coffee makes the national coffee plantation business begin to stretch its growth. Unfortunately, the number of small coffee plantations that are not certified, makes the selling price of coffee in farmers is very low. Coffee certification can be used to increase the value of selling coffee on the international market.
In global scope there are a variety of sustainable coffee certification. But unfortunately, smallholders may not understand exactly why and how to get the certification. Positive impacts of certification are rarely attributable to certification alone, but operate in conjunction with other local factors,
particularly education and skills levels, but also market structures, local infrastructure, and administrative capabilities.
Quality of agriculture products is characterized by certification and verification. Sustainability standards provide assurances that purchases support sustainability, and better connect consumers and producers. Certified coffee products are related to sustainability issues, commonly defined as those that take into account one or more aspects of sustainability: economic, environmental, and social.
Expected impacts (max. 300 words)
What are the benefits of the planned project? Which indicators (see ‘Achieving impact’ in the Call for Proposals) will the project contribute to, and to what extent (please estimate target numbers)?
Please tick and then elaborate further on the extent in the text box.
☒ 1. Farm income ☒ 4. Climate-smart innovations
☐ 2. Increase in crop yield ☐ 5. GHG emissions reduction or avoidance
☒ 3. Capacity building ☐ 6. GHG removal
The expected target groups are coffee farmers from Enrekang South Sulawesi 50,000 farmers, Bulukumba Regency-South Sulawesi 45,000 farmers, Manglayang Region-West Java 1,300 farmers, Ciwidey Region-West Java 1,200 farmers, Sikka Regency-East Nusa Tenggara 8,00 farmers, Timor Tengah Selatan Regency-East Nusa Tenggara 750 farmers and Kepahiang Region- Bengkulu 1,250 farmers. A total of 100.300 smallholder coffee farmers.
Innovation and sustainability (max. 200 words)
To what extent is the project offering new approaches/capacities at the local level or from the perspective of the beneficiaries? How will the Consortium ensure durability of results beyond the project duration? What is the exit strategy? Please elaborate.
The project team will support the development of a climate-friendly coffee farm of smallholder coffee plantation production increase plan involving farmers in the four provincial landscapes, government representatives and private companies. Partnership agreements between actors along the value chain, such as operators, intermediaries and multinational companies will be facilitated to establish incentives for smallholders' transition to sustainable production. To bring more farmers into the sustainable supply chain, the project team will also facilitate farmers to obtain sustainable coffee farming certification from the certification body. This is important to enable smallholders to access international markets and obtain premium prices for their products.
Potential for scaling up/replicating project activities (max. 150 words)
Is there potential to reach more beneficiaries in the target area (scaling up) or to replicate the approach elsewhere? Please elaborate.
Starting with 4 (four) regions in South Sulawesi (Enrekang and Bulukumba), West Java
(Manglayang and Ciwidey), East Nusa Tenggara (Sikka and Timor Tengah Selatan), and Bengkulu (Kepahiang) Province, Indonesia covering approximately 700 hectares of coffee plantations. The proposed project will target partnerships which is larger than the climate-smart smallholder coffee plantations in 4 landscape region. By the end of the project, at least 50,000 farmers will be
mobilized into a broader agreement covering more than 2,000 hectares of coffee plantation across four landscapes.
Risks and mitigation (max. 200 words)
What are the main risks related to the project and how the Consortium plans to mitigate them?
Please elaborate.
The project's political risk is related to the election of district heads and/or mayors in four landscape regions: Provinces of South Sulawesi, West Java, NTT and Bengkulu. To mitigate risks, the project will ensure partnerships with Provincial and District governments to share the political risks
associated with the project are beneficial as they have the authority and experience that the project
team does not have. If a political risk event does occur, then they absorb all the negative impacts of the event.
III. Project Financing
Roles of the Consortium members
What will be the roles of the different Consortium members? Please describe, if not stated under the section ‘Project Description’.
Madalle International: Coordinating and establishing the Project Work Plan and Project Management by directing and providing guidance for the proper achievement of the related proposed project objectives; Facilitating multi-stakeholder engagement activities to synchronize policy support on project proposals and functional development of farmer groups according to their main tasks and functions for task optimization.
PILI-Green Network: Training and facilitation support for the implementation of the Good Agricultural Practices (GAPs) and Climate-smart Plantation for smallholder coffee plantation groups (i.e., training need assesment,
methodology screening, media development, consultations and FPIC, ecology and social assessments, training event organizing), including capacity building for relevant agencies at the district level.
Universitas Insan Cita Indonesia (UICI): assist technology for smallholder coffee plantation groups capacity building by implementing Digital Integrated Learning System (DILS), Learning Management System (LMS), Digital Simulator Teaching Learning System (DSTLS), Virtual Reality (VR), and Augmented Reality (AR).
Farmer group cooperatives: Determination of the support of farmer, increase resilience to climate variability and external shocks by empowering small-scale IPG daily practices in sustainable management of "coffee farming" areas to create long-term employment opportunities.
Expected costs
Please provide a high-level structure of the estimated project costs in EUR.
Staff (of the Consortium members): 387,400
External experts/consultants (outside the Consortium): 476,800
Training costs: 596,000
Procurement of goods: 357,600
Transportation: 655,600
Other costs/consumables: 178,800
Administrative costs: 327,800
TOTAL SUM: 2,980,000
Own contribution by the Consortium (max. 100 words)
What is the contribution of each Consortium member? Please indicate the amount by whom (in EUR and % of total project budget), in-kind or financial.
Madalle International: EUR 1,251,600 (42%)
Yayasan PILI-Green Network (including UICI as IoT expert for training): EUR 268,200 (9%)
Required public financing (GIZ) in EUR: 1,460,200 Existing public funding (max. 100 words)
Has the Consortium already received funding for the project? If so, please state from whom, when and for which activities.
No
Additionality (max. 100 words)
To what extent could the project be implemented without GIZ financing?
Without GIZ funding, a collaborative program between Madalle and the Yayasan PILI-Green Network have been implemented at an early stage, focusing on baseline studies on social and biodiversity in four landscape regions. Support from GIZ will be allocated significantly to implement a capacity building scheme for a coffee farmer cooperative covering approximately 700 hectares of coffee plantations. As noted earlier, GIZ supports at least a few other cooperatives that will be deployed into a broader agreement covering more than 2,000 hectares of coffee plantations across four regional landscapes.
Foreseen timeline until project start (max. 100 words)
How far has the project planning progressed (stage of project) and is all funding secured? When can the project start?
The collaborative programs between Madalle International and PILI-Green Network has been implemented which focused on social and biodiversity baseline study in 4 (four) lansdcape of South Soulawesi, East Nusa Tenggara, Wet Java and Bengkulu. The project will be ended by December 2022 with secured funding from Madalle International. The proposed project will be implemented by December 2022 as a follow-up from previous activities which started by collaborative works with some coopertive farmer group 2 (two) which cover around 700 hectares of coffee plantation in 4 (four) landscape.