Sustainable Cocoa Production Program (SCPP) : Case Study

Case Study
Case Study
Sustainable Cocoa
Production Program (SCPP)
Case Study Sustainable Cocoa Production Program (SCPP)
Contents
Purpose 1
Project Snapshot 2
The Development of SCPP 3
The SCPP Model 6
What Made SCPP Attractive To Partners? 8
Lessons Learnt 11
Conclusion 16
Progress and Achievements Since 2012 17
Copyright
Grow Asia Partnership Ltd.
Copyright © 2019 by Grow Asia Partnership Ltd.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any
form or by any means, electronic, mechanical, photocopying, or otherwise without the prior permission of Grow Asia.
Author
Sebastian Heinz
Edited by
Grow Asia
Grow Asia
74B Tras Street,
Singapore 079013
+65 6221 9528
[email protected]
www.growasia.org
Grow Asia PISAgro

Grow Asia is a unique multi-stakeholder The Partnership for Indonesia’s Sustainable
partnership platform that brings together Agriculture (PISAgro) is a multi-stakeholder
farmers, governments, companies, NGOs and platform with a 20-20-20 vision - to improve
other stakeholders in Southeast Asia to smallholder farmers’ yields, incomes and
develop inclusive and sustainable value reduce greenhouse gas emissions by 20%.
chains. At Grow Asia's core are three goals - PISAgro facilitates collaboration among
to increase the productivity, profitability and government, international and local
environmental sustainability of smallholder companies, NGOs, farmer organizations and
agriculture across the region by helping other stakeholders in developing inclusive and
farmers and the organizations that work with sustainable value chains. Its 13 Working
them access knowledge, technology, finance Groups (WGs) co-design and co-implement
and markets. these value chain projects, which are locally
driven, often led by the private sector, and
Grow Asia comprises the regional Grow Asia bring together stakeholders from different
Secretariat in Singapore; Country disciplines to leverage their expertise.
Partnerships, each supported by an in-country
Secretariat; and the Working Groups, which
focus on specific issues or crop-based value
chains.
Purpose of the Case Study

One promising way to reduce deforestation, A range of different partnership models are
improve food security and end poverty is to used in the Grow Asia network, but the model
improve productivity on small family-run farms. used in this case study, the Sustainable
A range of actors—donors, NGO, trading Cocoa Production Program (SCPP), is
companies and consumer good companies – particularly compelling. It presents a leading
have delivered projects to lift smallholder farm example of what can be achieved when
yields. Achieving change is difficult, and what different sectors work together. Whether you
works, and what doesn’t is the subject of are working Africa or Asia, cocoa or rice, the
significant debate. Price premiums, field SCPP model provides a useful framework,
schools, cooperative capacity development, and some interesting insights into how to build
and mobile phone applications have all been a multi-stakeholder partnership. This study
put forward as solutions to this complex highlights seven key learnings from SCPP that
challenge. Grow Asia believes are broadly applicable.
While Grow Asia is keen to encourage The SCPP model is a hub-and-spoke

discussions on which approaches work well in partnership, with Swisscontact at the hub of
the field, much of our work, including this the partnership, driving the vision, pooling
study, focuses on a different question: how resources and collecting impact data. It is not
can actors from different sectors work together the only model for an industry to work together
on the smallholder productivity challenge? on smallholder farmer productivity, but what
How can governments, businesses and NGOs SCPP has achieved indicates that it is model
work together to achieve more than they can worth exploring. Of all the partnerships that
working alone? If our objectives are aligned, make up the Grow Asia network, it stands out
how should these partnerships be structured in its ability to teach us about effective
to coordinate our efforts? partnership.
1
The What Made

Project The SCPP Lessons
Development of SCPP Attractive Conclusion
Snapshot Model Learnt
SCPP To Partners?
Project Snapshot
In the 1980s and 1990s, Indonesia was the  Farm productivity has increased from a
world’s third-largest producer of cocoa as a baseline value of 513 kg/ha/year to a post-
result of the free dissemination of cocoa line value of 733 kg/ha/year (productivity
seedlings by the government. However, since increase of 43%) after farmers joined
2000, the country’s cocoa sector suffered training activities and applied the
greatly from deteriorating yields and falling knowledge to their farms.
profitability due to ageing trees and a lack of
agronomic skills among smallholder cocoa  Increased production of cocoa by over
farmers. Low market prices, the rising 21,000 tonnes per annum, bringing in an
popularity of alternatives such as corn and additional US$42 million per year into the
palm oil, as well as a hike in subsidies for rice, rural economy.
led many farmers to abandon their cocoa
crops.
SCPP achieved this through a multi-
stakeholder partnership including 10 major off-
However, between 2012 and 2018, against takers, demonstrating that a coordinated
this challenging backdrop, SCPP achieved sectoral approach can grow the output and the
impressive results(1), most of which have been market to the benefit of all partners.
generated in the last few years of the project.
They include:
 Training 153,406 farmers in Good

Agricultural Practices (GAP), post-harvest
handling, professional farm management,
nursery management and certification.
 Since 2012, IDR13 billion (USD950,000)

worth of premiums have been distributed to
farmers, buying stations, and certification
holders in Aceh and Sulawesi, generating
additional profit for farmers.
__________________________
(1) For more information on the impact of the SCPP program, click here
2
The What Made

SCPP To Partners?
The Development of SCPP

Apprehensive about the declining yields and It was against this backdrop that the public-
potential disruption in the supply chain, private Sustainable Cocoa Production
companies in the cocoa sector saw a need to Program (SCPP) was eventually established
work with smallholder farmers to help them and that Swisscontact emerged as the long-
address the challenge of improving term implementer of the project.
productivity. However, operating in a highly
competitive environment, these companies
found it hard to coordinate joint sectorial
action. As a result, they turned to
Swisscontact, a Swiss development Indonesia Cocoa Bean Production
foundation with experience in value chain
development and regional expertise, to act as (Record High)
the facilitator in project implementation.
Similarly concerned about the falling yields

and the long-term detrimental impact caused
by pests was the World Cocoa Foundation
(formerly the U.S. Chocolate Manufacturers
Association). To investigate, the American
Cocoa Research Institute dispatched 850,000
entomologists and agronomists to the region tons
to study both the reasons behind the
productivity drop as well as possible cures.
The specialists identified a set of low-tech and
highly effective Good Agricultural Practices 260,000
(GAPs). But as member companies of the tons
World Cocoa Foundation did not have the
resources to train the farmers themselves,
they turned to the NGO and donor 2009 2017
communities to find suitable partners with
shared goals(2).
__________________________
(2) Mars Inc. played a pivotal role in this process by knocking on many donors’ doors
3
The What Made

SCPP To Partners?
2000 2004 2012
2000 2004 2012

 ACDI/VOCA, the World  Following the tsunami that  PEKA’s achievements
Cocoa Foundation and devastated Aceh, fueled the donor and cocoa
Mars Inc. teamed up to Swisscontact received sectors’ appetite to scale
form the public-private US$7 million in World Bank up Swisscontact’s effective
Sustainable Cocoa funding via a PEKA(3) approach. PEKA thus
Enterprise Solutions for project to promote evolved into the large
Smallholders (SUCCESS) smallholder cocoa farmers’ public-private partnership
Alliance. Funded by productivity in Aceh. A known as the Sustainable
USAID, it piloted farmer consortium of project Cocoa Production Program
training in Sulawesi based partners including Mars with the Swiss State
on recognized GAPs. Inc., Armajaro Trading Secretariat for Economic
Showing initial positive Limited and The World Affairs (SECO) as its main
results, the SUCCESS Cocoa Foundation donor. Swisscontact went
Alliance was awarded supported Swisscontact to great lengths to align the
another USAID grant that with expertise and sector and orchestrate
allowed it to train 30,000 resources. Successfully large-scale training of tens
smallholders in Sulawesi, familiarizing farmers with of thousands of cocoa
West Papua, Bali, and the techniques that the farmers.
North Sumatra until the end SUCCESS Alliance had
 Furthermore, the interest in
of 2005. originally developed,
sustainable cocoa
Swisscontact managed to
production from private
increase average farmer
sector companies led to the
productivity and income by
inclusion of IDH as a
100%.
second funding partner and
brought in additional funds
from within the industry.
This also allowed the
geographical reach of the
program to expand
considerably.
__________________________
(3) PEKA was a US$7 million sub-project of the Aceh Economic Development Financing Facility (EDFF) Project. To foster post-tsunami
economic recovery, EDFF received US$50 million from the Multi Donor Fund for Aceh and Nias, a partnership of the civil society,
international community and the Indonesian Government
4
The What Made

SCPP To Partners?
2013 2015 2016
2013 2015 2016

 Swisscontact joins the  SCPP further scaled up its  SECO agreed to SCPP’s
Partnership for Indonesia’s activities through a request for extension until
Sustainable Agriculture partnership with the U.S.- 2020.
(PISAgro), and began funded bilateral aid agency
leading the cocoa Working Millennium Challenge
Group. Under the Account Indonesia. Named
partnership umbrella, Green Prosperity –
SCPP was able to share its Sustainable Cocoa
expertise in capacity Production Program, the
building with other partners partnership brought
leading supply chains for another US$23 million to
other commodities, while the cocoa sector with
PISAgro brought SCPP approximately half of the
engagement opportunities sum coming from a private
with the Indonesian sector consortium(4).
government as well as
 The International Fund for
other private sector and
Agricultural Development
civil society stakeholders.
and Swisscontact agreed to
 In addition, CocoaTrace™ collaborate on
was spun out to PT Koltiva, strengthening institutional
an Indonesian start-up capacity around cocoa
software company, to farming in Central
develop a farm Sulawesi.
management and training
program information
system as software as a
service.
__________________________
(4) The consortium includes among others Veco Indonesia, Bank Rakyat Indonesia, PT Bank Pembangunan Daerah NTT, Rabobank, World
Cocoa Foundation (WCF) and the WCF members Barry Callebaut, BT Cocoa, Cargill, Guittard, Mars, Mondelēz International and Nestlé
5
The What Made

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The SCPP Model

SCPP is a large-scale donor-led project that From the outset, SCPP was focused on
secured the buy-in of the private sector and business sustainability, which hinges on
government actors on the national, regional whether the project benefits stakeholders at all
and district levels. The structure of SCPP is links in the value chain. By raising the
best described as a hub-and-spoke network productivity and skills of smallholder farmers,
with Swisscontact playing the central role as they can make a better, more dignified living.
coordinator, moderator, and project Meanwhile, companies benefit from a stable,
implementer. Swisscontact consulted with a high-quality supply of beans to satisfy market
multitude of stakeholders ranging from demands.
government agencies at different
administrative levels, research institutions,
sectorial platforms, program donors, NGOs,
input providers, cocoa traders, and banks to
industry platforms and global chocolate
manufacturers. By being able to credibly
demonstrate the impact of SCPP’s project
activities, Swisscontact was consistently able
to attract and retain donor and private sector
interest in sustaining their commitment to
SCPP’s activities.
By the end of 2017, the cumulative SCPP funding totalled almost USD43 million
with around USD11.9 million (27% of total funding) coming from the private sector
6
The What Made

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The SCPP Model
SCPP Public Private Partnership Model
Donors Private Sector
Funding Funding
Financial Institution
Nurseries
Training
Agri-inputs
Training Better Access
Cocoa
Farmer
Improve Production
Better Income / Poverty Reduction
7
The What Made

Snapshot Model `` Learnt
SCPP To Partners?`
What Made SCPP Attractive To Partners?

Any partnership must provide value to all To help farmers access markets for certified
partners to remain sustainable and reach a produce, Swisscontact teamed up with the
scale of impact. SCPP provided value in three Cocoa Sustainability Partnership (CSP) to set
significant ways: up efficient certification programs. They
tailored training manuals to standards required
by the such certification bodies as UTZ and
1. A PROVEN APPROACH Rainforest Alliance.
Swisscontact developed an approach to
farmer development on Sumatra that worked. To impart the above-mentioned skills and
This model was in place before the techniques, SCPP established the Farmer
partnership was formed and was a key Field Schools (FFS) training system to pass
attraction for businesses. on knowledge and skills to farmers at the
village level. Originally developed under the
Incorporating learnings from previous PEKA project, the system was further modified
manuals, Swisscontact and its partners and expanded to address constraints to
developed a comprehensive GAP training adoption and additional requirements of
module that was used by trainers and sustainability certification. Identified
agriculture extension workers. The module constraints to adoption included household
encouraged farmers to more frequently health and nutrition, household financial
harvest, prune, and sanitize cocoa trees as management, and undervaluing female
well as to employ better organic and inorganic participation. The new model added additional
fertilizing practices. Training syllabi were modules to be delivered subsequent to the
further complemented by advice on nursery FFS that is focused on agricultural practices,
management, top grafting techniques, post- and SCPP emphasized a more gender
harvest processing, fermentation, and quality balanced approach throughout. SCPP added
control. additional materials on Good Environmental
and Social Practices to address requirements
Beyond the GAP module, other modules were of the emerging sustainable certification
added to the training materials, such as Good market.
Environmental Practice (GEP), Good Financial
Practice (GFP), Good Social Practice (GSP), Working on a tier system, Master Trainers
and Good Business Practice (GBP). The (mainly SCPP field facilitators with some
comprehensive set of manuals developed with government and private sector staff) receive
the technical support and advice from extensive training in all core aspects of the
government institutions, research institutions, recommended practices in different areas.
program donors, NGOs, and private sector These Master Trainers then train Lead
partners have become a valued standard in Farmers who are selected based on criteria
the cocoa industry. agreed upon by both Swisscontact and its
partners. Subsequently, the Lead Farmers
transmit their newly acquired practical and
theoretical knowhow to Village Farmers.
8
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FFS consist of technical training lessons and Overall, the FFS approach was widely
practical demonstrations conducted on considered successful as it provided
demonstration plots and long-term technology transfer to an unprecedented
rehabilitation/replanting demonstration plots. number of smallholder farmers in Indonesia
FFS training takes place once a week for a cost-effectively. By working with a range of
duration of about eight weeks and are partners, Swisscontact was able to
attended by a group of 25 to 30 farmers. Lead consolidate best practices around
Farmers motivate participants to apply the environmental stewardship, certification and
newly acquired techniques on their farms GAP into a single effective program.
between the weekly meetings.
FFS staff also answer questions that arise

from the farmers’ first attempts to put the new “Overall, the FFS approach was widely
techniques to practice. considered successful as it provided
technology transfer to an unprecedented
FFS has been rolled out in five provinces in number of smallholder farmers in
consultation with private partner stakeholders. Indonesia cost-effectively”
Swisscontact moderated and coordinated a
decision-making process that saw cocoa
companies agreeing to respectively focus on
different regions where they would primarily 2. EFFICIENCY THROUGH
source their beans and get Swisscontact to SCALE
train farmers. Having each buyer focus on a
For programs such as SCPP to achieve a
single region, while reducing price
lasting and positive impact beyond the project
competition, incentivized the buyers to invest
duration, solutions based on real market
in yield and productivity improvements.
demand are important because they attract
companies to contribute to the project and to
Private sector partners outsourced such
take ownership of project outcomes. In order
practical training to Swisscontact as they did
to verify whether there is an underlying
not have the staff and experience to deliver
business case for a project to begin with, it is
large-scale training efficiently. The fact that
worth taking a close look at the companies’
cocoa companies did not all cluster in one
activities. If there had been no SCPP,
single area meant that FFS could be rolled out
companies such as Mars or Nestlé would still
in more regions to reach more smallholders.
have been actively trying to raise
For example, Barry Callebaut was
smallholders’ yields, albeit at a much smaller
predominantly active in West Sumatra
scale. For example, Mars was already running
whereas Mars and Cargill focused on South
a cocoa academy in Sulawesi doing research
Sulawesi. While the general syllabi were
on cocoa varieties, while Nestlé was working
agreed upon by all stakeholders, private
on its own Sustainable Cocoa Plan. Under the
sector partners, farmers, and Swisscontact
umbrella of SCPP, these efforts were
decided to tailor the specific contents of the
combined and rolled out on a larger scale.
FFS training according to the respective
region’s needs.
9
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3. REAL TIME TRACKING The same procedure can be applied for
transactions between buying stations and
Swisscontact was able to provide partners certification holders, warehouses,
with up-to-date and accurate data on project cooperatives or exporters. Based on the
activities and impact. volume of beans sold, a premium is calculated
and paid out to the farmers.
In 2010, Swisscontact first developed a state-
of-the-art management information system By consolidating industry data into a single
(MIS) to track progress and prototype framework at scale, the data has become
interventions. In 2013, the MIS was rebranded much more usable. Buyers can use
CocoaTraceTM and outsourced to PT Koltiva, CocoaTrace in their supply chain to track
an Indonesian company that had spun off from cocoa deliveries from SCPP farmers. Farmer
SCPP to develop the cloud-based database organizations are able to use CocoaTrace to
platform to facilitate the evaluation of farm- extract data on their members and to monitor
level data for the project and increasingly for members’ production capacity as well as
private sector partners. income gains from certification. Banks have
also used data from CocoaTrace as the basis
In 2014, a CocoaTraceTM smartphone app for extending loans for farmers. This level of
was launched to allow field staff to collect geo- data sharing would not be possible without an
referenced data such as farm location and industry level collaboration.
size, buying stations, number of cocoa trees
on the farm, productivity, prevailing diseases CocoaTrace is arguably the biggest innovation
and pests, and the application rate of that has come out of SCPP. It resonates far
recommended practices. The app’s built-in beyond SCPP itself by transforming the way
functions can quickly analyze survey data to private and public actors interact and engage
allow users to easily handle and interpret with smallholder farmers. The technology has
farmers’ statistics. been spun off into private company called
Koltiva, and has a been used in the seaweed,
As end-consumers became more willing to palm oil and spice sectors.
pay more for ethically and environmentally
produced cocoa, farmers could earn a
premium by producing certified and traceable
cocoa. CocoaTrace responded by improving “CocoaTraceTM is arguably the biggest
traceability and certification on both sides of innovation that has come out of SCPP. It
the value chain. On the supply side, farmers resonates far beyond SCPP itself by
can now present an ID card with a QR code transforming the way private and public
when they sell certified/traceable beans. actors interact and engage with
Buyers can then scan the card, verify the smallholder farmers.”
farmer’s profile, save the transaction directly
to CocoaTrace and print an invoice.
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Lessons Learnt
The hub-and-spoke model that Swisscontact 2. A SINGLE SHARED SERVICE
applied in SCPP, where it played a central
role as coordinator, moderator, and project PROVIDER CAN PLAY AN
implementer, has much to teach governments, IMPORTANT ROLE
NGOs and the private sector about working A shared understanding of a sector’s
together on smallholder development. Seven problems and possible remedies, however,
key lessons are highlighted below: might not be enough to incentivize competitors
to pool resources and operate on a large
scale. A neutral convening and implementing
1. IDENTIFY A BURNING organization can act as a catalyst to put
PLATFORM industry resources to more effective use. In
the case of the Indonesian cocoa sector,
The seed of a sector’s readiness and ability to
meaningful and long-term industry-wide
collaborate sprouts from a shared
coordination in the pre-competitive space
understanding of the nature of the challenge
would have been difficult to achieve without a
at hand. If both the problem and its solution
strong moderator such as Swisscontact.
are specific and concrete, competing actors or
actors with different values find it much easier First, even if competitors agreed on the type of
to align their goals and agree on joint action. solution needed to improve cocoa productivity,
Goal alignment is vital in enabling long-term they might still find it hard to agree to a
cooperation as it allows different stakeholders harmonized approach to smallholder training.
to keep coming together and compromise In the absence of a neutral implementing
even if opinions may differ. This was exactly organization, private sector stakeholders may
the case in Indonesia’s cocoa sector — both have used an ad hoc approach elaborating
the reasons behind the decline in cocoa their own learning materials and extension
productivity and the potential remedy were service concepts. Such efforts would never
well understood by all actors. This shared have reached the scale of SCPP.
understanding opened the door for
Swisscontact to partner up with the most Second, most companies in the cocoa sector
important players in the industry and allowed lacked both the expertise and the human
SCPP to gradually scale-up its efforts. resources required to provide effective training
to a large number of farmers.
Furthermore, the specificity of the solutions
also allowed SCPP to accommodate
increasing complexity resulting from the
addition of other training modules.
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Lessons Learnt
Outsourcing the drafting of best-practice Pooling resources into a shared service
curriculums and farmer training to provider gave the industry a critical mass to
Swisscontact meant that more farmers could achieve impact at scale, and a means of
be trained in a more resource-efficient way. collaborate pre-competitively.
Constant mediating and facilitating on the part
of Swisscontact ensured that learning
materials and curriculums were agreed upon 3. MEASURE AND
and applied in a coherent manner across all COMMUNICATE RESULTS
regions. An invaluable result of this
harmonized approach was a comprehensive Swisscontact was consistently able to enter
database with detailed information on farms, and prolong partnerships as well as to secure
farmer’s uptake of GAP, and yield changes. In funding for SCPP because it was perceived as
a way, SCPP created a public good, which a credible and competent partner. This
companies can now use to finetune their own credibility stemmed from Swisscontact’s
coaching efforts. innovative approach to monitoring and
evaluation that appealed to donors,
companies and the government alike.
Third, securing government support is crucial
when implementing a large-scale project
involving thousands of farmers as policies can For example, as opposed to relying on
shape outcomes on the ground. In the case of secondary data produced by program
the cocoa sector in Indonesia, it was difficult participants, Swisscontact did not shy away
for individual private companies to credibly from gathering first-hand data using its own
engage government institutions without either field staff. Producing early-stage quantitative
violating compliance rules or raising evidence that testified to the effectiveness of
suspicions of lobbying. Swisscontact, a non- SCPP made all the difference in attracting
commercial project implementer, was companies’ interest and in sustaining donor
perceived as an impartial and neutral actor appetite. It was arguably the data-backed
who could engage the government with less evidence that got companies excited about
reputational risks and greater credibility. In joining SCPP. Being able to demonstrate
general, no stone should be left unturned to strong results achieved during PEKA also
maintain constructive government relations as made Swisscontact the ideal implementer of
effective intervention on the ground requires SCPP.
both explicit and implicit support of the local
authorities. Swisscontact got involved in the
policy dialogue by participating in regional
forums and in the sectorial Cocoa
Sustainability Platform, and by being part of
PISAgro.
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Lessons Learnt
Swisscontact’s solid monitoring and Instead, it is important to get companies on
evaluation system also allowed the project to one’s side before actual sectorial meetings
respond and react organically to emergent take place. Apart from weekly liaising,
needs and opportunities unforeseen at the Swisscontact would schedule with each
project’s initial design. For example, data from company monthly meetings that served as an
the first project phase (2012-2015) revealed individual consultation and allowed partners to
that access to finance was a core issue comment, make suggestions, and discuss the
hindering farmers from buying better fertilizer latest developments.
and new seedlings. Swisscontact thus
managed to make the case for shifting the In liaising with its SCPP partners,
project focus to matters related to farmers’ Swisscontact placed great emphasis on
access to finance, particularly regarding loans treating everyone equally. If stakeholders felt
and savings. Impressed by the first results, they were treated unequally, the convening
SECO agreed to extend and step up its organization’s most precious asset — its
funding until 2020. credibility — might suffer irreparable harm.
This, in turn, would erode stakeholders’
willingness to collaborate and consequently
4. MANAGE RELATIONSHIPS lead to project failure.
PROACTIVELY
If NGOs want to achieve lasting impact on the As Swisscontact delivered what it promised,
ground and engage the private sector in a its services were highly appreciated and
meaningful way, acting as a service provider trusted by all SCPP partners. Similarly,
to companies can be a powerful model. A Swisscontact was able to hold private sector
convener should think of the process as key partners accountable since it held the
account management. To keep companies on bargaining chip of withdrawing in case the
board and motivated, NGOs should go the latter were to act uncooperatively.
extra mile in being responsive to companies’
sensibilities and keeping channels of Another important aspect of organizing multi-
communication open at all times. For stakeholder partnerships is ensuring a neutral
example, under the umbrella of SCPP, playing field. Any mediator of multi-
companies were able to continue to brand and stakeholder action involving the private sector
market their own programs such as the Nestlé should not rely on in-kind contributions offered
Cocoa Plan or Mars’ Cocoa Academy. by specific companies since this might
Swisscontact also bolstered participating antagonize competitors and even lead to
companies’ reputation by letting them take the boycotts. For example, to facilitate cooperative
credit for any successes. behavior and to keep company rivalry in
check, stakeholder meetings should be held at
When trying to reach sector-wide consensus, neutral venues.
it is key to engage stakeholders on a one-to-
one, bilateral basis. Simply bringing together
stakeholders and discussing how to proceed
is unlikely to yield tangible results.
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Lessons Learnt
5. KEEP GOVERNMENT To prevent misunderstanding and to give local
governments a sense of ownership,
INFORMED AND INVOLVED authorities should be included as early as
Across the region, governments are sensitive possible in the implementation of the program,
to the influences on poor and marginalized especially at the district level. For example,
populations. Implementing a project of the inviting smallholders to trainings without
scale of SCPP requires government notifying the local government should be
endorsement at every stage. SCPP followed avoided.
the government’s framework for such
collaboration by negotiating annual workplans
Nurturing good personal relationships
(Rencana Kerja Tahunan) with each District
between local officials and program managers
Government. This lengthy process may take
are an effective means to align interests. For
months of negotiations and document
example, if a district governor proposes a
revisions, but it was necessary for SCPP to
meeting at short notice, even if it is a great
have a license to operate in each of the 54
inconvenience, not responding is not an
districts where it worked at its peak.
option. One should be pragmatic and give the
government credit during press events. One
So how are good government relations best should also make sure that outreach and
maintained? All lessons mentioned in the learning materials in local language include
above section apply with the sole difference the government’s crest regardless of the
being that one’s bargaining power is reduced. government’s role in supporting the project’s
Therefore, government institutions at all levels actual implementation.
must be extensively consulted. Unless good
relations with the authorities are maintained, it
As SCPP ends in 2020, the government
is likely that project efforts will be obstructed in
remains one of the most important players to
a myriad of ways(5). As the policy environment
consolidate lessons from SCPP and continue
plays a decisive role in shaping project
to deliver services to farmers. Government’s
outcomes, timely government engagement
involvement across the project provides a
should be the key priority. Strategically
significant pathway for long term impact.
interacting with stakeholders means
prioritizing activities according to their
relevance. This may imply talking to
bureaucrats instead of local NGOs at times.
__________________________
(5) For example, authorities can withhold working visas, block necessary registrations
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Lessons Learnt
6. SECURE SIGNIFICANT, LONG 7. A SHARED PLATFORM CAN
TERM FUNDING GENERATE INNOVATION
The funding provided by the Swiss State SCPP’s biggest innovation with the most far-
Secretariat for Economic Affairs (SECO) was reaching consequences has been PT Koltiva
significant in scale and long-term. The long- and the CocoaTraceTM platform, which
term funding structure proved critical in transformed the buyer-supplier relationship
supporting the funding model. NGOs which and created complete transparency for all
receive short term grants (for example, over actors within the CocoaTrace system. The
three years) are incentivised to move quickly approach to monitoring and evaluation that
to delivery in the field and achieve results, at preceded CocoaTrace was not initiated by the
the expense of investing in partnership and private sector. It originated from a donor-led
alignment. SCPP is an example how a long project. This demonstrates how a highly
funding window facilitated a more holistic and competitive sector such as the cocoa industry
collaborative approached at scale. Longer can still benefit from an outside catalyst to
time frames lift the focus from impact in a transform itself.
value chain to impact on a sector.
The fact that industry stakeholders now pay
Secondly, available matching funds greatly for the CocoaTrace monitoring services
increased the industry’s willingness and guarantees that some of the achievements by
motivation to train more smallholder farmers. SCPP will remain even after the project is
The high level of gearing that companies officially phased out in 2020.
achieved from co-investing with donors was a
key draw for partners.
15
The What Made

SCPP To Partners?`
Conclusion
Indonesians’ appetite for cocoa will continue As the SCPP funding window ends in 2020
to grow with the market size for cocoa-based the project has left the industry stronger, with
products projected to reach US$1.4 billion in greater trust between actors, a consolidated
2019. While a production boom in Côte training program and a data sharing platform
d’Ivoire subdued cocoa prices and that banks, buyers and farmers can use to
discouraged many cocoa farmers, chocolate make better decisions. The project also
processing companies don’t want to rely solely provides seven key learning for other
on import. An overly import-dependent supply partnerships:
chain makes producers vulnerable to external
shocks. Furthermore, in the medium-term,
declining soil fertility and climate change will
likely take its toll on African yields. Against this
backdrop, end-buyers such as Mars, Nestlé,
and Mondelēz, as well as processors such as
Barry Callebaut, Cargill, and JB Foods, take
great interest in sustaining domestic cocoa
production. To ensure a local supply of cocoa
beans, companies have recognized that it is
not enough to exclusively focus on the
purchasing of raw beans without paying
attention to the livelihoods and conditions of
smallholder cocoa farmers who grow them.
2. A single shared
3. Measure and 4. Manage
1. Identify a service provider
communicate relationships
burning platform can play an
results proactively
important role
5. Keep
6. Secure 7. A shared
government
significant, long platform can
informed and
term funding generate innovation
involved
16
Progress and Achievements Since 2012
Farmer Environmental Financial

Productivity Profitability
Capacity Sustainability Inclusion
• Trained • 43% increase • At an • 110,282 • 69,936

153,406 in productivity estimated price farmers have households
farmers on from of been trained have been
good 513kg/ha/year US$2,200/ton, on good trained on
agricultural to an additional environmental financial
practices 733kg/ha/year US$42 million practices literacy
per annum is
• Facilitated • Incremental being • 147,787 • Cumulative
certification for production of generated hectares of women
79,113 21,160 tonnes cocoa farmland participation is
farmers(6) of cocoa per • Net attributable maintained 47%
annum income more with better farm
• Supported doubling from management
5,964 cocoa • 104,189m2 of US$470 to practices
producer nurseries for US$1,245 per
groups seedlings to annum per • 33% reduction
address aging farmer in GHG
• Trained 3,665 cocoa farms emissions from
master trainers • IDR 13 billion 1.11 tCO2e/MT
from the • 2.2 million in premium to 0.74
private sector, seedlings payments have tCO2e/MT
SMEs and produced been disbursed
farmer
organizations • 194 hectares of
clonal and
• Trained 1,411 budwood
government gardens
extension established
officers
For more information:

Website: www.swissccontact.org/indonesia
Email: [email protected]
__________________________
(6) Using certification as a proxy for the most adoptive farmers implies an adoption ratio of 50%. This is likely understated and SCPP intends to
conduct a more integrated measure of adoption on GAP practices by the end of the project (end of 2020)
17

Sustainable Cocoa Production Program (SCPP) : Case Study

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Case Study

The Development of SCPP 3

The SCPP Model 6

What Made SCPP Attractive To Partners? 8

Progress and Achievements Since 2012 17

Grow Asia PISAgro

Purpose of the Case Study

While Grow Asia is keen to encourage The SCPP model is a hub-and-spoke

The What Made

 Training 153,406 farmers in Good

 Since 2012, IDR13 billion (USD950,000)

The What Made

The Development of SCPP

Similarly concerned about the falling yields

The What Made

The Development of SCPP

2000 2004 2012

2000 2004 2012

The What Made

The Development of SCPP

2013 2015 2016

2013 2015 2016

The What Made

The SCPP Model

The What Made

The SCPP Model

SCPP Public Private Partnership Model

Donors Private Sector

Training Better Access

The What Made

What Made SCPP Attractive To Partners?

The What Made

What Made SCPP Attractive To Partners?

FFS staff also answer questions that arise

The What Made

What Made SCPP Attractive To Partners?

The What Made

The What Made

The What Made

The What Made

The What Made

The What Made

Progress and Achievements Since 2012

Farmer Environmental Financial

• Trained • 43% increase • At an • 110,282 • 69,936

For more information:

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