RVO SDGP Facility: The Sugar and Steam project in Kulon Progo, Indonesia
Small organic coconut producers in Kulon Progo have consistently low productivity. Subsistence farming, and therefore poverty, is common as a result of poor land management, the absence of climate-smart agriculture, and more extreme weather events. Faced with growing international demand for alternative natural sweeteners, The Sugar and Steam project wanted to turn things around by working with farmers in the Kokap district of Kulon Progo.
The Sugar and Steam project was then initiated by Aliet Green, AidEnvironment, and Van Hall Larenstein University of Applied Science (VHL) for 2019-2024. This project was funded by RVO SDGP Facility in the amount of EUR 512,300. By far, the consortium managed to generate 2,100 jobs, 2,000 farmers experienced an increase in income (an increase of about 40%), 2,000 farmers experienced an increase in coconut sugar productivity (an increase of about >20%), and 1,200 farms became more resilient to possible environmental stresses/shocks.
Some of the results achieved through value chain integration and the introduction of appropriate agricultural practices and technologies contribute to sustainable and environmentally friendly food chains, better labor conditions, and ethical working procedures throughout the value chain. Notably, their Organic Coconut Sugar was the first in the world to meet Organic, Fair for Life (Fair Trade and Social Responsibility), BRC Global Food Safety standards, Gluten Free, B-Corp, and Regenerative Organic Certification. This has also had a positive impact on increasing farmers' incomes. Aliet Green--which has predominantly female employees and sources products from farmers, has successfully exported a variety of coconut sugar mainly to England and the US while still looking into the possibility of exporting to the Netherlands.
The above-mentioned achievements were not without obstacles. Some of the challenges faced by the project are a) achieving 60% women in the project and engaging youth is still a challenge, b) covid causing project delays and reduced demand on products, c) aging farmers, and d) long droughts from 2023 due to climate change having a negative effect on production volumes.
While addressing the challenges, the consortium (especially Aliet Green) sought ways to increase farmers' income by encouraging farmers to cultivate vanilla. Although only briefly introduced, by 2023 farmers earn 20-35% additional income from the sale of ROC (Regenerative Organic Certification) vanilla beans. The consortium is also currently introducing dwarf coconut species as they are easier for farmers to harvest. Aliet Green itself contributed EUR 61,000 for planting materials and seedlings for dwarf coconut and vanilla.
Representatives from RVO and the Dutch Embassy in Jakarta conducted a field visit accompanied by consortium members (AidEnvironment, VHL, and Aliet Green). We visited several areas planted with dwarf coconut species under agroforestry mechanisms and Aliet Green's coconut sugar production facility. We also discussed with the farmers their involvement in the project and how they benefited from the project.
Aliet Green attended a training program for exporting with the Center for the Promotion of Imports from developing countries (CBI) before they received the grant from SDGP facility program. An illustration of how the international development programs of the Netherlands Enterprise Agency can effectively complement each other.
It was pleasing to see that the investment is delivering wide-ranging benefits especially to smallholder farmers. High appreciation for the efforts of the consortium, farmers, and all parties involved.
Disclaimers :
*This article is based on project reports and visits, and images courtesy of the consortium.