5 Company–Community Partnership and Climate Change Adaptation Practices …
83
Coffee farmers
Cooperatives
/Farmers group
Big traders
Domestic roasters
(Multi-national companies)
Ground-coffee processing center
Intermediary
traders
Consumers
Private exporters
Wholesalers
(low grade)
International
roasters
Fig. 5.1 Coffee supply chain in Lampung
checks for production, namely the zero usage of chemical pesticides, resulting in
export quality of coffee produce. The MNCs examine the quality of the coffee beans
after they brought them to the action center every time they purchase. If the coffee
beans passed the quality control, then MNCs will buy those beans and transfer the
money to the farmers. The process usually takes two days to one week for inspection
until farmers obtain their money. According to the interviewed farmers and extension
officials in the region, MNCs usually set a higher price of 10–20% more than the
market price for the beans procured via the partnership.
What makes the practice different with “contract farming” is that MNCs did not
specify the quantity and the timing to sell so farmers may individually sell to the
MNCs if they can show the agreement certificate. If they did not meet the quality
standard, MNCs will return the produce and farmers may sell to non-MNCs or
local traders. Furthermore, MNCs have sometimes channeled their corporate social
responsibility (CSR) initiatives into them, and even empowered the farmers with
access to financial cooperatives, as the partnership agreement certificate may serve
as collateral. As the focus of MNCs is predominantly on the organic production,
the MNCs sometimes carried out various training to thousands of Indonesian coffee
farmers on the use of organic substances and to improve yields.
3 While the use
of organic farming is encouraged by the MNCs, the usage of resource-conserving
and agroforestry techniques as a means to mitigate climate variabilities are often
overlooked. Farmers both in partnership and non-partnership have the same access
to agricultural extension officials as their primary sources of agricultural information,
which may provide them with environmental conservation techniques that the MNCs
are lacking. This is why farmers in both groups may have the same opportunity for
the adoption of these techniques, making their cases comparable.
3 For instance, see https://swa.co.id/swa/listed-articles/pusat-pelatihan-untuk-petani-kopi (accessed
02/04/2019) and https://food.detik.com/berita-boga/d-2565092/cofffee-made-happy-program-pel
atihan-kopi-akan-dimulai-di-lampung (accessed 02/04/2019).
83
Coffee farmers
Cooperatives
/Farmers group
Big traders
Domestic roasters
(Multi-national companies)
Ground-coffee processing center
Intermediary
traders
Consumers
Private exporters
Wholesalers
(low grade)
International
roasters
Fig. 5.1 Coffee supply chain in Lampung
checks for production, namely the zero usage of chemical pesticides, resulting in
export quality of coffee produce. The MNCs examine the quality of the coffee beans
after they brought them to the action center every time they purchase. If the coffee
beans passed the quality control, then MNCs will buy those beans and transfer the
money to the farmers. The process usually takes two days to one week for inspection
until farmers obtain their money. According to the interviewed farmers and extension
officials in the region, MNCs usually set a higher price of 10–20% more than the
market price for the beans procured via the partnership.
What makes the practice different with “contract farming” is that MNCs did not
specify the quantity and the timing to sell so farmers may individually sell to the
MNCs if they can show the agreement certificate. If they did not meet the quality
standard, MNCs will return the produce and farmers may sell to non-MNCs or
local traders. Furthermore, MNCs have sometimes channeled their corporate social
responsibility (CSR) initiatives into them, and even empowered the farmers with
access to financial cooperatives, as the partnership agreement certificate may serve
as collateral. As the focus of MNCs is predominantly on the organic production,
the MNCs sometimes carried out various training to thousands of Indonesian coffee
farmers on the use of organic substances and to improve yields.
3 While the use
of organic farming is encouraged by the MNCs, the usage of resource-conserving
and agroforestry techniques as a means to mitigate climate variabilities are often
overlooked. Farmers both in partnership and non-partnership have the same access
to agricultural extension officials as their primary sources of agricultural information,
which may provide them with environmental conservation techniques that the MNCs
are lacking. This is why farmers in both groups may have the same opportunity for
the adoption of these techniques, making their cases comparable.
3 For instance, see https://swa.co.id/swa/listed-articles/pusat-pelatihan-untuk-petani-kopi (accessed
02/04/2019) and https://food.detik.com/berita-boga/d-2565092/cofffee-made-happy-program-pel
atihan-kopi-akan-dimulai-di-lampung (accessed 02/04/2019).