Coffee in Sulawesi, Indonesia

The demand for quality coffee is growing worldwide, but coffee production is at risk. Rising heat, extreme weather and pests mean that this high-altitude bean-based crop is running out of cool mountainsides on which it can flourish. As a result, coffee farmers are struggling to survive.

Indonesia is the world’s third biggest coffee producer, but its yield is relatively low. Sulawesi is one of the largest islands in Indonesia and in the world. Rikolto works in the regions of Toraja and Enrekang in South Sulawesi. Since colonial times, Arabica coffee has been the region’s main commodity, peaking in the 1970s when the Japanese company Toarco created the “Key Coffee” brand with beans produced in Toraja. The new variety became famous worldwide. However, in recent years its reputation has been undermined because of its irregular quality.

The main farmers’ organisation in North Toraja and Tana Toraja is Perhimpunan Petani Kopi Toraja (PPKT), founded in 2011. PPKT has 1,354 members (1,032 men and 322 women) but only a minority pay membership fees. Toarco Jaya is still the main buyer in the region, and it was only when Toarco had to conform to a quota that other exporters entered the market. Since 2013 PPKT has been working with Sulatco (Kapal Api Group) which owns 190 ha. of coffee plantations.

The main farmers’ organisation in Enrekang is Benteng Alla, which was created in 2001. Benteng Alla has 2,217 members (only 67 of them are female) and sells coffee to a variety of local and international exporters. With an average plantation of 900 trees per farm, coffee is the farmers’ main source of income. Most grow other side-crops, but they still need to purchase rice which is the daily staple food of their diets. This results in months of food shortages between harvests.

• The farmers suffer months of food shortages because of their dependency on imported rice and low incomes.
• Productivity is low due to ageing plantations, a lack of Good Agricultural Practices and pests.
• The quality is uneven due to unregulated post-harvest processing techniques and a lack of internal regulation.
• The reputation of Sulawesi coffee has been tarnished. An improvement in quality would guarantee more demand and better prices.
• Collective sales still account for only a small part of trade, so farmers need to rely on middlemen who offer them low prices.
• The farmers’ organisations are too weak to influence the coffee stakeholders.
• The downward trend in coffee prices due to low quality and productivity prompts many farmers to neglect their coffee plots.

• To fight the food shortage periods, we introduce agroforestry techniques: multi-cropping methods, introducing goats to the coffee fields to act as natural fertilizer and weed control, etc. This approach improves productivity and secures the farmers’ food supply.
• To increase revenues, we are pushing for the creation and commercialization of organic fertilizer with the coffee waste and manure produced by the goats so that farmers can sell the surplus.
• To improve productivity, we promote the replacement of old trees with new ones and support Farmer Field Schools where new cultivation techniques are passed on from farmer to farmer.
• To improve quality, we help the associations to create and supervise Internal Quality Controls such as the maintenance of internal communication and documentation systems.
• To strengthen the business skills of the farmers’ associations we organize courses in management and entrepreneurship.
• We work to deepen the relationships between organisations and exporters so they develop an inclusive business relationship without the need for middlemen.
• We encourage the farmers’ organisations to become members of Asosiasi Kopi Speciality Indonesia (AKSI) in order to expand their network.
• We facilitate multi-stakeholder meetings between the producers, the private companies and key coffee stakeholders (government, other NGOs, churches etc.), using the designation of Toraja as a Protected Geographical area (MPIG) as a launch pad.
• We will re-brand Toraja and Enrekang coffees to restore them to their position in the 1970s.

In 2018, at least, 4,030 farmers and their families have received benefits due to our support:

• 2,297 farmers of Benteng Alla Cooperative (1,608 male farmers and 689 female farmers)
• 1,733 farmers of PPKT/Toraja Coffee Farmers' Cooperative (1,294 male farmers and 439 female farmers)

Coffee cooperatives in Sulawesi ended 2019 on a good note.

• In Toraja, PPKT Cooperative has managed to promote sustainable coffee farming practices and reach out to more farmers. To date, the cooperative has 1,731 members of coffee farmers growing and producing Lini S variety of Arabica coffee. Coffee production has increased, from around 350 kg/ha in 2018 to 370 kg/ha in 2019.

• PPKT also maintains a good relationship with its members. Until the first semester of 2019, the cooperative has bought coffee from members totalling approximately 30,000 litters of wet parchment (around 10 tons), valued at approximately IDR 570,000,000 and has been sold around 2.5 tons with a value of approximately IDR 300,000,000.

• The presence of PPKT opens up ample opportunities for women and youth to take part in the coffee value chain. The cooperative attempts to increase women’s access to capacity building activities, knowledge and paid work. To date, 449 female farmers have benefitted from the programme through their participation in on-farm and off-farm activities. There are also five women coffee trainers responsible for delivering sustainable coffee farming practices to smallholder farmers. Work opportunities emerge for young people too. PPKT has trained young people to be coffee trainers. As a result, 3 young trainers work and are involved in the cooperative. The cooperative held barista training as an initial step to attract young people to the coffee value chain.

• PPKT has drawn up an inclusive written agreement with Sulatco, the second biggest exporter in the region. The deal includes daily information about the market and premium prices.
• Benteng Alla has signed an inclusive contract with Bintang Tunggal Sejati (BTS).
• Both organisations have developed an internal information system that allows them to monitor the volume, taste and quality of their crops.

• The increase in the production and quality of the crop and the new strength of the farming organisations should make the coffee crop attractive to other farmers.
• The results of this project should inspire coffee processing companies to make their sourcing policies more inclusive.
• The global coffee trade will be secured thanks to a more sustainable form of production that will be capable of overcoming the challenges of the climate change and ensuring a fair price for farmers.