Production and marketing of high Premium Rice in Central Java

Goal of the project

The goals of the project are:
  • Increased rice production to meet the increasing demand for food/rice
  • Improved market efficiency and sustainability of the rice supply chian
  • Inclusive business with impact on small farmers, employees and entrepreneurs, including women entrepreneurship.

Project number

FDOV14RI20

Country

  • Indonesia

Location

  • Central Java

Sector

  • Agriculture
  • Rice

Project budget

€ 1,931,238 (FDOV contribution = € 946,300)
 

Partners

  • PT. Lentera Panen Mandiri
  • Bank Jateng
  • PT. Unggul Niaga Selaras
  • Vredeseilanden VZW
  • Yayasan Jateng Berdikari
  • Food Security Board Central Java
  • PT. Sebelas Maret Berdikari

Project description

In Indonesia, the demand for rice is increasingly growing, while the production is decreasing. Farmers produce low quality rice and face many challenges in the production. Their position in the supply chain is weak and they have difficulty getting into new markets. The partnership will therefore motivate, train and coach 10,000 farmers in Central Java to produce high premium rice for the Indonesian market, using certified seeds and organic fertilizers and pesticides. The market for this high premium rice is increasing annually and the financial benefit for farmers has proven to be much higher. To strengthen the position of the farmers in the chain, the partnership will professionalize 58 LDPMs (business unit within farmer groups) into a strong business organization, with know-hows, capabilities and influence. Which gives them more bargaining power, makes them a strong and reliable supplier and at the end a trustworthy client for loans from the bank. The position of women in LDPMs will be strengthened:

  • they will become the owner of harvest and post-harvesting equipment
  • they will use improved techniques to improve quality and quantity of the harvest and increase their income.

Total additional production will be 2,453 tons of rice grain per year (+20%), and the income rise for male and female farmers will be on average € 76 (+42%) per year. The income of female labourers in threshing will rise 30%.

Note:

The Ministry of Foreign Affairs is formal partner in this project.

More information

http://www.icco-international.com/int/news/news/icco-is-granted-subsidy-for-rice-production-in-indonesia/

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