collaborative advantage of rural coffee farming in ... · • coffee plantation in indonesia and...

COLLABORATIVE ADVANTAGE OF RURAL COFFEE

FARMING IN TEMANGGUNG, INDONESIAHoli Bina Wijaya – UNDIP, Indonesia

[email protected]

B a n g i - M a l a y s i a , 2 6 A u g u s t 2 0 1 4

5th International Conference and Meeting

of Rural Research and Planning Group - RRPG

DISCUSSIONINTRODUCTION

Background

Some conceptual references

METHODOLOGY

COFFEE FARMING IN TEMANGGUNG, INDONESIA

Coffee farming history and production

Coffee farming group cases

COLLABORATION ADVANTAGE OF COFFEE FARMING

CONCLUSSION

Collaborative Advantage

• Collaborative Advantage is the advantage that could not be achieved any organization alone (Huxham, 2003).

• Rural collaborative advantage: a condition where the rural communities have value added advantage due to collaboration among them in order to reach common goals.

• Collaborative inertia is the collaboration risk when the collective effort does not provide a significant result or the progress is very slow (Huxham, 2003).

• The collaborative advantage connect the economic and social sphere, which enhance the economic transactional logic with the social value of human life (Johnsen, 2012).

The common bases for collaborative advantage(Huxham, 2005)

1. Access to resources,

2. Shared risk,

3. Efficiency,

4. Co-ordination and seamlessness,

5. Learning,

6. The moral imperative that there is no other way.

Research argument• The collaboration among rural production agents offer

the opportunity to establish more effective result and problem solving of separated rural production activities disadvantage. – The coffee farming groups in Temanggung have some

potential for collaborative advantages since it facilitate the farmer partnership in coffee farming, processing, and marketing.

– In some cases the groups could reach the advantages in certain components, but others are unsuccessful as the form of the collaborative inertias.

• The research explore the collaborative advantages and inertias in 4 coffee farming groups in Temanggungdistrict, Central Java Province, Indonesia.

Cases study: Robusta and Arabica Coffee farmer groups in Temanggung District

Ngudi Rejeki farmers group of Robusta coffee,

Kandangan sub district, Temanggung.

Akur farmers group of Robusta coffee, Candi Rotosub district, Temanggung.

1

3

2

4

Margo Rahayu farmers group of Arabica coffee,

Tlahab sub district, Temanggung.

Daya Sindorofarmers group of Arabica coffee, Tlahabsub district, Temanggung.

INDONESIA

vCoffee Farming Distribution in Temanggung

Ngudi Rejeki farmers group of Robusta coffee,

Kandangan sub district, Temanggung.

Akur farmers group of Robusta coffee, Candi Rotosub district, Temanggung.

1

3

2

4

Margo Rahayu farmers group of Arabica coffee,

Tlahab sub district, Temanggung.

Daya Sindorofarmers group of Arabica coffee, Tlahabsub district, Temanggung.

Year Arabica Coffee Robusta Coffee Total District

Area(Ha)

Production (Ton)

Area(Ha)

Production

(Ton)

Area (Ha) Production (Ton)

2009 1,073.72 373.30 9,272.98 6,044.04 10,346.70 6,417.342010 1,160.57 626.82 8,919.73 4,807.89 10,080.30 5,434.71

2011 1,431.74 254.45 9,262.02 2,514.22 10,693.76 2,768.67

2012 1,429.48 991.63 9,256.28 8,518.95 10,685.76 9,510.572013 1,429.48 991.63 9,304.47 7,388.79 10,733.95 8,380.42

COFFE FARMING IN TEMANGGUNG, INDONESIA

• Coffee plantation in Indonesia and Temanggung was established by Dutch in colonial era (Arabica – early 17th century; Robusta – early 1900s).

• By 2013, Indonesia was the 3rd world biggest coffee production countries.

• Nowadays, coffee farming are mostly arrange by farmers, and farmer group has an important role in the coffee farming. • Advantage of economic scale efficiency of resources.• Challenge of the farmer group performance to foster the

advantage of collaboration. • The coffee farming in Temanggung is consisted of Robusta and

Arabica:• The Robusta coffee: below 1000 m | 9,304 Ha |7,388 ton/year

|start from colonial era.• The Arabica coffee: Highland area | 1,429 Ha | 991.63 ton in

year 2013 | just started on year 2000

0

2000

4000

6000

8000

10000

2009 2010 2011 2012 2013

Coffee Production in Temanggung 2009 - 2011

0.00

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

2009 2010 2011 2012 2013

Coffee Land Farming Area in Temanggung 2009 - 2011

Arabica Robusta

Case 1: Ngudi Rejeki farmer group – Robusta coffee

• The group establishment was supported by the government program for agriculture development.

• In 1988, the involved farmers reached about 500, which NgudiRejeki had achieved 2nd national award for agroforestry.

• However in 2014, the active group members left just 30 farmers, due to:

– Less challenge and innovation to promote the collective activities

– Easier of market supports

Components Ngudi Rejeki, KandanganA Characteristics

1 Coffee varieties Robusta (monoculture)

2 Establishment year/age 1983 / 31 years3 Farmer members 30

(1998: involved almost 500 farmers)4 Main activities Farming supports6 Leadership/championship Individual7 Group establishment

initiativeField training

B Collaborative advantage

1 On farm collaborative advantage

- Farming technology transfer

2 Off farm collaborative advantage

- Partly processing to green bean

3 Access to government support as collaborative advantage

- Farmers education,- Subsidized fertilizer, some coffee

processing tools.

C Collaborative inertia1 Facts - Failure in green bean collection.

- Disagreement between senior and junior members/board.

2 Result - Individually processing, less collective collaboration, less collective capacity, dominant market influences, low quality and price.

Case 2: Akur farmer group – Robusta coffeeComponents Akur, Candi Roto

A Characteristics1 Coffee varieties

2 Establishment year/age 2005 / 9 years

3 Farmer members 90

4 Main activities Farming support, collective processing

6 Leadership/championship Individual, network

7 Group establishment initiative

Collective processing and field training



- Farming technology transfer- Farming activities outsourcing- Access to government support


- Green bean collection- Processing to green bean- Coffee powder production- Market access


- Farmers education,- Subsidized fertilizer, a set of mini

coffee processing plant.

C Collaborative inertia1 Facts - Leader uses group facility

personally

2 Result - Uncontrolled management, resistance to have collective collaboration

• The Candiroto sub district is the main Robusta coffee farming in Temanggung.

• The farmer group was initiated from the current coffee collective processing.

• The get the support of a set of coffee processing mini plant until coffee powder package.

• The marketing and government support is mostly due to the strong connection of leader group.

Case 3: Margo Rahayu farmers group – Arabica Coffee

Components Margo Rahayu, TlahabA Characteristics1 Coffee varieties Arabica (intercropping with

tobacco/horticulture)2 Establishment year/age 2000 / 14 years3 Farmer members 40

(2001: involved 490 farmers)4 Main activities Farming support6 Leadership/championship Individual, wide network7 Group establishment

initiativeUpper land conservation program



- Farming technology transfer- Better quality red coffee cherry

harvesting campaign - Land conservation with coffee

farming- Standardize product price


- Coffee cherry collection- Market access


- Farmers education,- Subsidized fertilizer, Arabica coffee

seedlings.

C Collaborative inertia1 Facts - Dominant leader, unclear

management structure and tasks allocation

2 Result - Uncontrolled management, resistance to have collective collaboration

• The group was initiated by the land conservation program of tobacco farming in year 2000.

• The Tlahab patern: intercropping of tobacco and vegetables with coffee.• Decreasing land erotion• Multi crops farming

• Many supports from government and NGO programs

• The initial members reached to 490 farmers

• Domination of leader and unclear management structure lead to the group separation.

Case 3: Daya Sindoro farmer group – Arabica coffee

Components Daya Sindoro, TlahabA Characteristics

1 Coffee varieties Arabica (intercropping with tobacco/horticulture)

2 Establishment year/age 2007 / 7 years

3 Farmer members 40 Separation from Margo Rahayu

4 Main activities Farming support, collective processing

6 Leadership/championship Group board

7 Group establishment initiative The willingness to better management, field training



- Farming technology transfer - Coffee nursery- Better quality red coffee cherry

harvesting campaign - Land conservation with coffee

farming- Standardize product price


- Coffee cherry collection- Processing to green bean- Production of coffee powder- Market access


- Farmers education,- Subsidized fertilizer, a set of mini

coffee processing plant.

C Collaborative inertia1 Facts - Group board dominance

2 Result - Potentially exclusiveness of board

• Daya Sindoro was separated from Margo Rahayu, but after separation both group are still have a tight collaboration in processing and marketing the product. • All the collected coffee cherries of

Margo Rahayu are processed in the Daya Sindoro processing division.

• In the marketing, if one of the group get a big party order that could not be supplied alone, then it will request the other to provide the product together.

Collaborative Advantage of Coffee Farming Groups 1

• Common platform for collaboration in coffee farming production, processing, and marketing: The economic reason for better value added and efficiency.

• The government has significant role to initiate and facilitate the farmer group collaboration >< The groups performance to achieve collaboration advantage or come to pitfall of collaboration inertia is depended to the group internal factors.

• The main factors to reach the collaborative advantages:– Common challenges and goals,– The leadership, – organization structure and management,– the relationship among members, as well capacity to innovate

• The collaborative inertias:– When the group leader and board could not offer the innovation for

efficiency and improvement due to the issue of inadequate capacity– A comfort facility and condition of market and government discourage

the improvement effort and better means of collaboration

Collaborative Advantage of Coffee Farming Groups 2

• Some efforts that more than just the economic reasons: – The proudness and sense of belonging of local

value, the tight ties among farmers also could stimulate the collaborations

– The trust from members give the farmer leader and group board to represent of the group to establish the collective activities

• The collaboration could promote the resiliency of sustainable rural development as complements of the economic transactions.

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