product market combination for small farmers in indonesia ... filevegetable production and marketing...

Product Market Combination for small farmers in Indonesia:

Traditional home industry crisps from potatoes produced by

Garut farmers for domestic markets

Marijn van der Laan, Novianto, Marcel Stallen

vegIMPACT Report 23

June, 2016

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vegIMPACT report 23. Product market combination Potato

vegIMPACT is a program financed by The Netherlands’ Government promoting improved

vegetable production and marketing for small farmers in Indonesia, contributing to the food

security status and private sector development in Indonesia. The program builds on the results of

previous joint Indonesian-Dutch horticultural development cooperation projects and aligns with

recent developments in the horticultural private sector and retail in Indonesia. The program

activities (2012 – 2016) include the Development of Product Market Combinations, Strengthening

the Potato Sector, Development of permanent Vegetable Production Systems, Knowledge Transfer

and Occupational Health.

Wageningen University and Research centre (Wageningen UR, The Netherlands):

- Applied Plant Research (APR), AGV Research Unit Lelystad - Centre for Development Innovation (CDI), Wageningen - Plant Research International (PRI), Wageningen - Agricultural Economics Institute (LEI), Den Haag

Contact person:

Huib Hengsdijk, [email protected]

Indonesian Vegetable Research Institute (IVEGRI, Indonesia)

Contact person:

Witono Adigoya, [email protected]

Fresh Dynamics (Indonesia)

Contact person:

Marcel Stallen, [email protected]

www.vegIMPACT.com

© 2016 Wageningen UR, The Netherlands

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted,

in any form of by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior

written permission of Wageningen UR, The Netherlands

Wageningen UR, The Netherlands, takes no responsibility for any injury or damage sustained by using data

from this publication

mailto:[email protected]

mailto:[email protected]

http://www.vegimpact.com/

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the dates business is doing fine

Product Market Combination for small farmers in Indonesia:

Traditional home industry crisps from potatoes produced by Garut

farmers for domestic markets

Marijn van der Laan, Marcel Stallen, Novianto (PT Fresh Dynamics Indonesia)

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Contents

Abbreviations and Acronyms ........................................................................................................................... 5

1 Introduction PMC Potato ......................................................................................................................... 6

1.1 vegIMPACT Product Market Combinations ........................................................................................... 6

1.2 Potato crisps – the market demand ...................................................................................................... 6

1.3 PMC Potato - the business proposition ................................................................................................. 9

2 Product Market Combination (PMC) Potato: Participants, approach, interventions .............................. 11

2.1 PMC participants ................................................................................................................................. 11

2.1.1 Farmers ........................................................................................................................................... 11

2.1.2 Processor ......................................................................................................................................... 11

2.1.3 Trader .............................................................................................................................................. 12

2.1.4 Retailers .......................................................................................................................................... 13

2.2 PMC activities and interventions ......................................................................................................... 14

2.2.1 Interventions in processing unit ...................................................................................................... 14

2.2.2 Marketing and Sales interventions with trader .............................................................................. 15

2.2.3 Agronomic interventions ................................................................................................................. 16

3 PMC results and evaluation ................................................................................................................... 17

3.1 Upgrading processing company .......................................................................................................... 17

3.1.1 Situation pre- PMC, location & practices ........................................................................................ 17

3.1.2 Renovation of processing unit ......................................................................................................... 17

3.1.3 Production output and sales Sinar Dua Putra ................................................................................. 19

3.2 Sales and marketing Ceutety ............................................................................................................... 21

3.2.1 Product positioning ......................................................................................................................... 21

3.2.2 Labelling and packaging .................................................................................................................. 24

3.2.3 Implementation and sales ............................................................................................................... 25

3.3 Agronomic interventions ..................................................................................................................... 27

3.3.1 Cultivation practice ......................................................................................................................... 27

3.3.2 Continuous supply and contract farming ........................................................................................ 27

4 Conclusions ............................................................................................................................................ 29

4.1 Overall result business proposition ..................................................................................................... 29

4.2 PMC contribution to vegIMPACT objectives........................................................................................ 29

ANNEX I Floor plan before and after renovation ............................................................................................ 31

ANNEX II Top buyers yellow potato crisps (kg) Sinar Dua Putra ...................................................................... 32

ANNEX III Brand positioning Ceutety .............................................................................................................. 33

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Abbreviations and Acronyms

APR (PPO) Applied Plant Research of Wageningen University and Research Centre

ASEAN Association of Southeast Asian Nations

AVA Agri-food & Veterinary Authority of Singapore

BPS Badan Pusat Statistik, the Indonesian Central Agency on Statistics

CDI Centre for Development Innovation of Wageningen University and Research Centre

DIPERTA Dinas Pertanian Daerah

FAO Food and Agriculture Organization of the United Nations

FDA Fresh Dynamics Asia

IDR Indonesian Rupiah (currency)

IPM Integrated Pest (and disease) Management

IVEGRI Indonesian Vegetable and Research Institute

LEI Agricultural Economics Institute of Wageningen University and Research Centre

M&E Monitoring and Evaluation

MRL Maximum Residue Level

MoU Memorandum of Understanding

PMC Product Market Combination

PRI Plant Research International of Wageningen University and Research Centre

WHO World Health Organization

WP Work Package

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1 Introduction PMC Potato

1.1 vegIMPACT Product Market Combinations Within the vegIMPACT program, a Product Market Combination (PMC) is a pilot implemented with partners in the supply chain, including small farmers, who produce vegetables in a coordinated way and according to specific market demands. A PMC contains innovative aspects, for example the use of improved varieties, a new marketing concept, packaging materials, branding of the vegetables or the supply chain configuration itself. In a PMC supply chain partners make mutual arrangements with regard to improving existing market linkages or to create new market opportunities. PMC’s are considered as a “proof of concept“ to show that innovations and cooperation in market-oriented supply chains potentially can benefit all supply chain partners and in particular small farmers.

National and International VegIMPACT PMC staff facilitate the entire process from initial market survey, developing business propositions in collaboration with supply chain partners, facilitating the implementation of the supply chain until the marketing of the product.

Farmers and supply chain partners in a PMC are supported by vegIMPACT staff to improve critical issues in their supply chain such as agronomy aspects, post-harvest issues, organizational issues and marketing. To this end a pre-pilot (training) needs assessment and supply chain analysis are conducted by vegIMPACT staff.

vegIMPACT Product Market Combinations contribute to the following vegIMPACT objectives: increased vegetable productivity; reduced pesticide usage per unit product; reduced production costs per unit product; increased financial margins for farmers and reduced occupational health problems and risks. In this report the approach, facilitation process and results of the “PMC potato” are described and the impact on the relevant vegIMPACT objectives assessed.

The remainder of Chapter 1 provides an overview of the Indonesian market segments for potatoes and the main players, as well as the business opportunity that this “PMC potato” wants to capture. In Chapter 2 the characteristics of the PMC potato, the supply chain actors and other stakeholders are presented and the arrangements between partners and the market proposition (the PMC interventions) are described. In Chapter 3, after a summary of the current agronomy and supply chain practices, the results of the PMC potato interventions are presented and discussed. In Chapter 4 conclusions are formulated and the contribution of the PMC potato to the vegIMPACT objectives is presented.

1.2 Potato crisps – the market demand Indonesia is the largest producer of table potatoes in South East Asia. Ninety percent of the potatoes produced are for table purposes. Because not enough potatoes are produced, Indonesia also imports potatoes (fresh, frozen and paste) in considerable amounts especially for processing purposes (Fig. 1.1).

Figure 1.1. Potato volumes produced in Indonesia and volume imported potatoes. Source: Deptan (2015).

volume Import (ton)

2012 116,083

2013 107,902

2014 93,262

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Although Indonesian traditional food patterns are rice based, a growing middle class and urbanization has increased the popularity of fast food restaurants and potato snacks (fries and crisps), resulting in growing potato consumption over the years (Fig. 1.2). Average prices for fresh potatoes have risen accordingly as shown in Figure 1.3. Prices fluctuate greatly from month to month. In the region where the PMC pilot was conducted, Garut, market prices fluctuated between 5,000 and 11,000 IDR/kg during pilot period.

Figure 1.2. Growth of domestic potato consumption. Source: Deptan (2012). 1

Figure 1.3. Domestic price development potatoes in Indonesia. Source: Deptan (2012).

The commissioner of the vegIMPACT programme specifically requested a PMC potato focussed on

(home industry) processed potato in West Java.

For this purpose, the PMC team interviewed 20 stakeholders in potato processing supply chains, including 11 processing companies in West Java. This survey included the largest processor in Indonesia (Indofood) as well as medium sized and small home industry players all over West Java.

Currently, in Indonesia, two main potato varieties are used for processed potato snacks: Atlantic and Granola. The Atlantic variety potato is most suitable for processing purposes, but the supply of Atlantic potato is running short of demand. The largest buyer of Atlantic potatoes, Indofood, is a dominant player in Indonesia and it is estimated that about 90% of all available Atlantic potato is exclusively

1 : www.pertanian.go.id

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contracted by Indofood2. Indofood supports its contract farmers with seed and cultivation advice. Indofood is only able to source 30% of its annual need for Atlantic potatoes in Indonesia the other 70% is imported from Canada, Australia and Europe.

Because of the monopoly of Indofood, other Indonesian potato processing companies cannot rely on sufficient supply of Atlantic potato for building a sustainable crisps business. If home industries do use Atlantic potatoes, these are mostly ‘left over material’, poor quality B-grade or Atlantic potatoes that are illegally sold (Indofood contracts, stipulating that all potatoes should be sold to Indofood, are sometimes breached when market prices are higher than contract prices). Lately some new potato varieties, with good processing characteristics, have gained the interest of home industry processors in Indonesia. But Atlantic and Granola are expected to dominate the market for years to come.

The main differences between Atlantic and Granola potatoes for processing purposes are summarized in Table 1.1.

Features Atlantic Granola

Final product weight (crisps from processing 1 kg fresh potato) 250 g 180 g

Long term crispiness of product +++ +

Growing period of potatoes 90-100 days

120-160 days

Price fresh potatoes on (open) market ++ ++

Table 1.1. Potato variety and processing characteristics according to home industry actors.

While surveying the downstream part of the supply chain it was observed that a huge market exists for snack products made out of Granola potatoes, mainly in the “oleh oleh” (local snacks and souvenir) market segment. However, it was also noticed that the products sold in this segment are in general of sub-standard quality. Apart from using Granola as feedstock these products distinguish themselves from the top end Atlantic crisps (such as Lays) by uncertified production, non-uniform products, unprofessional packaging and absence of product labels with information.

One of the reasons for this poor appearance and presentation in the market could also be that most of these crisps are produced by small scale home industry companies and their low production volumes do not justify investments in professional equipment for processing and in packaging and labelling. There are some exceptions to the rule but in general the marketing capacity of these small producers is limited.

For this PMC potato an existing supply chain has been selected for upgrading, consisting of Granola crisps from a home industry processor in Garut (Sinar Dua Putra), sold via a trader in Bandung (Ceutety) for nationwide retailing at the domestic “oleh oleh” market.

2 Indofood is the largest Indonesian food processing company.

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1.3 PMC Potato - the business proposition Following the expected demand from trader Ceutety, the following business proposition was formulated:

“Production of traditional potato crisps from potato grown by local farmers for domestic markets, processed under quality controlled conditions, for distribution in professional labelled and branded packaging material”.

It was envisioned by Ceutety, that after the introduction of professional packaging materials and a revamped brand plus label, demand would increase quickly (up to 10 fold in volume). At the start of the pilot the processor (Sinar Dua Putra) was not able to meet this growth in demand. The production capacity was too limited and the practices at the processing unit and thus the final product, could not comply with the quality and food safety standards of certain retail channels.

After a base line survey of the supply chain and in particular the processing facility it was obvious that the supply chain was in need of an overhaul; both upstream and downstream. It was not expected that the interventions and improvements would enhance the sales price of the final product much, but through making the supply chain more efficient, all supply chain partners would benefit from lower production cost per unit.

In this PMC - different from other vegIMPACT PMCs - the initial interventions were focused downstream at upscaling and modernization of the home industry processing company and enforcing the sales and marketing capacities of the trader. Later, almost at the end of the PMC pilot, connections of the processor with farmers were facilitated and formalized.

For the purpose of this PMC, farmers, processor and trader agreed on the following quality specification and proposed contract prices (Table 1.2).

Specifications processor regarding supplied fresh potatoes (input)

Size potatoes : 6-16 cm

Variety : Preferably Atlantic (if available)

Surface : Skin without damage

Proposed contract price : 7,000 IDR/ kg

Specifications trader regarding supplied processed crisps (output)

Size of crisps : Diameter maximum 5 cm

Exterior : Dry / not oily

Colour : Light yellow

Thickness : 0.5 mm maximal

Proposed contract price : 48,000 IDR/kg

Table 1.2. Quality specifications in the PMC potato supply chain.

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Table 1.3 shows the expected qualitative benefits of the PMC potato pilot for the various participants in the supply chain.

Participants Expected benefits

Farmers Higher potato yields and lower cost price per hectare.

Guaranteed stable gross income.

Processor Guaranteed regular supply of raw material.

Reliable, quality potato at fixed price.

Support in upgrading processing facility in order to increase productivity and produce guaranteed safe processed products.

Guaranteed regular income form trader.

Trader Guaranteed regular supply of high quality potato crisps.

Support in updating marketing strategy.

Support in creation of new packaging label

Table 1.3. Expected benefits of PMC business proposition.

The PMC pilot preparations started at 25 September 2013 and the pilot has been wrapped up in November 2015 (in May 2015 the last batch of potatoes was supplied by the farmers to the processor, under the formal contract brokered by the PMC team).

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2 Product Market Combination (PMC) Potato: Participants, approach, interventions

2.1 PMC participants Figure 2.1 shows an overview of the participants in the business propositions’ supply chain of the PMC potato.

Figure 2.1. Supply Chain and participants PMC potato (solid coloured boxes).

2.1.1 Farmers Four farmers located in the direct vicinity of the processing unit in Garut where identified. The farmers knew each other but worked independently, they owned between 0.5-1.5 hectares of land each, were in the age group 22-50 years old and only received basic education. The farmers cultivated a mixed set of vegetables depending on expectation of market prices. They cultivated potato in the past, and had experience with cultivating both Atlantic and Granola potatoes. Normally they sell the potatoes through collectors and traditional market channels without any price agreements on beforehand. On occasion the selected farmers sold potatoes directly to Sinar Dua Putra at traditional market price levels. In the past they produced on a contract with Indofood, but as they were not happy with the mandatory high prices for the potato seed in combination with the low prices for harvested product, they discontinued the cooperation with Indofood.

2.1.2 Processor Following the value chain upstream we identified a processor in Cikajang, Sinar Dua Putra. This processing company was established in 1998. The company currently produces both yellow crisps and white crisps (Table 2.1).

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Yellow crisp production process White crisp production process

Grading potatoes, washing, pealing, slicing, hand drying, frying, packing.

Grading potatoes, washing, pealing, slicing, soaking, washing, cooking, soaking, drying, then either packing (half product) or frying and packing.

Selling price processor 50,000 IDR/kg Selling price processor (half product) 120,000 IDR/kg

Table 2.1. Yellow crisps compared with white crisps production process.

The owner of Sinar Dua Putra has a degree in engineering and the ambition to gradually modernise his processing facility. His strategy was that as soon as he saved some money he would invest it in his processing facility.

At the start of the PMC pilot most steps of the production process were conducted manually, there were no Standard Operational Procedures (SOPs) used nor documented, and the production facility was poorly maintained, unhygienic and inefficient. Bottlenecks for upscaling the volume of processed products were the labour intensive manual peeling and slicing of the potatoes and the inefficient process flows and logistics within the processing unit. In peak production season Sinar Dua Putra employed up to 16 staff members. The maximum production capacity of yellow crisps was about 400 kg of raw potato per day.

The processor had no aspiration of extending his business downstream and getting involved in consumer packed products, he preferred to focus on processing activities and his ambition was to become the best processor in the region.

Feedstock for the processing plant was bought from individual potato growers in the neighbourhood, preferably in the Garut and Pengalengan region. However, if not enough supply was available locally, potatoes were sourced from other areas in Indonesia. Sinar Dua Putra never worked on contract with farmers and he engaged with buyers of processed products via informal, verbal agreements.

The company did not maintain any (financial) records and no bookkeeping system was in place.

2.1.3 Trader Ceutety is a trading company in potato snacks that started business in 2010. The owner became interested in the crisps industry during a past position as a bank employee in the processing area of Garut, where he met many crisp producers.

Ceutety exclusively buys potato crisps in bulk from Sinar Dua Putra. After flavouring (3 flavours) the crisps are re-packed in consumer packs of 80 g. The company started the business by packing and selling from his residence (home based), but currently Ceutety rents an external packing and trading unit. Sales increased steadily in the previous period (partly because of a liquidation of a big competitor) and according to Ceutety sales volume is around 1,900 packs/month. The future demand for packed crisps was deemed to be promising, and the management expected sales would grow 10 fold in the coming year. The owner also envisaged the entry into new sales channels, such as the modern retail, in the near future.

Re-packing potato crisps from bulk, as delivered by the processor, to consumer pack is done manually. Even the empty packs are glued together manually at the packing house of Ceutety from printed unfolded foil. This manual packaging process will be inadequate to fulfil the expected growth in demand. Consequently, the owner already planned to buy a top filling packing machine and he approached a bank for a loan.

Both input (bulk crisps) and output (consumer packed crisps) are purchased and sold on informal (verbal) agreements.

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Ceutety is Halal certified and has a PIRT3 registration; in addition, it has an (outdated) ingredient content certificate.

2.1.4 Retailers Direct sales is the most important marketing channel for Ceutety as the company sells 90% of his products via only line channels (Facebook, Twitter, Blackberry) to resellers (Box 2.1). Only 10% is sold directly to end-consumers. Till date Ceutety has a preference for these channels as buyers pay upfront and do not need any evidence of certification. Modern retail outlets on the other hand offer less favourable payment terms and have higher demands regarding the operational procedures at the processing facility and certification. At the medium and long term, Ceutety does however aspire to add buyers from modern markets to its sales mix.

Box 2.1 Description of online sales process potato crisps

Information regarding the potato crisps is presented on the Ceutety website and Facebook page including telephone number for placing orders.

Interest for the potato crisps is generated via social media (Facebook, Twitter, Blackberry), through the sharing of funny messages/information that are clearly labelled and linked with the Ceutety brand. When such a message is shared via social media, a certain % of receivers will click on the source and will be forwarded to, and end up on the Facebook page or website of Ceutety.

Of the prospective buyers that react, 10% calls and 90% sends a message via Whats App/Blackberry to Ceutety.

Ceutety will ask for the location of the prospective buyer and the volume he wants to order, via Whats App/Blackberry.

Client will receive a price proposal, info on delivery time, and bank account & payment details of Ceutety to facilitate the ordering process.

If the buyer accepts the Ceutety offer, he will pay the money and send proof of payment to Ceutety by mail/ Whats App.

The next day Ceutety will ship the product to the buyer (arrival time depends on location but will take on average 1-2 days on average).

3 PIRT (Pangan Industry Rumah Tangga) registration is compulsory for all home industry companies in Indonesia.

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2.2 PMC activities and interventions The PMC pilot was started in September 2013. The upstream interventions at the processing unit were implemented between February 2014 and May 2014. The training and marketing support activities upstream with the trader took place between February 2014 and June 2014 and the downstream activities with farmers were wrapped up in May 2015, when the last batch of potatoes was delivered on a contract to the processor. The PMC pilot was wrapped up and evaluated with the stakeholders involved in November 2015.

2.2.1 Interventions in processing unit An established audit and GAP certification company, Proxis, was hired to assess the processes and practices at the Sinar Dua Putra facility in Garut. A team of two Proxis specialists performed a Good Manufacturing Practices (GMP) appraisal, and gave recommendations for improving the production process. It was concluded that reaching GMP certification within the timespan of the PMC pilot would not be feasible and would be too expensive for the company. GMP certification was also not yet requested by any of the prospected buyers of products from home industry processors.

Apart from these considerations, the owner of Sinar Dua Putra did not aspire to become an industrial processor (in size), as this would mean that he would have to abide by more stringent governmental rules and regulations.

Additional to a GMP assessment report, on request of the PMC team, Proxis compiled a top ten list with recommendations for short term improvements to advance overall processing practices, to make the process lines more efficient, and to increase the processing productivity (Box 2.2).

The owner of Sinar Dua Putra agreed with this list of recommendations and an action plan for implementation was developed accordingly. The interventions for upgrading the facility were budgeted at 100,000,000 IDR (about 7,000 EUR). In order to secure full commitment to the PMC pilot, Sinar Dua Putra was requested to commit to paying 50% of the investment needed for the renovation, whereas the other 50% was paid by vegIMPACT.

Because Sinar Dua Putra did not have the money for the investment, vegIMPACT also offered a soft loan of 50,000,000 IDR, under the condition that the budget would be managed by vegIMPACT PMC supply chain facilitators and the loan to be paid back within a period of 2 years (in instalments).

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Box 2.2. Top 10 recommendations of Proxis to improve Sinar Dua Putra (in ad random order):

1) Renovating the floors and walls in the processing areas, such as: a. Renovation floor in production area, create slope of 3 degrees in order to flush floor,

wastewater directly flows into the drain and no puddles will be left in production area. b. Renovation of wall surface in all processing areas to be smooth and easy to clean. c. Creating sloped linkage between walls and floor, for easy cleaning.

2) Closing the gaps in the windows and the roof using screens. Place plastic curtain at the entrance to prevent the entry of flies, birds and other small animals into the production area.

3) Make a tightly closing toilet door and close toilet door always when not in use. 4) Provide the necessary facilities for implementation of "personnel hygiene" such as:

a. Sink and soap (hand soap) to wash hands and hand dryers at entrance and exit of the production area.

b. Head gear, gloves (hand glove) and safety shoes for employees who work in wet areas such as pealing, slicing and cleaning areas.

c. Head gear, gloves (hand glove) for employees who work in dry areas such as frying and packaging area.

5) Replace certain equipment, with safer and easy to clean materials: a. Replace containers of material that can rupture (plastic) with "stainless steel". b. The current blades for pealing cannot be cleaned inside and should be replaced with a blade

that is easy to clean. c. Workers’ gloves (for pealing and slicing) that are torn must be replaced.

6) Install protective cover on lamp above the frying unit and keep it clean. This protects product in frying pan from light bulb fragments in the event of an incident and breakage of lamp.

7) Place posters on "personnel hygiene" at the entrance to the production area, such as: a. No smoking in production areas b. No workers with a moustache and/or long nails. c. No workers with personal accessories such as earrings, rings, nail colour.

8) Improve food safety by regular cleaning. Prevent contamination by dirt on equipment (black spots) like: a. Sink for washing potato b. Sink for potato container c. Cutting blades (slicer) material.

9) Apply product information (labelling) on finished products and dried products. Include information on: production date, expiry period, the quantity, and status of product release.

10) Implement new layout of production area with a clear separation between the wet area (peeling, slicing, cleaning) and the dry area (oven, frying and packaging). As per lay out in the proposal.

2.2.2 Marketing and Sales interventions with trader At the initial intake interviews the director of Ceutety showed great ambitions he already took the first measures to upscale his business; the planning for buying a packing and filling machine was in place, as well as the contacts for connection with new market players. However, in order to sustain growth in the future, marketing knowledge and branding power was insufficient, especially for a future connection with modern retail markets. Therefore, in consultation with the Ceutety team the following interventions were developed:

Training on how to position Ceutety potato crisp products: A tailor-made training and workshop was developed in close cooperation with the Indonesian branch of international advertising agency LOWE, on how to position the Ceutety product in a crowded market with many home industry potato

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products. The potato snack segment in the “Oleh oleh” market is huge but very fragmented with many small players.

Development of a new logo and labelling: As the current Ceutety logo and packaging materials of potato crisps were old fashioned, together with the LOWE advertising agency, a new logo, label and pack would be designed and introduced.

Facilitation of contract with processor: In addition, Ceutety would start to buy crisps on contract from the processor in order to stabilize prices and volumes, which would enable Ceutety to commit to contracts with new buyers as well.

2.2.3 Agronomic interventions After the assessment of the current cultivation practices of the farmers the following interventions were designed and implemented:

Cultivation training: The farmers in this PMC pilot were in need of training on all cultivation aspects. Coincidentally these farmers resided in a location close to where vegIMPACT Work Package (WP) Potato would conduct training sessions for potato farmers to upgrade their knowledge, skills and cultivation practices. In consultation with the team leader of WP Potato, the four farmers participating in the PMC potato pilot were invited to attend the training sessions of WP Potato. This training consisting of three, one day modules spread over 1 month were conducted by IVEGRI.

Contract facilitation: The farmers were facilitated in the professionalization of their connection with Sinar Dua Putra. A format for a supply contract with fixed contract prices would be facilitated by the PMC team and implemented and tested during PMC implementation.

Continuous supply: In order to supply Sinar Dua Putra with the requested and contracted potato volumes, the PMC team facilitated the design and implementation of a planting schedule. As sourcing good quality potato seed is one of the major problems for farmers, the farmers were also supported in sourcing G34 seed, that could be used for a number of consecutive planting rounds (by keeping some seed potatoes behind from the harvest).

4 Potato seed is categorized according to generation. G3 potato seed are from the third production cycle that occurred since the seed was first propagated from so called “nuclear” seed. Nuclear seed is planted to produce Generation 1 (G1) seed, which is planted to produce Generation 2 (G2) seed etc.

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3 PMC results and evaluation

In this chapter results of the PMC interventions with the processor are presented and discussed first. Subsequently, the interventions with the trader are discussed and finally the results of the interventions with the farmers are described.

3.1 Upgrading processing company

3.1.1 Situation pre- PMC, location & practices Sinar Dua Putra was a small, although average sized for the Garut area, potato snack processing home industry company.

As explain in Section 2.1.2 all processes in the processing facility were conducted manually and the place was not very hygienic, staff members did not wear any protected clothing and there were no process manuals to guarantee a consistent and stable quality of the end product. The lay out of the processing unit was poorly designed with a couple of dangerous bottle necks. Picture 3.1 shows a compilation of images of the status prior to the vegIMPACT activities.

Picture 3.1 Sinar Dua Putra processing unit before renovation.

3.1.2 Renovation of processing unit In consultation with Sinar Dua Putra management an operational plan and budget for the renovation was put together. After the project plan and the loan agreement were signed off by Sinar Dua Putra, the renovation was started in February 2014.

To manage and oversee the activities, a PMC facilitator was on site during 2-3 days a week during almost the entire renovation, that covered a period of about 4 months (February 2014 - May2014).

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Production continued during renovation activities at half capacity as all processes needed to change location (see old and new floorplan in Annex I).

The renovation was implemented conform the planning and although the upgraded processing unit is not GMP certified, the improvements are obvious (Table 3.1 and Pic. 3.2). During wrap up interviews with the owner and representatives of his staff qualitative changes before and after PMC interventions were identified by the PMC facilitators (Table 3.1). Picture 3.2 shows a compilation of photos of the processing unit after implementation of the renovation activities.

Situation before PMC pilot Situation after PMC pilot

Average production capacity: 400 kg of raw potato per day for yellow crisp production.

Average production capacity: 1000 kg of raw potato per day for yellow crisps production. Maximum production capacity of 1,500 kg potatoes per day.

Product range: 80% white crisps and 20% yellow crisps production.

Product range: 40% white crisps and 60% yellow crisps production. White crisps only in dry season.

Appearance production area: owner never showed production unit to potential buyers.

Appearance production area: as the appearance of the production unit is now far above local standards, owner receives potential buyer in his processing unit. Also local government has visited his facility.

Buyers: five regular buyers of yellow crisps.

Buyers: more than 20 regular buyers of yellow crisps.

Costs: 12 staff on busy days. Costs: only 8 staff on busy days (input cost went down through mechanisation and more efficient work flows and organization).

Productivity: 23 kg of yellow crisps from 100 kg.

Productivity: increased production efficiency to 27 kg of yellow crisps from 100 kg raw potato.

Occupational Health (OH): staff was not wearing uniform and protective gear (hat, gloves, shoes).

OH: staff wearing company clothing and protective shoes.

Poor personal hygiene: toilet without door, no place to wash hands, staff smoked during work.

Personal hygiene: improved, new toilet and washing area were installed.

Good manufacturing practices: no standard rules, procedures and regulations exist.

Good manufacturing practices: posters on good practices and processes at various locations in the processing unit.

Mechanisation: only manual processes. Mechanisation: installation of pealing machine, high pressure cleaner, new stainless steel slicer unit (automatic slicer does not give artisanal product).

Sourcing raw material: only via traders Sourcing raw material: via traders but also orders potato directly from farmers through verbal informal contracts. Cultivation on order.

Administration: no records Administration: rudimentary record keeping of sales and input cost.

Table 3.1 Changes in Sinar Dua Putra processing company before and after PMC intervention.

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VegIMPACT’s loan to Sinar Dua Putra was paid back within two years after completion of the renovation. After the completion the owner even continued with implementing some additional elements from the list with recommendation of Proxis, such as building an external storage room for the raw potatoes and purchasing of a new semi-automatic slicer, additional fryer, a flavour mixer and bag filler. He also invested in a new truck to transport the increased volumes of potatoes crisps (in bulk) to the clients.

Picture 3.2. Sinar Dua Putra processing unit after renovation.

3.1.3 Production output and sales Sinar Dua Putra As a result of the renovation, the production capacity of Sinar Dua Putra was considerably enlarged. On request of the PMC team the company registered monthly sales and sourced input material (potatoes). Production more than doubled from 2014 to 2015 (Fig. 3.1).

Figure 3.1 Monthly and annual production volumes of Sinar Dua Putra in 2014 and 2015.

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The sales results of Sinar Dua Putra are shown in Figure 3.2. Because the monthly production volumes increased considerably the turnover of the company also increased, as well as the number of transactions per month.

Before the renovation and overhauling of the processing facilities Sinar Dua Putra sold most products to five regular buyers, but after the renovation a number of new buyers were identified. In Annex II the top ten buyers of Sinar Dua Putra potato crisps in 2014 and 2015 are presented. The average sales price per kg increased with about 2,000 IDR or 4% from 2014 to 2015 and became more stable in 2015. The average monthly buying price per kg raw potato (input) was more irregular and the average buying price per month went down with 2.6% (Fig. 3.2).

Figure 3.2 Sales results Sinar Dua Putra Feb 2014-Nov 2015.

Currently, Sinar Dua Putra has few competitors because it is the only company in the Garut region that produces potato crisps year-round and that can handle larger volumes.

The PMC interventions had a considerable impact on the financial results of Sinar Dua Putra and the average monthly income from yellow crisps almost quadrupled in the period 2014 to 2015 (Table 3.2).

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Table 3.2 Financial result of Sinar Dua Putra derived from yellow crisps 2014 and 2015.

3.2 Sales and marketing Ceutety

3.2.1 Product positioning During a strategic workshop with Lowe, the owner of Ceutety, his sales manager and the PMC team, the future positioning of the brand Ceutety was discussed. Key questions that were addressed were: what brand position, style and image does Ceutety aspire to portrait in the very competitive market environment of (potato) snacks? Picture 3.3 gives a photo impression of the workshop activities.

Picture 3.3 Inventory of options for an improved brand image during workshop.

To better understand the mind set of potato chip consumers and their reaction to various brands and packages in the market, a Focus Group Discussion (FGD) session with consumers was organized and a number of different potato snack packages were evaluated (Pic. 3.4). This resulted in a better

Cost price calculation before intervention

Raw potato 3,500,000 Raw potato 7,000,000

Labour 250,000 Labour 350,000

Solar / gas 250,000 Solar/gas 1,000,000

Frying oil 660,000 Frying oil 1,000,000

Electricity* 20,000 Electricity* 20,000

Transport final product 300,000 Transport final product 300,000

Total cost 125 kg 4,980,000 Total cost 270 kg 9,670,000

Cost per kg 39,840 Cost per kg 35,815

Average selling price 2014 48,483 Average selling price 2015 50,213

Profit per kg 8,643 Profit per kg 14,398

Margin 22% Margin 40%

Volume sold / kg in 11 months 13,815 Volume sold / kg in 11 months 29,787

Cost per kg /idr 39,840 Cost per kg /idr 35,815

Average selling price / kg / idr 48,483 Average selling price / kg / idr 50,213 Total cost 11 months 550,389,600 Total cost 11 months 1,066,821,405

Total Income 11 months 669,792,645 Total Income 11 months 1,495,694,631

Total profit 11 months 119,403,045 Total profit 11 months 428,873,226

Average monthly profit 10,854,822 Average monthly profit 38,988,475

Cost price calculation at wrap up December 2015

Income derived from yellow crisps sales in 2014

*500,000 idr per month for 25 working days *500,000 idr per month for 25 working days

Resulting in 270 kg crisps (excl. depresiation

investments and labor owner and his wife)

Cost price processing 1000 kg raw potato

Income derived from yellow crisps sales in 2015

Resulting in 125 kg crisps (excl. depresiation

investments and labor owner and his wife)

Cost price 500 kg raw potato

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understanding of how consumers perceive the various potato crisps brands, labels and products in the market.

Picture 3.4 Focus Group Discussion with consumers and evaluation of packaging materials of potato crisps.

Major findings from the FGD with consumers.

Consumers think that home industry crisps (UKM) are per definition of less quality and thicker than conventional potato crisps, as for example produced by Lays.

According to the consumer more expensive crisps are tastier and nicer to eat.

Lays crisps are sometimes perceived as too large, they do not fit in your mouth in one bite.

Consumers find it more practical to have smaller size crisps, “so you can put 2-3 in your mouth at the same time”.

Elements that influence the decision of buying a brand of crisps are: price, volume in bag, size of individual crisps, crispiness, texture and flavour.

Lays and Mr. Potato are perceived as the most expensive potato crisps.

Big packages of crisps are only purchased when the consumer expects to eat the product with others, but the consumer generally prefers to buy 80 g bags for individual consumption.

Crisps are being eaten while watching TV at home, during work and/or when the consumer is too lazy to buy/cook real food.

The consumer appreciates when flavour is not only mentioned in words but also expressed with a pictogram.

Packaging with a picture of only 1 - 3 nicely portrayed individual crisps printed on the packaging material is considered to be more exclusive than a picture with a pile of crisps.

In another FGD, the perception of resellers of Ceutety regarding the same selection of packed potato crisps was evaluated. This provided Ceutety with a better insight on how its agents and resellers make their decisions, why they choose to resell the Ceutety product, what they consider as strong and weak points of the products and what feedback they get from consumers.

Major findings from the FGD with resellers of Ceutety crisps:

Agents sell directly to end users / consumers as well as to resellers / retailers.

Social media is their most important sales tool (Twitter, Blackberry (BB), Facebook). They mostly sell nationwide (they have frequent buyers from Kalimantan, Sulawesi, Banten), but the majority of their buyers is from Java.

Conversion rate on reactions from online promotions is 70%.

Initially resellers sold other home industry crisp brands too, but they prefer the Ceutety product because of its quality.

Ceutety potato crisps in Bandung are unique. The majority of crisps available in Bandung are made from cassava. Ceutety is one of the few potato crisps brands from Bandung.

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After completion of the sub sessions, together with the Lowe team, the “playing field” of Ceutety was analysed. Three “leagues” (market segments) were identified in which the company can decide to “play in” (Fig. 3.3).

Figure 3.3 “Leagues” (market segments) that were distinguished within the actual “playing field” of potato

snacks.

After the decision in which “league” Ceutety wanted to operate, it also had to decide how to position Ceutety in relation to other brands within their market segment (“league”).

During a follow up coaching session, two weeks after the workshop, the Ceutety team met again with the LOWE team to discuss the final positioning of the Ceutety products and to discuss proposals for innovative packaging.

Ceutety decided to play in the “National potato crisps league” and position itself as an Ethnic local product, similar to the position of brand Maicih in the cassava crisps league (Fig. 3.4). To position itself in this market segment it was concluded that the Ceutety logo needed to be modernized. To help Ceutety to stay focussed and consistent, LOWE produced a Brand Foundation Guidelines Document for Ceutety (Annex III).

Figure 3.4 Selecting the Ceutety brand position in relation to other potato crisps brands.

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3.2.2 Labelling and packaging After the input of both buyers and consumers was analysed, the trader started selling potato crisps in tubes to cater for a higher market segment (Pic. 3.5). Ceutety had experience with cassava crisps in tubes, which were received enthusiastically by buyers and consumers alike. As the trader already identified a producer of tubes and even claimed to have placed an order, no further support from the vegIMPACT PMC team on the development of the packaging material was given.

However, Ceutety was supported with the development of a new label for these potato crisp tubes. Based on the selected new brand position, a briefing was developed for designers to update the design for the logo and prepare a label. One of the conditions for the design was that it should also be applicable for the current type of packaging materials used by Ceutety. The idea behind this was that after Ceutety finished their current stock of old foil packs, it could print future orders of this type of packaging with the same label style, and by doing so a consistent brand image would be created.

However, during the pilot period, Ceutety decided to skip the introduction of the tube as the cost price was too expensive after all. Instead they replaced the foil pack by a paper pack (with plain foil pack inside). To accommodate these changes, the PMC team facilitated the resizing of the new logo and label to fit this paper pack (Pic. 3.5).

Picture 3.5 New logo and labels for Ceutety potato crisps in tubes and paper bags.

The material for the paper bag could be ordered in small volumes, so no large investments were required to continue this product line. Although the traders margin on the crisps in a paper bag was smaller than the margin on the old foil packs (due to the higher costs of the two-layered packing material), the paper bags were still considered an interesting option due to the expected higher sales volumes (Table 3.3). With higher sales the cost for the new packing material could be lowered (economy of scale) and thereby improve the margin. More direct sales to consumers would also improve the average margin.

All in IDR Product old foil pack Product new paper bag (with foil lining)

Cost packing material 500 1,800

Total cost price/pack 5,500 8,000

Selling price to re-seller 8,500 12,000

Margin 45% 35%

Table 3.3 Margins of potato crisps in foil pack compared with crisps in paper bag pack.

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3.2.3 Implementation and sales Ceutety enthusiastically started to introduce its updated brand, but did not completely understand the need for brand consistency. All of a sudden, the company started to use one of the new, but rejected, logo designs on another product line of Ceutety cassava crisps. The vegIMPACT team only learned about this, just before the new cassava product was shipped out to resellers. The trader justified this action and not informing the PMC team, because the PMC pilot was focussing on potato crisps only and not on cassava products.

However, this decision would have resulted in three different Ceutety logo’s in the markets at the same time: the old logo, the new potato chip logo and the new cassava chip logo. Firstly, this does not contribute to brand consistency. Secondly, using the rejected logo would be an act of copy right infringement, because the rejected logos were still owned by Lowe and the designers. To solve this serious violation, in consultation with Lowe, the designer was requested to create a sub-logo for the cassava crisps to maintain brand consistency (Pic. 3.6). Stickers with the new Ceutety cassava logo were put on top of the illegally used logo. This episode shows that the trader did not fully understand the basics of positioning and introducing of a brand.

Picture 3.6 Brand extension from potato crisps to cassava crisps.

During a mid-term review it became clear that the growth in potato crisp sales as envisaged by Ceutety was much smaller as forecasted. Packing by Ceutety staff was still done manually and the new sales contract that the owner vowed was already obtained, never materialized. After the PMC marketing interventions, the majority of Ceutety sales was still generated online, similar to the pre PMC pilot situation.

During the wrap up interview in December 2015, more than a year after the last PMC interventions were completed, the impact of participation in the PMC pilot was discussed with the owner of Ceutety (Table 3.4).

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Before PMC pilot situation After PMC pilot interventions

Packaging used: foil pack. Packaging used: sales slowed down considerably and stock of old package material was only recently finished. New packaging designed (paper bag) was only sold during a couple of months (about 500 packs per month), but sales / retail price was higher and consumer did not seem to be willing to pay extra for the same product in another pack.

Cost price: total cost price foil pack product 5,500 IDR/pack of 80gr.

Cost price: no change in cost price foil pack. The cost price of the temporarily used paper bag product was 8,000 IDR /pack of 100 g.

Logo and branding: old fashioned design and positioning not well targeted. Ceutety was not aware of the market segments and its position in relation with competitors in snack market.

Logo and branding: new logo and label developed. Ceutety claims it is still very happy with its new logo and label, but still needs to empty the left over packaging material with old logo.

Working on contract for input: no. Working on contract for input: After the first contract facilitated by the PMC, processor and trader decided that their relation was based on trust, so a formal contract was deemed unnecessary.

Volume of sales: per month 2,000-3,000 packs of 80 g/pack.

Volume of sales: the expected rise in sales did not materialize, but on average Ceutety sold about 1,500 packs/80 g per month according to the owner. By the end of 2015 sales temporarily stopped to prepare for the relaunching of the new Ceutety brand early 2016.

Marketing practices: sales mainly online. 90% to resellers and 10% to end users / consumers.

Marketing practices: mainly online, but Ceutety planned to launch its new brand/label at the beginning of 2016.

Sales will still be done online, but also (in cooperation with a trader) directly to modern retail markets, and through Ceutety’s co-owned toll road shops (first “Java Mart” shop opened in January 2016) directly targeting end consumers. For this relaunching Ceutety is ready to invest in new packaging material.

Table 3.4 Impacts of interventions for Ceutety before and after according to the director of Ceutety.

The participation in the PMC potato pilot did not yet result in improved financial benefits for Ceutety. Nevertheless, the owner of Ceutety appreciated the PMC interventions which helped him to shape his plans, which come to fruition later than expected.

From the records of the processor (received after the wrap up meeting in December 2015), the actual volumes of bulk potato crisps Ceutety has purchased in 2014-2015 could be traced down (Fig. 3.5). In 2014, Ceutety has not sold more than on average 1,261 packs of 80 g per month. Because part of the crisps was sold in the new paper bags continuing 100 g crisps /pack, the actual number of packs sold must have been even lower. According to the records of the processors, Ceutety hardly bought any potato crisps in 2015.

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Figure 3.5 Sales volumes of crisps potatoes (in bulk) from Sinar Dua Putra to Ceutety in 2014-2015.

At the time of the wrap up interview, the Ceutety owner shared with the PMC team that he had moved into a new type of business. He was now also re-selling packaging material to other traders. The insights on packaging gained during the 2015 sales season of packaging material had helped him to finally make a decision on the new type of packaging for the Ceutety potato crisps. And because of this side job, he would be able to have the new packaging material printed with the new label without extra cost. This side job could also have been the reason for the low sales volumes of potato crisps in 2015.

3.3 Agronomic interventions

3.3.1 Cultivation practice In a FGD, more than a year after participating in the IVEGRI / vegIMPACT trainings the four farmers that were connected with the processor, indicated a number of practices that were changed after the training (Table 3.5).

Before intervention After intervention

Pesticide usage 3 - 4 pesticides were mixed in each spraying tank.

Mainly spraying with one single pesticide at a time.

Spraying time During the morning. Still in the morning, but farmers do realize the afternoon would be better. But because of the field locations, spraying in the afternoon is not practical.

Soil preparation No land preparation. Before planting potato seeds, top soil is mixed with dolomite, one month before planting.

Pesticide use Cost of pesticides decreased.

Fertilizer use Fertilizer is only used at start of growing season.

Use of fertilizer is based on growth stage and crop requirement.

Crop rotation Potato – other vegetable 2x – potato.

Potato – other vegetable 2x – potato (no changes).

Table 3.5 Cultivation practices of potato farmers before and after intervention.

3.3.2 Continuous supply and contract farming The connection between farmers and processing unit consisted of small trial deliveries. For proper linkages with the yellow crisp supply chain, farmers would need to cultivate the Atlantic variety but

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these are not freely available (section 1.2). Therefore, a planting schedule for a continuous supply of a small volume of Granola variety to the processor was designed instead (Fig. 3.6). The purpose was to familiarize partners with (the benefits of) a continuous supply and to pilot and introduce contract growing to the partners. Sinar Dua Putra would use the Granola potatoes for its white chip production.

Figure 3.6 Planting schedule of the Granola variety for continuous supply on a (trial) contract between farmers

- processor.

Both parties agreed on a supply contract, facilitated by the PMC team, with clear product specifications for the potatoes that would be supplied and a fixed contract price per kg.

Unfortunately, in all fields high infestation levels of late blight disease (Phytophthora infestans) severely impacted potato production and the farmers were unable to control the disease properly. As a result, the harvested potatoes of three plots did not meet the specification of the processor, and were also not of sufficient quality to be retained as seed potatoes for the next planting round.

Still, both farmers and Sinar Dua Putra were inspired by the potential benefits of producing on a contract and decided, independent from vegIMPACT, to continue working on an informal contract basis.

Before Sinar Dua Putra refused to be involved in sourcing seed potatoes and providing seed loans (for this trial on linking producers with the processor, vegIMPACT provided the seed potatoes). But after the pilot, farmers and processor continued cooperation in the sourcing of good quality potato seeds5.

5 Sinar Dua Putra has experimented with using Columbus potato for yellow crisps in the last half of 2015. This potato has proven very suitable for processing and has characteristics similar to Atlantic potato. An additional benefit for farmers is that the cultivation time till harvest is only 75 days, compared to 100 days for Atlantic potatoes.

Farmer Nov Des Jan Feb Mar Apr May

Farmer 1 Planting G-3

Harvest /

retain some

G-4


Harvest /

retain some

G-4


Harvest /

retain some

G-4


Harvest /

retain some

G-4

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4 Conclusions

4.1 Overall result business proposition Not all supply chain participants equally benefited from the business proposition.

Farmers

The PMC intervention consisted of only a short trial, linking four farmers with the processor, to enable monthly delivery of potatoes during a period of four months. Unfortunately, the potato crop in the trial was heavily infected with late blight. As a result, the harvested potatoes did not meet the specification in the supply contract.

Nevertheless, this trial convinced farmers and processors to work more closely together in the future. Both farmers and the processor realized that a more constant and regular supply volume and stable prices would be beneficial for all. Partners continued their cooperation after the PMC and the processor is now also involved in sourcing good quality seed potatoes and providing seed loans.

Processing company

The business proposition had a huge impact on the processor. The interventions enabled him to improve its profit margin with 18% and almost quadrupled his average monthly profit. The production capacity of the processing unit has been enlarged, production costs decreased, the production processes were made more efficient and workers’ safety was improved. According to the processor the investment did already earn itself back within the first 2 years. Without the support of vegIMPACT Sinar Dua Putra would not have dared nor be able to completely overhaul the processing facility because: a) he would not able to get a loan from the bank for the renovation of his facilities, and b) the soft loan conditions and grant from vegIMPACT reduced his risks.

Trader

The trader Ceutety was supported by the PMC pilot in developing a new brand proposition and label for potato crisp products. The new brand and label were introduced to consumers and were received with enthusiasm. However, for various reasons (backlog of old packaging material, cost price of trial packaging material and large minimum order volumes) the introduction of the new packaging material was postponed and temporarily halted.

The original leap in sales expected by Ceutety did not occur with a result that the necessary money for investment in new packaging material was not earned and not available in the end. In spite of an additional training in entrepreneurship provided by the Bank of Indonesia, Ceutety needed more time to absorb the information and get the basics of his business organized.

Ceutety is now preparing to re-launch the brand, that was developed within the PMC pilot, in the beginning of 2016. The owner of Ceutety is still convinced about the market opportunities of the business proposition, and the cooperation with processor Sinar Dua Putra.

4.2 PMC contribution to vegIMPACT objectives The pilot PMC potato accomplished improvements on the following aspects:

Improved potato crisps quality and increased productivity and efficiency of processing facility. Linkages between processor and farmers on semi-formal contract were successfully piloted. Lower input cost for farmers realized. Development of a new brand and label for potato crisps, produced by home industry

processing units.

On request of the commissioner, the PMC potato mainly focussed on the processing of potato crisps. The PMC interventions in farmer fields were limited and during a short period, which was

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overshadowed by severe late blight infections in the potato crop. Therefore, the long-term PMC contribution to the vegIMPACT objectives related to farmers cannot be firmly determined (Table 4.1). Obviously, the potato home processor was the major beneficiary in this PMC. Thanks to the PMC pilot he was able to increase the potato processing capacity and the number of customers with more than 100%. In addition, processing efficiency, product quality and product hygiene increased considerably contributing to overall better resource use efficiency, food security and private sector development.

vegIMPACT objective PMC contribution Remarks

increased vegetable productivity

? Productivity was low in the trial due to severe infection with the late blight disease

reduced pesticide use per unit product

? Uncertain, but pesticide management improved (Table 3.5)

reduced production costs per unit product

? Uncertain, but better fertilizer and pesticide management (Table 3.5) improved, which may result in lower cost price

increased financial margins for farmers

? The new mode of cooperation between farmers and processor could result in improved margins for the farmers in the future.

Explanation: + = PMC positively contributed to specific objective 0 = neutral; no effect of PMC was observed ? = Uncertain effect of PMC on specific objective

Table 4.1 Summary of contribution PMC potato to vegIMPACT objectives.

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ANNEX I Floor plan before and after renovation

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ANNEX II Top buyers yellow potato crisps (kg) Sinar Dua Putra

Top buyers overall Top buyers 2014 Top buyers 2015

1 Gunung Batu 6,583 1 Marisa 3,495 1 Gunung Batu 6,583

2 Marisa 6,545 2 H.Jamal 2,678 2 H.Jamal 3,438

3 H.Jamal 6,115 3 Ipin 1,963 3 Ipin 3,145

4 Ipin 5,108 4 Rey 1,265 4 Marisa 3,050

5 Iwan 3,040 5 Ceutety 1,110 5 Iwan 3,040

6 Doni 2,725 6 Samal 910 6 Doni 2,725

7 Rey 2,628 7 Ojolali 285 7 Cicadas 2,278

8 Cicadas 2,493 8 Anugrah 278 8 Triwandi 1,950

9 Triwandi 2,125 9 Cicadas 215 9 Rey 1,363

10 Tuti 1,228 10 Triwandi 175 10 Tuti 1,228

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ANNEX III Brand positioning Ceutety

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product market combination for small farmers in indonesia ... filevegetable production and marketing...

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