kilas csv 06_cocoa plan

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PT NESTLÉ INDONESIA Wisma Nestlé lantai 5 Perkantoran Hijau Arkadia Jl. Letjend. TB Simatupang Kav. 88 Jakarta 12520 www.nestle.co.id 1 Spotlight NOVEMBER 2014 ISSUE 06 csv KILAS C ocoa is one of the top commodities of Indonesia’s agribusiness sector. Cocoa beans are commonly called biji cokelat (~chocolate beans) in Indonesia. Cocoa tree is native to South America. Swedish scientist Carl Linnaeus named the plant Theobroma cacao. Cocoa trees grow best in tropical climate and at an altitude of 0-700 meters above sea level. Hence Indonesia is an ideal place for cocoa farming. Spreading from the westernmost point of Sabang to the easternmost point of Merauke are 1.6 million ha of cocoa farms that currently produce 450,000 tons of beans per year. Indonesia is the world’s third largest cocoa beans producer, and Sulawesi is the largest producer in the country. Covering an area of 900,000 ha, Sulawesi contributes to approximately 60-65% of the total national cocoa production. The potential, however, is still abundant as currently there are still numerous unproductive lands and aging trees that need reju- venation. Cocoa beans, once processed, will produce cocoa liquor, butter and powder. These half-processed products are the basic materials needed for various kinds of chocolate products. In Indonesia, Nestlé also uses these material to produce its products such as MILO, KITKAT and CRUNCH. COCOA, ONE OF INDONESIA’S TOP AGRICULTURE COMMODITIES In 2009, Nestlé globally launched The Cocoa Plan program to help cocoa farmers in increasing their farming yields as well as ensuring the sustainability of raw material supply. Similar to the collaboration with coffee and dairy farmers, Nestlé also works together with cocoa farmers. The Cocoa Plan focuses on Nestlé’s commitment to help increase the well-being of cocoa farmers and to ensure the sustainability of cocoa beans in our supply chain. After the World Economic Forum South Asia, held in July 2011 in Jakarta, Nestlé launched the program in Indonesia. It is a Public-Private Partnership in which Nestlé collaborates with cocoa farmers as well as the local government of West Sulawesi and all stakeholders involved in the cocoa supply chain across Indonesia. Nestlé’s support in this sector begun several years ago when the company transfer the knowledged of an accele- rated propagation technology dubbed Somatic Embryoge- nesis to the Indonesian Coffee and Cocoa Research Institute (ICCRI) to accelerate the process of producing high-quality cocoa seedlings. This effort is continued by the launch of The Cocoa Plan program in which Nestlé focuses on boosting the production as well as the quality of cocoa beans produced by cocoa farmers, which eventually will lead to their improved livelihoods. A demo plot of Nestlé Cocoa Plan in Kalukku, Mamuju

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Page 1: Kilas CSV 06_Cocoa Plan

PT NESTLÉ INDONESIA Wisma Nestlé lantai 5 Perkantoran Hijau ArkadiaJl. Letjend. TB Simatupang Kav. 88Jakarta 12520

www.nestle.co.id

1Spotlight

NOVEMBER 2014 ISSUE 06

csvkilas

Cocoa is one of the top commodities of Indonesia’s agribusiness sector. Cocoa beans are commonly called biji cokelat (~chocolate beans) in Indonesia. Cocoa

tree is native to South America. Swedish scientist Carl Linnaeus named the plant Theobroma cacao.

Cocoa trees grow best in tropical climate and at an altitude of 0-700 meters above sea level. Hence Indonesia is an ideal place for cocoa farming. Spreading from the westernmost point of Sabang to the easternmost point of Merauke are 1.6 million ha of cocoa farms that currently produce 450,000 tons of beans per year.

Indonesia is the world’s third largest cocoa beans producer, and Sulawesi is the largest producer in the country. Covering an area of 900,000 ha, Sulawesi contributes to approximately 60-65% of the total national cocoa production. The potential, however, is still abundant as currently there are still nume rous unproductive lands and aging trees that need reju-venation.

Cocoa beans, once processed, will produce cocoa liquor, butter and powder. These half-processed products are the basic materials needed for various kinds of chocolate products. In Indonesia, Nestlé also uses these material to produce its products such as MILO, KITKAT and CRUNCH.

CoCoa, one of IndonesIa’s

top agrIculture commodItIes

In 2009, Nestlé globally launched The Cocoa Plan program to help cocoa farmers in increasing their farming yields as well as ensuring the sustainability of raw material supply. Similar to the collaboration with coffee and dairy farmers, Nestlé also works together with cocoa farmers. The Cocoa Plan focuses on Nestlé’s commitment to help increase the well-being of cocoa farmers and to ensure the sustainability of cocoa beans in our supply chain.

After the World Economic Forum South Asia, held in July 2011 in Jakarta, Nestlé launched the program in Indonesia.

It is a Public-Private Partnership in which Nestlé collaborates with cocoa farmers as well as the local government of West Sulawesi and all stakeholders involved in the cocoa supply chain across Indonesia.

Nestlé’s support in this sector begun several years ago when the company transfer the knowledged of an accele-rated propagation technology dubbed Somatic Embryoge-nesis to the Indonesian Coffee and Cocoa Research Institute (ICCRI) to accelerate the process of producing high-quality cocoa seedlings. This effort is continued by the launch of The Cocoa Plan program in which Nestlé focuses on boosting the production as well as the quality of cocoa beans produced by cocoa farmers, which eventually will lead to their improved livelihoods.

A demo plot of Nestlé Cocoa Plan in Kalukku, Mamuju

Page 2: Kilas CSV 06_Cocoa Plan

2 Warna-warni

Assisted Farmer Groups

Achievement until november

2014

Activities

Assisted Cocoa Farmers

Best cocoa farming practices and technology transfer to

cocoa farmers

Quality cocoa seedling

distribution171

42 Nurseries

1Experimental and Demonstration Farm

a

B

C Access to market

Experimental and Demonstration Farm

Swisscontact Indonesia

BT Cocoa IDH

ICCRIProvincial

Government of West

Sulawesi

PArtnersOperational AreaTwo regions in West Sulawesi: Mamuju and Majene

D

Page 3: Kilas CSV 06_Cocoa Plan

3Profile

Majene Region is one of the cocoa producing regions in West Sulawesi. With the total cocoa farm areas of 12,412 ha, most of cocoa farmers in Majene are able to produce 950 kg/ha/year. By 2014, there are 10,289 farmers who rely on cocoa

farming as their source of income. Muhammad Takdir is one of the cocoa farmers from Majene. After gra-

duating from Senior High School in 2001, Takdir started to grow cocoa trees on a 0.5-ha land, handed over by his parents. At that time he did not have any knowledge nor skill on how to apply appropriate cocoa farming practices. Limited knowledge in managing his farm resulted in limited yield. The use of incorrect amount of pesticides also caused the soil condition to degrade and this also affected production.

Together with his fellow farmers from Sinar Lemo-Lemo Farmer Group, Takdir joined the Field School organized by Nestlé and Swisscontact in 2013. During the training, he learned various kinds of best cocoa farming practices, ranging from farm maintenance technique, integrated pest and disease management, rehabilitation up to post-harvest. He also attended a training on how to set up a nursery business.

"After attending the training, I realized that I did not manage my farm properly. The first thing that I did was pruning my cocoa trees that has grown up to 4 meter-high. This is very important for the trees to get enough sun, which is really significant in the process of increasing produc-tion. To overcome pest and disease, I choose to produce organic pesticides based on what they taught me during the training. Next, I rehabilitated my old cocoa trees by applying the side-grafting technique and using the prime S1 and S2 clones. Moreover, I also applied the intercropping system by planting chilli so that I could earn additional income. It helped me to support my family need".

Keep the spirit high for cocoa farming

I am really grateful for the opportunity to join the

training organized by Nestlé and Swisscontact. Currently,

my cocoa farm is able to produce 500 kilograms of

cocoa beans per year.

Photos courtesy of Swisscontact SCPP

Page 4: Kilas CSV 06_Cocoa Plan

4

The awareness of creating a green environment to be able to absorb water in the newly

established industrial park, promp-ted our colleagues in Karawang Fac-tory to organize a tree planting activity through KASIH, our employee volun-teering program.

The first phase of trees planting was conducted on October 30th, 2014. As many as 90 trees that consisted of 45 rain tree (Pithecolobium saman) and 45 spanish cherry (Mimusops elengi L), have been planted by 54 emplo yees of the factory, together with the representatives of Nestlé Indonesia ma-nagement Steven du Plessis and Thomas Keller (former Finance Director). The trees have grown well because of good care and maintenance.

The second phase of trees planting was conducted on September 27th, in collabora-tion with the CSV team. As many as 50 par-ticipants were present at Karawang Factory; 30 are employees from the Head Office and Karawang Factory whereas the rest are family members. They successfully planted 138 trees of eucalyptus deglupta in the area of 429 m².

This CSV Volunteering activity was also attended by NiMCom representatives that include Achmad Ardianto, Head of Corporate Human Resources; Windy Cahyaning Wulan, Director Dairy Business Unit; and Prawitya Soemadijo, Brand Executive Manager Beve-rages. Karawang Factory Manager Euan Horman was very pleased with the participa-tion of the employees. Further, he was hoping that other CSV Volunteering activities could be organized at the Factory.

Agenda

KASIH KAryA & SumbAngSih

KASIH, an acronym for Karya

(Deed) and Sumbangsih (Contri-

bution) is Nestlé Indonesia’s CSV

employee volunteerism program

launched in 2013. Employees’ parti-

cipation in CSV activities is expected

to strengthen employee engage-

ment, increase the awareness and

understanding of the company’s

CSV programs and create shared

value for the community.

Editorial Team

EDITOr-IN-ChIEf: Nur Shilla Christianto

WrITEr: Elizabeth Wairatta

CONTrIbuTOrS:Ade SonyvilleFaiza Anindita

We hope this bulletin can be a forum for us

to share stories and improve our engage-

ment with the communities through our

CSV program. We welcome any input or

suggestions from you.

Please feel free to contact the editorial team

at: [email protected]

If you are interested to

support the KASIH program

or to make biopore holes

at home, please contact

Jenik D.S. Andreas (ext. 1528; email

[email protected])

or Faiza Anindita (ext 1526; email

[email protected]).

New trees in our new factory

A tree planted by Anto Basuki and family

MILO Team in action