Ofi introduces US$8.2 million sustainable Indonesia coffee production project

sustainable coffee and cocoa production

The United States Agency for International Development (USAID) has launched a new project to promote sustainable coffee and cocoa production in Indonesia in partnership with Olam Food Ingredients (ofi), Rikolto, Hershey’s, and the Indonesian government.

The Landscape Approach to Sustainable and Climate Change Resilient Cocoa and Coffee Agroforestry (LASCARCOCO) is a joint investment of US$8.2 million to improve environmental sustainability in coffee and cocoa production, while improving the welfare of rural communities through increased market access and strengthened resilience to climate change.

“USAID supports Indonesia’s efforts to balance economic growth and conservation,” says USAID Indonesia Mission Director Jeff Cohen. “This new partnership will encourage coffee and cocoa farmers to adopt sustainable agroforestry practices that increase forest cover and diversify their crops, strengthening their ability to adapt to climate shocks.”

LASCARCOCO will train 6500 coffee and cocoa farmers in North Sumatra, South Sulawesi, and East Nusa Tenggara in sustainable agroforestry practices, targeting districts where production has declined in recent years due to the effects of climate change as well as tree ageing, pest and disease outbreaks, and soil fertility decline. The project aims to help farmers increase their yields while conserving 14,000 hectares of watershed and buffer vegetation by 2025.

“Smallholders are on the frontlines of the climate crisis.  Without the right resources and inputs, they can’t grow enough to earn a living, and the world could face a shortage of the coffee and chocolate we all love,” says Ravi Pokhriyal, President, and Regional Head – Asia Pacific at ofi. “This new partnership demonstrates how the private and public sectors can unite to address these dual challenges.”

The LASCARCOCO partnership will create transparent and traceable supply chains for farmers registered with Olam’s Farmer Information System application, providing complete visibility of the environmental and social credentials of the coffee and cocoa produced under the project.

Rikolto will support LASCARCOCO through extensive community engagement work with cocoa farmer communities in North Sumatra, South Sulawesi, and East Nusa Tenggara. Cocoa butter produced through this partnership will be purchased and used by Hershey’s to produce its chocolate products.

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