Table of Contents

Executive Summary............................................................................................................ 3
Vision/Mission Statement and Goals .............................................................................. 5
A. Vision/Mission Statement ..................................................................................... 5
B. Goals and Objectives .............................................................................................. 5
C. Keys to Success ........................................................................................................ 5
Company Summary ........................................................................................................... 6
A. Company Background ........................................................................................... 6
B. Resources, Facilities and Equipment ................................................................... 6
C. Marketing Methods ................................................................................................ 7
D. Management and Organization ............................................................................ 7
E. Ownership Structure .............................................................................................. 8
F. Social Responsibility ............................................................................................... 8
G. Internal Analysis ..................................................................................................... 9
Products and Services ...................................................................................................... 10
A. DEARICE (Natural & low Glycemic Index Rice) ......................................... 10
B. Green Tea ............................................................................................................... 11
C. Fruit Chips ............................................................................................................. 12
Market Assessment........................................................................................................... 13
A. Examining the General Market ........................................................................... 13
B. Customer Analysis................................................................................................ 14
Strategic Implementation ................................................................................................ 15
A. Production.............................................................................................................. 15
B. Resource Needs ..................................................................................................... 16
C. Sourcing/Procurement Strategy......................................................................... 17
D. Marketing Strategy ............................................................................................... 17
Social Impact ..................................................................................................................... 18

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Executive Summary
Farmer-owned Enterprises PT. Tanjung Mulia Agronusa (TMA) built on the basis
of business requirements Join Farmers Group "Sukamaju" and Association of
Organic Rice Growers "Tanjung Mulia" in Magelang Central Java, as a follow-up
program of Farmer Empowerment through Agricultural Technology and
Information (FEATI) Ministry of Agriculture Republic Indonesia supported by the
World Bank in 2011.
TMA Vision is Being farmer-owned enterprises that are professional, reliable
and sustainable to improve the welfare and living standards of farmers and their
families, Mission; 1) Promote the establishment of welfare for farmers and their
families; 2) Realizing the farmers group an independent, sovereign on seed and
materials of production, as well as determining of its agricultural product prices;
and 3) Improving the science and technology of cultivation, processing and
marketing.
Our started this business with production natural rice of local varieties "Mentik
Wangi Susu", processing and distribution in one management; (comprise
provision of production materials, cultivation, processing, packaging and sales).
Farmers involved are 348 people composed of 10 groups of farmers with a land
area of 48.6 ha. In 2013, us developed a functional natural rice for diabetics and
obese, is a low Glycemic Index (GI) Rice on an area of 7 hectares. Standards and
testing laboratory of products, we were in collaboration with the Center for the
Study of Food and Nutrition Gadjah Mada University in Yogyakarta.
Besides rice, we were also has conduct to empower the Tea Farmer Groups in
West Java to develop product and marketing to fair trade market and we have
become the suppliers of Indonesian Green Tea in buyer fair trade EL PUENTE
GmbH, Germany.
Legal form of company is Limited Liability, and under the laws in force we have
permits to operate in all regions of the unitary Republic of Indonesia. The main
stakeholders in this business is farmers and farmer groups are joining in Gapoktan
SUKAMAJU and Organic Rice Farmers Association of TANJUNG MULIA in
Magelang, Central Java. Gapoktan Sukamaju and association Tanjung Mulia each
have 50% and 30% of the shares. The remaining 20% is owned by farmers
founders.
Products and/or Services is Natural Low Glycemic Indec rice with DEARICE
brand, Green Tea and Fruits Chip. "DEARICE" is derived from the original
Indonesian rice varieties that naturally have a low glycemic index values (<55).
Produced naturally, without the use of chemical fertilizers and pesticides sintettis
(toxic) in in paddy field irrigated wellspring. Production process (ranging from
the use of seeds, land preparation, planting, maintenance, harvesting and post
3|Page

harvesting, packaging) applying internal control system in accordance ISO-9001

2008 Certification for Varieties Assurance, followed by testing the glycemic index
value periodically and sustained by Center for the Study of Food and Nutrition,
University of Gadjah Mada.
Green Tea product is a lovely everyday green tea: delicate pale yellow liquor, soft
texture and pleasant aroma like freshly roasted artichokes or okra. Slightly toasty
and very balanced, mellow astringency. Green tea has been tested by GBA
Gesellschaft Fr Bioanalytik MBH, Laborgruppe Wissen Wass Drin Ist,
Hamburg Germany for supply needs in El Puente GmbH., and comply with EU
food safety standards. Our green tea has a characteristic a strong tea with light green
color, which develops an earthy, smoky flavor during infusion.
Fruit Chips product make the best quality fresh fruit origin Indonesia and only
removes moisture content to provide crispness without any added sugar and
artificial preservatives. 100% natural, thing closest fresh fruit. All natural fruit chip
made with real fruit, baked never fried, gluten free, fat free, non GMO, with no
preservatives or artificial anything.
There are 9.1 million people diabetics in Indonesia is. Most of them consume rice
as a staple food. The tendency to replace the rice is very difficult for a country
with a population of more than 200 million inhabitants. Therefore, we believe that
this business has a long-term prospect.
Increased diabetics in Indonesia and several countries have shown our business
prospects. This issue becomes particularly relevant when we develop healthy food
products are healthy for many people in the world.
We had partnerships groups of farmers to produce "DEARICE". We've established
Standard Operating Procedures and Internal Control Systems documents who
will guide of production, processing and packaging. We will create the value of
the product on the functions and benefits for consumers. They are obtaining
health benefits of each product purchased with guaranteed quality. Added value
to farmers is increasing their income because of the quality of products produced
better appreciated.
Our competitive advantages are the support of stakeholders and grassroots
producers who are in a lot of areas with diverse cultures and local characteristics.
Rice products, fruits chips and green tea produced in the fertile soil are believed to
have its own flavor. Because it is produced naturally, our products have a
relatively long shelf life (between 6-18 months).

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Vision/Mission Statement and Goals

A. Vision/Mission Statement
Vision
Being farmer-owned enterprises that are professional, reliable and sustainable to
improve the welfare and living standards of farmers and their families.
Mission
1. Promote the establishment of welfare for farmers and their families
2. Realizing the farmers group an independent, sovereign on seed and materials
of production, as well as determining of its agricultural product prices
3. Improving the science and technology of cultivation, processing and
marketing.
B. Goals and Objectives
1. Achieving food security, improving the welfare of farmers through the
development and empowerment of commercial agribusiness, advanced,
professional, based on the local culture, preservation of natural resources
and the environment.
2. Developing Farmer-owned Enterprises, as a hybrid of business and society
empowerment agencies to:
a. Introduce technological innovation, social innovation and institutional
innovation that can improve farmers' production and sustainable
prosperity;
b. Facilitate the financing of farming through the development of a credit
system that is easily accessible by farmers;
c. Facilitate production costs to farmers (for the purchase of liquid
fertilizer, pesticide plant and compost) paid after harvest;
d. Mentoring group and implementation of the field school covering
technical aspects, management, and entrepreneurial attitude;
e. Develop improvement harvesting technology and post-harvest to
suppress loss and improvement of value-added products;
f. Guarantee the marketing of products with better prices and provide a
favorable bargaining position of farmers;
g. Develop business partnerships and farmers empowerment with
business actors, government, academia, and other stakeholders.
C. Keys to Success
Think positive, work hard, keep trying, networking, collaboration and pray

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Company Summary
A. Company Background
Farmer-owned Enterprises PT. Tanjung Mulia Agronusa (TMA) built on the basis
of business requirements Join Farmers Group "Sukamaju" and Association of
Natural rice Growers "Tanjung Mulia" in Magelang Central Java, as a follow-up
program of Farmer Empowerment through Agricultural Technology and
Information (FEATI) Ministry of Agriculture Republic Indonesia supported by the
World Bank in 2011.
The business activities of TMA in
agriculture, trade and services
have been started in 2011 and be
confirmed by the Notary CM
Novia Puspita Wardhani, SH, in
2012 by Deed of No. 1 Date July 3,
2012 and ratified by the Minister
of Law and Human Rights of the
Republic Indonesia No. AHU08161.AH.01.01.Tahun 2013 on
February 22, 2013.
Our started this business with production natural rice of local varieties "Mentik
Wangi Susu", processing and distribution in one management; (comprise
provision of production materials, cultivation, processing, packaging and sales).
Farmers involved are 348 people composed of 10 groups of farmers with a land
area of 48.6 ha.
In 2013, us developed a functional natural rice for diabetics and obese, is a low
Glycemic Index (GI) Rice on an area of 7 hectares. Standards and testing
laboratory of products, we were in collaboration with the Center for the Study of
Food and Nutrition Gadjah Mada University in Yogyakarta.
Besides rice, we were also has conduct to empower the Tea Farmer Groups in
West Java to develop product and marketing to fair trade market and we have
become the suppliers of Indonesian Green Tea in buyer fair trade EL PUENTE
GmbH, Germany.
B. Resources, Facilities and Equipment
Farmer groups sell dry grain harvest to Farmer-owned Enterprises. The water
content of 20% is paid USD 0.49/Kgs. Partly of them are also selling rice and we
were pay USD 1,07/Kgs. Decree of regarding this price was done when of
production planning (before farmers planting) in a farmers' group meetings and
they have agreed.

6|Page

Land, equipment, labor and costs borne by farmers. TMA create and define the
Standard Operating Procedures and Internal Control System that must be obeyed
by farmers. For farmers who require production costs, TMA provides loans
(without interest) paid after harvest.
TMA gives rewards to farmers' groups who are able to go beyond the average
productivity. Awards were given in the form of equipment needed to support the
group in order to better the production process.
C. Marketing Methods
The annual sales volume specified in IDR (Rupiah) for services and units for
products.
We are open to working with others to improve profitability, including strategic
alliances with suppliers or customers that can benefit from each others in business
development. Suppliers can expand the network of production and customers can
increase additional revenue by becoming a reseller or sales agent. Cooperation
will be carried out by a formal contract is open, sharing a clear, and mutually
beneficial.
To the marketing development we were requires cost to produce and deliver as
many USD 24.925; that is for 12.000 units of DEARICE (USD 14.876), 800 units of
Green Tea (USD 10.049).
These products will be marketed by methods; Radio Media Partner & Agent,
Flyers, Value Additions, Referral Networks, Follow-Up, Cold Calling and The
Internet.
D. Management and Organization
The management team is currently carried out by the Board of Commissioners
who served as supervisor the company and the Board of Directors as a business
manager in the field of production, marketing, finance, and empowerment,
determines employees salaries and conducts performance reviews.
Management responsibilities been divided among the team, one of Directors act as
spokesman and CEO and other director acts as responsible for the company's
operations as well Chief Financial Officer assisted by 2 staff.
The management team of undergraduate educational background, that has a good
reputation in the community, special skills and abilities in the field of Organic
Farming; Agribusiness; Vegetables; Fair Trade; Contract Farming; Agricultural
Production; Fruit; Crop; Seed Production; Employee Training; and Organic
Products. Skills required additional management team need is a global marketing
and advertising.

7|Page

Management and employees have avenues for personal development through

training on their jobs.
Figure 1. Sketch a diagram of lines of authority

E. Ownership Structure
The main stakeholders in this business are farmers and farmer groups are joining
in Gapoktan SUKAMAJU and Organic Rice Farmers Association of TANJUNG
MULIA in Magelang, Central Java. Gapoktan Sukamaju and association Tanjung
Mulia each have 50% and 30% of the shares. The remaining 20% is owned by
farmers founders.
Legal form of company is Limited Liability, and under the laws in force we have
permits to operate in all regions of the unitary Republic of Indonesia.
Our company is registered in Magelang regency government and has Company
Registration, Micro Trade Permit (including Export / Import), as well as Customs
Identification Number issued by the Directorate General of Customs and Excise,
Ministry of Finance of the Republic of Indonesia.
F. Social Responsibility
The environmental practice on organic rice cultivation is aim to ecological based
farming and sustainable. Cultivation procedures do not use chemicals and pest
management control using natural enemies. The industry of rice processing uses
good handling processing (GHP) for noise/dust/timing/odor policies.
Our involvement at the local/state/national level in commodity organizations is
producing and supply healthy food for many peoples. The roles of management
and employees in organizations hope farmers and the employees are welfare
together.
8|Page

All new employees must be follow orientation and training to insure proper
handling of hazardous materials and safe operation of equipment. Company has
standard operating procedures in production and processing.
We give training to the farmers and employees before starting as a part of
empowerment.
G. Internal Analysis
Strengths
raw material easily
certain products and functional
broad market
support health institutions
public awareness about health

Weaknesses
very complex business
farmers' fields are not widely
poor management farmer groups
damaged irrigation
consumer education

Opportunities
fertile rice fields
at least competitors
national and global health issues
increasing diabetics
lifestyle

Threats
conversion of agricultural land
pests and plant diseases
industrialization and urbanized
climate

The strength of our firm is a grassroots involvement and broad stakeholder due to
their welfare impact. Weaknesses of this very complex business such as science,
culture and mindset of farmers in Indonesia are mostly not having an
entrepreneurial spirit. The relative strengths of business unit within the firm is the
same base in agriculture; rice, green tea and fruit chips. They need good
organization.
The core competencies (things we were doing better than others) are the base
produce in the farmers and competitors make low glycemic index rice by
steaming method.
We are firm build on things can controlled areas: Knowledge and work in base
scientific method; Financial position stable to assure all units working better;
Increased productivity for a stable supply; Welfare of farm families; The simple
lifestyle; Accessible location; and Optimizing local resources.

9|Page

Products and Services

A. DEARICE (Natural & low Glycemic Index Rice)
"DEARICE" is derived from the original
Indonesian rice varieties that naturally have a
low glycemic index values (<55). Produced
naturally, without the use of chemical fertilizers
and pesticides sintettis (toxic) in paddy field
irrigated wellspring.
Production process (ranging from the use of
seeds, land preparation, planting, maintenance,
harvesting and post harvesting, packaging)
applying internal control system in accordance ISO-9001 2008 Certification for
Varieties Assurance, followed by testing the glycemic index value periodically
and sustained by Center for the Study of Food and Nutrition, University of
Gadjah Mada.
Different from other products, "DEARICE" have shape, flavor and color as rice in
general. If other product scented rice bran because of the parboiled process,
"DEARICE" completely abandon this scent so that the product is easily adapted as
a substitute for the main food (rice) for diabetics and for dietary needs.
Strategy development of low glycemic index (GI) rice based of varieties to choose
more profitable for farmers. Selection of this strategy has proven to be the
motivation of farmers to produce quality rice with higher grain prices while
maintaining environmental sustainability of their rice fields. If other farmers sell
dry grain harvest only USD 0.31 / Kgs, farmer members group obtain a price of
USD 0.41 / Kgs.
Laboratory result;
Proximate & Fiber
Water
Ash
Fat
Protein
Carbohydrate (KH bdf)
Soluble fiber (SDF)
Insoluble fiber (IDF)
Total fiber (TDF)
Glycemic Index value

12,69 %
0,38 %
0,98 %
6,68 %
79,27 %
2,42 %
1,41 %
3,82 %
44,4

Convertion cooking
AvKH wb (%)
AvKH equivalent of 50 g (grams)
Conversion rice

75,44
66,28
2,41

Notes:
This is laboratory results Center for the Study of
Food and Nutrition, University of Gadjah Mada;
Planting Season 2013-2014

10 | P a g e

Product certified;

Mutu Certification International is Meets the requirements of General Provisions

Execution Systems Guarantee Certification Varieties of Agricultural Products (PU01/MS/03/2008) and is registered within the MUTU Certification from PT. Mutu Agung
Lestari, Bogor Indonesia and Food Safety Competent Authority Ministry of
Agriculture Republic of Indonesia.
PSPG - UGM Certified is a certification test results glycemic index value and
sustainable done regularly conducted every harvest season.
Price;
"DEARICE" paperboard packaging (1 kg) sold for USD 2.95 in outlet distributors
and our online store. Cheaper than other products sold USD 3.30 and USD 4.95.
B. Green Tea
Green tea is made from the leaves from Camellia
sinensis that have undergone minimal oxidation
during processing.
Our product is a lovely everyday green tea:
delicate pale yellow liquor, soft texture and
pleasant aroma like freshly roasted artichokes or
okra. Slightly toasty and very balanced, mellow
astringency.
Our green tea has been tested by GBA
Gesellschaft Fr Bioanalytik MBH, Laborgruppe
Wissen Wass Drin Ist, Hamburg Germany for supply needs in El Puente
GmbH., and complies with EU food safety standards. Our green tea has a
characteristic a strong tea with light green color, which develops an earthy, smoky
flavor during infusion.
Price;
Indonesian Green Tea paperboard packaging (100) sold for USD 1,23 in outlet
distributors and our online store. Cheaper than other products sold USD 2.15 and
USD 3.65.

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C. Fruit Chips
We make the best quality fresh fruit
origin Indonesia and only removes
moisture content to provide
crispness without any added sugar
and artificial preservatives. 100%
natural, thing closest fresh fruit. All
natural fruit chip made with real fruit, baked never fried, gluten free, fat free, non
GMO, with no preservatives or artificial anything.
Fruit chips business development is a joint operation with our network of small
industries in Malang, East Java, which has over 15 years of experience producing
fruit chips; jackfruit, salak, rambutan, apple, pineapple, watermelon and others.
Most of the fruit chips produced by the vacuum frying. Tubers such as cassava,
potato, pumpkin made chips with open frying method.
Price;
Fruit chips products sold at USD 2.07/unit (100 grams) at our distributor outlets
and online stores.

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Market Assessment
A. Examining the General Market
Our firm market characterized by monopolistic, A market structure characterized
by a large number of small firms, similar but not identical products sold by all
firms, relative freedom of entry into and exit out of the industry, and extensive
knowledge of prices and technology.
The consumer market pertains to buyers who purchase goods and services for
consumption rather than resale. However, not all consumers are alike in their
tastes, preferences and buying habits due to different characteristics that can
distinguish certain consumers from others. These particular consumer
characteristics include various demographic, psychographic, behaviorialistic and
geographic traits.
Tabel 1. Market Segmentation
Demographic

Psychographic

Behaviorialistic

Gender
Age
Income
Occupation
Education
Household Size
Geographic
Nationality
Lifestyle
Personality
Social Class
Reason
User status

Male & Female

35 70 year old
$25.000 - $50.000
private employees,
High school & undergraduate
Small & medium household
Asia. Europe & USA
All nations
Healthy
All personality
medium & high class
Healthy, make healthy
Consumer

Increased diabetics in Indonesia and several

countries have shown our business prospects.
This issue becomes particularly relevant when we
develop healthy food products are healthy for
many people in the world.
Diabetics in Indonesia are 9.1 million people.
Most of them consume rice as a staple food. The
tendency to replace the rice is very difficult for a
country with a population of more than 200
million inhabitants. Therefore, we believe that
this business has a long-term prospect.

http://www.novonordisk.com/about_us/stories/story/thechallenges-of-diabetes-care-in-indonesia.asp

13 | P a g e

B. Customer Analysis
Diabetics and obesity will be our customers. We are sell low glycemic index rice
'DEARICE' for solve a key customer problem -- diabetics and obesity. Green tea
and fruit chips we dedicate to consumers who need a healthy life.

Diabetes in Indonesia - 2014

Total adult population (1000s)
(20-79 years)
Prevalence of diabetes in adults (2079 years) (%)
Total cases of adults (20-79 years)
with diabetes (1000s)
Number of deaths in adults due to
diabetes
Cost per person with diabetes (USD)
Number of cases of diabetes in
adults that are undiagnosed (1000s)

156,789
5.8
9,116.0
175,936
174.7
4,854.3

International Diabetes Feration 2014

release, Indonesia is one of the 23 countries
and territories of the IDF WP region. 387
million people have diabetes in the world
and almost 138 million people in the WP
Region; by 2035 this will rise to 202
million. There were 9 million cases of
diabetes in Indonesia in 2014.
(http://www.idf.org/membership/wp/in
donesia)

The figure describes which age

groups in the population have the
highest proportions of diabetes. The
dotted line is the distribution of
diabetes prevalence by age for the
world; the black line is the
distribution for the region; and the
country distribution is plotted in the
red line. Many middle- and lowincome countries have more people
under the age of 60 with diabetes
compared to the world average.
Meanwhile, for high-income
countries, a growing population
over the age of 60 makes up the
largest proportion of diabetes
prevalence.
We will not be difficult to retain customers (especially rice products) because of its
benefits in controlling blood sugar levels.

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Strategic Implementation
A. Production
We had partnerships groups of farmers to produce "DEARICE". We 've
established Standard Operating Procedures and Internal Control Systems
documents who will guide of production, processing and packaging. We will
create the value of the product on the functions and benefits for consumers. They
are obtaining health benefits of each product purchased with guaranteed quality.
Added value to farmers is increasing their income because of the quality of
products produced better appreciated.
Our competitive advantages are the support of stakeholders and grassroots
producers who are in a lot of areas with diverse cultures and local characteristics.
Rice products, fruits chips and green tea produced in the fertile soil are believed to
have its own flavor. Because it is produced naturally, our products have a
relatively long shelf life (between 6-18 months).
All the processes used to produce the product are natural process. Rice cultivated
without chemical fertilizers and synthetic pesticides (poisons) used Organic - SRI
(System of Rice Intensification) method. Similarly the production of green tea and
fruit chips. Farmers are taught and apply Good Agricultural Practices (GAP) is
also Good Handling Practices (GHP) according to prevailing standards in the
national and international scope.
Growth options use to develop the business unit is enterprise expansion, replicate,
integrate and network. Business expansion will lead to the microfinance sector in
order to help the cost of renting land to farmers group members. It is also useful to
develop a business unit of replication and integration. Special to the network, we
will develop a distribution and marketing.
Table 2. Strategic Implementation Timeline
2011

Starting a business
2012
2013
2014

2015

Growth plan
2016
2017

First to Implement/Phase I
Start-up / search business format
Launch technical execution
Strategic plan Retreat
Second to Implement/Phase II
Implementations planning
Launch technical execution approved strategy
Semi Annual System wide
Annual system
Third to Implement/Phase III
Implementations planing
Launch technical execution approved strategy
Per year evaluations
Annual system

15 | P a g e

B. Resource Needs
1. Human
To support the development of our business require some skilled human
resources;
a. Management and Leadership Skills; to set priorities, delegate,
motivate and develop peoples, coach them to become top
performers and communicate objectives and goals.
b. Communication Skills; to get point across, create a compelling
presentation to support your goals and get buy-in for ideas, inspire
others to achieve better results and demonstrate emotional
intelligence.
c. Collaboration Skills; so can value and celebrate differences, build
rapport, form alliances and negotiate effectively.
d. Critical Thinking Skills; to approach problem solving logically,
research options, avoid biases and focus on meaningful data to draw
the right conclusionseven under pressure.
e. Finance Skills; to weigh the dollars-and-cents implications of your
decisionsincluding the ability to build a sound budget and
formulate reasonable forecasts.
f. Project Management Skills; to grasp the scope and objectives of
projects, recognize the roles and responsibilities of others, use PM
tools to stay on track and become an effective member of a crossfunctional team.
Human resources acquired through planning with the aim of focusing in
order to meet the strategic objectives of the company. Planning is a process
designed to translate the plans and goals of the organization with the
requirements of the job qualitatively and quantitatively in the future as
well as meeting the requirements of labor demand in the short and long
term.
Human resource planning is the total amount of planning that is
formulated for the recruitment, screening, compensation, training, job
structure, and promotion.
Human resources are done with the following steps:
a. Preparation
1) determine needs, competence and position
2) designing advertisements or announcements as well as the selection
of appropriate media
b. Implementation Phase
1) announcements and advertisements in the media
2) sorting incoming application
3) calling
4) tests of competence, attitude, mental and candidate preferences

16 | P a g e

c. Phase reception
1) contract signing
2) orientation period (1 week)
3) internship period (3 months)
4) period of appointment
5) performance evaluation (every 6 months)
2. Financial
PT. Tanjung Mulia Agronusa is included small enterprises who needs
financial resources under USD 1 million.
3. Physical
We require of physical resource 1 unit building for warehouse and office
(96 M2) medium quality.
C. Sourcing/Procurement Strategy
We base a decision to buy products or services by quality. We have a regular
suppliers and direct from manufactures.
D. Marketing Strategy
1. Sales plan
Product/Services
1. Rice
2. Green tea
3. Fruit Chips

Unit/year
Notes
12.000 Local market
800 Export
7.500 Export

2. Advertising and Promotion

a. Radio
b. Interactive brochur, leaflet & flyer
c. Internet
Our product/services distributed to agent, outlet distributor and sold in online
store. The price is desided ourself.

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Social Impact
Potential market
Target Market (10%)
Rice conumer percapita
Product needs

9.100.000 diabetics in Indonesia

910.000 diabetics in Indonesia
135 Kgs per year
122.850

tons per year

On-farm
Materials supplies
Material prices (IDR)

178.133 tons rice grain

5.500.000 per tons paddy/grain

Land support

12.724 hectare (2 sesson years)

Farmers participant

31.809 farmers

Family farmers

95.428 peoples

Employment

381.713 man days per year

217.576 woman

57%

164.136 man

43%

Gross Income
Farmer members (IDR)

77.000.000 /ha (2 sesson years)

Non-member farmers (IDR)

40.800.000

Differential (IDR)

36.200.000

Percentage

47,01%

Production Cost
Farmer members (IDR)

32.670.000 /ha (2 sesson years)

Non-member farmers (IDR)

13.500.000

Differential (IDR)

19.170.000

Percentage

58,68%

Net Income
Farmer members (IDR)

44.330.000 /ha (2 sesson years)

Non-member farmers (IDR)

27.300.000

Differential (IDR)

17.030.000

Percentage

38,42%

Off-Farm
Farmers Empowerment
Farmer groups Empowerment
Farmer Enterprise

1.272 groups
4 enterprise

Non Farm

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Stakeholder engagement
Extension worker

318 people

Guides farmers

848 people

Environment Benefits
Sustainability over the long term. Many changes observed in the environment
are long term, occurring slowly over time. Organic agriculture considers the
medium- and long-term effect of agricultural interventions on the agro-ecosystem.
It aims to produce food while establishing an ecological balance to prevent soil
fertility or pest problems. Organic agriculture takes a proactive approach as
opposed to treating problems after they emerge.
Soil. Soil building practices such as crop rotations, inter-cropping, symbiotic
associations, cover crops, organic fertilizers and minimum tillage are central to
organic practices. These encourage soil fauna and flora, improving soil formation
and structure and creating more stable systems. In turn, nutrient and energy
cycling is increased and the retentive abilities of the soil for nutrients and water
are enhanced, compensating for the non-use of mineral fertilizers. Such
management techniques also play an important role in soil erosion control. The
length of time that the soil is exposed to erosive forces is decreased, soil
biodiversity is increased, and nutrient losses are reduced, helping to maintain and
enhance soil productivity. Crop export of nutrients is usually compensated by
farm-derived renewable resources but it is sometimes necessary to supplement
organic soils with potassium, phosphate, calcium, magnesium and trace elements
from external sources.
Water. In many agriculture areas, pollution of groundwater courses with
synthetic fertilizers and pesticides is a major problem. As the use of these is
prohibited in organic agriculture, they are replaced by organic fertilizers (e.g.
compost, animal manure, green manure) and through the use of greater
biodiversity (in terms of species cultivated and permanent vegetation), enhancing
soil structure and water infiltration. Well managed organic systems with better
nutrient retentive abilities, greatly reduce the risk of groundwater pollution. In
some areas where pollution is a real problem, conversion to organic agriculture is
highly encouraged as a restorative measure (e.g. by the Governments of France
and Germany).
Air and climate change. Organic agriculture reduces non-renewable energy use
by decreasing agrochemical needs (these require high quantities of fossil fuel to be
produced). Organic agriculture contributes to mitigating the greenhouse effect
and global warming through its ability to sequester carbon in the soil. Many
management practices used by organic agriculture (e.g. minimum tillage,
returning crop residues to the soil, the use of cover crops and rotations, and the
greater integration of nitrogen-fixing legumes), increase the return of carbon to the
soil, raising productivity and favouring carbon storage. A number of studies

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revealed that soil organic carbon contents under organic farming are considerably
higher. The more organic carbon is retained in the soil, the more the mitigation
potential of agriculture against climate change is higher. However, there is much
research needed in this field, yet. There is a lack of data on soil organic carbon for
developing countries, with no farm system comparison data from Africa and Latin
America, and only limited data on soil organic carbon stocks, which is crucial for
determining carbon sequestration rates for farming practices.
Biodiversity. Organic farmers are both custodians and users of biodiversity at all
levels. At the gene level, traditional and adapted seeds and breeds are preferred
for their greater resistance to diseases and their resilience to climatic stress. At the
species level, diverse combinations of plants and animals optimize nutrient and
energy cycling for agricultural production. At the ecosystem level, the
maintenance of natural areas within and around organic fields and absence of
chemical inputs create suitable habitats for wildlife. The frequent use of underutilized species (often as rotation crops to build soil fertility) reduces erosion of
agro-biodiversity, creating a healthier gene pool - the basis for future adaptation.
The provision of structures providing food and shelter, and the lack of pesticide
use, attract new or re-colonizing species to the organic area (both permanent and
migratory), including wild flora and fauna (e.g. birds) and organisms beneficial to
the organic system such as pollinators and pest predators. The number of studies
on organic farming and biodiversity increased significantly within the last years.
A recent study reporting on a meta-analysis of 766 scientific papers concluded that
organic farming produces more biodiversity than other farming systems.
Genetically modified organisms. Genetically modified organisms. The use of
GMOs within organic systems is not permitted during any stage of organic food
production, processing or handling. As the potential impact of GMOs to both the
environment and health is not entirely understood, organic agriculture is taking
the precautionary approach and choosing to encourage natural biodiversity. The
organic label therefore provides an assurance that GMOs have not been used
intentionally in the production and processing of the organic products. This is
something which cannot be guaranteed in conventional products as labelling the
presence of GMOs in food products has not yet come into force in most countries.
However, with increasing GMO use in conventional agriculture and due to the
method of transmission of GMOs in the environment (e.g. through pollen),
organic agriculture will not be able to ensure that organic products are completely
GMO free in the future. A detailed discussion on GMOs can be found in the FAO
publication "Genetically Modified Organisms, Consumers, Food Safety and the
Environment".
Ecological services. The impact of organic agriculture on natural resources
favours interactions within the agro-ecosystem that are vital for both agricultural
production and nature conservation. Ecological services derived include soil
forming and conditioning, soil stabilization, waste recycling, carbon sequestration,
nutrients cycling, predation, pollination and habitats. By opting for organic

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products, the consumer through his/her purchasing power promotes a less

polluting agricultural system. The hidden costs of agriculture to the environment
in terms of natural resource degradation are reduced.

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