ASEAN LEARNING SERIES AND POLICY ENGAGEMENT ON AGRICULTURAL

COOPERATIVES

Yogyakarta: Inclusive Agricultural Value Chain for Coffee
19 – 21 July 2017

INFORMATION DOCUMENT

BACKGROUND

1. What is a Learning Series?

The ASEAN Learning Series is a continuation of the ASEAN Learning Route (ALRAC)
that facilitates peer to peer learning in the areas of farmer empowerment and participation
in the global value chain. The learning enables farmers and their organisations to make
their own, independent decisions with regards to services for members on production,
creating market opportunities as well as improving women participation along the value
chain.

Each Series is organised thematically around experiences, case studies and best
practices on innovative rural and agricultural development to promote coordination and
collaboration with multilevel stakeholders in ASEAN at the implementation stage.

2. Why Learning Series and Policy Engagement on Agricultural Cooperative
amidst the ASEAN Economic Community Building?

One of the key strategic areas of action related to the core element under the Food,
Agriculture and Forestry of the ASEAN Economic Community (AEC) Blueprint is to
promote ASEAN agricultural cooperatives as a means to empower and enhance market
access for the benefit of farmers in the region as well as to ensure food security.

The critical role of agricultural cooperative particularly in improving marketing and food
security has been highly recognised. Various case studies have been presented in many
conferences such the one held last year (November 2016) in New Delhi, India by the
International Co-operative Alliance Asia Pacific entitled “11th ICA Asia Pacific Regional
Cooperative Research Conference “.

The marketing system of agricultural commodities in most ASEAN countries is confronted
with a lot of issues and challenges. These challenges have become more apparent in the
midst of the ASEAN regional integration process. Addressing these issues entails the
strengthening of agricultural cooperatives as effective channel to reduce the transaction
cost and asymmetric information along the value chain. In addition, a favourable and
enabling policy, programme and mechanism designed to support agricultural
cooperatives as well as incentives for inclusive and sustainable partnership between
agricultural cooperatives, farmers’ owned enterprises and other private sector is seen
has a fundamental element.

Given the important role of agricultural cooperatives and farmers’ organisations in
improving production and marketing in the context of regional integration process in
ASEAN, the Medium Term Cooperation Programme particularly the ASEAN Farmers’
Organisation Support Programme (AFOSP), a project supported by the European Union
(EU) and the International Fund for Agricultural Development (IFAD) implemented
through the consortium AFA and LVC, in partnership with the ASEAN Foundation will
organise an ASEAN Learning Series and Policy Engagement on Agricultural
Cooperative.

This Learning Series and Policy Engagement on Agricultural Cooperatives offers the
opportunity of learning directly in the field from the success stories of:

▪ Agricultural cooperatives good management in the areas of internal organisation,
service provision to members, networking and access to market.
▪ Development of cross-countries market strategies and agreements involving
public and private sector.
▪ Public policies, national legal frameworks/laws, programs and mechanism for the
support of Agricultural Cooperatives in the frame of the ASEAN 2025: participation
in Global Value Chain.

OBJECTIVE

- To strengthen the role of Agricultural Cooperatives in addressing the challenges
as well as opportunities of the ASEAN Economic Community
- To improve the livelihood and to ensure food security
- Participation in ASEAN value chain, through the dissemination and replication of
the best practices and innovations developed by Indonesia in alliance with
multilevel stakeholder in the coffee value chain.

PARTICIPANTS

The Learning Route targets participants from ASEAN member states primarily coming
from farmers’ organisations supported by the MTCP2-AFOSP programme and the
members of the ASEAN Centre for the Development of Agricultural Cooperative
(ACEDAC). Each team, particularly from the farmers’ organizations, is encouraged to
have a fairly balanced number of women and youth participants. Interpreters for farmers
from each country shall be part of the delegation.

RATIONALE FOR LEARNING HOSTS

Indonesia is selected as the learning host is based on the following considerations:

a. Presence of sound legal framework on cooperative (laws, enabling policies,
programmes, mechanism).
b. Proven trajectory and availability of sufficient good practices and lessons learned to
show different paths towards consolidations of small-scale farmers into Agricultural
Cooperatives as a market player, a government partner in development programmes
and capable of engaging the others in the private sector.

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The Indonesia Case on Coffee Inclusive Value Chain

Coffee is the second most traded commodity in the world after oil1. Coffee is a traded
commodity on major futures and commodity exchanges, most importantly in London
and New York. Given the nature of coffee trading, the concept of participation in the
Global Value Chain underscores the importance of agricultural cooperative participation
towards ASEAN 2025.

Indonesia ranks as the fourth global coffee supplier after Vietnam. Indonesia is also
famous for having a number of specialty coffees such as specialties are civet coffee
(kopi luwak), Toraja coffee, Gayo coffee and Mandailing coffee. Indonesia is also
member of the ASEAN Coffee Federation (ACF).

The cooperative movement has played a major role as the growth engine of the coffee
sector in Indonesia. However, Indonesian cooperatives in the sector are now faced with
challenges and potential opportunities of the ASEAN Economic Community. There is a
declining preference of young people wanting to work in the agricultural sector; increasing
risk of the impact on climate change and frequent natural disasters such as earthquakes
and eruptions as well as asymmetric information on market supply-demand. But on the
other hand, collective production and marketing are the entry for wider regional market
access. This should lead to increase coffee farmers’ cooperative roles, not only for
purchasing and selling (exporting) but also stabilising the market price for smallholder
farmers with private sector.

The Indonesian case presents lessons in many areas, including marketing strategy,
strategic alliance towards more vertical coordination, strong self-governance, active
policy dialogue with governments, civil society organisations, and private sector.

TENTATIVE PROGRAM FOR THE LEARNING ROUTE

The proposed tentative program is attached in ANNEX B, the event will take place in
Yogyakarta from 19 – 21 July 2017.

EXPECTED OUTCOMES

i. A regional knowledge sharing platform of coffee cooperatives under the ACEDAC
flagship to engage, dialogue and work with ASEAN, regional inter-government
bodies, and other public/private stakeholders;
ii. Enhanced capacity of the farmers’ organisations to identify and design their
strategies and programs in the agricultural value chain that will benefit their
communities and families;
iii. Improved access to market opportunities (in particular for coffee) through an
inclusive ASEAN Business Model (e.g. contract farming);
iv. Increased collaboration to provide affordable agri-financial and agri-investment
services for smallholder farmers and agricultural cooperatives.

1
UNCTAD. Coffee, Cooperation and Competition: A Comparative Study of Columbia and Vietnam.
Retrieved at http://www.eafit.edu.co/centros/asia-
pacifico/publicaciones/Documents/Coffee_Cooperation_and_Competition.pdf

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EXPECTED OUTPUTS

i. 52 Practitioners of which 40% are women from 10 ASEAN member states increased
knowledge and deepen appreciation of the role of Agricultural Cooperatives in
ASEAN Economic Community building.
ii. Seven national networks/focal points of Coffee Agricultural Cooperatives that would
bring unified participation of coffee cooperatives in the national and regional coffee
dialogues;
iii. A comprehensive case study on AFOSP Coffee Farmers’ Cooperatives;
iv. A Coffee Farmers’ Cooperatives directory serves as a baseline data for ACEDAC;
v. A regional branding strategy for coffee.
vi. A concept note for one day Exhibition on Trade and Marketing of the ASEAN
Agriculture Cooperatives Products at the PrepSOM-39th AMAF 39th AMAF Meeting.

ADMINISTRATIVE INFORMATION

The ASEAN Learning Series and Policy Engagement on Agricultural Cooperatives is
supported by IFAD in partnership with the Swiss Agency for Development Cooperation
(SDC) and the EU Delegation in Jakarta through the Medium Term Cooperation Program
Phase two (MTCP2) – ASEAN Farmers’ Organisation Strengthening Programme
(AFOSP).

All cost related to international airfare, food, hotel accommodation and learning materials
will be from MTCP2-AFOSP.

The accommodation for the Learning Route will be as follows:

Yogyakarta
EastParc Hotel
Laksda Adisucipto Km 6.5 Seturan, Yogyakarta 55281 Indonesia
T : +62 274 493 2000 |F : +6274 493 2222
https://www.eastparchotel.com

Please complete the NOMINATION FORM attached in ANNEX A and kindly return it
before 10 June 2017 by fax/ email to:

Attention: Ms. Yacinta Esti/Ms. Prima Kurniasari
ASEAN Farmers’ Organisation Support Programme (AFOSP) – Engaging with ASEAN
The ASEAN Foundation
Fax: 6221 - 3192 6078
Email: yacinta.jati@aseanfoundation.org and/or prima@aseanfoundation.org

With a copy to the Asian Farmers’ Association for Sustainable Rural Development (AFA):

Attention: Ms. Lysa Villalba
Fax: 632 – 425 0176
Email: afalysa@asianfarmers.org

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ANNEX A

ASEAN Learning Series and Policy Engagement on Agricultural Cooperatives
Yogyakarta: Inclusive Agricultural Value Chain for Coffee
19 – 21 July 2017

NOMINATION FORM
ASEAN Centre for the Development of Agricultural Cooperative Focal Points and
MTCP-2 FOs participants

Full Name (as in Passport): Passport No.:

Date of Issue: Date of Expire:

Mother tongue: Identification Card No. (if applicable):

Other languages:

Gender: Date of Issue: Date of Expire:

Department/Ministry/Organization:

Designation/Position: Please describe the main tasks of this position:

Mailing Address (please provide full
address):

Email Address:

Phone No.:
Mobile No.:
Fax No.:
Arrival: (Date, Flight No, Estimated Time of Departure: (Date, Flight No, Estimated Time of
Arrival) Departure)
Sponsored ASEAN and MTCP-2 FOs participants - Airline tickets will be arranged by the
ASEAN Foundation - Arrival will be on 18 July 2017 and Departure on 21 July 2017 from
Yogyakarta
Accommodations: Please tick the appropriate box:

Yogyakarta I am representing the ASEAN
EastParc Hotel Sectoral Working Group on
Laksda Adisucipto Km 6.5 Seturan, Yogyakarta 55281 Agricultural Cooperatives
Indonesia | T.: +62 274 493 2000 |F.: +6274 493 2222 I am representing Farmers’
https://www.eastparchotel.com Organization (MTCP-2)

Please return your registration form by fax or email by 10 June 2017 to:

Ms. Lysa Villalba Ms. Yacinta Esti/Ms. Prima Kurniasari
Asians Farmers Association for Sustainable ASEAN Farmers’ Organisation Support Programme
Rural Development (AFA) (AFOSP) – Engaging with ASEAN
Fax: 632 – 425 0176 The ASEAN Foundation
Email: afalysa@asianfarmers.org Fax: 6221 - 3192 6078
Email: yacinta.jati@aseanfoundation.org and
prima@aseanfoundation.org

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