General information

Full legal name of organization CV Sidikalang PODA Agro

Legal entity organization SME
Registration Number 43/Leg.CV/VIII/2017
Address (PO Box) JalanSingamangaraja no. 181-183
Jalan Perjuangan HutaTikkaSitinjo
Kecamatan Sitinjo Kabupaten Dairi
Address (physical) Sumatra Utara
Phone number +62-821-6502-2844
E-mail podacoffee@hotmail.com
Web page www.podacoffee.online
Contact details Manager Samuel H Sihombing
Email romobing@hotmail.com
Phone number +62-82258210688
Product Coffee and chocolate
Capacity Coffee 400 tons per year
Port Belawan North Sumatra Indonesia
Brief history of organization

CV SidikalangPodaAgro originated from a cooperative that focuses on marketing the products of its
members and coffee farmers in the Dairi Regency, North Sumatra. This cooperative was established
in 2009 and since 2016 sent coffee to the Dutch company Trabocca. But in the beginning of 2017,
the NGO which assisted the cooperative decided to stop the support and the cooperative stopped
running. Meanwhile, members of the cooperative still wanted to continue to carry out the sale of
coffee but there was no legal entity. While awaiting the improvement of the cooperative
organization, the members proposed to establish a legal entity to carry out coffee buying and selling
from and by the members.

To overcome the deadlock in marketing the coffee and also the wishes of the members who have
felt the economic benefits of this marketing program, in September 2017 a legal entity with the
name CV Sidikalang Poda Agro was established. With the establishment of this company, we could
resume marketing the coffee from the Dairi region area. In 2017, 18 tons of coffee was exported to
Goodel Trading Co., Ltd, Korea, and in 2018 18 tons of coffee was sent to the UK, and as of May
2019, 3.9 tons have been sent to Korea. Pebruary 2019 we also shipped 9,6 tons to Nettherland
Trabocca and 9,6 tons to Trabocca USA. We have received repeat orders from our customers and are
expected to send approximately 54 tons by the end of 2019. In 2020 we continue to shipp coffee to
all our costumers.

The main objective is to streamline the marketing chain from producers to consumers in order to
increase the economic value both at the farm level and at the processing level, and buyers are able
to get high quality coffee.

Vision:

Become a role model of local company to market high quality of coffee from the highland of
Northern Sumatra.

Mission:
 Improving farmer’s ability in managing and developing their natural resources in the farming
business (management of agricultural production and marketing)
 Building marketing from the producers to consumers with fair-trade system.
 Giving good benefit to both company and farmers.

Value:
 Healthy product and sustainable environment
 Producers and costumer economy aware of the environment and cooperation-based
 Gender equity
 Participative and democratic decision-making
 Experience and qualification of management

The founder of CV SidikalangPodaAgro is Samuel Sihombing. He was formerly a pastor in the region
and has worked with numerous NGOs to create several successful credit unions and carry out relief
projects. He has also participated in the Q Grader training program in Korea and is well known in
Sidikalang for creating high quality coffee.

Samuel is also exceptional at motivating and creating organizations and farmers groups. He
established MASPIGASS (Masyarakat Perlindungan Indikasi Geografis Arabica Sidikalang Sumatra),
which means Sumatra Sidikalang Arabica Coffee Geographical Indication Protection Society. This
organization is working on getting GI certification for coffee in Sidikalang and are now creating a very
active coffee farmers group in the Sidikalang region. MASPIGASS also has a very active Facebook
page, and many farmers have approached Samuel if they could join the farmers group. Several news
outlets and government officials have visited Samuel and PODA and were impressed with the impact
PODA has been making in the Sidikalang community.

Geographical working area (map)

The PODA processing facility is located just outside of Sidikalang in Dairi regency, North Sumatra.
Sidikalang is located to the west of Lake Toba and is rich in volcanic soil which is essential to growing
exceptional coffee. We source coffee from smallholder farmers around Dairi whose farms sit at
1400-1700 meters above sea level. The variety of most trees is Sigararutang, although significant
populations of P88 and Lasuna are also present.
Products and services offered

PODA offers high-quality wet-hulled Sumatran coffee to buyers around the world and is also
developing special processing techniques for higher-value micro-lot coffees. We work with coffee
farmers to develop strong farmer groups and networks that have a voice in how their communities
will develop and benefit from coffee revenues, rather than just buying from collectors. We have
committed to reinvesting a portion of our profits in community-driven development projects.

Target group

Our main beneficiaries are coffee farmers and the people in the Dairi regency. We have carried out
training programs to help increase the quality and productivity in the area, and we purchase the
coffee at a premium for the coffee that meets our standards. Also, by performing all of the
processing and packing at origin, we were able to provide work to nearly 40 people in the area.

Market Information
Demand for Sumatran coffee is very high in the international market and has no substitutes. Many
importers and roasters have tried replicating the processing methods in other countries but failed to
create similar profile. Demand is predicted to grow significantly in coming years as global population
grows and more Asian consumers switch from tea to coffee. According the World Coffee Research,
there is expected to be a shortage of 180 million bags of coffee by 2050, thus the demand for
Sumatran coffee will only grow higher.

Poda has positioned and branded itself to providing high quality single-origin coffee, with a focus on
sustainability and community development. Last year, one buyer have already switched their
supplier to PODA, were very pleased with the coffee received, and has already placed a repeated
order. Also, SPC, a large food conglomerate in Korea, received dozens of samples from Sumatra and
ended up choosing Poda’s coffee because of its exceptional flavor profile, which we successfully
exported in April.

Poda has lead several coffee tourism programs in Sidikalang, mostly with visitors from South Korea.
In the future, Poda also plans on developing coffee tourism programs in Sidikalang, to better
promote Sidikalang coffee and Poda.

Problem analysis

The coffee market in Dairi regency is currently dominated by traders affiliated with large exporters in
Medan. Farmers in the area are poorly organized and therefore are in weak bargaining position.
Farmers sell coffee to these middlemen who then do minimal additional processing and send the
coffee to Medan, where it is blended with coffee from other regions and final processing for export
occurs, obscuring the coffee’s specific origin and adding value at the port rather than in producing
communities.

Moreover, although farmers are paid more for their coffee as compared to farmers in Central or
South America, the average coffee farm is only 0.5 to 1 Ha as compared to 10 to 20 Ha. Also, the
productivity per Ha is very low because the farmers do not know how to best take care of their
farms.

Proposed solution and justification

PODA will work with farmers to organize and collectively process their coffee to meet higher quality
standards. All processing will occur in Sidikalang, Dairi regency, ensuring that value addition takes
places in producing communities rather than at the port. Stronger farmer groups and improved
engagement with processors and exporters will empower individual farmers to take a more active
role in the supply chain and understand the roles that other actors play.

Also, by carrying out training programs to help increase the productivity at the farms.

PODA and its partners have committed to reinvesting a portion of all the profits to fund projects.

The first project will be aimed at establishing a systematic training program to deliver GAP (Good
Agricultural Practice). We will create a hands-on training area inside the PODA estate where the
farmers put to use what they have learned.

The second project is to perform soil analysis in several points in the Dairi Regency to develop the
most effective organic fertilizer and compost to boost coffee productivity which will result in higher
income for the farmers.
The third project is to establish a digital traceability solution to ensure the buyers that all of PODA’s
coffee is traceable and sustainable.

Expected results (outputs)

The farms in Aceh Gayo are very well managed and have much higher productivity compared to
coffee in Sidikalang. Through the training provided by Poda, we hope to replicate and exceed the
quality and productivity of the coffee farms in Gayo.

Also, as PODA’s export volume continues to increase, we hope to create more jobs for people in
Sidikalang and purchase more coffee from farmers at a premium.

Long-term effects (outcomes)

We expect that farmers will receive higher prices for their coffee as PODA develops a strong
reputation for providing high-quality coffee. Community-driven investments from profits will result
in improved efficiency of the supply chain, increased productivity, and higher incomes.

Coffee from Sidikalang does not currently have a distinct profile in national or international markets
since it is blended with coffee from other regions after it arrives in Medan. PODA’s work maintaining
traceability will result in increased prominence of the region and greater marketing power.