Sustainable Livelihoods are connected systems like the links in a chain.In Aceh, the Tsunami destroyed many of these livelihoods links, already weak through decades of conflict. The challenge faced by the JFPRs and other stakeholders was to rebuild these connections to restore and improve family livelihoods so lifting people out of poverty. The journey to sustainable livelihoods started with reconnecting the livelihoods steps from preparation, purchasing, production and marketing, to improving and creating increased value in each livelihood, building supply chains, sharing values and networking with new partners with the goal of establishing Eco Micro Industries
Families living in poverty are disconnected. Livelihoods connections are needed for the journey out of poverty. The JFPRs strategy was to connect people (low income families) to profitable, environmentally friendly products and services in clusters and connect these clusters to the market.
Intro to film about ADB’s response to the Earthquake and Tsunami Emergency Support Project (ETESP) and two JFPR projects 9072 and 9073
The JFPRs journey we present today is a series of connections :Creating Livelihoods Value - CIRCULAR Connections in the livelihoods production processProduct Clusters Adding Value Horizontal connections to other micro producers (Scaling Out) 3. SHARING VALUES IN SUPPLY CHAINS Connecting vertically to the market (Scaling Up).
Best Management Practices (BMPs) & Livelihoods TrainingBetter implemented livelihoods produce higher quantities and quality = increased value Community EmpowermentCommunity contracts increased efficiency and higher out put value. 261 sub projects developed, designed, and implemented through community contracts. +/- $15,000/contract disbursed in three stages directly to communities with payments phased based on agreed deliverables recorded in individual sub project orange files.Describe ConnectionsMultiple small contracts; efficient use of funds in small amounts. Difficult to manage many small contracts; more outputs than contracted; small investment in labour intensive livelihoods.Community Contracts By using a community contracts approach, communities in the projects decided how their eco livelihoods would be developed, collected, transported, and managed. improve and maintain the best management practices . the project pursued a strategy to• create partnerships between the community, local government, OISCA, and private sector ;• empower communities through participatory decision making and active involvement in sub-project planning, design, and implementation;Participation of Women & Disadvantaged groupsReleasing the latent potential (Idle time) of women and low income families
Clusters Value of economies of scale and improved bargaining position, shared use of high cost equipmentEco-Livelihoods (Green JFPR activities promoted) Recycling waste products. Guarding marine resources through sonar mapping,mangrove marine resources, synchronised management of water reduces water loss and reduces diseaseAdded Value Processing; Raw materials processed adding value in the community
Livelihoods Assessment for 40 shortlisted products Ensuring value in livelihoods products from market demand and prices iefeasibilityWorking with community champions and following on from successful livelihoods projectsIdentify value from community champions livelihoods and other project successesPrivate Sector partnerships /ALSCsUnderstanding needs of private sector partners so that clusters can provide real value
Livelihoods Services Centres (LSC)Creating value through profitable connections links to Gov’t services and grants, suppliers, private sector investor buyers and other nearby communitiesMicro Finance services Providing valued customers to banks who already have established profitable livelihoods and have been trained using PIM DVDs. Value to bank is viable livelihoods enterpriseCloud ICT Networking, Publicity and InformationUsing cloud ICT and internet to provide informational value to all – community, private sector, government and NGOs
Livelihoods supply chains connect families (people), clusters (product), buyers (market) and other players (technical and micro-finance services).Each link of the supply chain is made up from many connections. Without these connections, the links break and livelihoods are not sustainable. Each supply chain link is part of a virtuous circle of shared value – economic, societal and environmental; improving value in one area gives rise to opportunities in the other links.
Working in clusters through ALSCs, pond farmers reduce risk of disease outbreaks and maximize their profits through economies of scale, while meeting market demand through reliable, sustainable aquaculture operations.
•Community ChampionsConnecting with champions provides on site expertise 24 hours a day and also concrete examples of best management practices close to home in village learning pointsVisits by neighboursVisits have been made by farmers groups from several sub-districts in Aceh Besar, Aceh Jaya, and Pidie, 240 farmersConnecting with Women Women’s ParticipationMost women are self-employed in small, informal enterprises.. The project promoted women’s participation and considered women’s needs (Gender Action Plans) in the planning, design, and implementation of project activities. Steps were taken to ensure adequate representation of women in consultations.Replication of simple home enterprises provides income generation opportunities egemping, tahu, cakes etcWomen’s participation in agriculture was a highly recognized part of the project success. Fishing industries are male dominated. Women organized meetings, identified and prioritized community best management women spread information by word of mouth. Distribution of gender in agriculture is 61% men and 39% women. However in the Fisheries sector there are 98% men and only 2% women. In processing the gender balance is divided 50% for both men and women. The overall women’s % is 21% over both projects. Products Farming vegetables, compost, Arabic chicken, computer skills, emping, soya bean, cakes, LEISA, LSC shops, duck eggs, and new establishment of community Enterprises such as mushrooms, bee keeping , bio pesticides, ornamental plants and forestry. Community Co- Management • help the resources and OISCA provide the support to enable community self-reliance.
Clusters have been effectively established for various different livelihoods products as follows : Shrimp (37); capture fisheries (11), soft shell crabs (2), chocolate (1), Patchouli oil (4)Cluster quality has been good by using the livelihoods member database (LMD) software for cluster management of land and pond preparation, seed purchase, disease testing, feeding and harvesting. This coordination is effective in increasing profits for all members.Cluster members are satisfied from better services such as shared water pumps disease testing of batch purchase disease tested seed, correctly formulated quality tested feed, product post harvest collection and marketing.Timeliness of delivery, availability and affordability of seed, inputs and harvesting increases productivity which increases incomesClusters are sustained by livelihoods services centres owned and managed by the community cluster members themselves.Clusters have replicated freely as more members see the advantages e.g. joint action and shared use of common facilities such as distillation units, micro export centres, aquaculture livelihoods services centres (ALSC)
Chocolate Processing: Socolatte OISCA JFPR has supported a cocoa cooperative belonging to 77 low income farmers, the Rimbun Cooperative, located in Baroh Musa Village, Pidie Jaya District. To develop added value to locally produced cocoa, the project funded Rimbun to: (1) Build their management capacity, (2) Establish cocoa processing facilities, (3) Hold cocoa processing training, (4) Fund start up operational costs of cocoa processing equipment, (5) Obtain product certification and marketing, (6) Set up cocoa processing and marketing Livelihood Centre, (7) Brand the first ever Aceh chocolate “Socolatte”.Total sub-project budget was IDR 636,785,000 (US$ 70,750).
Soft shell CrabHerlenmunsyah is a fishpond farmer who introduced Soft Shell Crab Farming in Banda Aceh post Tsunami. she shares his knowledge about soft shell crab and other aquaculture farming businesses in an Aquaculture Livelihood Service Centre (ALSC) in Lamjabat, Banda Aceh. At present, he himself together with 33 young men in his village can produce approximately one (1) ton soft shell crab per month. It is equal to IDR 45.000/ person/ day. (Herlenmunsyah, leader of Puga Gampong Group, Lamjabat, Banda Aceh).JFPR granted IDR 130.560.000 (US$ 13,050) funds for soft shell crab development in Lamjabat for 33 Tsunami victim participants. Incomes generated are on average IDR 45.985 (US$ 4.5)/HH/day. The funds established lagoon platform production facilities with capacity of 1.014 kg frozen soft crab/ month. Soft crab was selected because it’s prospective export market with a good selling price.The JFPR soft shell crab farming is also being developed in Lamnga Village (Aceh Besar) and Rungkom Village (Pidie). A new livelihoods services centre for soft shell crab was inaugurated by the Vice Governor of Aceh in August 2010.
Rp 1.5 million per family (based on 1 machine 10 familiesRp 30,000 per family/day (based sale of 10 tonnes per month at 90% profit including depreciation of equipment)Each family contributes to community savings and lending cooperative
The cultivation of vegetables by applying organic principles without use of chemicals, which over the long term can be harmful to human health and damaging the environment. When it comes to small scale farming and mixed culture, cultivation of organic vegetables (mostly leafy vegetables) is relatively easy. If located in a suitable area, this model can be used by many small scale farmers, who could supplement their family incomes and improve their nutrition.
Premium Patchouli Oil OISCAJFPR has supported 45 low income patchouli farmers to improve the quality of patchouli oil produced. Total grant US$ 22,300 was provided for construction of 9 stainless steel village distilleries and training. The patchouli alcohol content is now up to 36% and a light yellow/ golden in colour indicating premium quality oil. Total capacity of the 9 distilleries is around 27 kg of patchouli oil/ day. Clusters improve livelihoods efficiency and are facilitated under the project in order to provide markets and resource providers with the volumes, quality and continuity required by markets and service suppliers.70 kg of dried leaf @Rp 5,500 = ($.6) = $42 which reduces to 1 kg patchouli oil
Customer Services - LMDAbout 5000 members are currently registered in 13 Livelihood Centres around Aceh Province. Livelihood Members Database is a tool for Livelihood Centres to provide services and support to its members. GPS coordinates and member’s picture ensure services and support are delivered effectively to the members. Introduction of product certification and traceability can be facilitated by using location data and comprehensive livelihood information. The database is equipped with PIM SMS Centre to allow buyers, suppliers and other stakeholders communicate directly with registered members. Step by Step Livelihood Information is also distributed directly to members’ mobile phone. PIM is also available Online at FacebookappsLivelihood Services Centres Currently 2,300 Fishers registered as members at LSCsLSCMember benefitsMentoringConsultation on how to use modern technologies such GPS, Fish Finder and Radio communications.
The project’s success prompted other communities to seek help using resource-sharing schemes. In the long run, these beneficial partnerships can lead to a sense of ownership and the propensity for communities to safeguard their investments.Self-funding Eco livelihoods systems ManagementOne foreseeable long-term risk in the community-based eco livelihoods systems system is a breakdown in revenue-sharing agreements. Although the community champions and OISCA have agreed on the roles and responsibilities, terms of payment, and sharing of revenues, both parties have yet to develop mutual trust. Building Trust, Raising Awareness, and Developing LeadershipOISCA can bridge the communication gap and help negotiate with the private sector. Understanding stakeholders’ interests and participating actively every step of the way are keys to building trust and effective partnerships.Private sector participationPrivate sector participation was instrumental in the community-based eco livelihoods systems system. Experience with OISCA demonstrates that given the right incentives and assurances, the private sector is willing to cooperate. Community contracts encourage communities to take an active role in (i) identifying and planning projects; (ii) selecting design and best management practices ; (iii) deciding on investments and contributing money; (iv) mobilizing local resources; and (v) implementing, managing, and maintaining operations. Intra trade SynergiesSustained poverty reduction requires a people-centered approach that targets the individual, the community, and society. For individuals to thrive, communities should be geared toward collective action. Societies must enable frameworks and initiate policy change.
Current prices per kg to fishermen is $2 per kg. In Japan /kg prices range from $15/kg to $200No excessive tuna capture. No damage to sea habitat or eco system. Fisheries Dept endorse tuna catch and export.Market connections validated waiting for finance and collaboration partners with cold storage transport facilitiesTestimonial : We didn’t know that if we took greater care of our fish on board the boat and keep them cool properly until we reached shore, our price per kilo increased by over 20%. Hand line tuna fisherman, Batee, Aceh Jaya
The impact assessment was. The sample size was 302 households (5.4% of the total population The surveys focused on these socioeconomic indicators: (i) household members and number of dependents, (ii) income, (iii) household expenditures, (iv) access to microcredits, (v) household assets, (vi) provision of basic services , (viii) health care, and (ix) perceived and actual benefits to affected households.Table 3. Survey RespondentsSource: Poverty Impact Assessment, Project Coordination Unit, Unsyiah University, Aceh From 2008 to 2011, the average income rose 40.2%, from $167.70 per month to $235.20. Average monthly expenditures increased by 17.9%. For the 426 families engaged in eco livelihoods systems activities, including eco livelihoods pickers’ families who received microcredit loans, the average Continuity GoalLivelihoods clusters based on strategic resources are networked through integrated technical eco-support services and micro-finance services into sustainable micro-industries for providing increased family incomes, employment, and the reduction of poverty.Project Locations - Expansion and ReplicationScaling Out – expansion to new areasScaling Up - moving up the supply chain by improving productivity, quality and delivery reliability through the introduction of best management practices that introduction of new technology, micro finance, processing and value added selling. Market Connections to Jakarta, Medan, Japan, Singapore and Europe This entrepreneur networking concept is proposed to Continue the Aceh Livelihoods network and livelihoods clusters2 (>5,000 micro-entrepreneur, registered members) established under JFPR 9072 and 9073 The expanded cloud network developed in 2011 to 2013 will connect Aceh entrepreneurs to Training, Information, Micro-finance, SME products and services in all Aceh districts and may be replicated in other parts of Indonesia.ReplicationStrategic livelihoods systems are replicated into profitable clusters based on sustainable resources and integrated support and micro-finance services tries are connected to local and export markets as micro-industries develop.
Shared vision of Livelihoods ConnectionsCommunity Technical Marketing & Management ConsultancyOrange files sub-project management and communication through cloud networking Team management and Leadership
Market Create shared value supply chains that connect to markets:Information - Ensure specific, practical business information is available to all: People Adoption of small business approach with targeted communities: Contract community champions to implement livelihoods development sub-projects and follow on from successful examples already implemented.Ensure specific, practical step by step guides to profitable livelihoods are available to all: ProductEncourage the formation of eco clusters as producer associations, local cooperatives or small ,privately owned commercial companies.Create incentives for natural resource managementNetworkTechnology and InformationDevelop social entrepreneur networks to create and maintain profitable connections and share information resources Micro Finance Support for Community MFIs linked to commercial banks for saving, loans packaged to fit BMP steps and livelihoods and health insurance.
Sustainable Livelihoods where value is shared equitablySupply Chains where cluster added value is connected & shared.Eco-Livelihoods Clusters where families are connected to the local economy, society and eco systems.Connected Self Funding, Livelihoods Systems where income exceeds expenditure
1 Development of JFPR Aceh Supply chains through integrated micro-finance2. Greening of Eco-livelihoods BMPs for cluster products3. Private Sector and social entrepreneur proposals for supply chain scaling up and out4 Livelihoods connections strategy review and publication5 Field research into value creation and DVDs updating for JFPR self funding, eco audited livelihoods systems in Aceh6. JFPR Livelihoods Experience Exchange (pilot)
The JFPRs 9072 and 9073 have :Provided hope to Tsunami families through concrete steps in creating increased value to their livelihoods.Improved product quality and environmental impact through clusters, BMPs and market quality standards.Made local and global market supply chain connections, including Japan, realising the value at the bottom of the pyramid.
Sustainable Livelihoods for Affected Communities in Aceh
JFPR Series: Lessons from IndonesiaPicking up the Pieces After the Tsunami Sustainable Livelihoods for Affected Communities in Aceh
Destruction and Reconnection of Eco-LivelihoodsDecades of conflict in Acehweakens and breakslivelihoods supply chains 2006 -2010 2004/5 Reconnecting livelihoods Tsunami - Many supply chains livelihoods connections completely destroyed 20/03/2012 MicroAid 2
Livelihoods Principles / Understanding Livelihoods simplyLivelihoods are “People making products1 for the market”There are three primary Marketcomponents insustainable livelihoodsdevelopment that need tobe connected. Products People Key : . Connections Note 1 : Products include livelihoods services and trading.20/03/2012 MicroAid 3
Regional and Sustainable Development Department (RSDD) Aceh Video20/03/2012 MicroAid 4
JFPR LIVELIHOODS CONNECTIONS MARKET SUPPLY CHAINS SUSTAINABLE VALUE PRODUCT CLUSTERS ADDING VALUE PEOPLE CREATING LIVELIHOODS VALUE20/03/2012 MicroAid
A People Values Created Best Management Practices (BMPs) & Livelihoods Training Community Empowerment Participation of Women & Disadvantaged groups
B Product Values Created Clusters Eco-Livelihoods (Green JFPR activities promoted) Added Value Processing;
C Market Values Created Livelihoods Assessment for 40 shortlisted products Working with community champions and following on from successful livelihoods projects Private Sector partnerships /ALSCs
D Network Values Created Livelihoods Services Centres (LSC) Micro Finance services Cloud ICT Networking, Publicity and Information
Livelihoods Supply Chain Connections• Livelihoods supply chains connect people, product clusters and market• Each link is made up from many connections,• Improving value in one link gives rise to opportunities in others. Market Products People People People 10
People’s Connections Tools Livelihoods learning DVDsCreate simple tools forlearning the right steps fora successful familylivelihoodJFPR PIM DVDs 20/03/2012 ADB Publication - RB 11
PeoplePEOPLECONNECTIONSVillage Learning points• Dissemination of BMPs by community champions means that training is on hand locally and in a timely manner unlike many extension services.• Easier for women to learn locally close to their families and homes.20/03/2012 ADB Publication - RB 12
JFPR Product Connection Examples Chocolate Supply ChainTestimonial“As cocoa farmers, we just sold our cocoa beans to traders and neverate our own chocolate in the past. Now, we can produce and marketour own chocolate.”(Mrs Irwan Ibrahim, Rimbun Cooperative, Pidie Jaya, Aceh). 20/03/2012 ADB Publication - RB 14
JFPR Product Connection Examples Soft Shell Crab Supply Chain Testimonial Together with 33 young men in my village, we can produce approximately one (1) ton soft shell crab per month. (Mr Herlen, ALSC Lamjabat)20/03/2012 ADB Publication - RB 15
JFPR Product Connection Examples ORGANIC SRI RICEUsing new eco SRI technology we have increased our rice yields by over50% with lower fertilizer costs with organic compost. Now each familycontributes to community savings and lending cooperative. IbuNurhayati, Lambuegak village, Aceh Besar
JFPR Product Connection Examples ORGANIC FERTILISEROrganic fertilizer produced from local waste materialsprovides farmers with a lower cost solution to chemicalfertilizers, improves soil fertility for future generations andputs money in your pocket. Bpk Husin, Jruek Bak Kre, Aceh
JFPR Product Connection ExamplesOrganic Vegetables ORGANIC VEGETABLES Results Cycle/Year 1 2 3 4 Families 10 500m2 per household for Production Unit 5 ha lettuce, kale, spinach, squash, beans Yield/ Quantity eggplant Rp Jt Income 36 Expenditure 24 Net Profit 10 Net Profit/ Family 1 Organic Vegetables StepsThere are 13 steps in cultivation of organic vegetables.Testimonial 1. Selecting a suitable location/land 2. Land cultivationWe used 3. Liming to a 100 sqm plot of community land to grow vegetables. This was the first time we had increase ph 4. Applying basic compost/fertilizer 5. Obtaining quality seed 6. Planting in accordance with local market demandgrown vegetables with our friends and it was surprising how quickly we had some extra cash inourSpraying Liquid Fertilizer fertiliser we had made ourselves!Pesticide Spraying 7. hands. We used 8. Bio 9. Maintenance Weeding 10. WateringIbu Packaging Womens Group from Jruek Bak Kre 12. Harvesting 11. Siti, JFPR village learning point.13 Marketing 14. Reinvestment and crop rotation
JFPR Product Connection ExamplesPatchouli Oil Sales of ethically produced traceable Perfumes Retailer Payan Bertrand Importer General Aromatic Buying Agent Eco Cluster Distiller Farmers
Private Sector MarketThe following private sector organisationshave connected with JFPR clusters in Aceh :• Payand Bertrand, France• PT Tior Tonga, USA• Pante Pirak, Aceh Supermarket• Local Buying Agents• Rabo Bank• PT Iskandar Muda• 築地市場, Tsukiji Shijō• PT. Charoen Pokphand (Thailand) Indonesia• Others20/03/2012 ADB Publication - RB 21
Tuna Value Bottom of the Pyramid (BOP)JFPR Pilot cold supplychain export toKumamoto marketJapan fresh whole bodytuna through acontrolled temperature Market connections validated waitingchilling process on for finance and collaboration partnersboard and at the port with cold storage transport facilitiesfor direct shipment totuna sashimi marketJapan; No excessive tuna capture. No damage to sea habitat or eco system. Fisheries Dept endorse tuna catch and export. Current prices per kg to fishermen is $2 per kg. In Japan /kg prices range from $15/kg to $200 20/03/2012 MicroAid 22
Avera Income Income per ge Livelihoods per Hlds Household(hld) Increa System hld/incre /increase se perImpact on Sustainable Livelihoods ase % Sector& Increase in Income Fisheries 4707 29% Capture Fisheries 2030 1,117,300 35%JFPR 9072 and 9073 Soft Shell Crab 123 2,333,333 40% Shrimp 2500 787,500 33%Greatest increases in income were Catfish 32 62,065 6%achieved in Agriculture, Processing Anchovy 22 315,990 32%and Home enterprise livelihoods. Agriculture 551 47% Padi SRI 119 1,964,286 55% Vegetables 84 330,000 30%Cakes production showed the Compost 242 2,128,233 62%greatest increase in family incomes at 106 Duck farming 421,000 42%120%; followed by compost (62%) Processing 612 49%and patchouli oil (53%). Cocoa 77 533,315 44% Patchouli 430 800,000 53%Fisheries showed the lowest increase Emping Crisps 105 560,000 50%but still significant increase in incomes Home Enterprise Womens Groups 157 53%of almost 30%. Herbal Medicine 40 110,000 11% Home Gardens 40 395,020 40% LEISA 30 395,020 40% Cakes 47 200,000 120% Source : JFPR 9072 & 9073 Project management orange files and mid term Impact survey Syiah Kuala University, Banda Aceh, Dec 2010. Total JFPR Families Assessed 6,027 20/03/2012 MicroAid 23
JFPR Management JFPR ManagementTestimonialI have learnt a lot working in JFPR. A truly career changing experience. Aditya Utama, OISCA Publicity Manager Shared vision Community Orange files Team of Livelihoods Technical sub-project management Connections Marketing & management and Leadership Management and Consultancy communication through cloud networking
Lessons Learnt JFPR 9072 and 9073 • Create shared value supply chains that connect to markets: • Information - Ensure specific, practical business information is available to Market all: • Adoption of small business approach with targeted communities: • Contract community champions to implement livelihoods development sub- projects and follow on from successful examples already implemented. People • Ensure specific, practical step by step guides to profitable livelihoods are available to all: • Encourage the formation of eco clusters as producer associations, local cooperatives or small ,privately owned commercial companies. Product • Create incentives for natural resource management • Technology and Information • Develop social entrepreneur networks to create and maintain profitable connections and share information resourcesNetwork • Micro Finance • Support for Community MFIs linked to commercial banks for saving, loans packaged to fit BMP steps and livelihoods and health insurance.
JFPR 9072 and 9073 Developing Sustainable Eco-Livelihoods Successful JFPR supply chain models in seven coastal districts provide real examples of sustainable livelihoods development for Aceh Supply Chains Market where cluster added value is connected & shared.Sustainable Livelihoodswhere value is shared equitably = Eco-Livelihoods Clusters Product where families are connected to the local Income economy, society and eco systems. Market Product Expenditure Connected Self Funding, Livelihoods Systems where income exceeds expenditure
Next Steps 1 Development of JFPR Aceh Supply chains through integrated micro-finance 2. Greening of Eco-livelihoods BMPs for cluster products 3. Private Sector and social entrepreneur proposals for supply chain scaling up and out 4 Livelihoods connections strategy review and publication 5 Field research into value creation and DVDs updating for JFPR self funding, eco audited livelihoods systems in Aceh 6. JFPR Livelihoods Experience Exchange (pilot)20/03/2012 MicroAid 27
Conclusion JFPR 9072 and 9073 Other development projects targeting Poverty Reduction & post Tsunami recovery at the bottom of the pyramid should contact the JFPR desk in OCO for further information, materials and advice on Sharing Livelihoods Values. Sharing Livelihoods Values
Sustainability and real poverty reduction is an on going process of collaboration, connections and concern for creating economic, social, environmental and networking livelihoods values at the bottom of the pyramid . JFPR 9072 and 9073 Thank you Nasimul Islam, JFPR Project Officer Pantja Putih Wardani, Senior Project Officer Ir Razali, Head of Fisheries Services, Aceh Fumio Kitsuki, OISCA Project Director Syafruddin Chan, JIKA Dewi Wahyuni, PIM Richard Beresford, JFPR PMS20/03/2012 MicroAid.org 29