Puslitbang and FF

1. FF
Project Implementation Guideline
The purpose
The program examines:
(1) effective ways (social and economic engineering) for establishing a model of farmer
initiated zero waste integrated cocoa – cattle production system;
(2) effective ways to accelerate the scale up process; and
(3) simple economic analysis to support the system, workable by farmers.
This program should promote a model for sustainable integrated cocoa and cow
production system done by smallholders.
Output
The expected output of the program will be a well-established model for sustainable
smallholder cocoa – cattle production system in Sulawesi that can trigger natural scale
up process governed by high profitability differential between the empowered and the
surroundingfarmers.
Outcome
The expected 18 months program outcome:
 Improved empowered cocoa smallholder income due to:
o higher cocoa yield (>1.5 ton/ha/year);
o improved cocoa bean quality;and
o extra non-cocoa incomes (at least 6 cattle/ha/year, approximately 10 tons
compost/year, 10,000 L cattle urine/year, and biogas for the family).
 Healthier soil and cocoa farm (higher soil biodiversity and less pests and diseases,
hence reduced pesticide/fungicide use and less production cost); and
 Better overall capacity of smallholders toward cocoa based business.
More farmers copycat the system leading to higher family income.

2. THE METHOD
Time
Figure 1. Program timeline.
Programimplementation
An action research to trigger a sustainable and competitive cocoa based business model.
It consists of four activity components:
1. Model establishment (July 1, 2014 to July 1, 2015);
2. Model scale up process (July 1, 2015 to July 1, 2016)
3. Economic analysis (2015); and
4. Monitoring and evaluation (since July 1, 2014).
Model establishment
 A hypothetical ZWICCP scale up model (Figure 2) has been formulated to
promote natural scale up process among cocoa farmers.
 We facilitate and supervise establishment of an appropriate smallholder business
model through ZWICCP generatedby farmers themselves, using the resources
they have (cocoa farms, labor, cattle – if any, and own capital – if applicable),
that will allow program scale up to other surrounding farmers in a natural
wayfrom the second year.
 To substantially improve overall farming profitability, ZWICCP integrates
productions of high yield and quality cocoa and cattle, compost, urine (for bio-
fertilizer and bio-pesticides), biogas, multipurpose shade tree species, king grass
and food crops in a cocoa farm under a zero waste system.
 Establishment processwill start from selection of at least 10 model farmers in a
group. Each of the selected farmers/farms should have cocoa farms at least 0.5 ha
area or at least 500 side-grafted productive cocoa trees, not subject to flood in the
Year 1:
Establishmentphase
Year 2:
Begining of scaleup
process
Year 3:
Begining of scaleup
acceleration (more
stakeholders
involved as business)
July 1,
2015
July 1,
2014
July 1,
2016
Dec 31,
2015
July 1,
2017

3. rainy season, VSD infestation <10 %, motivated farmers – as indicated by
standard GAP (especially pruning) implemented in the farm, and member of
farmer group/cooperative.
 A focused group discussion will be held aimed at socializing the program, as
well as gathering comprehensive ideas and advices on program establishment.
Critical issues raised by the farmers will be discussed to provide input on the best
way for program establishment.
Model scale up process
 The program is designed to enable scale up process to take place through atrickle
down and copycat practice, triggered by high potential gradient between the
empowered farmers (those involved in ZWICCP) and the neighboring farmers.
 The scale up process is slow in the first year,faster in the following years two and
three.
 In the second semester of year two, the magnitude of economic impact is
expected to be able to attract other stakeholders, especially banks and
certification bodies, to further strengthen the program.
 By the end of year three, the scale up should be strong enough to stimulate wider
scale up within the pilot cocoa producing area (in the district).

4. Figure 2.A hypothetic model of program establishment and its scale upprocess.
Economic analysis
Economic analysis includes:
 Details of cost components and income balance (monthly),
 Cash flow analysis of the system (monthly), and
 Benefit-cost ratio (BCR) (annual).
Important notes on economic analysis:
 Change of BCR over three years will be used to indicate business performance
improvement.
 Data used for all economic analysis areobtained fromrecord/logbook made by the
farmers.
 Providetraining on book keeping and simple economic analysisfor the farmers as
part of soft skill capacity improvement. The training is conducted during the first
and second month period.
F-n F-n F-n
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High yied, quality & profitability - certified cocoa
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F-n F-n High yied, quality & profitability - certified cocoa F-n F-n F-n
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Certification body
(support for
sustainable
production, internal
control system &
premium price
appreciation)
Cocoa grinders/
processors
Off takers
Low yield, quality &
profitability -
uncertified cocoa
ZWICCP
Center of
excellence
Low yield, quality &
profitability -
uncertified cocoa
Natural Resource
Research &
Development
Center (dynamic
supervision)
Government
(facilitator &
regulator)
Low yield, quality & profitability -
uncertified cocoa
Low yield, quality & profitability -
uncertified cocoa
Low yield, quality &
profitability -
uncertified cocoa
Adoption
Traders/
middle men
Traders/
middle men
Bank (e.g.Bank
Sulselbar, BRI)

5.  Results from economic analysis will help the farmers to determine the most
efficient way – yet doable, of managing the ZWICCP to gain the highest
profitability. As farmers are directly involved in the analysis process (supervised
by the research team), the exercise is designed to be part of farmer managerial
training.
Monitoringand evaluation
 Monthly monitoring and evaluation areperformed and reported to Ford
Foundation, and shared with farmers, as part of stimulant for scale up process
and managerial training.
 M&E is also used as an instrument to guide the program to succeed its goal.
THE TEAM
 Field technical assistants tasks:
o Provide continuous and dynamic supervision/technical assistance to
farmers (based on the program guideline and farmer’s needs);
o Perform weekly and monthly M&E (based on the data collected by
farmers);and
o Supply weekly and monthly data to data handling personnel.
 One technical assistant is assigned and placed in each selected district (North
Luwu, Polman and Mamuju).
 A computer operator staff is responsible for processing and handling the data
(supplied by the field technical assistants) andadministration, as well aspreparing
FC/FF FC/FF FC/FF
Mamuju Polman N-Luwu
Researchers
Res. assistants
Data handling unit
Farmers Farmers Farmers
Farmer
group(s)
Farmer
group(s)
Farmer
group(s)
NRRD Center:
UNHAS, Makassar

6. necessary documents. He is based at the Natural Resource Research and
Development Center, Hasanuddin Universityat Makassar.
TIME SCHEDULE
Figure 3. Time schedule of activities.
Q-1 Q-2 Q-3 Q-4 Q-1 Q-2 Q-3 Q-4 Q-1 Q-2 Q-3 Q-4
Preliminary presentations FF fully understands the program
Staff/personnel mobilization All staff/personnel involved are in placed
Pioneered farmers selection Pioneered farmers are selected
Focused group discussion
Farmers involved fully understand the program, its
progress, constraints faced & possible solution
Field set up/installation (in 3 districts) ZWICCP are installed in the 3 districts
Trainings:
Technical aspects of ZWICCP Farmers are ready & able to construct ZWICCP
Economic analysis/assessment Farmers are able to perform basic econ. analysis
Book keeping & administration handling Farmers are able to perform standard book keeping
Family income managament
Farmers understand & able to manage their income
appropriately to support the business
Business management
Farmers' business management improve to support
the program
Marketing
Condusive & competitive market with premium
price for cocoa beans & cows are in place
Progressive technical assistances (need based) Farmers have capacity to run the ZWICCP business
Monitoring and evaluation
Program progress & achievement, constraints and
recommendation for improvement
Reports to Ford Foundation FF is well informed on program updates
Seminar
Discussing achievement, constraints & follow up
actions
<-18 months budget from FF->
<---- Expecting more budget
from FF or other sources ---->
Establishment
Beginning of
scale up
Scale up
accelaration
Activity 2014 2015 2016Aims/acievement target