KSU JATIROGOOrganic Palm Sugar Crystal

Purwokerto, Desember 17 2015

Who is KSU Jatirogo??

KSU Jatirogo is a producer cooperative of organic gardening/ platation product is built on Nov 26, 2008 by meaning to sertificating organic garden and oproduct, especially organic brown-sugarto increase the presperityof brown coconut sugar farmer in KulonProgo area. KSU Jatirogo get Legalization No 24/BH from Regent of KulonProgo on December 2008

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• Opertional KSU Jatirogo includes 26 hamlets 5 villages in 2 districts :Kokap, Samigaluh and Girimulyo. In those areas 1731 of farmers who have cultivated land to with width 792,52 Ha which have ceriticated organic by 3 International organic standart, certification by Control Union Certification (CUC)

Where there is KSUJatirogo?

KSU Jatirogo is exist to increase bargain positian of brown coconut sugar farmer in quality, type and price product. So except from the activity which is done by KSU Jatirego and its member is able to make economic changeof society especially for brown coconut sugar farmer and in general and all members of KSU Jatirogo.

RUA(Publicmeeting

Of Member)

ADVISORORGANIZER

MANAGER

QUARANTEEING OF QUALITY

SECTIOIN

PRODUCTION & LOGISTIC SECTON

MEMBERSHI AND ENERGY SECTION

ADM &FINANANCE OF SECTION

ORGANIZATION of STRUCTURE

Leader : Ngatijo

Secretari : Albani

Freasure : Susanto

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• In doing the activites KSU jatirogoorganizer,haveresponsibility to orrange long and short term programe.

• The organizers get compensation from their apligation.

FORMATION of ORGANIZER

FORMATION of CENTIOLER

Leader : RahmadiSecretari : SurahmadMember : Byartono

• The Controllers makes work programme to do controlling to organizer works

• Controlers get compensation from their abligatin/work

MANAGEMENT/MANAGER

Manager : TheresiaEkoSetyowati

Kordinator of quality guaranteengsetis: Hendrastuti

Adm and finance coer : Wahyu Widayantiand Ika Rahayu, Muhamad Toil

Logistic and production coor : Nuryanti

VISION OF KSU JATIROGO

Realization independence cooperative which is emphasized togetherness in economic, social, culture and organic agriculture to cooperative, farmer and societyprosperity

• Give facilities, services and connection to farmer necessity by a fair trading.

• Give supervising to increase life quality of the society

• Reinforcement of cooperative economy by professionalism of cooperative management and society economy.

• Reinforcement of organic product quality all of produced commodities by organic farmers who are organizing by KSU Jatirogo

• Strengthen and develop economical cooperation

and organic agriculture with all parties.

MISSION OF KSU JATIROGO

IDENTITY OF KSU JATIROGO

1. Address: Jl. Wates- Purworejo KM 2,2, Tambak,Triharjo, Wates, KulonProgo

2. Email address: Jaringan.jatirogo@gmail.com3. Incorporation Deed of Cooperative:

Number of letter: 24/BH/XV3/2008Date: December 3, 2008

Real situation nowadays?

• Have farmers of organik coconut sugar organized?• Are the farmers ready to do marketing together?• Are the farmers ready to produce organic coconut sugar

by consumer request?• Are the consumers ready to buy the product of organic

coconut sugar from the farmers? (Specific product)?• Is there any organization which organized about

production and marketing?• Who have responsibility to provide product to be

marketed?• Who have responsibility to look for the market and to

do marketing of farmer production?

Petani anggota

ICS

Supervision Organization of Quality Product Group level

Organizer of ICSsubdistict

Consumer

Consumer

Chief of village

Chief of village Chief of village

Chief of villageFarmers

Member of ICS

FarmersMember of

ICS

FarmersMember of

ICS

FarmersMember of

ICS

ICS process flow (Internal Control System)

early identification commodity options Specifically, the area

organizing farmers

ProducersProduct marketing

(Organic Products and Non Organic Products)

" Fair Trade"

ICS Organizations

organizing Products of ICS

Application System Product quality management

Role QMS(Quality Management System) at ICS

ManagementProduction

ManagementOrganization

Organization ICS

ManagementMarketing

ManagemenQuality

Understanding Market Chain of Product of Organic Coconut Sugar

Supporting Factors

Mediation

Capitalization

NegotiationsInfrastructure

Information and Communication Private SectorInformation

National / International Market

LocalMerchants

Farmer

Menyusun danMembangun aturan LawPolicy

Norm / rules CommunityStandart

The Goal of Marketing Cooperative Farmers Product

• Increasing farmer’s income incessantly• Corroborating the management system of product

quality as product quality assurance which is marketed• Corroborating the farmer organization which becomes

coordinating institution of farmer and can defray the organization independently.

• Supporting organic agriculture movement which has impact to farmer’s family directly, whether in their social, culture, ecology and economic.

• Increasing regeneration of the farmer persistently.• chain of production and distribution are built

continuously.

Does Quality of Product become te Key of Marketing Sustainability?

• I you want to build a sustainablemarketing, the quality product is the key of cooperative determinant with the consumer, also determinant of price that they want.

• So, quality assurance system is really needed, either organic product or non-organic product.

Understanding standard o product

Understanding characteristic of producer, consumer seller and exporterUnderstanding

contract of cooperative

Understanding standard of production-processing

Having powerful Ability of lobbying and negotiation

Is That important t build Quality assurance System f Product?

The quality of product cannot be detachable from the price and the sustainable marketing

Challenge of the farmer of Organic Coconut Sugar (1)

• The coconut trees need regeneration with new better variety, first harvest in 4-5 years, with the height is 4-5 m, the extract sap has good quality and much amount, and each tree can produce >5 coconut flower.

• Recent condition: local coconut tree, height is 10-20 m, first harvest 7-10 years, have big risk for the tapper, have big number of accident, among 4 persons fell (physically handicapped and died)

• How to find variety of superior coconut to the extract sap production? If the coconut tree is short, so the tapper is not only men but also women. They just climb the tree or use the ladder, is it possible in Indonesia?

Challenge of the farmer of Organic Coconut Sugar (2)

• Young generation haven’t attracted yet to be a tapper -> producer of coconut sugar -> the reasons are about big risk and little income.

• Recent condition of unpredictable climate has big influence to the extract sap production ->little amount of the extract sap -> coconut production drastically decreased while the long dry season. The quality of production of farmer level has to be increased, create healthy kitchen on unit.

Challenge of the Marketing Cooperative of Organic Coconut Sugar

• Marketed cooperative of coconut sugar product has to pay Income Tax 25 and Value Added Tax (VAT) 10%.

• VAT 10 % of local market is for kind of business which has had turnover as much 4,8billions.

• VAT 10 % become matter for cooperative, this matter causes price product cannot vie with the other, cooperative cannot increase the price because cost production is already high in the market.

• Product competitiveness which is more decreased will make marketing situation of product’s getting weak, so sooner or later the farmer will get bad impact of this. Facilities and infrastructure of the production still imperfect and really need other side to help them (healthy fireplace unit, healthy kitchen, processing unit facilities, detector metal, etc.)

Build Sustainable Marketing is Not Easy!

• Product must have wide market opportunity and the marketing must be clear.

• have to be ready with many conflicts which happen in all level (farmer, farmer organization, local merchant, entrepreneur, company and other private enterprise)

• have to be able to manage a strong organization (kahxjVX) which is done professionally and by applying correct organization management.

• Have to be able to interlace cooperative with all parties because the works involve many parties in their success, working alone only earn never ending tiredness.

OPPORTUNITY

• Organic Product Market opens up widely (local market, national and international)

• Consumer awareness about healthy product becomes greater

• More and more exporter of organic product (plantation product export)

• Indonesia has wide area for developing cultivation area of organic plants.

• Government regulation protects organic product and farmer production by ICS of farmer. Moreover, the non-certificated products have been sold in modern markets, there is regulation about organic agriculture in several regencies.

• There is many more organic food outlets which need organic products.

• Cooperative with many parties is widely opened up

COMMODITY OF MANAGED PLANTATION

• Coconut• Coconut sugar ( mold and gulasemut)• Coffe• Cocoa• Clove• Mangosteen

• SUPERIOR SPECIFIC PRODUCT: organic gulasemut

MARKETING PERFORMANCE

Development of organic market forplantation product which is in organiccertification of KSU Jatirogo are coconutsugar, crystal sugar/gulasemut, coconut,cocoa, clove, coffee and mangosteen.Therefore, the potential main product ofKSU Jatirogo since 2008 is crystalsugar/gulasemut.

KSU JATIROGO SERVICE TO THE FARMER

• Members of cooperative are 1004 people.• Aspirants of cooperative member are 1500 farmers• Marketing of organic coconut sugar (by numbers of

supplier of organic coconut sugar are 1731 farmer)• Organic farmers are free to join in KSU• Jatirogo (without cost of certification)• Savings and loans (service 1% per month)• Insurance of coconut sugar tapper• Help of farmer production facilities (laru container

(fermenting agent added to make vinegar), prop of larucontainer, filter) as many 1300 farmers

• Help of healthy fireplace for the organic farmers are1400 units.

INSURANCE WHICH IS GIVEN

• Health and life insurance, becauseaccident risk of the tappers are high.Average of coconut tree is 15-25 m inheight, insurance is given to theorganic farmer who is actively depositto KSU Jatirogo, the insurance farmersare 650 people.

• The tappers have been given safetytool by the department but they don’tuse it because it’s uncomfortable toclimb the coconut tree.

DESCRIPTION OF THE MAIN PRODUCT

Organic coconut sugar is moldcoconut sugar and brown-coconutsugar/crystal sugar made of extractsap from coconut plantation oforganic farmers, the producer ofcoconut sugar, who become memberof ICS KSU Jatirogo.

Lembaga Sertifikasi : CUC (Control UnionCertification) -- LSPO dari Belanda,berkantor di Jakarta

ORGANIC CERTIFICATION

Organic certification for 3 international organic standards:1. Organic standard EU-Regulation: for

European Market2. Organic standard NOP-USDA: for

American Market3. Organic standard JAS: for Japan Market

Number of Organized Producer of Organic Coconut Sugar -> ICS KSU Jatirogo

• 2008 : 1260 people• 2009 : 1586 people• 2010 : 1620 people• 2011 :1620 people• 2012 : 1554 people• 2013 : 2024 people• 2014 : 1875 people• 2015 : 1731 people

Escort and Advisor of KSU Jatirogo

• Hivos – Netherland• Lesman – Boyolali• KulonProgo Local Government• Bank Indonesia• Ministry of Cooperative OVOP• Department of Agriculture and Plantation

KulonProgo• Department of Cooperative KulonProgo• Department of Industry and Trade

KulonProgo• Agriterra – Netherland• Muhammadiyah Yogyakarta University

Process of Production Organic Granule coconut sugar

Processing Product at KSU Jatirogo

Physical aids which have been accepted by KSU

Jatirogo

• Storeroom of granule coconut sugarand supporting tool of production ingroup level by Bank Indonesia atYogyakarta office area

• Supporting tool of quality fromMinistry of Economic Affairs

Documentation of Aid Distribution to KSU JatirogoJanuary, 30 2014

Aid distribution of quality supporting tools of Organic Granule coconut sugar by Mr. Hatta Rajasa

Inauguration of Granule coconut sugar Storeroom KSU Jatirogo/ February, 6 2014

The inauguration is handled by Deputy Senior of BankIndonesia “Mr. MirzaAdityaswara”

Visit of Ministry of Cooperative and KOTRA

October 2014

The power of cooperative is situated on the power of organization and cooperative service to the all its members, activities of cooperative become source of sustainable

income.

Activities of Farmer and CPU

Development of Domestic Market Packaging

THANK YOU …