The unique varieties of Flores coffee

Challenges

1. Even though some cooperatives already received loans from financial institutions, access to finance is still a challenge. It is difficult for farmer organisations to meet the criteria set by those institutions, especially in terms of providing collaterals. Besides, they are often not able to earn enough income to pay for their interests.
2. Due to the lack of human resources, there is often a problem in the cooperatives' internal dynamics and leadership. Often the organisations are struggling in giving fast responses and solving problems collectivity. In addition, they still lack the necessary skills to manage the financial aspect of the business.
3. The price of coffee in the market is influenced by competitors within the sector, both globally and locally. There are plenty of quality coffee producers across Indonesia. At the same time, imported quality coffee is often sold at a lower price than the local one. Unlike Bajawa, cooperative in Manggarai has limited centralised processing units; therefore, it is difficult to maintain the quality standards required from the market.
4. Climate change affects both the quantity and quality of produced coffee. Long draughts and heavy rainfalls are very likely to damage/affect the blossoming of coffee trees, the berries' maturation process, and increase pests and diseases.
5. Coffee farmers are ageing and even though the interest of youngsters in the coffee sector has increased, they prefer to be involved in non-farming activities. For example, they are likely to be working as baristas, but their engagement at production, processing, and farmer organisation level is weak.
6. Women do not have the role they deserve within the organisation. Even though they are engaged in farming activities, very few women are involved at the management level. The patrilineal culture remains strong: women must take care of the household. They are often shy and afraid of speaking their mind in public. There have been several cases of women willing to participate in the decision-making process but not being able to because they could not leave the house.

Results

Arabica Flores Bajawa (AFB) Cooperative

1. AFB has stipulated more inclusive policies towards young and women farmers and given them broader access to be involved in the organisation. They now have a better knowledge of sustainable agriculture and inclusive business practices and can take an active role.
2. The seriousness of AFB in maintaining coffee quality received appreciation from MTC (buyer) by providing a premium price of IDR 2000 / kg. The appreciation from the buyer motivates the cooperative to remain consistent in processing coffee in accordance with the SOP and also increase the sales volume target.
3. AFB built a collaboration with Meteorological Climatological and Geophysical Agency (Badan Meteorologi Klimatologi dan Geofisika/BMKG) Kupang, to organise a Climate school in the Arabica Flores Bajawa Secondary Cooperative area.

Manggarai Coffee Farmer Association Cooperative (ASNIKOM)

1. ASNIKOM has teams with adequate knowledge on traceability and sustainability standards that ensure that farmers meet sustainability verification criteria and produce required supporting documents.
2. ASNIKOM members know the practices to improve the quality and quantity of the product according to the sustainability standards. FOs' products are acknowledged as high-quality products.
3. ASNIKOM can develop a business plan, apply good financial and bookkeeping system to increase the business profit. They use business analysis tools for monitoring, evaluation, and lobbying with key stakeholders and understand requirements to access available credit schemes. In addition, they also have market information and knowledge on how to read their position in the domestic and global markets.
4. The management team demonstrates more professionalism and is able to negotiate with buyers. They can develop collaboration with and gain business commitment from value chain stakeholders. Besides, the management team improved its business and marketing communication and has a better knowledge of negotiation techniques and strategies.
5. ASNIKOM buyers increased the purchase volumes.