Nearly half of all Indonesians work in agriculture. But many of them can’t reliably market their products because they aren’t equipped to fully participate in the country’s agribusiness supply chain.
Peanut farmer H. Sajidin knew the challenges. Like other smallholders in West Nusa Tenggara, one of Indonesia’s poorest regions, he used traditional farming methods and local seeds. He didn’t know sustainable land cultivation or management methods. Local buyers were his only market, and their prices fluctuated with the seasons.
That was before IFC and Garuda Food, Indonesia’s leading snack manufacturer, changed his life.
“My farm’s productivity doubled, my income improved significantly, and I can sleep peacefully at night knowing that Garuda Food will buy my crops at agreed prices,” Sajidin says. “I want all peanut farmers in Nusa Tenggara to experience the same opportunity that was given to me by IFC and Garuda Food.”
IFC provides advisory services to Garuda Food to help peanut farmers increase their output through sustainable practices. We advise the company on ways to train farmers and monitor their performance, and encourage quality with a transparent peanut-purchasing system. Garuda then passes the best practices on by holding training sessions, and providing farmers with high-quality seeds. It purchases the resulting crops.
Under the program, Garuda doubled its purchases from peanut farmers between 2007 and 2009. In that period, incomes sales revenue grew for about 7,500 farmers in the program. Garuda’s revenues have also grown—and the presence of an accessible, stable, and transparent market has encouraged thousands to become professional peanut farmers.