Enhancing Livelihoods

Our goal is to achieve global target to improve the livelihood of 500,000 smallholder farmers, create and improve the incomes of small-scale retailers in our distribution network.

In Indonesia, smallholder farmers has important role in the supply chain of agriculture product. Under the Enhancing Livelihood Pillar, we build a partnership with smallholder farmers. Government, scholars and local NGO are our main partners in running the collaboration. We believe that this approach will contribute to the welfare of the nation as well as achieving the USLP goal of supplying 100% of our agricultural raw materials from sustainably managed sources by 2020

Black Soya Beans Development Programme

Black soya beans are the unique ingredient of our Bango brand. We have developed various programmes to increase the productivity of black soya bean plantations. To that end, we have conducted field schools in black soya bean farmer groups, and extensive trainings to farmers’ cooperatives. One of our empowerment programmes is strengthening the group approach.

With the support of the Gadjah Mada University (UGM), our field assistant team and the researchers assist the farmers to implementing sustainable agriculture code. We conduct farmer’s school for black soya bean farmers and development programme for cooperation.

The Key of Success

  • Technical assistance
  • Access to finance
  • Seed development
  • Women empowerment
  • Cooperation development
  • Market guarantee

Sustainable agriculture of black soya Beans

Our commitment to sustainability is part of Unilever’s vision to reduce the overall impact on the environment. We work together with our suppliers to achieve the sustainability targets. We have developed the Unilever Sustainable Agriculture Code (USAC) as our definition of Sustainable Agriculture. It covers practices that all our suppliers should strive to adhere to.

In Indonesia, we have implemented the USAC for black soya bean plantations. Total black soya bean production in 2013 and 2014 was 1,101 MT, involving 5,894 farmers in 2013 and 2014. In order to ensure the implementation of USAC, Unilever has assigned 12 assistants to monitor and assist the farmers.

During 2013 and 2014, we have conducted various programmes to encourage the farmers to apply USAC. At the end, the Company expects that the programme will increase the production yield of black soya beans and reduce the environmental impact.

One of our programmes focused on seed supplies and consumption. Moreover, we have established an interdistrict alumni farmers’ network. The objective of this programme is to increase black soya bean production.

We also work with Cooperatives to support our farmers. In 2013 and 2014, meetings were conducted regularly, every one or two months, to discuss any issues regarding black soya bean planting and activity plans. As our commitment to achieve sustainable agriculture, we have conducted SAC socialization programmes. In 2013, Unilever carried out a trial in Ngawi, East Java.

Furthermore, the Company has done trials in all districts. We also developed an Internal Control System (ICS) in our headquarters and Sub-ICSs. ICS teams did the pre-assessment of farmers’ information in 2013 and 2014.

Last but not least, throughout 2013 and 2015, PIS Agro activities have been carried out in Nganjuk (East Java), Madiun (East Java), Grobogan (Central Java), and Indramayu (West Java)

MALLIKA, the synergy trail of black soya bean

The partnership between Unilever, University of Gadjah Mada and the black soya bean farmers has created incredible invention of Mallika, the prime variety of black soya bean that could produce 2.9 tons/hectare. In the decree No.78/kpts/Sp.120/2/2007, Agriculture Minister stated Mallika as one of prime seeds of black soya bean. This discloses mark the contribution of Unilever for Indonesian biodiversity.

Woman Empowerment Programme

Since 2003 Unilever Indonesia Foundation has been working with the rural women through development program of black soya bean. They involve in the post-harvesting process by shorting and grading the best black soya beans.

In 2007, Unilever Indonesia Foundation started the women empowerment programme for women farmers group. A series of training and education have been given to equip the women in expressing their aspiration, entrepreneurship, empower them with various skills to give them chance in showing their existence while at the same time gaining additional income for family.

UIF is working with local partners Persada, ASPPUK and Spectra to manage Women Empowerment Programme. The programme focuses on self-development, economic and social development, and organizational development to foster the establishment of Joint Business Groups (KUB), Women’s Financial Institutions (PPR), and Women’s Farmers Groups (KWT).

In 2015 we offered various programmes to strengthen individual and group capacity on product knowledge, technology, financial management and business development, while collaborating with the Ministry of Health to improve the quality of food produced by groups assisted by the Company so that they can obtain a P-IRT (Domestic Manufacturing Industry) number. This integrated socio-economic and environmental programme, designed to strengthen the SMEs created by these women’s groups, is aligned with the USLP goal of developing inclusive business models.

The Company launched the Black Soybean Farmers’ Empowerment Programme and the Women Empowerment Programme to improve the living standards of farmers and their families. The programmes are founded on Company’s recognition that our business operations have a significant impact on the lives of the farmers involved in our supply chain, including the supply chain of one of our most successful brands, Bango Soy Sauce. We are therefore committed to improving the lives of the farmers in parallel with the growth of the Bango business. Currently we have trained more than 3,300 women in the entire area of black soya bean farmer field.

Another commodity:

Coconut sugar

Coconut sugar is another main ingredient of Bango sweet soy sauce besides black soya bean. Maintaining a high quality of coconut sugar is crucial for our operation and business. Therefore, we take on responsibility to help local coconut sugar farmers in meeting our material quality standards and improving the yield of their plantations.

Throughout 2013 and 2014, workshop sessions on maintaining product quality were routinely carried out. Unilever Indonesia also provided various multimedia and booklets as supporting materials for these workshops. Furthermore, a fertilization programme was conducted to help increase the production yield. Up to the end of 2014, 85 local farmers joined this fertilization programme, covering more than 1,300 coconut trees. As a result, this programme managed to increase production yield from 0.3 kg of sugar per tree per day to 0.4 kg of sugar per tree per day. Approximately 85% of this is supplied by local farmers in Pangandaran, Sukabumi and Lampung.

Moving forward, Unilever Indonesia is currently designing a programme to introduce the Sustainable Agriculture Code to these farmers. This will be initiated in 2015.

Various Awards:

2008

  • Stevie Award - Finalist

2010 

  • Stevie Award – Distinguished Awardee for Women Empowerment Programmme

2013

  • Intel AIM - Asian Forum on Corporate Social Responsibility
  • Farmers Holistic’s Development Programme to enhance the livelihoods trough sustainable agricultural practice
  • Masyarakat Agribisnis & Agro Industri Indonesia (MAI)
  • Category : Corporate CSR funding for establishing partnership of Mallika black soya bean agribusiness for Kecap Bango
2013
  • Bronze Stevie Awards
  • Commitment of Unilever Indonesia to enchance livelihoods trough farmers school in Java for Category of CSR Programme of the year (Asia, Australia dan Selandia Baru)
  • Indonesia Agribusiness & Agro industry for BSB program

2015

  • “20 Excellent Work of Nation Technology”
  • Mallika the black soya bean
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