aGROWforests for Sustainable Spices in Indonesia

aGROWforest_20004_SPICEUP_PIC_58.jpg © Fairfood

Facts

Commodity: (White and black) Pepper 
 

Country: Indonesia 
 

Duration: 12/2022 to 05/2026 
 

Target groups: 2,300 smallholder farmers 
 

Total funding: 3,060,000 EUR 
 

Private sector contribution: 1,530,000 EUR
 

Project description

Food production is closely interconnected with the climate – and thus also with the escalating climate crisis. On one hand, the production of our food places a significant burden on the climate. A central example is the deforestation of forests to make way for plantations. These areas are often dominated by monocultures – that is, agricultural zones characterized by the cultivation of only a single crop species. This leads to a drastic decline in biodiversity.
On the other hand, small-scale farmers are already directly affected by the consequences of the climate crisis. Prolonged droughts, heavy rainfall, and rising temperatures are taking their toll and promoting the spread of pests and diseases, further threatening agricultural yields.

Agroforestry can be a game-changer for those farmers, as it allows them to plant trees and larger shrubs between regular crops, providing protection against extreme weather conditions. Moreover, the planted trees help to absorb CO2 from the air. But there is more: agroforestry can improve farmers’ livelihoods with income diversification, e.g. new crops from the shade trees and shrubs. Moreover, it can support local biodiversity, making it a win for both the environment and farmers.

In a new partnership, Verstegen Spices & Sauces, Fairfood, PT CAN and PT Klumbayan Gold Farm, together with Indonesian pepper farmers, are working on the adoption of agroforestry. Locally, a team was built of so-called change makers, who received agroforestry training and are now spreading the knowledge to the farmers. A demo plot, on which agroforestry has been practiced for a few years now, shows what’s possible, and what impact can be expected. The 3-year project targets 2.300 farmers (of which 30% women, 15% youth) in the provinces Bangka Belitung and Lampung in Indonesia.

This project aims to make the pepper plantations way less heavy on the climate, while also becoming more resilient to an already changing climate and to provide better livelihoods for farmers and their families.

Partners

  • Verstegen
    Verstegen is a major player in the food sector founded in 1886. The family-owned company sells quality spices and sauces to every segment of the food sector: industry, foodservice, fresh distribution, retail and consumer market. Verstegen is primarily a Dutch company in the EU and a representative office in Indonesia. Besides Indonesia, Verstegen works together with organisations in India, Costa Rica, Guatemala, and Brasil on improving sustainability in the supply chain.
  • PT CAN
    The Indonesian company PT CAN provides spices for B2B markets. Established in 2011 in Bandung, Indonesia, the company’s goal is to develop economic, social and environmental added-value sustainability of spices. PT CAN has a commitment to product traceability, community developments, and research in sustainable farming technology.
  • Fairfood
    The non-governmental organisation (NGO) Fairfood is based in the Netherlands since 2000. Its mission is to accelerate the change towards fair and sustainable food value chains. The organisation works with agri-food companies along value chains to develop innovative business models that benefit companies and cooperatives and enable fair value distribution models that lead to higher incomes for smallholder farmers. The NGO's global operations span 17 countries and various commodities and include large ongoing multi-year programs related to the cocoa, coffee, spices, horticulture and fruit sector.
  • PT Klumbayan Gold Farm (KGF)
    Based in Lampung, Indonesia, PT Klumbayan Gold Farm (KGF) is a trading company specializing in coffee and spices for export to Europe and the Middle East. As a processor and key supplier of black pepper for Verstegen, KGF sources directly from farmers via collectors and cooperatives in Lampung and South Sumatra. The company integrates sustainability and community development by promoting conservation-based agribusiness and implementing Climate-Smart Agriculture practices. KGF currently works with around 800 farmers—soon to expand to 1100—and offers training on CSA and quality standards, contributing to a more resilient and sustainable spice value chain.
Training of trainer - Group (© Fairfood)
Training of trainer - Group (© Fairfood)

Agroforestry in Indonesian pepper cultivation: introducing resilient agriculture

Pepper prices have fallen dramatically over the recent years, making it increasingly difficult for producers to protect their livelihoods. At the same time, pepper monocultures threaten the biodiversity in the growing areas - and are a health hazard for the farmers who need enormous amounts of cheap fertilizers and chemical pesticides to protect their crops. But this is not the end of pepper cultivation: as we show in our project diary, the about the "aGROWforests" project is testing solutions to ensure that this spice will still be there in the future.

The first story shows how the aGROWforests project supports farmers in protecting the climate and biodiversity through sustainable farming methods and at the same time generating more income.
Read the first story

The second story tells of farmer Sapauni and farmer Umar. They are changing their cultivation methods in response to falling pepper prices and the effects of climate change.
Read the second story