Launched in 2016 and completed in September 2018, the pig feed project (funded by the Australian Aid) aimed to increase the income of 42,000 pig smallholders by 30%, and develop the pig feed distribution channel up to of 79 reseller agents. The project focused on the four Indonesian districts of Kupang, Timor Tengah Selatan (TTS), Timor Tengah Utara (TTU), and Belu.
At project completion, 54,000 pig smallholders gained access to improved quality feeds. They also acquired better knowledge on good rearing practices (GRP) after receiving training from pig feed sales agents. As a result, smallholders applying these practices saw their income almost double from IDR 1,780,000 (€ 102) to almost double to IDR 3,381,000 (€ 195), for every rearing cycle (approximately 6 months).
Based on an assessment, the project delivered beyond its initial targets:
- 54,000 male and female farmers benefitted from the project’s activities, 126% higher than the projected 42,000;
- 76,410 women were involved in the project overall, 54% more than the expected number of 42,450 women;
- 164 agents and retailers joined the project, 208% higher than the intended 79;
- More than 141,500 smallholders gained access to innovations, 189% higher than the intended 75,000; and
- IDR 171 billion (€ 9.9 million) turnover for agents and retailers, 138% higher than the intended IDR 123 billion (€ 7.1 million).
Private sector cooperation
“One of the project’s key success came from SNV’s facilitation of the activities that market actors conducted within the value chain,” explained Sutresniwati, SNV project manager.
SNV established partnerships with four private sector feed companies: PT Cargill Indonesia, PT Sierad Produce, PT Malindo Feedmill, PT Sinar Terang Madani, as well with the pharmaceutical company PT Medion. SNV provided the companies with advice on marketing and how they could strengthen their distribution network. As a result, these companies made the combined investment of IDR 1.9 billion (€ 109,000) to strengthen their distribution channels, provide promotion materials to resellers, organise training workshops, and establish demo-plots. SNV also increased distribution agents’ knowledge on business development and good pig rearing practices.
Nikson Bilik (in the back) with SNV representatives and trainers.
Nikson Bilik (56 yo) for example became a new pig feed agent in the TTS District. He started his business in March 2018. A few months after joining the SNV project, he realised a monthly sales of IDR 80-100 million (€ 4,700–5,700). He is not alone. In total, 28 male and female agents and 213 male and female village promotors have benefitted from this project. Ibu Yance (45 yo) is a female pig smallholder, also from the TTS District. She rears three pigs. Before engaging in the project, she fed her pigs leftovers or left them to forage in her backyard. Whenever she wanted to provide them with proper feed, she had to travel to the district’s capital. Now she can buy fodder from Nikson. “I used to spend a considerable amount of money and time to make trips to the capital” she recollects. “Now, when I need to get pig feed, I can buy it whenever I need it from Nikson Bilik’s kiosk. It is just a few feet away!”
From aid to trade
With funding agencies increasingly shifting their focus from aid to trade SNV Agriculture Sector Leader in Indonesia Rizki Pandu Permana explained that this project showcases the effectiveness of an inclusive business and Markets for the Poor (M4P) approach. As the PRISMA project demonstrated, such approaches can support poverty reduction and value chain development activities, as part of private sector business models. He added that the SNV project has successfully promoted growth for all through the value chain.