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Indonesian Food Company Helps Itself by Making Farmers More Efficient

By David SouthDevelopment Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

The current global economic crisis is taking place at the same time as a global food crisis. Food inflation took off at the beginning of 2011. This is having a devastating affect on countries dependent on food imports and experiencing decreasing domestic production capabilities. The least developed countries (LDCs) saw food imports rise from US $9 billion in 2002, to US $23 billion by 2008 (UNCTAD), prompting Supachai Panitchpakdi, secretary general of UNCTAD, to say “the import dependence has become quite devastating.”

Garuda Food (www.garudafood.com), one of Indonesia’s leading snack food and drink manufacturers, has been boosting its own productivity by investing in improving the productivity of domestic small-scale farmers. This led to a doubling of crop purchases from peanut farmers between 2007 and 2009. By stabilising the market for peanuts and better guaranteeing income, it has attracted more people into becoming peanut farmers in the region.

This is crucial for the future of feeding the planet: we need more farmers.

Indonesia is the world’s fourth most populous country, with a population of over 238 million, spread out over a network of islands. Peanut farmers in West Nusa Tenggara (http://en.wikipedia.org/wiki/West_Nusa_Tenggara) (one of Indonesia’s poorest places) are a key part of the region’s wealth. Peanuts are the area’s third largest crop after rice, maize and soybeans, and the region supplies six percent of the country’s peanut production and 10 percent of Garuda Food’s needs.

Garuda Food says investing in farmers has raised its own productivity by a third. Turning past practices on its head, this large agri-food company is supporting small-scale farmers and helping them to boost their productivity and incomes. Conventional wisdom had been to view small-scale farmers as an inefficient hold-over from the past – the quicker they were driven out of business, the better.

The Indonesian peanut farmers were using traditional farming methods and local seeds. Knowledge of more sustainable farming methods and land management techniques was poor. The farmers were also beholden to the whims of local buyers and fluctuating market prices.

Then Garuda Food stepped in. The company’s field staff offer the farmers training, and through its subsidiary PT Bumi Mekar Tani, it spreads knowledge about new agricultural practices and provides the farmers with quality seeds and farming equipment.

The company buys crops directly from the farmers, rather than from middlemen, increasing the amount the farmer makes. A premium is also paid if the farmer achieves better quality for their crop.

“We receive substantial supply from peanut farmers in NTB (West Nusa Tenggara) and we hope the arrangement will continue,” Garuda Food’s managing director Hartono Atmadja told the Enchanting Lombok website.

Garuda Food’s initiative, with support from the World Bank’s International Finance Corporation and AusAID, through the Australia Indonesia Partnership, has raised the productivity for 8,000 small-scale farmers by 30 percent: an income boost for the farmers of 3.9 million Indonesian rupiah (US $456) per hectare annually.

Peanut farmer H. Sajidin told the IFC (International Finance Corporation): “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.”

Raj Patel, author of Stuffed and Starved: Markets, Power and the Hidden Battle for the World Food System (http://stuffedandstarved.org/drupal/frontpage), has grappled with the conundrum of how to feed a rapidly growing planet. He finds the world is not lacking in food, but distributes its bounty very poorly and wastefully, leaving a planet where some people are literally ‘stuffed’ with too much food (the well-documented global obesity crisis) and others left to starve.

He finds the solution is often local.

“It turns out that if you’re keen to make the world’s poorest people better off, it’s smarter to invest in their farms and workplaces than to send them packing to the cities,” Patel wrote recently in Foreign Policy. “In its 2008 World Development Report, the World Bank found that, indeed, investment in peasants was among the most efficient and effective ways of raising people out of poverty and hunger.”

Patel uses the example of the southern African nation of Malawi, where “according to one estimate, the marginal cost of importing a ton of food-aid maize is $400, versus $200 a ton to import it commercially, and only $50 to source it domestically using fertilizers.”

Published: May 2011

Resources

1) Emprapa: The Brazilian Agricultural Research Corporation’s mission is to provide feasible solutions for the sustainable development of Brazilian agribusiness through knowledge and technology generation and transfer. Website: http://www.embrapa.br/english

2) Divine Chocolate: The highly successful global chocolate brand from the Kuapa Kokoo farmers’ cooperative in Ghana, West Africa. Website: http://www.divinechocolateshop.com

3) Olam: The highly successful global food product supplier brand which got its start in Nigeria, West Africa. Website: http://www.olamonline.com

4) Insects as food: Tapping the world’s vast insect population offers many ways to supplement world food sources. Website: http://ssc.undp.org/other/e-news/newsletters/april-2008/

5) Cooperhaf: The Brazilian farmers’ cooperative Cooperhaf: Cooperativa de Habitacao dos Agricultores Familiares, has put together what it calls a “social technology”, combining housing and farm diversification to support family farmers. Website: http://www.cooperhaf.org.br

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator. 

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Southern Innovator Magazine | 2010 – 2014 

By David South

“I think you [David South] and the designer [Solveig Rolfsdottir] do great work and I enjoy Southern Innovator very much!” 

Ines Tofalo, Programme Specialist, United Nations Office for South-South Cooperation
Southern Innovator in Tianjin, China.
Issue 5 of Southern Innovator at the Global South-South Development Expo (GSSD Expo) 2014 held in Washington, D.C.
Volunteers in Nairobi, Kenya pose with Southern Innovator Issue 4 at the Global South-South Development Expo (GSSD Expo) in 2013.
Southern Innovator Editor and Writer David South in Australia.
Southern Innovator Graphic Designer and Illustrator Sólveig Rolfsdóttir in Iceland.

Some comments that have come in so far about SI’s first issue:

“What a tremendous magazine your team has produced! It’s a terrific tour de force of what is interesting, cutting edge and relevant in the global mobile/ICT space… Really looking forward to what you produce in issues #2 and #3. This is great, engaging, relevant and topical stuff.”, to “Looks great. Congratulations. It’s Brill’s Content for the 21st century!”

What they are saying about SI on Twitter: From @CapacityPlus Nice job RT @ActevisCGroup: RT @UNDP: Great looking informative @SouthSouth1 mag on South-South Innovation; @UNDP Great looking informative @SouthSouth1 mag on South-South Innovation; @JeannineLemaireGraphically beautiful & informative @UNDP Southern Innovator mag on South-South Innov. 

And on Pinterest:

Peggy Lee • 1 year ago 

“Beautiful, inspiring magazine from UNDP on South-South innovation. Heart is pumping adrenaline and admiration just reading it”

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator. 

Creative Commons License

This work is licensed under a
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ORCID iD: https://orcid.org/0000-0001-5311-1052.

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India 2.0: Can the Country Make the Move to the Next Level?

By David SouthDevelopment Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

With the global economic crisis threatening to cause turmoil in the emerging markets of the global South, it is becoming clear that what worked for the past two decades may not work for the next two.

For India, the legacy issues of poverty still need to be addressed, and the country’s impressive information technology (IT) industry – which has driven so much of India’s growth – will face stiff competition from other countries in the global South. Some argue that if the IT industry hopes to keep growing and contributing to India’s wealth, things will need to change.

Unlike China, where heavy investment in infrastructure and a strong link between government and the private sector has driven the impressive manufacturing boom in the country, in India the government has de-regulated and taken a back seat, leaving the private sector and entrepreneurs to drive the change and do the innovation.

Many believe various areas need urgent attention if India is to continue to enjoy good growth rates in the coming years. Areas in need of attention include infrastructure, healthcare and education (thesmartceo.in), in particular the knowledge to work in the information technology industry of the 21st century.

One of the founders of Indian outsourcing success Infosys (infosys.com), executive co-chairman Senapathy Gopalakrishnan, told Britain’s Telegraph newspaper, “So many people’s lives have been changed by IT in India.

“People from the middle class and lower middle class have become global employees and have the opportunity to work with some of the best companies in the world. But the challenge for India is that this industry can only create so many jobs. IT is not going to solve the unemployment problem in India.”

But the coming next wave of change in information technology is an opportunity to be seized to reduce unemployment if enough people are educated to handle it.

According to Gopalakrishnan: “I strongly believe, and it’s backed up by data, that there is a shortage of computer professionals everywhere in the world, including India. The application of computers is growing dramatically and will continue to grow dramatically over the next 20 to 30 years. We have to train and create the workforce necessary to grow this industry.”

Various media stories have called this next phase India 2.0. If India 1.0 was the highly successful information technology outsourcing industry developed in the late 1980s, through the 1990s and 2000s, then India 2.0 is the next wave of IT innovation being driven by Big Data, automation, robotics, smart technologies and the so-called “Internet of things.”

Big Data is defined as the large amounts of digital data continually generated by the global population. The speed and frequency with which data is produced and collected – by an increasing number of sources – is responsible for today’s data deluge (UN Global Pulse). It is estimated that available digital data will increase by 40 per cent every year. Just think of all those mobile phones people have, constantly gathering data.

Processing this data and finding innovative ways to use it will create many of the new IT jobs of the future.

“We are living in a world which is boundary-less when it comes to information, and where there is nowhere to hide,” continues Gopalakrishnan, “If you have a cellphone, somebody can find out exactly where you are. Through social networks you’re sharing everything about yourself. You are leaving trails every single moment of your life. Theoretically, in the future you’ll only have to walk through the door at Infosys and we’ll know who you are and everything about you.”

Unlike in the late 1980s, when India was the pioneer in IT outsourcing for large multinational companies and governments, competition is fierce across the global South. The mobile-phone revolution and the spread of the Internet have exponentially increased the number of well-educated people in the global South who could potentially work in IT. China, the Philippines, Kenya, Nigeria and Ghana are just some of the countries heavily involved in this area.

If India fails to meet the India 2.0 challenge, it risks seeing its successful companies and entrepreneurs leaving to work their magic elsewhere in Asia and the new frontiers of Africa, just as many of its best and brightest of the recent past became pioneers and innovators in California’s Silicon Valley.

India’s IT sector contributed 1.2 per cent to the country’s gross domestic product (GDP) in 1998; by 2012, this was 7.5 per cent (Telegraph). The IT industry employs 2.5 million people in India, and a further 6.5 million people indirectly. IT makes up 20 per cent of India’s exports and, according to the National Association of Software and Services Companies (nasscom.in), the industry has revenue of US $100 billion.

India is now the IT and outsourcing hub for more than 120 of the Fortune 500 companies in the United States.

Out of India’s 3.5 million graduates every year, 500,000 are in engineering – a large pool of educated potential IT workers. India produces the world’s third largest group of engineers and scientists, and the second largest group of doctors.

IT has become a route that catapults bright Indian youth into 21st-century businesses and science parks and to the corporations of the world.

One visible example of the prosperity brought by IT services in India is the booming technology sector based in the city of Bangalore (also called Bengaluru) (http://en.wikipedia.org/wiki/Bangalore).

Reflective of the contradictions of India, Bangalore has 10 per cent of its workforce now working in IT, but also 20 per cent of its population living in urban slums.

The nearby Electronics City (elcia.in) is considered “India’s own silicon valley and home to some of the best known global companies.”

To date, aspects of India 2.0 are already taking shape.

One company is called Crayon Data (crayondata.com). It uses Big Data and analytics to help companies better understand their customers and increase sales and deliver more personal choices.
Edubridge (http://acumen.org/investment/edubridge/) is helping to bridge the gap for rural youth with varied education backgrounds and long-term jobs. Edubridge trains youth for the real needs of employers to increase the chances they will get a job. This includes jobs in the IT business process outsourcing sector and banking and financial services.

Infosys is working on innovations for the so-called “Internet of things,” in which smart technologies connect everyday items to the grid and allow for intelligent management of resources and energy use. Infosys is developing sophisticated software using something called semantic analytics – which analyses web content (http://en.wikipedia.org/wiki/Semantic_analytics) – to sort through social media and the Internet to track customer responses to products.

Elsewhere, former Infosys Chief Executive Nanden Nilekani is involved in a Big Data innovation to address the problem of social and economic exclusion of India’s poor. Called Aadhaar (http://uidai.gov.in/), the government-run scheme is gathering biometric data on every Indian to build the world’s largest biometric database. After being enrolled and having fingerprints and iris scans taken, each individual is given a 12-digit identification number. So far 340 million people have been registered with the scheme, and it is hoped 600 million will be registered by the end of 2014.

The idea is to use a combination of access to mobile phones and these unique ID numbers to widen access to all sorts of products and services to poor Indians, including bank accounts for the millions who do not have one. Many people, lacking any identity or official acknowledgment they exist, were prevented from engaging with the formal economy and formal institutions. Being able to save money is a crucial first step for getting out of poverty and it is hoped information technology will play an important role in achieving this.

Published: March 2014

Resources

1) India 2.0 by Mick Brown. Website: http://s.telegraph.co.uk/graphics/india2.0/part-one#top

2) Electronic City Bangalore: Regional information portal for Electronic City, an industrial technology hub located in Bangalore South, India. This portal is becoming the most favourite haunt of ECitizens living and/or working in Electronic City. Website: http://www.electronic-city.in/

3) Electronics City Industries Association: Welcome to the Electronics City, India’s own silicon valley and home to some of the best known global companies. Located in Bangalore, the Electronics City was conceived way back in the mid-1970?s as an Industrial Estate exclusively for Electronics Industries. Today the industrial estate boasts is an oasis of large, medium and small industries spanning software services, hardware; high end telecommunications; manufacture of indigenous components; electronic musical instruments, just  to name a few. Website: elcia.in

4) Godrej E-City: Situated in Electronic city and connected through NICE road and the elevated expressway, Godrej E-City brings your workplace and other major conveniences within your immediate reach. Your travel times become shorter and hassle-free. You have more time for your family and yourself. It’s time to move closer to happiness. Website: https://www.godrejproperties.com/godrejecity/overview

5) Infosys: Infosys is a global leader in consulting, technology and outsourcing solutions. As a proven partner focused on building tomorrow’s enterprise, Infosys enables clients in more than 30 countries to outperform the competition and stay ahead of the innovation curve. Website: http://www.infosys.com/pages/index.aspx

6) Tech Hub Bangalore: partnering with the UK India Business Council to establish TechHub in Bangalore.TechHub is a community and workspace for technology entrepreneurs with 1000’s of members, building the most exciting startups in Europe. We have physical community spaces in London, Manchester, Bucharest, Swansea and Riga and have members from over 50 countries.The Bangalore site will be part of a wider scheme in partnership with other British firms such as Rolls Royce, ADS, Bangalore Cambridge Innovation Network, BAe and PA Consulting with the aim of forging stronger links between the UK and India. Website: http://www.techhub.com/blog/techhub-expands-to-bangalore/

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Creative Commons License

This work is licensed under a
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ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2022

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Human Development Report Mongolia | 1997

This groundbreaking Mongolian Human Development Report – the country’s first – went beyond just chronicling Mongolia’s state of development in statistics and graphs. It placed the story of the Mongolian people during the transition years (post-1989) at its heart, using photographs, stories and case studies to detail the bigger narrative at play.

Designed, laid out and published in Mongolia, the report broke with the practices of many other international organisations, who would publish outside of Mongolia – denying local companies much-needed work. The report’s costs helped to kick-start a publishing boom in the country and significantly raised standards in design and layout. The foundations laid down by the project producing the report ushered in a new age in publishing for Mongolia.

The report’s launch was innovative, not only being distributed for free across the country, but also part of a multimedia campaign including television programming, public posters, town hall meetings and a ‘roadshow’ featuring the report’s researchers and writers.

The initial print run of 10,000 copies was doubled as demand for the report increased. To the surprise of many, once hearing about the free report, herders would travel to the capital, Ulaanbaatar, to pick up their copy. The report proved people cared passionately about the development of their country and that development concepts are not to be the secret domain of ‘development practitioners’.

You can read the report’s pdf here: books.google.co.uk/books?id=dx7Q-yJot_cC&printsec=fro…

The MHDR 1997 was so popular it had two print runs. It has been cited in many books, journals and publications. It was the first exhaustive account of the country’s turbulent transition years and mapped the extent of poverty in the country.
The award-winning UN/UNDP Mongolia Development Portal was launched in 1997. It quickly became the go-to source on Mongolia’s development challenges.
CTV News: “Canada named best place to live on this day in 1997”. I considered it an enormous privilege to be given the opportunity to work with fellow Canadians on sharing our experiences with Mongolia during the 1990s crisis.

“On this day in 1997, Canada was on top of the world. Or at least, on top of the United Nations’ annual ranking of the best places to live in the world.

“CTV News archival footage captured a proud moment for Canada on June 12, 1997, as then-National News anchor Lloyd Robertson hailed the UN ranking as a “report card to be proud of.”

“It’s not quite straight As but Canada is still at the head of the class,” Robertson said. “In fact, it’s No. 1 in the world.”

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“Canada beat out France, Norway, the United States and Iceland for top spot on the UN human development list, which ranks countries based on a variety of factors linked to quality of life.

“It was the fourth straight year Canada topped the list.

“Canada earned top marks in the life expectancy, health, education and income categories, which helped propel the country’s overall Human Development Index score to No. 1 in the world.”

This work is licensed under a Creative Commons Attribution 4.0 International License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2017