THE CONFERENCE PROCEEDINGS - IFEAT

sells crude oil to appointed cooperatives/privates. The next party is the cooperatives or privatecompanies that collect patchouli oil, conduct simple QC and manage the logistics of the oil fordelivery to champions. The champions standardise the collected oil; exert full control over the oilquality, package and market the product. The last party is the end user, who buys the good quality oilat an agreed price and quantity.Farmer- Good Agricultural Practice- Sells dried leaves toappointed distillerPrice = cost + premium = ACultiva ConceptCooperative/Private Champion End User- Collecs patchouli oil from appointed distillers- Simple QC + logistics- Sells crude oil to championPrice = B + cost + premium = CDistiller- Good Distillation Practice- Sells crude oil to appointedcooperative/privatePrice = A + cost + premium = B- Collectingpatchouli oilfrom appointedcooperativeor private- Standardizing,full QC,export packing,marking,exportingto end userPrice = C + cost+ premium= D- Buying withagreedquantity &price:patchouli oilde-ironizedto Championat price = DOptional supporting programs from Ministry of Industry,Ministry of Agriculture, Research Institutes, Universities,Community Development from champions/end usersKey:Optional financing programs from banks/other financial institutionsor from end users/championsThe first illustration I want to deliver is theCultiva Pilot Project of Patchouli in WestPasaman District, West Sumatra. This area,which has good soil and a suitable climate,has been known for a long time as apatchouli oil producer in Indonesia. Becauseof that, it is no wonder that there is an areanamed Bukit Nilam. There are more than9,000 farmers harvesting patchouli in a3,000 ha field area. It produces up to 250-300 tons of oil annually.Pilot Project 1: Patchouli OilWest Pasaman District – West Sumatra• District Potentials:– Good soil and suitable climate– Long tradition : Village Bukit Nilam– Labours & land availability : more than 9000 farmers and 3000 ha– Production capacity : 250-300 tons yearly• Programs Executed:– Seedling & Processing Equipment procurement– Capacity Building (GAP & GMP Training)– Setup of farmers group and/or cooperatives– Sales Contract Facilitation• Project Evaluation:– Not yet successful due to unsolved institution and financialproblems166