THE CONFERENCE PROCEEDINGS - IFEAT

The following photographs provide some additional visual information about the project.OVOP Model Balai Batu Sandaran Village :Citronella FieldOVOP Model Balai Batu Sandaran Village :Citronella Oil Processing FacilityOVOP Model Balai Batu Sandaran Village :Farmers InstitutionCHALLENGESConsidering the progress constraint, Cultiva Project is still facing two main challenges, namely theestablishment of local producer institutions and long-term partnership commitment. For the firstchallenge, building an effective and functional cooperative may be the right answer. Such anorganisation could play a significant role in introducing and promoting the Cultiva scheme,modernising the processing equipment, building the farmers’ capacity, managing the harvest,processing the products, and fulfilling an economic scale of production. Other required institutionsshould be responsible for marketing and giving financial support to the cooperative. Providing anappropriate credit scheme as well as marketing information (price and demand) services are expectedto be offered by this institution.The second challenge is how to build a strong long-term partnership commitment among parties. Themost important thing is the way to build trust between the producers and users; this can only beachieved if both parties set a long-term perspective for their business relationship. The producers andusers have to work together to develop a sustainable supply and value chain for the essential oil. Lastbut not least, sustainability issues need a holistic approach. A partial (e.g. Corporate SocialResponsibility) approach is not enough.168