The U.S. Agency for International Development (USAID), Cooperative Business International(CBI) Global and National Cooperative Business Association (NCBA) signed a Memorandum of Understanding (MOU) to continue long-term and sustainable small farmer livelihood opportunities through agribusiness ventures in Eastern Indonesia.  These organizations will start their collaboration by supporting the implementation of the Sustainable Agribusiness Alliance (SAA) project. SAA will build upon a recently completed project: Indonesia Cooperative Business Development Alliance (ICBDA), which was implemented by the NCBA from August 2012- December 2016. SAA will continue to create long-term and sustainable small farmer livelihood opportunities in rural areas of Papua and North Maluku provinces through agribusiness ventures with proven Indonesian and U.S. cooperative and private sector entities.

“We welcome this opportunity to work with CBI Global, and its alliance partners such as McCormick & Company, PT. AgriSpice Indonesia, PT. CBI Indonesia, NCBA and NimboranKencana cooperative. Our partnership will leverage the talents, capabilities and resources of both USAID and CBI Global to improve the welfare of the Indonesian people and to support initiatives that protect the environment in the face of climate change. The partnership is also expected to contribute to the Government of Indonesia’s effort to reduce the levels of poverty in Papua and North Maluku.” USAID/Indonesia Mission Director Andrew Sisson said.

SAA aims to optimize the value chain of high-value crops such as vanilla, pepper, cloves, nutmeg and others, by strengthening agriculture cooperatives and building partnerships. This new partnership will improve the capacity of small farmers and government extension workers in all aspects of agricultural value chains, ranging from crop production, to harvesting and processing, and farm enterprise development.  It will also strengthen regional and national institutions to help expand the impact of this partnership. This will lead to significant agribusiness employment opportunities.

SAA will apply best science, technology and agroforestry practices to increase income while reducing deforestation and conserve the environment in several landscapes in the two provinces. As farmers’ livelihoods improve through production of high-value crops on small units of land, the need for farmers to clear forest to access new land will decrease. Additionally, agroforestry farming practices typically capture and store more carbon than traditional monoculture ones. SAA initiatives will help reduce carbon emission from both deforestation and crop production.

“CBI Global and NCBA have successfully partnered with USAID, the Government of Indonesia, and Indonesian cooperatives throughout the country over four decades.  Projects like SAA will grow and strengthen each country’s cooperative movements. The ultimate objective of our joint efforts is to increase the well-being of small farmer cooperative members.  We have found that the synergies achieved through these international public-private partnerships go a very long way to achieving this.” the Director of CBI Global, Mr. Sam Filiaci, said.

About USAID

USAID is the lead U.S. Government agency that works to end extreme global poverty and to promote resilient, democratic societies while advancing security and prosperity. USAID has a deep commitment to work as a partner in fostering sustainable development. Rather than impose, USAID seeks to empower and support through collaboration. The Agency works hand-in-hand with those it seeks to assist as well as others striving to support the most vulnerable.

About Cooperative Business International Global

Cooperative Business International Inc., also known as CBI Global, is a U.S-based cooperative owned international company, headquartered in Westerville, Ohio. CBI Global is active in the development, management and growth of value-added businesses, with a focus on three main strategic business models, namely (i) Global Production, Processing and Marketing of value-added agricultural and consumer products; (ii) Integrated Marketing and Export Management for firms seeking to penetrate and develop new markets in both emerging and mature markets; and (iii) Strategic Business Services offered to for-profit and non-profit entities. CBI Global is engaged in four main business areas, namely (i) coffee, (ii) spices and flavors; (iii) home furnishings; and (iv) business services.   

CBI has been the partner of USAID in implementing a number of USAID-funded activities in Indonesia. The most recent include (i) the $11.05 million USAID-funded Tsunami Impacted Areas of Sumatra Project (TAP) in Aceh during 2005-2010 to help rehabilitate thousands of farms destroyed by the 2004 Sumatra-Andaman earthquake and Tsunami, and (ii) the USAID-funded Indonesia Cooperative Business Development Alliance (ICBDA) during 2012-2016 to improve the livelihoods of more than 5,000 cassava and spices farmers in South Sulawesi, East Nusa Tenggara and Papua provinces.  Originally established through a partnership with USAID and NCBA, CBI has assisted numerous cooperatives throughout the world in developing sustainable and long-term business benefiting small farmers globally.