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Producer Profiles

KSU Arinagata - Koperasi Serba Usaha Arinagata

KSU Arinagata is an Indonesian coffee-producing cooperative that was founded in 2006 with 800 small farmer members, brought together after unsatisfactory sales at other co-ops. The cooperative became certified organic in 2007, gained Fair Trade certification in 2008, and had its first exports by early 2009. KSU Arinagata decided to pursue Fair Trade certification because Fair Trade offers transparency, prosperity, democracy, and a minimum price. Farmers in the area had been severely affected by the previous armed conflict in the Aceh province, prompting most to leave their farms for years, only returning after the signing of a peace agreement in 2005. Many farmers are still in the process of re-cultivating their coffee, a process that has been made difficult by a lack of cash and labor. Finding a good market channel for its coffee has been one of the cooperative’s greatest challenges.
 

Quotable

“What’s most important about Fair Trade is the transparency it requires between the producer, the exporter, and the importer, particularly in regards to contracts, pricing, and the premium.”  

Ara Siberani, GENERAL MANAGER

Programs

Producer Organizations

The Fair Trade premium allowed KSU Arinagata to invest in organizational strengthening activities such as coffee promotional materials and industry events, as well as facilitating costs associated with member meetings and internal certification inspections.

Productivity & Quality

Thanks to the Fair Trade premium, KSU Arinagata was able to invest in important quality- and value-add infrastructure, including land to build a storage facility, a cupping lab, a coffee roaster, and a demonstration plot. KSU Arinagata was also able to conduct various trainings including cupping for employees, basic coop finance, and a workshop for the coop board on certification. When board members and employees are more aware of standards and quality, a cooperative can more easily succeed.

Communities

KSU Arinagata members voted to create a social fund. This fund covers distribution of essential foodstuffs such as rice, palm oil, and egg. The fund also covers contributions to community sports tournaments, the building of a village library, road construction, humanitarian aid, and natural disaster relief.