USAID partners with farmers in developing countries to provide economic opportunities and greater access to the global market. Not only does this partnership program improve the lives of the individual farmers, but it is also strengthing the overall economies of these countries. This story of an Indonesian farmer shows how beneficial these partnerships are for both them and the U.S. USAID in Indonesia is helping small farmers.
Agustinus Daka, Indonesian Small Farmer of Vanilla
Agustinus Daka is a hardworking vanilla farmer from a village in the Papua province, the most impoverished region in Indonesia. He exemplifies his dedication to farming the labor-intensive vanilla crop by pollinating each vanilla orchid by hand since the crop has no natural pollinator in Indonesia. Daka is a great example of how USAID In Indonesia helps small farmers. Due to his partnership with USAID, Daka doubled his income over two short years.
This increase in revenue has allowed Daka to afford a better life for his family including access to better living conditions, education and healthcare. However, Daka does not want to stop at improving only the lives of his family. In a province where most farmers are only capable of subsistence farming– growing only enough to provide for their families – Daka’s dream for his village is to “move beyond subsistence.” He has steadily begun to introduce more of his fellow farmers to the partnership program.
Improving Poverty Statistic in Indonesia
Despite successful democratic and economic improvements, approximately 25.1 million people in Indonesia are living in poverty and around 20.6% of the population is at constant risk of falling below the poverty line. Although these numbers may look grim, they are remarkable results of successful poverty reduction across the nation. Over the past two decades, Indonesia has cut its poverty rate by more than half, gradually improving from 23.4% in 1999 to only 9.4% in 2019. In the past five years, Indonesia has seen its economic growth improve at a rate exceeding 5% each year, demonstrating the success of USAID in Indonesia.
Economic Opportunity in Both Indonesia and the U.S.
USAID and the National Cooperative Businesses Association (NCBA) established Cooperative Business International (CBI) Global in 1984. The company based in Ohio links spice farmers all over the world to over 160 partner companies in 40 countries. PT AgriSpice Indonesia is the branch of CBI Global that works with USAID to help more than 15,000 Indonesian farmers facilitate trade with companies across the globe. The company exports about $150 million in spices annually.
More importantly, PT AgriSpice works with farmers to teach valuable techniques for cultivating larger, more sustainable farms. The connection to the global market allows farmers to secure greater profits and provides approximately 400 to 700 new factory jobs with about 90% of them going to women. New job opportunities reduce poverty rates and the economy of Indonesia, making it more attractive to U.S. businesses.
These potential partnerships with U.S. companies are also mutually beneficial. The equipment used in these new factories is imported from the U.S. With more factories and products, more trade occurs between Indonesia and the U.S., requiring more jobs to be created in both countries, and simultaneously stimulating their economies.
Agustinus Daka’s vanilla is now in grocery stores across the U.S. McCormick, the U.S. top spice seller and long time partner of USAID in Indonesia, uses vanilla sourced from Indonesia in its products. It’s a long time, mutually beneficial partnership.
The Measure of Support from USAID in Indonesia
Through the support of USAID programs and partner companies, Indonesia has now grown to be the second-largest producer of vanilla in the world, the world’s number one exporter of nutmeg and the number one exporter of cloves to the U.S. USAID’s intends to continue fostering a healthy business environment for Indonesian producers to access the global market and conduct mutually beneficial trade with the U.S. This USAID-led program in Indonesia is a part of Feed the Future, the U.S. government’s initiative to fight global hunger and promote food security in partner countries across the world.
– Hanna Rowell