Issue link: https://read.dmtmag.com/i/724263
64 tobaccoasia / Issue 4, 2016 September / October Mt. Raung Eruption, Bad Weather Affect Indonesian 2015 Crop Due to environmental effects brought on by Mount Raung's eruption, Indonesia's total tobacco growing area in 2015 was reduced to an estimated 20.000 hectares from the approximately 32,000 hectares cultivated in the previous crop year, according to an online report published by PT. Far East Leaf Indonesia. Total crop output across the ar- chipelago fell accordingly, leveling in at just slightly above 186,000 tons (2014: 200,900 tons), with much of the crop quality not only affected by the volcanic eruption earlier in the year but also heavy rains and other negative weather factors later on. With regards to tobacco types, PT. Far East Leaf reported the following figures: FCV Lombok Production of FCV Lombok in 2015 fell to about 35.000 tons, with the top grade price reaching a medium of IDR38,000 per kilogram (approx. $2,90/kg). About 50% of the cured leaf was considered good grade, 20% medium, while the balance was graded as low quality. FCV Bojonegoro Production of FCV Bojonegoro in 2015 year reached approximately 30,000 tons. Crop quality was affected by the early onset of the rainy season, leading to per-kilo price slumps of only between IDR6,000 to 13,000 ($0.46 – 0.99) from the normal price of IDR24,000 to 28,000 ($1.83 – 2.13). Jatim, Madura, Kasturi 2015 production of Jatim tobacco totaled about 77.000 tons, which included Jatim VO, Kasturi, Rajangan Paiton, Rajangan Madura, and Krosok/Hang Paiton. The per-kilo price of Kasturi VO dropped to between 5,000 to 7,000 IDR ($0.38 – 0.53) from the usual price of IDR15,000 to 20,000 IDR ($1.15 – 1.52) as most of the crop was im- pacted by ash fallout from Mount Raung. DFC and other Central Java tobaccos Total crop yield in Central Java in 2015 was about 41.166 tons, which included DFC, Rajangan Temanggung, Janturan, etc. Besuki Na Oogst (cigar leaf and DAC) The production of Besuki NO cigar leaf (Dekblad, Omblad) in 2015 amounted to an estimated 8,560 tons, of which only 25% (or 2,140 tons) was free of Mt. Raung ash. However, PT. Mayangsari's Reinder Hartmans contested this figure, saying, "This is not true since the volcanic eruption only occurred during a part of the first crop, which left the second crop unaffected." His estimated guess is that at least 50% of the total crop yield that year was not contaminated with ash. (Sources: PT. Far East Leaf Indonesia/Statistics Indonesia/FAOSTAT/PT. Mayangsari) rieties that can be grown in Indonesia. That re- search has the potential to increase farmers' yields and profitability, as well as improve the tobacco quality," Costa said. As a global company, AOI also transfers knowledge from its factories around the world to the PT. AOI factory in Indonesia. Costa: "That allows us to optimize all stages of processing and helps to improve efficiency and manage costs." Additionally, AOI takes advantage of its multiple factories to rotate employees, which further facili- tates the sharing of best practices. "By sharing our experience and expertise [within the factory net- work] we not only improve the quality of the final packed product, but also the image of Indonesian tobacco leaf and its growers", Costa said. Farmer education is likewise accorded great im- portance through group trainings and follow-ups during individual farm visits. "Our well-trained leaf technicians visit each contracted grower between 20 and 24 times per crop year to help farmers produce a successful crop that is grown in compliance with [GAP] and our agricultural labor practices [ALP] program", said Costa. If and when GAP or ALP irregularities are observed by visiting field techni- cians, they will document and mark them for fol- low-up. Costa: "Depending on the severity of the incident, the field technician will raise a prompt alert and remind the farmer of his contractual re- quirements. Additional follow-up visits tied in with continuing education ensure that all incidents are resolved. If an issue persists, PT. AOI management becomes involved and the incident is taken into consideration for future contracts." An efficient IPS is also the only way for tobac- co buyers to truly have a lasting impact on growers' labor practices, particularly child labor. "Through sustainable tobacco production initiatives which our leaf technicians introduce to contract farmers we have been able to mitigate child labor incidents and reduce other labor risks by minimizing labor needs", said Costa. He added that AOI is a mem- ber of the ECLT Foundation and is supporting a new project in Indonesia which aims to build a multi-stakeholder platform to sensitize all relevant stakeholders and mobilize them to take common action against child labor. In collaboration with PT. HM Sampoerna (an affiliate of PMI), PT. AOI has also developed an afterschool program – CERIA - aimed at providing activities to help youth reach their full potential and minimize the risk of child labor incidents. "Since the introduction of the CERIA program, PT.AOI has seen a 69% reduction in child labor incidents." As of May 22, 2016, approximately 92% of PT. AOI's contract farmer children aged 6 to 14 were actively attending school. Meanwhile, Indonesia's national school attendance ratio among that same age bracket is currently only 80%. Country Tobacco Production % of World Total in 2012 (tonnes) 1 China 3,148,547 t 42.3% 2 Brazil 850,673 m/t 11.4% 3 India 830,000 m/t 11.1% 4 United States of America 345,837 m/t 4.6% 5 Indonesia 260,200 m/t 3.4% (Source: FAOSTAT) The Top 5 Tobacco Producing Countries