Ep 38 | Prajwal Shahi on Smallholder Farmers and the Importance of Partnerships and Innovative Solutions

In the newest episode of Asia’s Farm to Fork: 5 Good Questions Podcast, we speak to Prajwal Shahi, Portfolio Advisor – Agriculture, PRISMA, about important innovations that help elevate the livelihoods of smallholder farmers. Here, Prajwal highlights the importance of public-private partnerships in pushing agendas forward to alleviate climate change, and also in ensuring a better life for the smallholder farmers.

Transcript

Duke Hipp: Thanks for joining us and we're grateful to have a great, terrific guest again to join us and talk about topical issues from food and agriculture across Asia. Today we have with us Prajwal Shahi. He's a portfolio advisor of agriculture at PRISMA. Hi Prajwal, how are you doing?

[00:41] Prajwal Shahi: Thank you for having me on today's episode. I really look forward to sharing my experiences and discussions on this platform.

[00:48] DH: Yeah, excellent. Thanks for joining. So if it's okay, we'll jump right in with the first question and get things started. I like to start the interview really taking a look at the most important people of all when it comes to regional agriculture and food production. Of course, the smallholder farmers so unique to this region, in particular the smallholders, and really central to the whole story about everything to do with food Indonesia. I know close to 29% of Indonesian workforce is employed in the agricultural sector and Indonesian farmers face many challenges at daily work. But could you share some of those insights into the challenges our smallholders are facing and how your organization, PRISMA, is really working to help them?

[01:28] PS: Thank you, Duke. Smallholder farmers are indeed the backbone of agriculture and face numerous challenges in this context. PRISMA is a market system development program funded by the Australian government, in close collaboration with the Indonesian government plays a crucial role. We are actively engaged in twelve agriculture sectors across six provinces in eastern Indonesia, namely Central Java, East Java, East Nusatangara (NTT), West Nusatangara (NTB), Papua and West Papua. Our goal is to address these challenges, providing a reliable and effective solution. We believe that by working together, we can make a significant difference in the lives of these farmers. Smallholder farmers in Indonesia, despite facing a multitude of challenges, demonstrate remarkable resilience. They strive to gain awareness and knowledge about benefits of using quality inputs such as seeds and fertilizers, and the correct application of these technologies. They persistently seek more access to funds to invest in better machinery and equipments, which hampers the ability to produce high quality agriculture products. 

Climate related disasters such as floods, droughts and pest attacks further compound their difficulties, often resulting in production failures. Moreover, there's a significant gap in assessing new services, inputs and technologies the private sector provides, which further hampers the productivity. Our approach at PRISMA is not just about addressing the immediate need of smallholder farmers, but about creating lasting transformative change. We tailor intervention, specific need and context to each value chain and sector, aiming to revolutionize how the private sector operates in rural Indonesia. This not only enhances the productivity and income, but also aligns with broader goals of poverty, elevation, climate change, adaption and food security. By focusing on commercial, sustainable interventions that yield social and environmental benefits, we create systemic change where new or improved practices are maintained by market actors. Even without our support, installing hope for brighter and more resilient sustainable future in the agriculture sector, PRISMA, in collaboration with our esteemed stakeholders, has not only met surpassed its target to increase the income of 1 million smallholder farming households by thirty percent by the end of 2023. This collaborative effort is projected to benefit 1.5 million farmers, increasing the income by nearly 150 percent by the end of 2024. Our success stories stand as a testament to transformative power of collective action, inclusive markets, increased private sector investment in climate smart technologies, and significant policy changes that foster a better business enabling environment for these farmers in Indonesia.

[04:33] DH: Thanks, that's a great insight, and to again, the contributions that PRISMA is making. Appreciate that you touched on one thing there, I wanted to maybe continue on in the second question, and that is weather related issues and whether it be pest, disease, other challenges that are so prevalent in Indonesia and around the region because of the climate change factor. 

So touching on that specifically, the intense heat wave around the region is something that's taking us all a bit off guard, and so it's really becoming an increasing challenge. Our farmers are the ones who are really at the front line of that, of course, as you know. Really, unfortunately, they're bearing the brunt of this intense heat. Meanwhile, the rise in number of droughts in tandem with the heat is leading to more crop failures. So we're seeing that across the region as well. Could you tell us more about how climate change is impacting the Indonesian farmer in particular, and what PRISMA is doing to help work with them with respect to climate adaptation measures and other means? I suppose, as far as what they are doing to cope.

[05:31] PD: Yes, duke, climate change is an undeniable threat, especially in Indonesia, you know, where 180 million inhabitants live in coastal areas. This makes them highly vulnerable to the rising sea levels and frequent weather related disasters, leading to environmental degradation and loss of livelihoods. As the 16th largest economy and 10th largest emitter of greenhouse gases, Indonesia faces significant challenges to combat these, PRISMA actively supports private investment in climate smart technologies, practices and business models, playing a crucial role in mitigating these challenges. PRISMA's role as a convener and facilitator in promoting products and services that can enhance smallholder farmers resilience to climate change is pivotal. Often innovations and solutions do exist, but they need more awareness and usage in the market. By actively promoting and supporting these innovations, PRISMA is not only assisting farmers but also contributing significantly to sustainability of agriculture sector in Indonesia. One of PRISMA's initiatives and focus has been on soil treatment, a crucial aspect of environmental sustainability. Chemical fertilizers from Indonesia alone contributes to 1.9 percent of global agriculture emissions. When these fertilizers come into contact with the soil, they trigger a rapid microbial reaction, producing nitrous oxide. This gas is 300 times more potent at warming the atmosphere than CO2 and can persist in the atmosphere for more than a century. Moreover, approximately 70 percent of agriculture land in Indonesia is degrading or unhealthy, primarily due to the reliance of smallholder farmers on chemical fertilizers. 

Over the years, our efforts to aim and curb these emissions and restore the health of agriculture has been one of our main goals and the immediate need for action. So, PRISMA, in collaboration with an organic mineral-based fertilizer company, played a crucial role in adapting a customer-centric approach and trained its field staff in marketing and customer relations. Thus, the company better communicated product benefits in ways that made sense to farmers at farmer meetings and harvest days. As a result, more than 11,000 smallholder farmers have reduced their use of chemical fertilizers by switching to a more organic mineral-based fertilizer, boosting their yield by 20 percent in maize and 13 percent in shallots, resulting in a reduction of 120kg of CO2 emission per farmer per year, whereas this totals to about 1,320 tons of CO2 emissions annually. 

Through all these initiatives over the last ten years, 73 of our interventions have incorporated climate smart elements. Thanks to these efforts, we've achieved an accumulated emission reduction of 134,000 tons of CO2 equivalent. These reductions come from a more efficient use of nitrogen-based fertilizers in crops like maize and rice, improved cattle feeding practices with shortened rearing cycles, and reduced methane emissions. The adoption of climate smart agriculture practiced by 1.1 million farming households demonstrates the effectiveness of our approach. These efforts not only reduce greenhouse gas emissions, but also make farming more resilient to climate change, offering a more hopeful and better outlook for the future of agriculture. In total, the emission reduction has been equivalent to the monthly gasoline consumption of 1.3 million motorcycles; or a combined electricity and fuel consumption of 2000 households per month. I think this highlights a significant impact of our climate adaptation measures in Indonesia.

[09:47] DH: Thanks, Prajwal. Another great answer. Appreciate your insights on that one, and that conversation I'm hearing again about the smallholder really begins on the farm. And with a third question, I'd like to maybe come back, stay with a smallholder for a bit longer and get into the topic of their own livelihood. There are far too many in Southeast Asia and around Indonesia as well that are living below the poverty line, increasing farmers income, improving their livelihood. There's always the agenda for governments. Of course, it comes up in these policy discussions a lot. But what are the actions? What are the things that that are happening on the ground to help farmers realize a better life as well as producing the food that we all depend on? Other projects or initiatives PRISMA's helping lead that you would like to highlight helping contribute to farmers prosperity there in Indonesia, Southeast Asia?

[10:34] PS: Thank you Duke. At PRISMA, we're very dedicated in improving the livelihood of smallholder farmers. Our efforts are bolstered by a diverse network of 273 partners, including 91 public agencies and about 15,000 intermediary service providers. This broad spectrum of partnership has allowed us to implement resilient, sustainable and inclusive business models that increase the productivity of marginalized smallholder farmers. PRISMA's outreach, as I mentioned earlier, of 1.5 million farming household is not just a number, it represents a significant 62 percent of those living below the poverty line and 37 percent facing extreme poverty. This stark reality underscores our unwavering commitment to making tangible difference in the lives of those who need it the most. 

PRISMA's dedication to the government's five year development agenda is not just a statement, it's but a reality. We have actively collaborated with government counterparts, contributing to 120 different policy initiatives. Our involvement has not only informed but also influenced key decision makers and stakeholders in the government. This collaborative approach has led to a significant progress at the national level, particularly in sectors like beef and dairy. At the sub national level, I initiate the span across sectors including beef, maize, rice, soil treatment, shallots and pig farming. We have actively engaged with key stakeholders, fostering a collaborative environment to promote inclusive business practices that have developed national guidelines. Our strong partnerships with a government counterpart, the national planning agency Bapanas, has further amplified their impact, enabling us to showcase our achievements and garner support for our activities. Our collective efforts, notably our support to Bapanas, has left a significant imprint on the national policy landscape. 

Recently, we played a very pivotal role in crafting a background paper for the upcoming National Medium Term Development Plan, which is known as RPJMN 2025 to 2029 in Indonesia, drawing our extensive experience across eastern Indonesia. And as we move forward, we strongly encourage all PRISMA's partners to sustain their support and for non-partners to consider replicating the success innovations initiated by our interventions. This collective effort will ensure the continued upliftment of smallholder farming households in Indonesia and contribute to the agriculture sector's overall growth, sustainability and resilience.

[13:26] DH: Excellent. Thank you for that. You mentioned the word 'partner' a few times there. I heard, and earlier in our chat you also talked about the importance of PRISMA, that convening together public and private sector, it does reach out a lot work with the private sector on a number of different fronts. So how about that with our fourth question to open the discussion a little bit about partnerships? 

A lot is talked about between public-private partnerships and it certainly does seem that is where a lot of the more fruitful work is done. You can bring together that synergy between the two in your view, and again through the eyes of PRISMA around the work that's happening there in Indonesia, what kind of partnerships between the public and private sectors are most beneficial for the farmers, for those residents, again, rural residents in Indonesia around the region.

[14:09] PS: Thank you Duke. This area, especially this area has been a very big interest of mine as I am a partnership broker myself. So establishing and maintaining a healthy, mutual beneficial partnership throughout the project cycle is, I think, crucial to any successful private public partnership. And this process is not just about negotiation and maintaining a relationship, but also about collaboration and shared values. And public-private partnerships are crucial for addressing complex issues in agriculture. PRISMA stands out for its emphasis on inclusion, resilience and sustainable partnerships. Unlike traditional public-private partnerships, these partnerships have prioritized the benefit of marginalized smallholder farmers, promoted gender equality, and ensured the inclusion of people with disabilities, youth and indigenous people. 

The unique design of these partnerships aim to improve agriculture productivity and enhance the income of smallholder farmers, and also their well being. PRISMA's interventions have made a significant mark, reaching an impressive 1.5 million smallholder farming households. This achievement results from our strong collaboration, as I've mentioned earlier, with the 273 partners who have collectively invested a substantial amount of 33 million AUD, and this has led to a turnover of approximately 312 million AU. These figures not only reflect the strong demand from smallholder farmers, but also the eagerness of agribusiness to tap into such potential markets, highlighting the success of our public-private partnerships. 

One significant example has been our work in the pig sector in NTT. Over the past decade, we have engaged more than 38 private and public sector partners to help more than 150,000 pig farming households increased their income by nearly 380 percent. These success stories are a testament to the power of public private partnerships in transforming the agricultural landscape in Indonesia. Initially, most of these big farmers in entity followed a very traditional practice with low productivity. However, today a significant 30 percent of them have transitioned to restocking their farms with high quality piglets using better concentrated feed and implementing biosecurity measures. This shift has resulted in a substantial increase in productivity and a decrease in mortality rates, demonstrating the potential for significant change in agriculture sector throughout our public private collaborations. Pig sector was hit by a big outbreak in 2019, African swine fever, and PRISMA's role was pivotal in initiating a swift response. It fostered a wide range of collaborations with stakeholders across the province, including the national and provincial governments. This collective effort was instrumental in triggering a response at low governments and private sector levels, whether the conversation was initiated by PRISMA or by other entities. This proactive approach helps underscore the importance of a unified front working hand in hand with the private and public sector. PRISMA's interventions have had a profound impact on smallholder farmers in this region. 

Previously, only two or three breeding farms provided high quality piglets and none of them offered any kind of commercial, artificial insemination or AI services. However, this has changed significantly in the last two three years. The increased availability of high quality piglets and artificial insemination services, with now 13 breeding farms providing these services, has transformed how smallholder farmers practice breeding in this region. They are now expanding and shifting from traditional breeding practices in entity to a more modern one where they use AI services. This shift is beneficial for the farmers and the environment as two of the farms have also installed wastewater treatment plants, which are essential for biosecurity measures and for meeting water requirements, particularly given NTT's dry climate. These farms are the pioneers in Indonesia, probably the first to implement such kind of technology. This comprehensive approach, I think, is a testament of the power of private and public partnerships, and it vividly illustrates how such collaborations can have a significant benefit for smallholder farmers, by increasing the availability and appropriate use of quality inputs, services and improving husbandry practices, all within a conducive environment. These partnerships have proven to be a cornerstone of success, I think, in the agriculture sector.

[19:10] DH: Excellent. Thanks Prajwal. Very interesting example and appreciate you sharing that. It's very exciting. Big, big numbers there. So we've come to the last question. I'd say it's the toughest question usually to narrow down. You know, the statistic, I think is around 80 percent of the food that we eat is actually grown right here in our region. And, of course, that food is what we use to offer all the great ingredients to go into all the dishes that we all enjoy here in Southeast Asia. So the question is, what's your favorite? You know, is there one dish, is there one culinary favorite of yours that you can point out as your ultimate favorite food for Asia?

[19:46] PS: Thanks, Duke. And I agree with you. I think this is a very tough one. You know, me being a Nepali, I'm very fond of Nepali cuisine, and I love food. I think I'm a food lover. And Indonesia has been a food haven for me. You know, especially I've been here for the past nine years. There's so much variety available here. And as you mentioned, I think there is more food than I can ever even try. And since you've asked me to pick one favorite, I might sound very biased, but after working in entity pig sector and having discovered babi sei or smoked pork from Kupang, I think this has been my number one asian dish ever since.

[20:30] DH: That's a great answer. And, you know, that's the first one we've had for that. So we'll definitely be including in the list because we have not heard that yet, but I want to go try it as well. Excellent. Thank you, Prajwal. So with that, you're officially off The Five Good Questions hot seat. We appreciate you doing this and look forward to talking again soon.