Arjuna Share program is a first in the ginger industry, supporting organic farmers in East Java.
Batu City, East Java, Indonesia, October 3, 2015
The Ginger People signed a framework agreement officially establishing a profit-share program known as Arjuna Share with organic ginger farmers in East Java. More than 50 regional and local ministers, sustainability experts, farmers and journalists attended the signing ceremony, an indication of its significance for Indonesia’s agricultural management and land preservation objectives. The Ginger People president Bruce Leeson highlighted the importance of such programs for achieving socio-ecological sustainability, “Paying for Fair Trade and Organic certifications covers basic standards, but it’s not a complete solution for re-building and sustaining agricultural communities. At some point companies have to take direct responsibility for how their supply chain decisions affect the smallholding farmers who supply most of the world’s food. This agreement is one of the many steps we’re taking to do just that.”
Arjuna Share guarantees a minimum price of 15% over commercial value, in line with Fairtrade guidelines, for fresh organic ginger, and additionally pays 1/2% of worldwide sales revenue from Arjuna Ginger Bars to the organic ginger farmers' cooperative in East Java. The cooperative was founded with 28 farmers who will use the funds for community and farm improvements aimed at preserving their agricultural heritage. Ginger People Group pays out the funds on a yearly basis, with an inaugural share presented at the signing ceremony.
After researching programs in the coffee and cocoa industries, the company owners travelled to meet with farmers and processors in each of the countries they source from to create their ever-growing line of value-added ginger products. East Java was selected for the pilot program in part because of long-standing relationships the company has there and the farmers’ enthusiasm for collaborating. Based on early indications of success, the company is already planning similar programs in Fiji and Peru.