Innovation

In addition to processing the farmers' spice products, Agradaya also provides training to its partner farmers in areas such as organic farming, land and harvest management, agricultural business analysis, solar dryer dome construction, and finding distribution markets for their agricultural products through direct fair trade methods.

The main business strategy of Agradaya has a significant impact on the SDGs, including:

SDG 1 - No Poverty

Agradaya provides fair wages to its farmers, stable market demand, and training on sustainable agricultural practices, enabling them to improve their income and standard of living. Agradaya supports rural farmers by engaging in fair trade and building long-term partnerships.

SDG 3 - Good Health & Well Being

Agradaya aims to enhance health and well-being through the implementation of organic farming that reduces exposure to harmful chemicals for both farmers and consumers. Agradaya's products are free from pesticides and synthetic fertilizers, providing safer food, while their focus on healthier and more sustainable farming methods also improves environmental health and job opportunities in farming communities.

SDG 5 - Gender Equality

Agradaya supports gender equality by providing opportunities for women in agricultural activities, production, and management, offering equal opportunities and wages. Through education and economic empowerment programs, Agradaya helps reduce the gender gap in rural communities and encourages women's involvement in decision-making in the agricultural sector.

SDG 8 - Decent Work & Economic Growth

By promoting fair trade, providing fair salaries, and facilitating skill development, Agradaya promotes quality employment and inclusive economic development in rural regions. Agradaya promotes the local economy by generating sustainable employment prospects in the sector of agriculture while guaranteeing that this expansion is ecologically sound and socially conscientious.  

SDG 11 - Sustainable Cities & Communities

By encouraging local agricultural systems that bolster rural independence and decrease migration to cities, Agradaya helps to sustainable communities. Their emphasis on sustainable agricultural infrastructure and community development contributes to the establishment of a robust rural economy, enhances livelihoods, and reduces strain on urban areas. 

SDG 12 - Responsible Consumption and Production

Agradaya promotes responsible production through organic farming, reducing environmental damage by avoiding chemicals and minimizing food waste. They also educate consumers about the benefits of sustainable products, encourage demand for responsibly produced goods, and ensure that their supply chains support environmental sustainability and resource conservation.

SDG 13 - Climate Action

Agradaya contributes to addressing climate change by promoting organic farming practices that sequester carbon, reduce greenhouse gas emissions, and enhance the resilience of agricultural systems to climate change. By minimizing the use of synthetic inputs and encouraging climate-adaptive practices, Agradaya helps reduce the environmental impact of the agricultural sector while supporting sustainable farming.

Agradaya utilizes the goodness of villages in Indonesia to produce sustainable and beneficial Spice and Herbal products for every family through a partnership system with Spice Farmers.

Inspiration

After graduating in 2011, Asri had taken on several jobs but decided to join the "Indonesia Teaching" program. For a year, he was sent to a remote area that was lacking in electricity and had very little clean water. In this program, Asri also met her husband, Andhika. Asri was sent to South Sumatra, specifically Muara Enim, while her husband was sent to Aceh. After completing the Indonesia Teaching program, they returned to work in Jakarta, but Asri and Andhika felt a sense of unease as they witnessed the poverty of the communities in remote areas. Farmers work hard in their gardens, rice fields, or farms, yet their harvests are sold at very low prices by the loan-shark, middlemen, even though after processing, these agricultural products are sold at high prices.

Asri said, "Indonesia is a rich and fertile country; nevertheless, many farmers are in an economically unfavorable state. I feel called to help to improve the conditions of farmers by offering additional value through advancements in the planting process and product quality, which would raise their income."

This restlessness drove Asri and her friends to leave the comforts of life in Jakarta, traveling for 2.5 months to the remote areas of Central Java, East Java, and West Nusa Tenggara in a car, just to see the conditions of farmers across the archipelago. After finishing her adventures, Asri decided to move to her parent's house in Yogyakarta and start her new life with her husband in the village.

Here is where Asri and Andhika's life begins. For farmers in several villages in the Menoreh hills, growing spices has been a long-standing practice. However, the results are mostly sold to middlemen (some loan-shark) at a low price; for example, Temulawak (curcuma) is only priced at Rp 800 (5 cent usd) per kilogram. As a result, farmers are reluctant to harvest Temulawak due to its very low price.

In 2016, they met a buyer from Belgium who needed the raw material xanthorrhizol that could be obtained from temulawak or Javanese Ginger (Curcuma zanthorrhiza). However, Asri could not yet imagine how to extract temulawak into xanthorrhizol.

"A friend once planned to help us, from the processing to the distribution to Belgium." However, the consortium was canceled because my friend's factory caught fire. "Even though we had promised foreign buyers to the farmers and the amount of temulawak collected was already quite substantial," Asri reminisced, her face showing sadness at the time of the incident.

Finally, Asri contacted local factories to accept the farmers' harvests, even though the prices were quite low at that time.

Asri said, "Our business journey has not been easy and has been quite long since 2014." Local factories only value this spice as a commodity and do not care about the process. Meanwhile, factories from abroad highly value sustainability in their processes. "Because agronomy emphasizes the organic process, the only way is to attract buyers from abroad."

They then contacted foreign buyers one by one to see if they were willing to collaborate with Agradaya. The persistence of Asri and Andhika paid off; they finally gained recognition through word of mouth, leading to a buyer from Europe visiting Agradaya to establish a partnership. The business has experienced ups and downs since 2014 and has only started to grow consistently since 2017.

Agradaya also gained greater opportunities during the COVID-19 pandemic as the demand for spices increased with more people seeking herbal remedies. During that time, Agradaya began to scale up, purchasing new machinery and registering its products with the Food and Drug Supervisory Agency (BPOM).

Overall impact

The overall effect is that Agradaya functions as a model of social entrepreneurship that can positively influence the local economy. Agradaya has the potential to enhance the welfare of small-scale spice producers in the Menoreh hills, Trenggalek, and Sumba NTT by generating added value for spice products. The added value of post-harvest seasonings is improved by the standard agricultural scheme, which operates from upstream to downstream and employs a sustainable mechanism through the implementation of natural farming and the use of renewable energy or solar homes. Agradaya employs agricultural techniques that are founded on the principles of people, planet, process, and product.

Business benefit

Currently, Agradaya has established successful partnerships with the Government of Indonesia through the Ministry of Village, Development of Disadvantaged Regions, and Transmigration (Kemendes) and numerous embassies, including those of the United Kingdom, Japan, and Australia (AUSAID). These partnerships have the potential to enhance the living standards of farmers, empower female farmers, and promote agricultural development in remote areas of Indonesia. Indonesia's agricultural products, particularly spices, can be more highly valued by the international market as a result of Agradaya's ability to convey the concept of traceability throughout its supply chain.

In 2022, Agradaya, a business entity, achieved a significant milestone by diversifying its product line by incorporating natural ingredients. This was done in response to the competitive spice market and to improve business performance by identifying new opportunities (post-COVID-19). Agradaya continued to prioritize its primary vision of Sustainability Farming.

By 2024, Agradaya's customer base has expanded significantly, while still retaining its current market share, with numerous repeat orders. The company has already established a national presence in Indonesia and has also expanded internationally to countries including Belgium, Japan, Korea, and others. It has also diversified its range of herbal products and natural ingredients for cosmetics, food, and medicine.

Social and environmental benefit

The following are the methods in which Agradaya's business affects social and environmental aspects:

1. Tangible

Agradaya maintains a database of farmers and their commodities that can be used to measure the production capacity of farmers and the duration of the agricultural product production process. This can enhance the standard of living of producers by ensuring that they receive consistent and continuous benefits from agricultural products.

2. Intangible

Modifications in the conduct of producers. In the past, producers employed pesticides and inorganic fertilizers. The producers began employing organic materials to comply with Agradaya's standards after joining the organization.

In addition to supporting good environmental sustainability, this is also part of Agradaya's efforts to meet the needs of buyers who also pay close attention to product traceability in their purchases.

In order to maintain its dedication and commitment to sustainability, Agradaya intends to implement the subsequent strategies for future business expansion:

1. Strengthening partnerships and expanding community-based farming areas, with a particular emphasis on herbal and natural ingredients, with a particular emphasis on Eastern Indonesia.

2. Increasing the number of logistic delivery points to reduce delivery times to overseas markets and buyers and to establish additional logistic centers.

3. Supporting the expansion into international markets and implementing product innovation, particularly for natural ingredients.

Interview

Asri Saraswati Iskandar, Founder and CMO