Innovation

"Right now, we have a unique first of a kind program around rice." (Yu, 2023)

Astungkara Way wants farmers to stop using chemical fertilizers and pesticides and instead rely on traditional, old-school farming methods. For instance, instead of using chemical fertilizers, farmers are taught to introduce ducks and fish into their rice paddies. This way, natural fertilizer is produced and soil health is slowly restored. Thus, the company's innovation uses solutions of the past, as the present approach of farming with pesticides is harming the environment (Schill et al, 2017). It is also about promoting a demographic shift by empowering young people to learn about farming, as the average age of Balinese farmers is 60 years. The farmers are learning at Green School Bali. This means not only the company itself but also communities nearby are involved in Astungkara Way as stations of the trail. As a result, communities are integrated into the business as well. The regenerative trails help tourists reconnect with the environment. Current companies in Bali try to attract tourists with overwhelming offers, whereas Astungkara Way focuses on simple walks, which help to perceive nature much better and to shift focus.

Astungkara Way (2023b). Food. Retrieved June 22, 2023, from https://www.astungkaraway.com/food

Schill, C., Ran, Y., Ospina, D., & Biggs, R. (2017). Balinese rice production. In Regime Shifts Database. Retrieved from www.regimeshifts.org

Yu, T. (2023, May 31). Interview on Astungkara Way [Interview transcript].

Inspiration

"Tim told me I had a vision. A snake told me I have to create the first walking pilgrimage across Bali." (Yu, 2023)

After working with the Balinese farmers, the founders of Astungkara Way noticed three things that they can help the farmers with.

The farmers want to sell the rice at higher prices and also maintain or increase their yield (their yield has been dropping due mainly to degraded soil attributed to the use of chemicals).

The farmers also want to capitalize on the ecotourism around their farms.

They want young people to get involved in farming.

Because of middlemen, the farmers are not getting good prices. Should they be able to sell directly to hotels and restaurants, they will be able to obtain better profits. They need cooperation among those who are making the transition into healthy rice growing.

They need and want to transition to better farming practices, but they need help. This is the first inspiration for Astungkara Way to coordinate the farmers and brand their rice as Healthy Rice and directly sell it to hotels and restaurants.

Since the farmers are transitioning into healthy farming, they want tourists visiting Bali to know how rice is grown and appreciate the cycle. They want to create value for the tourists by helping them explore the farm or even get involved in the growing of healthy rice. By doing this, not only will the tourists gain a closer insight into what real Bali has to offer, but the farmers can also gain a piece of the tourism revenue pie. This way, the tourism revenue pie is also enlarged because the tourists can now experience the rice cycle.

The average life of farmers is getting older and older. Arguably, this can will become an important problem in 15 to 20 years.

After learning this, the founders realized that they could help the farmers by having a farmer's cooperation where the tourists can learn and experience the agriculture and culture of Bali while empowering young people to get involved in farming.

Reference:

Astungkara Way (2023a). About. Retrieved June 22, 2023 from https://www.astungkaraway.com/

Yu, T. (2023, May 31). Interview on Astungkara Way [Interview transcript].

Overall impact

The initiatives taken by Astungkara Way provided Balinese farmers with opportunities for growth in alignment with the sustainable development goals.

The startup has helped 200 rice farmers transition to regenerative agriculture. As a result of such initiatives, farmers are able to improve soil, maintain the yields while reducing the overuse of chemical fertilizers as well as switch to non-chemical (i.e. compost from manure) for growing rice.

In addition, the Astungkara Way supports the farmers by helping them sell rice at a higher price to Balinese restaurants and hotels through the farm-to-table initiative. By doing so, Astungkara Way is also raising awareness about sustainable and healthy rice among customers. Although healthy rice is pricier compared to regular rice, customers are contributing towards alleviating poverty and playing a role in improving the quality of life of farmers.

Likewise, Astungkara Way is also encouraging young adults to consider pursuing farming as a career as they understand that Bali is running out of farmers and, in the future will face labor shortages in agriculture.

Finally, the Astungkara Way strives to create real, mutually beneficial travel connections by offering tourists a truly holistic and immersive experience (i.e. regenerative trails). According to Tanguy, "The main thing is selection of trail points. That is the difference to other trails. All of the trail points are communities that are engaged in regenerative action." The startup aims to help transition to regenerative travel in Bali that supports local agriculture.

Reference: Yu, T. (2023, May 31). Interview on Astungkara Way [Interview transcript]

Business benefit

Astungkara Way not only helps farmers in selling rice at a higher price but also supports them in transitioning away from chemical usage. Additionally, the company incorporates ecotourism into rice farming to diversify its business model (Astungkara Way, 2023a). Astungkara Way employs an innovative and incentivized approach to promote the transition to regenerative rice farming.

First, Astungkara Way is purchasing healthy and regenerative rice from farmers in Bali. Healthy rice requires that the rice is farmed with a reduction of chemical fertilizer and the complete elimination of pesticides. According to Tanguy, the typical price received for rice is 9.000 Indonesian Rupiah per kilogram. However, Astungkara Ways offers a higher price of 13.000 Indonesian Rupiah per kilogram for the rice it purchases. The company also provides farmers with training on natural alternatives to chemical fertilizers. As a result, farmers can reduce their input costs by using fewer chemical inputs (fertilizers, herbicides, fungicides), leading to increased profit margins. Astungkara Way further adds value to the rice by leveraging its marketing expertise to sell it to customers at around 15,000 Indonesian Rupiah per kilogram (Astungkara Way, 2023b).

In the case of regenerative rice, which involves the exclusion of both chemical fertilizer and pesticides, Astungkara Way implements traditional techniques that reestablish the ecosystem of rice paddies by reintroducing ducks, fish, and border plants. These elements serve as natural fertilizers and can also generate additional revenue through the sale of ducks and fish. Astungkara Way aims to expand its business by venturing into regenerative, non-chemical vegetable farming and organic coffee farming as well.

Moreover, Astungkara Way integrates ecotourists into the regenerative trail experience, allowing them to reconnect with nature by paying only the trail fee.

Astungkara Way (2023b). Food. Retrieved June 22, 2023, from https://www.astungkaraway.com/food

Astungkara Way. (2023c). Shop. Retrieved June 22, 2023, from https://www.astungkaraway.com/shop

Yu, T. (2023, May 31). Interview on Astungkara Way [Interview transcript]

Social and environmental benefit

"The average age of farmers in Bali is 60 years old, 59.8 exactly. The average in the world is 60 years old. This is a looming time bob which will definitely cause big issues in not too long. Who is gonna grow food in 20 years?" (Yu, 2023)

To protect our health and ecosystems, rice farming must undergo a transition from a chemical to a non-chemical farming approach (Sapbamrer & Nata, 2014). Astungkara Way is committed to helping farmers produce healthy and regenerative rice (Astungkara Way, 2023a). "We help them implement a technique, which is actually a traditional technique, which is how rice was grown 50 years ago before the green revolution in which we reestablish the ecosystems of the rice paddies" (Yu, 2023). The company purchases “healthy rice” from farmers once they meet two criteria: farmers must reduce their use of chemical fertilizer and completely stop using chemical pesticides. Some farmers are even capable of producing “regenerative rice” which reestablishes the ecosystem of rice paddies by integrating ducks, fish, and border plants into rice paddies. This way, ecosystems are reestablished, and pesticides are redundant. Thus, Astungkara Way provides significant environmental benefits.

Healthy food leads to healthy people (U.S. Department of Health and Human Services, 2023)! Alongside the environmental benefit, social benefits are also created. Firstly, tourists are reconnected to nature by walking the Astungkara trail. All trail points represent communities engaged in regenerative action, such as the regenerative farming learning center located in the middle of the rice paddies. The demographic problem of rice farming in Bali is also addressed. The average age of farmers is 59.8 years. That is why Astungkara Way also focuses on teaching farming to the youth, e.g. with the Green School Bali, to ensure a smooth demographic transition to the next generation of rice farmers in Bali.

Astungkara Way (2023b). Food. Retrieved June 22, 2023, from https://www.astungkaraway.com/food

Sapbamrer, R., & Nata, S. (2014). Health symptoms related to pesticide exposure and agricultural tasks among rice farmers from northern Thailand. Environmental Health and Preventive Medicine, 19, 12-20. https://doi.org/10.1007/s12199-013-0349-3

U.S. Department of Health and Human Services (2023). Nutrition and Healthy Eating. Retrieved August 05, 2023 from https://health.gov/healthypeople/objectives-and-data/browse-objectives/nutrition-and-healthy-eating

Yu, T. (2023, May 31). Interview on Astungkara Way [Interview transcript]

Interview

Tanguy Yu, Co-founder, Permaculture Specialist, Tech and Finance

Watch video on YouTube