Indonesian Political, Business & Finance News

Green tea view in Mt. Menoreh remains a dream

| Source: JP

Green tea view in Mt. Menoreh remains a dream

Text and photos by Tarko Sudiarno

YOGYAKARTA (JP): Menoreh mountain range -- lying in the
northern part of Kulon Progo regency, some 50 kilometers west of
here -- is not known for a distinct characteristic apart from the
danger of landslides that often hit the area.

The fertile Menoreh, cherished by the people of Yogyakarta, is
mainly recognized for its mining potential and horticultural
products. Unfortunately, the potential has not been optimally
exploited due to a lack of human resources. Many villagers living
nearby prefer to work in cities instead of becoming farmers.

The establishment of a tea plantation in Samigaluh district
has highlighted the difficulty of introducing new commodities
among farmers.

A 1988 feasibility study by PT Pagilaran, a company owned by
Gadjah Mada University's School of Agriculture, indicated that a
tea plantation was economically feasible in the district. The
area is located 900 meters above sea level, has adequate
rainfall and fertile soil.

In the same year, the company launched a trial tea crop in the
regency. Local farmers were fully involved in the management of
the plantation.

The main objective was to introduce the commodity to the
farmers and provide both farmers and the company's employees with
knowledge, skills and a business model to optimize the potential
for success of the business.

PT Pagilaran's production director Rachman Sutanto said mass
expansion of the plantation took place in 1990 through the
Pembangunan Perkebunan Wilayah Khusus (Special Regency Plantation
Development) program.

Through the program, the government provided farmers with
ready-to-plant seedlings, means of production and operational
expenses. The aid was only given in the initial year with the
hope that farmers would be able to achieve self-sufficiency in
following years.

The first step of the program began with cultivating the
northern side of Menoreh's mountain range. It covered a total
area of 745 hectares of land involving 1,795 farmers. In 1991 and
1992, a tea-processing factory, with the capacity to produce five
tons per day, was established on the site. The factory
specialized in the production of green tea.

The initial development showed good signs. The green tea
production from 1993 to 1995 showed significant growth but,
unfortunately, has fallen ever since.

The plantation site, as well as the number of farmers,
decreased sharply to only 236 hectares and 883 farmers, meaning
only 32 percent of the land and 49 percent of the farmers was
left! It caused a sharp decrease in the supply of tea leaves for
processing at the factory.

"Now, due to the lack of supply of tea leaves from the
farmers, we have only been processing one ton of leaves a day,
which produces 250 kilograms of dry green tea daily," Rachman
said.

This was obviously not economically feasible as the company
could only produce some six tons of dry green tea per month, far
below market demand, which reaches up to 20 tons monthly.

"If it weren't for the objective of serving the community and
maintaining the government's pride, both the plantation and the
factory would have closed long ago," PT Pagilaran's production
manager Harsoyo said.

He also revealed that a review study held last year showed
that the plantation and the factory had to close down.

"But we turned it down as the business is considered the pride
of the province and closing it down would have a high social
cost," he said.

Harsoyo suggested that for the factory to continue, good
cooperation between PT Pagilaran, local farmers and other
institutions involved had to be created.

The reason why the business has not run smoothly is due to the
fact that similar projects have also been conducted by other
government institutions, using the same land and farmers.

"That is the reason why you can also find other plants among
the tea on the plantation site. Different plants grow in the same
place. Obviously, this is not healthy for the tea," he said.

Farmers also need to attend to the crops more, as tea plants
require special treatment.

"This has been one of the obstacles in developing the
plantation, but we understand that most farmers are old. The
younger generation are no longer interested in farming. They
prefer to work in big cities instead," Harsoyo said.

To keep both the factory and the business economically viable,
the plantation management has to be improved. The plantation
site, too, needs to be expanded. The company must have a
supporting site of at least 50 hectares that is fully managed to
secure the supply of tea leaves.

If the Yogyakarta administration still wants Menoreh to have
similar prospects as Puncak, West Java, for tea production it
must pay serious attention to the problem. Full support from the
local community will give the Menoreh mountain range a greener
outlook in the future.

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