Accelerating Coffee Livestock Integration as Climate Smart Agriculture Implementation through Financial Support to Smallholder

Abstract

Coffee livestock integration is one of the climate change adaptation practices. However, its implementation is still not optimum due to the limited financial capacity of coffee smallholders. Some farmers implement the coffee livestock integration, but the integration system is not running optimally. This study analyzes the financial support for smallholder coffee plantations to implement coffee livestock integration as a Climate-Smart Agriculture (CSA) practice. The analysis was performed using Descriptive Statistics. Most farmers are interested in implementing coffee livestock integration but face constraints related to capital. Considering that the average ownership of coffee plantations is relatively small, the recommended coffee livestock integration is an integrated system based on farmer groups. Strategies to develop financial support for coffee livestock integration include increasing credit availability, increasing access, and diversifying and customizing products and services for different value chain actors. Not all components of investment and working capital get financial support. Therefore, it is necessary to strengthen farmer institutions, both social and economic institutions. Establishing strategic partnerships with non-financial service providers and providing technical assistance towards optimal credit use will complement financial support for coffee livestock integration.