Vol. 154, No.

3 · Research article

Sustainability Standards and Social

Network Development: Indonesian
DIE ERDE Coffee Farmers’ Unpredictable Impact
Journal of the
Geographical Society
of Berlin
Pathways to Achieving a Living Income

Joshua G. Bray1, Bustanul Arifin2, Hanung Ismono3a, Jeffrey Neilson4*

1 School of Geosciences, University of Sydney, Darlington, Australia 2006, Brayjoshua@outlook.com.au, https://orcid.org/0000-0002-9291-0700

2 Department of Agricultural Economics, University of Lampung, Bandar Lampung Indonesia 35141, Indonesia, barifin@yahoo.com,

https://orcid.org/0000-0002-4903-9227
3 Department of Agricultural Economics, University of Lampung, Bandar Lampung Indonesia 35141, Indonesia, https://orcid.org/0000-0001-5044-90311

4 University of Sydney, Darlington, Australia 2006, jeffrey.neilson@sydney.edu.au, https://orcid.org/0000-0003-2560-2190

*corresponding Author

Abstract
This paper presents coffee producers’ subjective perceptions of voluntary sustainability standards (VSS) programs
across southern Sumatra, a global center for Robusta coffee production. Household surveys and a series of farmer
interviews revealed that producers generally had positive perceptions of these programs. Despite positive percep-
tions, the standards had little impact on yield or household incomes. This apparent paradox is explained by improved
social networks and social capital, which were seen as important for broader livelihood security. Producers believed
that VSS facilitated access to material support and increased knowledge exchange. This builds both bonding and
bridging social capital, all with minimal disruption to the low-input system of coffee production that fits within
farmers’ broader livelihood strategies. Our approach highlights the challenges that impact assessments (including
applications of the living income concept) face when seeking to establish ostensibly objective measures of well-being.

Keywords Sustainability; coffee; Indonesia; living income; social capital

Bray, G. B., Arifin, B., Ismono, H., & Neilson, J. (2023). Sustainability standards and social network development: Indonesian coffee
farmers’ unpredictable impact pathways to achieving a living income. DIE ERDE, 154(3), xx–xx.

https://doi.org/10.12854/erde-2023-641

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Indonesian Coffee Farmers’ Unpredictable Impact Pathways to Achieving a Living Income

1. Introduction the 2013 4C ToC (4C Association, 2013; valid during

our field study) did not specifically mention “living
Over the last twenty years, voluntary sustainability income,” it explained how “the ultimate impact con-
standards (VSS) have sought to improve social and tributed to will be improved quality of life through
environmental conditions in the producing regions higher incomes amongst producers and an ecosystem
of international commodity markets (like coffee). that sustains coffee’s livelihood” (p. 2). This aspira-
VSS follow a basic template of i) establish a code, ii) tion is common among other VSS ToCs (e.g., Rainforest
introduce the code to a producing community, iii) en- Alliance [Rainforest Alliance, 2021] and C.A.F.E. [Cof-
sure code compliance, iv) audit practices against the fee And Farmer Equity] Practices [Starbucks, 2020]);
code, and v) apply a label to “add value” at the point of thus, VSS programs consider themselves mechanisms
consumption (although this last step does not always for supporting a living income in the Global South.
occur). This model was pioneered by Fairtrade and or-
ganic labels in the 1980s. Broad “sustainability” labels 4C is a sustainability standard developed by an indus-
like Rainforest Alliance and the Common Code for the try-led, membership-based organization embraced by
Coffee Community (4C) only applied this model in the the mainstream coffee industry. Much of its appeal
coffee sector from about 2003 (Neilson & Pritchard, is its self-styled low entry and low visibility. The vol-
2007). Advocates assert that VSS will improve partici- ume of 4C-verified coffee produced globally increased
pating farmers’ incomes in commodity-producing re- from around 600 thousand tonnes in 2010 to a peak of
gions. However, it is unclear whether VSS actually im- just over 2.5 million tonnes in 2015, or around 29% of
prove farmer livelihoods or deliver a “living income” global production (Grabs, 2018). In southern Sumatra,
in the global south (as they were initially developed one of the world’s largest Robusta coffee production
to meet consumer demand in the global north). In ar- sites, 4C-verified production units increased from
eas like southern Sumatra (Indonesia), coffee farm- nine units in 2012 to 29 units in 2017, before falling
ers lack a collective voice and are generally passive again to 14 in 2020 (Coffee Assurance Service [CAS],
recipients of VSS interventions like 4C, the standard 2022). In these areas, coffee is an important part of the
examined in this study. Most empirical studies on VSS local economy and the single most important source
attempt an ostensibly objective assessment of impact of household income. Smallholders cultivate an aver-
to examine effects on coffee producer livelihoods and age of two hectares and generally grow coffee as part
incomes. In contrast, we present the results of an at- of a diversified livelihood with relatively low use of
titudinal survey among Sumatran producers enrolled external inputs (and correspondingly low yields; Bray
across five 4C “production units” to understand their & Neilson, 2018). Growers usually sell coffee to col-
lived experiences in the program. We attribute the lectors, who pass it along to the exporters with ware-
positive perceptions of VSS to improvements in social houses in the main port of Bandar Lampung. Much of
capital. the international trade is controlled by commodity-
trading firms (with head offices in the global north),
VSS were initially established in the coffee value chain who act as strategic suppliers for major branded cof-
to assure consumers of acceptable production prac- fee roasters. These commodity traders are largely re-
tices and enhance consumer brand recognition and sponsible for introducing 4C to independent growers
trust. London (2012) argues that these schemes were in Sumatra (by organizing them into “4C production
also intended to secure key commodity supply for units”). This continues the growing trend of global
lead firms. This is increasingly important in a global firms’ upstream engagement in Indonesian coffee re-
context of stagnating production levels and the loom- gions (Neilson, 2008).
ing threat of climate change (International Coffee Or-
ganisation, 2018). The resulting audit-oriented model Despite its dominance, “the implementation, monitor-
may satisfy the downstream demands of buyers (e.g., ing and impact of the industry’s inclusive 4C baseline
manufacturers, retailers and consumers) but fails to verification system has hardly been investigated”
meet the income needs of upstream value chain par- (Panhuysen & Pierrot, 2018, p. 18). Review articles
ticipants (i.e., farmers). Nevertheless, VSS programs suggest that impacts on coffee-derived incomes are
certainly seek to induce positive social and economic modest (Bray & Neilson, 2017; Oya et al., 2017). Most
changes within producer communities. The 4C As- benefits are associated with target communities’ pre-
sociation presents a Theory of Change (ToC) docu- existing priorities (and the ability to leverage oppor-
ment that maps out its desired achievements. While tunities; Burivalova et al., 2017). However, partici-

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 Indonesian Coffee Farmers’ Unpredictable Impact Pathways to Achieving a Living Income

pation can trigger knowledge-sharing and network ties vary between producer populations. Therefore,
formation that go beyond improving target commod- few studies have attempted to specifically report on
ity production to advance broader household liveli- the subjective, localized experience of VSS.
hoods (Gotor et al., 2017). Thus, VSS’ impact pathways
on livelihoods are varied, context-dependent, and of- Social capital is said to manifest as either bridging
ten unexpected. However, studies employing objec- social capital or bonding social capital (Gittell & Vidal,
tive methodologies—particularly those focused on 1998). However, as Claridge (2018) reminds us, so-
environmental indicators (e.g., Haggar et al., 2015)— cial capital is not easily categorized and frequently
push a “raw empiricism” (van Dijk, 2011, p. 102) that presents along a continuum of these ideal forms.
downplays the influential mediating role of local in- Bonding social capital refers to the strong connec-
stitutional environments and participants’ agency tions that link people within relatively homogenous
(Bray, 2019). Subjective studies are needed to exam- social groups (e.g., inhabitants of a Sumatran village,
ine why producers continue with VSS, despite the lim- where Islamic prayer groups, farmer group meet-
ited empirical benefits (e.g., in yield and income). ings, badminton matches, and mutual contributions
to ceremonial activity provide internal resources that
Price incentives are often thought to attract produc- assist villagers in getting by during times of distress
ers into VSS (e.g., Snider et al., 2017). Price benefits or crisis). Bridging social capital links people across
may be present (Oya et al., 2017) and may lead to im- social groups (e.g., with coffee farmers in more dis-
proved livelihoods (Jena & Grote, 2016). However, this tant villages, individuals in nearby cities, and perhaps
often depends on local market conditions, which may with coffee drinkers, café owners, and regional coffee
even depress VSS premiums due to oversupply (Bose traders). In Sumatra, value chain social linkages are
et al., 2016; Elder et al., 2012; Sick, 2008). After all, the often multi-ethnic and maintained through common
volume of coffee produced under VSS schemes signifi- economic motives. Bridging social capital is consid-
cantly exceeds the volume actually sold as such (Pan- ered more expansive and potentially provides exter-
huysen & de Vries, 2023). Furthermore, prices fluctu- nal resources that can assist individuals in getting
ate due to global supply and demand, and even basic ahead. The World Bank (2000) distinguishes between
quality premiums will generally be far more signifi- bridging and linking social capital, with the latter in-
cant than any VSS-related price premiums. However, cluding vertical relationships with more powerful ac-
earning a living income from a target commodity (e.g., tors. In our case, linking social capital might include
coffee) is not only a function of price but of production networks with government representatives, coffee
volume and costs, which can be enhanced through companies, development agencies, and non-govern-
improved farm practices. More importantly, VSS pro- mental organizations. Indeed, most of the bridging
grams’ living income strategies are fundamentally social capital we identify serves a linking function.
complicated by diversified household livelihood strat- Such connections, however, present as patron-client
egies (Bray & Neilson, 2018). relations, with a contradictory mix of exploitation and
security (Scott, 1972).
Enrolled farmers perceive VSS favourably, even when
it only leads to indirect or non-economic benefits. The evidence for VSS schemes contributing to en-
For example, social capital has been associated with hanced social capital is mixed and highly context-de-
more active market participation, improved coopera- pendent. In Peru, for example, producers associated
tive bargaining power, and a greater sense of identity participation in VSS-linked cooperatives with social
among producers (Abe, 2009; Ruben & Fort, 2012), capital improvements (Ruben & Fort, 2012). Often,
which can indirectly lead to health benefits and pov- however, it is the way VSS interacts with pre-existing
erty alleviation (Seferiadis et al., 2015). In coffee- institutional structures in particular places that mat-
related case studies, social capital has been shown ters, even if the effects are difficult to predict. Strong
to facilitate technical assistance, farming equipment pre-existing farmer cooperative social networks in
availability, and market management services (Karki Rwanda contributed to positive perceptions of Fair-
et al., 2016), leading to more efficient practices and trade (Elder et al., 2012), while Sick (2008) found that
improved environmental outcomes. However, it is strong pre-existing community structures in Costa
difficult to study perceptions of social capital; its ap- Rica resulted in a generally low regard for VSS ser-
praisal is subjective, its effects on living income are vices. Similarly, in Mexico, the strong prior participa-
indirect and difficult to measure, and its lived reali- tion of producers in organic cooperatives was put at

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Indonesian Coffee Farmers’ Unpredictable Impact Pathways to Achieving a Living Income

risk when more top-down institutional structures ed; we then randomly selected individual producers
were imposed (González & Nigh, 2005). Producer within the villages to participate in the survey. The
groups in Latin America possess relatively higher exact number of respondents sampled from each 4C
pre-existing organizational capacity than those in unit was calculated using i) proportionality to the to-
Indonesia. In Sumatra, Bray (2019) found the relative tal number of households and ii) representative dis-
absence of producer cooperatives and government tribution across the three districts. The sample selec-
extension officers meant that they looked favourably tion is presented in Table 1.
upon the establishment of VSS. Moreover, farmer or-
ganizations in Indonesia rarely engage in policy advo- Table 1 Distribution of respondents
cacy or social agitation, and only sometimes with col-
District
lective marketing. They are mainly vehicles to funnel Company Tanggamus Lampung Muara Enim Total
government support resources. The VSS programs we Barat
observed in Sumatra were often built on these organi- Firm A 96 202 298
zational foundations. Therefore, our study examines (1,100) (2,000)
producer perceptions of VSS impacts on social capital Firm B 112 98 210
(1,000) (1,600)
when pre-existing groups have relatively weak organ-
Firm C 50 50
izational capacity.
(300)
Total 162 194 202 558
This study contributes to the broader literature on
Note. Numbers in brackets indicate the approximate total
VSS impacts on the livelihoods and incomes of small- number of producers (these numbers luctuate yearly).
holder producers in the Global South. We present the
lived reality of VSS—as experienced by southern Su- A total of 558 participants completed our survey,
matran coffee growers—in relation with pre-existing which consisted of 40 questions about household
institutional environments. We observed a non-linear background, knowledge of the program, producer
relationship between value chain interventions and group function, attitudes towards training and ag-
income generation. However, VSS can reshape and ricultural practices, and general outlook on coffee
strengthen social capital within producer communi- production. Eight enumerators from the University
ties. VSS-related training activities can significantly of Lampung were recruited and trained before com-
enhance levels of social capital and networking to im- mencing the surveys. Enumerators consulted the
prove social resilience and open pathways for alterna- household member most familiar with coffee farming
tive income-generating activities. This has important and the 4C program. Only five percent of survey re-
implications for attempts to guarantee a living income spondents were women. In practice, men do dominate
for smallholder producers through value chain mech- coffee-farming activities in the region, but women are
anisms. far more involved (especially in the harvest) than this
might suggest. However, men are overrepresented in
formal training activities and farmer organizations.
2. Methodology This paper also draws on a combined six months of
qualitative fieldwork between 2015 and 2017. During
At the start of our study in 2015, seven firms in south- this fieldwork, we revisited most of the survey vil-
ern Sumatra were listed as 4C managing units. We lages to conduct semi-structured key interviews with
approached these firms to facilitate access to 4C- heads of villages, heads of farmer groups, traders, en-
enrolled farmers. Of these, only three participated— rolled and non-enrolled producers, extension officers,
“Firm A,” “Firm B,” and “Firm C” (two multinational and other community members.
commodity traders and one multinational coffee
roaster). Two other firms discontinued the program
before the field survey commenced (late 2016), and
two were unwilling to participate. The firms provided
lists of more than 6,000 4C-enrolled producers, all of
whom had been involved in a 4C production unit for
at least two years. Five 4C units across three districts
were selected for the study. Villages with a minimum
of ten 4C-enrolled producers were randomly select-

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 Indonesian Coffee Farmers’ Unpredictable Impact Pathways to Achieving a Living Income

3. Perceptions of Sustainability Programs in It is theoretically possible to comply with VSS code

Southern Sumatra requirements and pass the 4C audit without attend-
ing training. Nevertheless, farmer training (on topics
South Sumatra and Lampung—Indonesia’s two larg- ranging from agronomy to environmental manage-
est coffee-producing provinces—have become target ment to record-keeping) was a core aspect of inter-
areas for firms implementing sustainability initia- ventions in southern Sumatra. Firms generally pro-
tives. Such initiatives often attempt to improve yield, vided training through farmer groups three to six
supply and quality (and hopefully, indirectly, improve times each year, usually in the lead-up to and during
farmer incomes). In 2017, 23 of Indonesia’s 29 4C pro- the harvest season and before an external audit. Since
duction units were located in these two provinces. government officers were sometimes invited, there
4C had a significantly higher uptake than other VSS was some confusion amongst producers as to whether
like Rainforest Alliance and Utz. While 4C units can the training was part of VSS, a firm-specific develop-
be managed by a variety of organizations (including ment program, or a government initiative. In accord-
plantations, farmer cooperatives, and producer asso- ance with local cultural and religious sensibilities,
ciations), all the managing entities in southern Suma- training sessions were highly ceremonial (upacara),
tra were large firms (commodity traders or roasters) with each member greeting others with a handshake
that worked with smallholder farmers. On average, as they entered the room or garden. This was followed
each 4C unit consisted of 1,500 farm households, co- by a brief prayer and formal welcome addresses by
ordinated through smaller farmer groups (kelompok senior figures. This format mimics government-led
tani) of about 20 to 40 members. Compliance was activities and highlights the importance of the out-
encouraged by Internal Control Systems (ICS)—nor- ward social form in rural Indonesia (despite delaying
mally young employees who the company referred to the core training activity). Some participants even left
as “agronomists”—that farmers associated with the after the formal opening, before the substance of the
firms’ agricultural extension agents. Firms usually training began. Some firm-based actors derided this
targeted pre-existing, government-endorsed farmer emphasis on ceremony as unproductive small talk
groups by approaching farmer group heads (ketua (basa-basi). In other development contexts, similar
kelompok), but occasionally established new groups practices have helped foster social capital (Cilliers &
with government approval. For its part, the govern- Wepener, 2007). The frequency and depth of training
ment rarely provided agronomic training or services varied widely between companies. Firm C farmers’
beyond occasionally offering state-subsidized ferti- greater 4C awareness (Table 2) was not correlated
lizers via farmer groups. Despite the relative absence with a greater appreciation of the training; rather, it
of state support, coffee is the single largest income reflected Firm C’s tendency to merely train farmers to
source in these highland villages. In this milieu, tech- prepare for the audit.
nical support for coffee farmers was now dominated
by private sector firms, often linked to 4C units.

Table 2 Involvement with 4C and training

Indicator All Firm A Firm B Firm C

Districts ME LB T LB T
Producers aware that training was part of a 4C program 50 49 36 55 47 72
Perceived a distinction between coffee company and 4C 16 7 23 27 20 18
Received training as a result of the program 97 95 100 100 100 98
Frequency of training events (times per year) 3.4 2.1 2.4 5.9 5.3 2.3
Total time attending training (hours per year) 14.9 10.3 9.6 26.3 20.7 8.9
Household had received training from the government before 4C 32 30 70 4 49 2
Note. % of respondents from group unless otherwise indicated; ME = Muara Enim; LB = Lampung Barat; T = Tanggamus

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Indonesian Coffee Farmers’ Unpredictable Impact Pathways to Achieving a Living Income

In Sumatra, the firm-led 4C VSS process was weakly Farmer relations with trader networks (generally tra-
embedded in the producer community. In our survey, ditional collectors) constituted another form of link-
50% of respondents were unsure whether they had ing capital in rural communities (Table 4). However,
been 4C-verified (Table 2), reflecting either poor com- Firm B established exclusive trade relationships with
munication of the training’s purpose or the incidental collective businesses—hybrid, vertically-integrated
nature of 4C in the firm’s farmer engagement. The re- extensions of the firm that amalgamated coopera-
spondents often believed that they were participating tives and local traders (farmers perceived these as
in a company training program. Therefore, the subse- intimately aligned to Firm B). Firm A’s local buying
quent survey questions asked about their experience stations were generally less successful at reaching
with “the program.” the farm-gate level, while Firm C made no attempts
to do so. The persistence of local traders—some of
We investigated the organizational processes through whom were also farmer group heads—can be largely
which individuals and groups became enrolled in explained by their important patronage roles within
their 4C unit. The farmer group is the basic social unit communities, particularly in relation to finance.
of producer organizations in rural Indonesia. Groups
have a formal head, often male, who is the key con- Eighty-five percent of respondents claimed that their
duit of information (and resources) between mem- farm practices had changed after receiving training,
ber households and outside actors (i.e., a mediator of with many highlighting increased use of protective
linking capital). Most participating households were clothing and equipment. Indeed, all 4C units distribut-
introduced to the program by these heads. This cre- ed protective masks to households, and two-thirds of
ated a high degree of organizational continuity with all respondents reported receiving some kind of ma-
previous government interventions, even if the gov- terial assistance (Table 4). Many producers compared
ernment provided limited training (Table 3). Firm A’s 4C interventions to previous government programs
representatives used a government-provided list of (known locally as proyek) that had distributed free or
farmer organizations to ascertain interest in 4C pro- subsidized fertilizers via farmer groups. Meaningful
gram participation, despite many groups “existing on change from such proyek, however, remains low and
paper only” (an expression widely used by industry its patronage may have even diminished the possibil-
and government stakeholders in Sumatra to refer to a lity for real political change (Li, 2016). In the case of
group that is only mobilized to access resources). Firm 4C, tangible material assistance solidified the patron-
C was especially reliant on pre-existing heads for in- age relationships between non-local actors, farmer
formation delivery and farmer recruitment. Firm B’s group leaders, and individual farm households. The
activity in Tanggamus drew upon a 25-year history of delivery of such “gifts” was often highly ceremonial,
direct farmer engagement. publicly enforcing a strong expectation of reciproc-
ity. In contemporary rural Indonesia, the ubiquitous

Table 3 Coffee-related social networks

Indicator All Firm A Firm B Firm C

Districts ME LB T LB T
Head of farmer group 47 59 47 15 35 96
Company ICS 37 28 39 64 40 2
Who introduced you to the program?
Farmer group member 12 12 13 8 18 8
Other 4 1 1 13 7 2
Direct to irm 36 26 9 62 72 0
Main coffee buyer Local trader 63 74 90 38 28 100
Co-operative 1 0 1 0 0 0

Note. % of respondents from group; ME = Muara Enim; LB = Lampung Barat; T = Tanggamus

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 Indonesian Coffee Farmers’ Unpredictable Impact Pathways to Achieving a Living Income

Table 4 Perceptions of program benefits

Indicator All Firm A Firm B Firm C

Districts ME LB T LB T
Perceived a positive impact on family as a result of the program 85 74 90 99 90 76
Perceived improvement in transparency of roll-out partner 92 83 100 100 100 100
Reported higher prices due to program involvement 80 55 89 97 94 89
Reported a yield increase following training 68 59 62 89 76 56
Reported material assistance from the program, either to farmer 67 42 66 99 67 100
group or individuals
Learned a signiicant amount of new information 71 81 72 68 82 12

Note. % of respondents from group; ME = Muara Enim; LB = Lampung Barat; T = Tanggamus

proyek was a technical and apolitical intervention to prices—program participation seemed to engender
“channel funds to favoured members of the rural elite, heightened familiarity with, and trust in, the firms.
and to discipline villagers who are told to wait pa- However, yields and prices were primarily influenced
tiently for state largesse to come their way” (Li, 2016, by factors beyond program control (e.g., global supply
p. 82). Similarly, surveyed households described how and demand, and weather fluctuations). When asked
4C program participation reinforced social relation- about positive experiences in the in-depth interviews,
ships that might deliver (tangible and intangible) producers cited the importance of regular meetings.
future benefits. Participating farmers believed that They generally reported positive experiences from
downstream buyers involved in VSS programs would trainings and that their knowledge had improved
improve transparency, with many expecting higher (Table 4). A stark exception was Firm C, where 88% of
price premiums to eventuate. Indeed, this was an im- respondents in this relatively remote region claimed
portant motivating factor for many farmers to partici- to have only learnt a little (illustrating the wide range
pate in VSS. of training provisions between providers, all of whom
successfully passed the 4C audit).
Producers were willing participants in the trainings
targeted at coffee production. Coffee underpinned
their “hanging in” livelihood strategies (based on 4. Sustainability Programs, Social Capital, and
the typology of Dorward et al., 2009, p. 136) and was Patronage
particularly important when off-farm employment
opportunities were limited. The 4C audit’s flexible The overwhelmingly positive perception of 4C pro-
traffic light system was not considered overly pre- grams in southern Sumatra is somewhat at odds with
scriptive, and producers could select which program more tangible assessments of (the lack of) yield in-
elements to adopt. As long as they avoided unaccep- creases in both southern Sumatra (Ibnu et al., 2015;
table practices (red lights), they would continue to re- Neilson et al., 2019) and beyond (Bray & Neilson,
ceive support and sometimes market access (despite 2017). We suggest that most producers who reported
little progress toward modernising farm practices). a positive impact from program involvement were re-
Farmers were encouraged to increase labor alloca- sponding to impacts that transcend direct yield-relat-
tion to coffee, but were under no obligation to do so ed benefits or direct gains in coffee income. Rather,
(and many did not). They maintained a low-input/ they primarily reflected improvements in social capi-
low-output strategy for coffee production. As one pro- tal and strengthened forms of social organization.
ducer explained, “we get some help but we don’t have Unsurprisingly, these benefits were especially lauded
enough money to change traditional ways. We really by farmer group heads who benefited most from en-
want to update our farming practices, but we can’t af- hanced patronage, but they also extended to individu-
ford it.” Most of the household respondents reported al group members.
positive outcomes from program participation (with
some variability across firms and locations). This in-
cluded perceptions of improved transparency and

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Indonesian Coffee Farmers’ Unpredictable Impact Pathways to Achieving a Living Income

Putnam (1993) argues that “social capital tends to be When the groups were established (or new training
undervalued and undersupplied by private agents ... activities were introduced to existing groups), the
[and this] means that social capital, unlike other forms farmer group head and company agronomists orga-
of capital, must often be produced as a by-product of nized a meeting to present the structured training
other social activities” (p. 170). In southern Sumatra, plan. It was seen as a collective effort to improve coffee
4C training appears to constitute one such “other so- production (even if it was less enthusiastically acted
cial activity.” Social capital is “an asset through which upon). Following Cilliers and Wepener (2007), we ob-
people are able to widen their access to resources served material improvements simply through physi-
and other actors” (Bebbington, 1999, p. 2021). Train- cal attendance at such meetings. A sense of belonging
ing programs and shared learning platforms have and trust was created through shared experiences,
been linked to the promotion of knowledge networks, civic literacy, environmental and social awareness,
transforming attitudes, and enhancing reciprocity, and an ethos of equity through social development and
trust, and common-good values (Gupta et al., 2003; transparency. The very act of organizing training ac-
Seferiadis et al., 2015). The promotion of learning tivities reinvigorated (and in some cases established)
networks and knowledge exchange helped extend farmer group activity (regardless of any subsequent
social networks in southern Sumatra’s 4C-enrolled application of improved agricultural methods or yield
communities. While producers valued these factors, it improvements). It generated both bonding and bridg-
was difficult to quantify their appreciation of social ing social capital. According to respondents, program
capital indicators like trust and knowledge exchange. involvement enhanced potential future involvement
Bonding social capital was developed through farmer in development programs initiated by the govern-
group membership, while bridging capital was devel- ment, private sector, and NGOs (linking social capi-
oped through knowledge exchange and the strength- tal). One Sumatran villager (a group leader) shared
ening of farmer groups by reinforcing existing pa- that involvement in the 4C program created new so-
tronage-based social networks (linking capital) with cial networks and facilitated the chance to obtain paid
potential benefits beyond the VSS intervention. work well beyond the coffee sector (on a government-
funded infrastructure project).
According to van Dijk (2011), “in order for a resource
to be of use, someone must be aware of its existence; Producers spoke positively about this activation of
perceive it as useful; and be able and willing to access their linking social capital. It was a perceived depar-
it” (p. 107). While this is easily applied to the distribu- ture from their previous networks, which were domi-
tion of goods via enrolled farmer groups, it is some- nated by state-based patronage that seemed designed
what more difficult to apply to producers’ percep- to systematically prevent the empowerment of lo-
tions of social benefits (not necessarily articulated cal social institutions. The Sumatran coffee farmers
as social capital). Training helped trigger the latent deeply valued bonding social capital (with immedi-
linking social capital of producer groups. The knowl- ate friends and family in the rural community), which
edge-sharing elements of the 4C program (delivered was strengthened by the 4C program. However, the
by relatively well-resourced agronomists) were well- opportunity to expand social circles at 4C-associated
received by respondents. Producers were integrat- training events (i.e., bridging and linking capital) was
ed into an extended knowledge exchange network, seen even more favourably. Producers adopted a “sub-
which shaped further improvements in producers’ stantive perspective” (van Dijk, 2011, p. 108) toward
linking social capital. The network allowed producers the social networks and capital they had been previ-
to share specific issues they were facing on-farm (e.g., ously unaware of or unable to access. The 4C train-
pest management concerns, disease outbreaks, or ex- ing program, enhanced price transparency, bridging
pected coffee prices). ICS agronomists assisted where social capital, and high-quality knowledge networks
possible and relayed information to those tracking were seen as a considerable improvement to the pre-
the success of the training program against corporate viously poor agricultural extension in the region.
policy goals. Thus, the training program’s “knowledge
network” linked producers with global actors, and 4C’s traceability requirements and the apparent need
provided access to technical knowledge that remote to work through farmer groups empowered strategi-
Indonesian farm households had been previously ex- cally situated actors (farmer group heads), some of
cluded from. whom effectively upgraded from farmers to collectors.
The 4C program interacted with existing patronage

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 Indonesian Coffee Farmers’ Unpredictable Impact Pathways to Achieving a Living Income

networks (and forms of linking social capital). Farmer 5. Conclusion

group leaders—usually village elites who were criti-
cal information conduits for both the government and Participants maintained positive perceptions of their
private firms—were especially supportive of the 4C involvement, even when sustainability programs
program (which helped them improve their social and were unable to induce agricultural practice change,
material well-being through a reinvigorated farmer yield improvements, or significantly increase price
group). All the firms re-enforced the importance of premiums. Therefore, standard impact assessments
farmer group heads as community leaders and, when may underestimate, or even systematically ignore,
direct sourcing occurred, we observed group lead- what farmers actually value about program involve-
ers assuming important roles as supply coordinators ment. Our attitudinal survey and village-level inter-
for 4C-verified coffee. The interventions never sig- views indicated that positive perceptions principally
nificantly disrupted existing coffee trade networks, revolved around the use and strengthening of exist-
though one firm did establish a local buying station ing institutions (farmer groups), the development of
for a period. In this case (and with Firm B’s collective social capital, access to new networks, and improved
business suppliers), group leaders transformed into resilience for enrolled producers. Previously mar-
medium-scale businesses with considerable wealth ginalized producers were enrolled into new social
accumulation. Group leaders sometimes even dispar- networks by 4C production units, training programs,
aged producers who opted out of 4C, declaring, “if they compliance verification, and (in some instances) sup-
don’t want to join, they don’t have to, they can leave. … ply chain relationships. However, benefits were un-
But they are the ones missing out!” Other group lead- evenly distributed and excessive time demands may
ers frequently referred to enrolled producers as “be- eventually become burdensome.
rani” (brave or courageous), implying those who shied
away from program participation were not. Such programs can activate the latent social capital
of producer organizations. Sustainability training can
Individual members obtained material opportunities provide a proactive response to changing vulnerabili-
from the program if they maintained good relation- ties; this, combined with a person’s freedom to choose
ships with group leaders. Indeed, a “moral atmos- their degree of engagement, is crucial for improving
phere” (Jakimow, 2018, p. 47) for all to reap benefits livelihoods (Scoones, 2015). The 4C training actively
from program involvement (known colloquially as sought to build human capital, albeit in a specific, on-
“bagi-bagi”) “permeates development encounters” in farm endeavour. From a producer’s perspective, the
Indonesia (Jakimow, 2018, p. 47). Bagi-bagi suggests strengthening of social capital is arguably most im-
an imperative to share program-derived benefits be- portant. Firms have proved adept at rapidly establish-
tween implementers and beneficiaries. While benefits ing farmer groups across the study area. This provides
were perceived by all participants, they were distrib- bridging and linking capital to producer groups and
uted through group leaders, who were empowered as challenges the idea that social capital development is
gatekeepers to enhanced social networks. Importantly, necessarily a slow and laborious process (McKenzie,
it was the act of participation that brought benefits, not 2013). The improved utilization of social networks
the consequence of participation. Extension programs should be seen as an asset that allows producers to
alone cannot provide a living income for smallholders; widen their access to resources (Bebbington, 1999).
they require strong local institutions that build on lo- However, it seems unlikely that firms would be will-
cal knowledge (McKenzie, 2013; Postigo, 2017). For ing to continue these programs without increased
example, training is anchored in farmer groups, which production returns, especially given that addressing
require political stability and formal support from supply uncertainty is a key rationale for them.
the government (to increase the chance of impact).
Nevertheless, these groups’ (mostly) democratic elec- We explored how 4C programs have been integrated
tions presented some opportunities for social mobility, into existing social structures in Sumatra. Producer
which is otherwise rare among the rural poor. These perceptions of program benefits likely diverge sig-
democratic, collective activities to mobilize latent so- nificantly from how the standards organizations and
cial capital may also have offered a “voice upgrade,” firms see their own programs. Farmers framed their
that is, “an increased capacity for inclusive negotiations participation through their prior engagements with
within the value chain” (Gradin 2016, p. 363). The posi- government proyek, reinforced social structures of
tive perception of transparency certainly hints at this. pre-existing farmer groups, and the enrolment of vil-

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Indonesian Coffee Farmers’ Unpredictable Impact Pathways to Achieving a Living Income

lage elites as conduits of information and material ps://doi.org/10.1016/S0305-750X(99)00104-7

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Our approach has important implications for attempts A critical comparison of conventional, certified, and
to embed the concept of a “living income” within VSS community management of tropical forests for timber
schemes and other commodity-centric value chain in terms of environmental, economic, and social vari-
interventions. The subjective experience of VSS high- ables. Conservation Letters, 10(1), 4–14. https://doi.
lights the limitations of ostensibly objective mea- org/10.1111/conl.12244
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a Hanung Ismono passed away in July 2023. His vital role in and stepping out: Livelihood aspirations and strategies
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