Fairtrade cooperatives are the backbone of the Fairtrade system. They connect smallholder farmers to global markets while ensuring farmers’ voices are represented in decision-making. Yet, many cooperatives in Sumatra continue to face challenges that limit their growth and resilience.

Key barriers include:

• Gaps in governance knowledge,
• Limited clarity on the roles of elected delegates, and
• Insufficient financial planning capacity.

These challenges weaken organizational performance, increase the risk of non-compliance with Fairtrade Standards, reduce the effective use of Premium funds, and lower buyer confidence in the supply chain.

Fairtrade is about more than delivering high-quality coffee produced in socially and environmentally responsible ways. It also requires strong cooperative governance—a foundation for fair, sustainable, and transparent business relationships. For many smallholder farmers, however, understanding their agency within cooperatives is new, and applying governance knowledge in practice remains difficult.

The Strategic Objective: Building Resilient and Accountable Cooperatives

To address these challenges, Fairtrade NAPP prioritized strengthening the capacity of cooperative delegates—the elected representatives who give members a voice during general assemblies. Delegates play a pivotal role in:

• Representing members and their priorities,
• Serving as a channel for transparent communication and information, and
• Strengthening collective action and solidarity.

Each delegate serves as a bridge between cooperative management and 30–50 member-owners, with many critical business and production decisions depending on their active participation.

The Intervention: Governance Training in Sumatra

To strengthen cooperative governance, ensure compliance with Fairtrade Standards, and promote sustainable livelihoods, Fairtrade NAPP organized a Governance Training program for 120 participants, including:

• 85 farmer members from six cooperatives, and
• 43 cooperative leaders, management representatives, and stakeholders.

This training was delivered in collaboration with six key cooperatives: Permata Gayo, KSU Rahmat Kinara, Kopi Gayo Celala, Sumatera Permata Gayo, Aisara Aleeza, and Sumatera Agro Perkasa. Their active involvement enriched discussions and ensured the program reflected the real needs of Sumatra’s coffee-producing communities.

Training Core Objectives

• Strengthen governance and business planning capacity of coffee cooperatives.
• Build awareness of Fairtrade principles, certification requirements, and accountability structures
• Support cooperatives to design sustainable business strategies and ensure responsible Premium use.

Program Highlights

• Fairtrade Cooperative ICS Teams Meeting: experience sharing and alignment on certification requirements.
• Cooperative Triangle for Delegation Workshop: balancing governance, accountability, and representation.
• Kopi Gayo Celala Certification Planning Workshop: preparing for upcoming certifications.
• Permata Gayo Consultation on Certification Compliance: addressing specific compliance challenges and corrective actions.

These sessions provided practical tools in governance, financial management, and compliance, helping SPOs strengthen internal systems and build external credibility. Facilitated by Erwin Novianto, Senior Manager, and Tina Napitupulu, Sumatra Program Manager, the program directly addressed governance risks, equipping representatives with the frameworks needed to remain compliant, accountable, and competitive.

Among the participants were six women delegates, one member from the Koperasi Ara Cahayani Gayo reflected:

“The training gave us clarity on governance and certification requirements. It helps us ensure that our cooperative not only remains compliant but also grows stronger for the future of our farmers."

Immediate Outcomes

• Stronger understanding of cooperative structures, roles, and responsibilities.
• Improved knowledge of Fairtrade governance expectations.
• Enhanced ability to design transparent business plans and strategies for Premium use.

Long-Term Benefits

• Stronger cooperative governance across Sumatra’s Fairtrade SPOs.
• Improved compliance with certification standards.
• Transparent, accountable use of Fairtrade Premium funds.
• Increased buyer confidence in ethical standards and consistent quality.
• A replicable training model for other regions and producer groups.

Looking Ahead

Building on the momentum, Fairtrade NAPP will:

• Launch a communication and coordination group for cooperative delegates,
• Support ICS leads in designing activities within three weeks,
• Revise and adapt training modules for wider use across the network, and
• Share lessons learned through a published article for the Fairtrade community.

Advancing Toward a Sustainable Future

This initiative reflects Fairtrade NAPP’s commitment to strengthening farmer organizations so they can thrive in a changing global coffee market. By reinforcing governance within Sumatra’s cooperatives, farmers are better equipped to safeguard their livelihoods, manage resources responsibly, and ensure that Fairtrade Premium funds deliver long-term community benefits.

In doing so, the program strengthens local resilience while also upholding the integrity of the global coffee supply chain. Through investment on cooperative governance and empowering delegates like Yusnidar, NAPP is helping to build a coffee value chain that is resilient, transparent, and sustainable—benefiting farmers, communities, and buyers alike.