Main Navigation

Main Navigation

How NAPP Commercial Venture’s Onboarding Service Is Building Sustainable, Market-Ready Cooperatives in the Heart of the Gayo Highlands

A Partnership Initiative between NAPP Commercial Ventures and Kotra Indonesia, Supported by Fairtrade Network of Asia and Pacific Producers

A Sector at a Crossroad

Before entering the Fairtrade system, many cooperatives struggle, not because they lack potential, but because they lack the governance systems, traceability structures, and role clarity required to meet global sustainability standards.

This is exactly what the NAPP Commercial Venture onboarding service is designed to solve.

Unlike traditional training programs, the onboarding service helps cooperatives become truly “certification-ready” before they ever begin the Fairtrade process.

It fills a long-standing gap by supporting producer groups before certification, ensuring they have the systems, structures, and leadership capacity needed to succeed.

This matters now more than ever.

Gayo coffee—renowned for its PGI status, unique flavour profile, and importance to the livelihoods of 90% of Central Aceh’s population—is under mounting pressure.
New ESG requirements such as the EU Deforestation Regulation (EUDR) and Human Rights Due Diligence (HRDD) demand:

• traceability
• environmental accountability
• social compliance
• transparent governance

And yet, many cooperatives, especially newly formed ones, are still developing basic governance and operational maturity. Most Gayo cooperatives lack a formal understanding of cooperative business models, governance roles and responsibilities,  traceability obligations, and Fairtrade’s sustainability ecosystem

The recent floods in Central Aceh made this reality even more visible. Farms were damaged, supply chains were disrupted, and communities were left navigating uncertainty. Moments like these remind us how vital strong, well-governed cooperatives are—not only for daily operations, but for protecting farmers when crises strike and helping them rebuild.

This makes targeted support like the onboarding services even more urgent and relevant, giving participants access to world-class expertise normally available only to certified Fairtrade members, ensuring that cooperatives begin their journey with the knowledge, mindset, and structures expected of Fairtrade-certified organizations.

Building the Foundations for Fairtrade Entry: Why Governance Comes First

One of the core requirements for entering the Fairtrade system is strong, transparent, and democratic cooperative governance. Fairtrade certification does not begin with audits, inspections, or documentation—it begins with PEOPLE.

To be certification-ready, cooperatives need:

• clear governance structures
• transparent premium use
• strong member representation
• risk management systems
• accountability and traceability

Without these foundations, even the promising cooperatives risks failing certification readiness or, worse, being unable to sustain good governance once they are certified.

To close this gap, NAPP Commercial Ventures in partnership with KOTRA Jakarta, and supported by Fairtrade NAPP, designed a specialized onboarding intervention built around two intensive workshops.

Cynthia Cavalli; KOTRA Jakarta

"As the Korea Trade-Investment Promotion Agency, a part of the Embassy of the Republic of Korea in Indonesia, the role of KOTRA Jakarta is to promote cooperation in the fields of investment and trade between South Korea and its partner countries, especially Indonesia. KOTRA’s motivation for supporting Fairtrade activities is, first of all, because the relationship between South Korea and Indonesia has been established for many decades. We also want to support local farmers in Indonesia so that their lives can become more prosperous, fair, and sustainable. We also see that Fairtrade is an international organization with a noble mission because it helps local farmers improve their livelihoods. As we know, local farmers are often underappreciated or overlooked. Therefore, we see that the role of Fairtrade as very important. Our hope for the Gayo farmers’ cooperative in Takengon is that they can continue to grow, continue producing high-quality coffee that is internationally competitive, Fairtrade-certified, and able to bring benefits to their surrounding communities as well as to the cooperative community itself."

Training 1: “Fairtrade and the Future of Farmers” – Strengthening Delegates

Delegates, often overlooked, are the democratic backbone of cooperatives. Many come into the role with little clarity, confidence, or experience. The first workshop tackled these challenges directly.

Using practical, visual, and participatory tools—including role cards, cooperative structure mapping, and storytelling—participants learned:

• their responsibilities as elected representatives
• how delegates differ from boards and supervisors
• how Fairtrade strengthens farmer empowerment
• how cooperative identity differs from conventional business models

The session “Am I a Good Delegate?” allowed participants to reflect personally on their challenges, motivations, and areas for growth. “Me and Fairtrade” demystified Fairtrade pricing, the Minimum Price, and the Premium, making it clear how these mechanisms uplift farmers.

Nasrullah. Sumatera Permata Gayo Cooperative

"The training we attended was extremely valuable. It strengthened our knowledge and prepared us to work more effectively in the future. A key takeaway was learning how to calculate the Fairtrade premium—something we couldn’t do before. Now, we understand how to determine the premium value received by the cooperative and by the farmers. We hope to join more activities and trainings so our cooperative can operate smoothly with strong, capable human resources. We also hope Fairtrade, supported by KOTRA, will continue providing opportunities for us to grow, especially in the coffee sector. To all producer cooperatives—especially in coffee—let’s join Fairtrade and work together to improve the welfare of our coffee farmers. Thank you."

Training 2: “Strengthening Cooperative Governance & Introduction to Fairtrade” – Professionalizing Boards and Supervisors

For cooperative leaders, strong governance is the foundation of sustainability and Fairtrade readiness. Hence, the second training was designed to ensure that cooperative leadership understands:

  • governance frameworks,
  • separation of power,
  • accountability,
  • Fairtrade compliance expectations,
  • and strong Premium governance.

Through RACI mapping, traceability simulations, business model exercises, and role clarification tools, leaders explored:

• separation of power and accountability
• governance risks and internal gaps
• premium management principles
• traceability obligations
• cooperative identity and member benefit models

A standout feature was the 90-day Action Plan, which pushed each cooperative to define concrete, measurable governance improvements.

Erni Afriani Chairperson- Majumi Coffee Farmers Producer Cooperative.

"Our cooperative has been established for approximately two years. From today’s training, we gained invaluable insights—how cooperatives work, what Fairtrade is, and how to manage responsibly according to proper standards and regulations. We learned far beyond the planned materials, gaining clarity on cooperative development, progress, and future Fairtrade certification. We hope to apply this knowledge to become a stronger cooperative that meets standards and fulfills farmers’ expectations—ensuring they receive real benefits, fair profits, and better business opportunities. Our main goal remains clear: to help farmers secure better coffee prices, far above conventional rates."

How Producers Benefited

1. Delegates: Stronger Voice, Greater Accountability

Delegates began seeing themselves not just as farmers but as representatives shaping their cooperative’s future.

This ensures:

• more active participation
• more transparent communication between leaders and members
• and fairer decision-making processes.

2. Boards & Supervisors: Clearer Systems, Stronger Leadership

Cooperatives developed clearer internal structures, leading to:

• stronger governance
• improved risk management
• better traceability
• clearer role definition
• readiness for Fairtrade certification

The training design also respected differences in literacy and digital exposure, using visual aids and practical examples to ensure inclusive learning.

With continued follow-up, these cooperatives are now better positioned to become strong, transparent, and market-ready organizations.

Partner Acknowledgements

The program was designed and delivered by NAPP Commercial Ventures with precision, cultural sensitivity, and strategic alignment to global sustainability standards. As Fairtrade NAPP's dedicated commercial arm, it ensured every activity spoke directly to the realities of smallholder farmers in Aceh.

Supported by Fairtrade NAPP, it provided the backbone of technical oversight, quality assurance, and strategic guidance. Leveraging its decades of experience in sustainable agriculture, producer empowerment, and regional Fairtrade standards, it ensured that the training aligned with global Fairtrade principles while responding to the specific governance challenges of Gayo cooperatives.

The funding support of KOTRA Jakarta played a pivotal role in enabling the program’s implementation. Through its partnership, KOTRA demonstrated not only its commitment to sustainable agriculture, but also its strategic intention to strengthen Indonesian coffee value chains for the European market. The partnership also opens promising avenues for future collaboration between Gayo cooperatives and Korean agrifood companies seeking ethically sourced, sustainable commodities.

A Scalable Model for Producers, Traders, and Businesses

NAPP Commercial Ventures Pte. Ltd represents a scalable and future-ready model designed for building ethical and compliant supply chains.

Unlike traditional capacity-building programs, we operate as a specialized commercial consultancy dedicated to supporting:

  • non-certified producer groups
  • emerging cooperatives,
  • companies seeking to strengthen their sustainability and due-diligence practices.

This removes the long-standing gap between interest and readiness for certification.

Whether your goal is to:

  • reduce sourcing risks,
  • prepare for certification,
  • meet ESG and due-diligence requirements, or
  • support producers in strengthening their environmental and social performance

NAPP Commercial Venture provides the expertise, tools, and systems needed to move you forward. This makes our model not only valuable for cooperatives but also for companies, exporters, and governments committed to building resilient, transparent, and future-proof sourcing ecosystems.

If you are a partner seeking ethical, transparent, and reliable supply chains—or if you want to empower producers to grow with global market opportunities—this is the moment to collaborate with us.

The Gayo cooperatives have taken the first step and are ready for the next level.

Who’s next?

For more information write to NAPP Commercial Ventures Pte. Ltd at services@ftncv.com