Jumat, 18 Maret 2011

The T&T Project: One Page Material

The T&T project was launched to address the problems that underscore today’s tofu and tempe industries through a value chain and market development approach.  This T&T’s  approach is unique in that it fosters effective business-to-business cooperation horizontally and vertically along the tofu and tempe value chains, and links the actors to much needed supporting markets, such as financial institutions and equipment suppliers.

The T&T goal is to increase income, improve working conditions, and diminish environmental impact of production for 15,200 enterprises in Greater Jakarta while providing safe food to 4 million consumers.

T&T’s Purpose is to increase efficiency and product quality for 3,300 entrepreneurs.

During the pilot phase of the project the T&T team identified equipment suppliers who were not marketing to tofu and tempe producers, not realizing the huge market potential within the sector.

Many facilities are operating with out-dated and unclean equipment. T&T renovated one tofu and one tempe factory in Jakarta as a pilot project. The factories were upgraded with modern equipment and cleaner production capabilities, resulting in a 30% increase in efficiency in the tofu factories. These demonstration facilities show other producers they can improve food quality and safety and reduce production costs and pollution by introducing more efficient, environmentally friendly technology to their own facilities.

Furthermore, the tofu and tempe sector has been neglected by the financial system, most likely due to the nature of these enterprises: small and micro, without a legal business entity or established banking relationships. The T&T team met with financial institutions to demonstrate the vast business potential for loan products to tofu and tempe producers.

During the second phase, the project will engage a larger number of producers to invest in upgrading infrastructure, thereby substantially increasing the supply of quality tofu and tempe products.  Currently, the majority of producers are unaware of the benefits of equipment upgrades to their own production, sales, and incomes.  Nevertheless, the pilot project showed that once informed, producers are willing to invest in improving the infrastructure of their factories.  The project also engaged financial institutions who are now willing to extend loans to tofu producers for technology upgrades.  In order to ensure sustainable information flow, financial Institutions are providing embedded information services on the benefits of improved production to tofu and tempe producers.

Simultaneously, through strategic marketing, T&T will promote consumer demand for safe tofu by involving producers and vendors of hygienic tofu and tempe to brand their product accordingly.  Branding safe tofu and tempe will systematically increase consumer awareness of product safety; thereby increasing demand for quality tofu and tempe.  

The project will also focus on developing a distribution channel for quality tofu and tempe by fostering vendors’ business relationships with quality tofu and tempe producers.

T&T will reach 3,300 tofu and tempe producers and vendors and their potential markets through this initiative and indirectly benefit another 15,200 enterprises.  Through this initiative, enterprises will increase incomes by an average of 15% and 4 million consumers will have a choice to access quality tofu and tempe, with improved environmental practices across the board.

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