Note: 1 unit = 0.25 hectares
Vetiver (or Vetiveria zizanioides) is a plant producing essential oil of high value. Specifically in Indonesia, this plant has grown very well since the Dutch era mainly within the Pasir Wangi area in Garut.
Demand for this essential oil, which is distilled from vetiver, is very high for the perfume industry, healing industry, food flavor, etc.
But at this time, not many farmers are happy to grow this plant due to the absence of direct market access and weaknesses in the cultivation technique of vetiver of our contemporaries that rely on chemical fertilizer. With this technique, per hectare yield tends to be low.
Similarly, not many farmers who could process it directly into essential oil due to lack of skills and minimum access to capital.
The situation, however, provides huge opportunities in the fragrance, healing and food industries if we can improve cultivation techniques. When this improvement is integrated with improved market access and the industrial process is improved as well, then it will open wide opportunities for the return of the glory of vetiver and essential oil in general in Indonesia.
In order to render good results for sponsors from the first planting period, sponsors and farmers will be provided with two sources of income, namely from the planting itself and from the production of essential oil.
When the vetiver crop prices are low, then the earnings from the essential oil production will tend to rise – so the sponsor can be compensated better. Vice versa, if the price is high for vetiver crop – the advantages of the process of the essential oil will decrease – but sponsors still get a good total yield of the high price of the crop.
With this pattern of cooperation, the fate of the farmers will be improved as part of their income is the result of industrial processes. We estimate the net result for yearly sponsors will reach around 15%, and at this return, it will be able to attract capital to enter the agriculture industry sector.
Sponsorship for this program will be broken down into 2,500 m2 or 0.25 ha units, so more people have a chance to participate.