Indonesia | Expert Farmer

Indonesia

Expert Farmer was engaged to assess whether HPI’s Indonesian Castor & Soybean project could become a reliable, quality source of castor oil for long-term supply diversification. The mission tested the project from the field to the crushing plant, covering large-scale farms, outgrower production, research capacity, industrial readiness and commercial assumptions. The assignment positioned Expert Farmer as a technical and strategic advisor able to separate promise from execution risk in complex agricultural value chains.

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Indonesia - Castor Bean - Technical Due Diligence

Indonesia castor supply chain due diligence

Location
Indonesia
Production
Castor Beans
Delivery
2018
Area
8,500 ha
Client
Undisclosed
Sector
Private
Service(s)
Technical due diligence
The challenge

The project combined a substantial industrial crushing investment with unsecured seed supply, unsuitable large-scale production sites, unrealistic yield assumptions, limited technical control and an upstream model that required redesign across farms, outgrowers, seed systems and logistics.

The result

Expert Farmer turned a high-potential but high-risk opportunity into a structured decision framework, helping the client qualify the opportunity, understand supply constraints, protect its sourcing strategy and define the conditions required before making commercial commitments.

Brief of the project

Strategic supply chain due diligence

Expert Farmer assessed HPI’s ability to become a credible castor oil supplier by reviewing the investor profile, management capacity, historical development path, project governance, industrial ambition and sourcing strategy. The work connected a corporate supply need to the operational reality of a developing agricultural project, with particular attention to the alignment between crushing capacity, seed availability, price assumptions and execution capability.

Field and agronomic verification

Our experts reviewed the two large-scale production sites on Sumba, checking soil conditions, crop establishment, irrigation infrastructure, mechanization potential, cultivar performance and observed plant health. The review went beyond visual inspection: it challenged the production model, the yield assumptions and the technical feasibility of producing castor at competitive cost under the selected conditions.

Out-grower and local farming model assessment

Expert Farmer evaluated the smallholder production component, including producer-group organisation, crop economics, intercropping practices, labor requirements, sales incentives and the potential to expand contracted production. This analysis showed how a well-designed out-grower approach could become a more credible development pathway than an over-capitalised plantation model.

Industrial and commercial alignment

The mission also reviewed the crushing plant under construction, storage capacity, processing equipment, logistics and the gap between industrial readiness and agricultural supply. Our value was to connect agronomy, economics and industrial supply into one practical client decision. This integrated view helped identify what had to be corrected before any volume commitment could be considered.

Expert Farmer carried out an evaluation mission for a partner of the client to review the viability of his castor and soybean project. The project's purpose was to diversify and secure castor oil supply for the client. The evaluation included site visits, interviews with stakeholders, and technical assessments.

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Francis assessing ricin production in Indonesia

Appraisal of castor bean and soybean production capacity

Location
Indonesia
Production
Castor Beans
Soybean
Delivery
2018
Area
8 000 ha
Client
Arkema
Sector
Private
Service(s)
Technical due diligence
The challenge

Target's initial business model was based on unrealistic yield assumptions and unsuitable land selection, resulting in low productivity and economic inefficiencies. The lack of agronomic expertise and over-reliance on unproven seed varieties further complicated the project's success.

The result

The evaluation enabled the client to reassess his sourcing strategy and highlighted the need for him for expert support. Our evaluation provided actionable insights to realign the project with realistic agronomic and economic parameters, ensuring long-term viability.

Brief of the project

Strategic evaluation and stakeholder engagement

Our experts conducted a comprehensive evaluation of HPI’s castor oil project, including its business model, production strategy, and stakeholder alignment. We engaged with HPI’s leadership and technical teams to understand their vision and constraints. This strategic dialogue helped identify gaps in planning and execution, and laid the groundwork for future collaboration.

Agronomic assessment and site analysis

Expert Farmer performed detailed field assessments of large-scale plantations and smallholder plots. We identified critical mismatches between crop requirements and soil conditions, particularly in the large-scale sites selected by HPI. Our analysis revealed that smallholder farming offered a more promising path for castor production due to better adaptability and economic incentives.

Technical advisory and risk mitigation

We provided tailored recommendations to improve seed selection, irrigation practices, and crop management. Our team emphasized the importance of revising the business model to reflect achievable yields and realistic cost structures. This guidance helped the client mitigate risks and enhance project feasibility.

Value chain optimization and strategic recommendations

Expert Farmer outlined a roadmap for integrating smallholder farmers into the supply chain, ensuring both scalability and sustainability. We proposed a phased approach to production expansion, supported by capacity building and technical support. Our strategic input empowered the client to align his investment with long-term supply security and market competitiveness.