EuropeAid (2001) described, the Project cycle as the way in which projects are planned and carried out in a sequence beginning with an agreed strategy, which leads to an idea for a specific action, which then is formulated, implemented, and evaluated with a view to improving the strategy and further action. The sericulture project in Banyumas Sutera Alam, Central Java was conducted in this way.

The idea of the sericulture project in Central Java 1997-1998 was introduced to the farmers in the circumstances, which Indonesia was in the situation of economic crisis. At the time, the costs of living increased and prices of materials for agricultural cultivation, e.g. seed, organic fertilizers, pesticides etc, were more expensive than before. Farmers could not afford to purchase these items so there was not agricultural activity.

Sericulture is labour intensive, but there are not many requirements of agricultural substance. Mulberry seeds are produced from branches of other mulberry plant/cuttings (vegetative methods). Sericulture requires organic fertilizers, but no pesticides, and no herbicides. Continual use of non organic fertilizer can reduce mulberry leaves (Samsijah & Kusumaputra, 1982).
Because income generation was an aim of the project many farmers have joined in this project.

Banyumas Sutera Alam, a Non Government Organization, organized this project. As the nucleus organisation, Banyumas Sutera Alam rear newly hatched silkworms, delivers them and buys the cocoons from farmers. Sinha (1994) explained that NGOs are often concerned with identifying, testing, adapting and disseminating locally appropriate technology.
In 1998 BSA conducted an experimental project and continued with a pilot project. The project was implemented as a nucleus project for the farmers in five districts. In 2001 a firm of cocoons processing was built earlier than was scheduled.

Gregory et al. (1994) argued that one strong point of the NGOs is their greater proximity to the people and therefore, their ability to carry forward the welfare programmes faster, suiting to the need and cultural context of the people.

Unfortunately the production of project was under unexpected from 1999 to 2002. The harvest of cocoons per box was only around 18 kg. It was only ± 70 percentage of target 25 kg. Farmers cultivated only 1.03 boxes /period for larger size farm, 0.47 for medium size farm and 0.40 for small size farm. In comparison with expected plans these were 60 to 70 percent lower than the target.
The project evaluation (chapter nine) showed that the there is three categories of main problems, which are the breeding of silkworms, rearing of silkworms by the farmers and marketing of silk products. These problems need to be solved.

Veda, K., et.al (1997) explained that the breeding of silkworms is an important stage of sericulture, because it influences to quality of silkworms.
If the eggs hatch uniformly, newly hatched silkworms could grow in uniformly, and mature silkworms do too. The farmers can get cocoon to the yields stage easier and more homogeny. Long term programs for the breeding of silkworms at Banyumas Sutera Alam can be improved through collaboration of research with government research institutions and universities. For the short term programs, Banyumas Sutera Alam should look for silkworm eggs from a domestic source or in a foreign country.

Rearing of silkworms by the farmers can be influenced from multiple variables, e.g. mulberry leaves, rearing shed, climate, and the farmers themselves, etc (Lim, et.al., 1990). Besides improving the environment for sericulture cultivation, the most important thing is to improve the farmer’s human capital. It can be improved through training and the extensions service of Banyumas Sutera Alam.

Extension services are an important element within the array of market and non-market entities and agents that provide human capital-enhancing inputs, as well as flows of information that can improve farmers` and other rural peoples` welfare; an importance long recognized in development dialogue (e.g., Leonard, 1977; Garforth, 1982; Hazell and Anderson, 1984; Jarrett, 1985; Feder, Just and Zilberman, 1986;Roberts, 1989 in Anderson and Feder, 2003).

BSA should give more training and practical assistance to the farmers. The farmer’s groups should be active. Controlling of farmers should be intensive. Effective extension involves adequate and timely access by farmers to relevant advice.

Marketing of products is important for sustainable of the project. Banyumas Sutera Alam can produce dried cocoons, raw silk, thrown silk and traditional silk cloth. The market for traditional silk clothes is small and limited. Banyumas Sutera Alam should be able to sell more silk products in forms of dried cocoons or silk yarn. The problem is price of fresh cocoons at the project too high and cost of production for silk yarn processing is higher. Through improving worm breeding and silkworm cultivation by the farmers, theoretically, the harvest of cocoons can be increased. The farmers can get more quantity of cocoons per box, so that Banyumas Sutera Alam could handle the cocoons for the farmers to find out the best price for both the farmers and Banyumas Sutera Alam. The production cost of silk yarn processing, automatically decreases, if the capacity is higher through increasing of cocoon harvest by the farmers.

Wund (1996) argued that there are three of kind cooperatives in the sericulture industry:

• Horizontal cooperatives e.g. farmers to farmers; institution to institution and silk processing firm to silk processing firm, etc.

• Vertical cooperatives e.g. farmers to government institution; silk processing firm to buyer, etc.

• Diagonal cooperatives e.g. Farmers to silk processing firm, silk processing firm to government institution.

Generally, the development of the sericulture project at Banyumas Sutera Alam can be improved through cooperation between the farmers with farmers (horizontal cooperate), farmers with Banyumas Sutera Alam-Non Government Organization (vertical cooperate)andBanyumas Sutera Alam, as silk industry with research institution (diagonal cooperate).