Session 3-4-jan-maartan-dros-sustainable-practice-for-smallholders-the-challenges-1470


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Session 3-4-jan-maartan-dros-sustainable-practice-for-smallholders-the-challenges-1470

  1. 1. Sustainable practice forsmallholders: the challenges Symposium Sustainable palm oil: challenges, a common vision and the way forward May 2011
  2. 2. Outline● Introduction Solidaridad● Facts on oil palm smallholders● Is it really so difficult for smallholders? Case Indonesia● Smallholder issues commonly heard● Conclusion: what do smallholders need?● RSPO and smallholders● Palm Oil Producer Support Initiative - POPSI
  3. 3. Supply chain initiatives Solidaridad Supply chain initiatives Solidaridad1988: 1988: Max Havelaar; fair trade (coffee, fruits) Max Havelaar; fair trade (coffee, fruits)1995: 1995: Fairtrade Labeling Organization (global) Fairtrade Labeling Organization (global)1996: 1996: Oké banana (fair trade-organic) Oké banana (fair trade-organic)1999: 1999: Kuyichi (sustainable fashion) Kuyichi (sustainable fashion)2002: 2002: UTZ Certified; CSR label (coffee, tea, cocoa) UTZ Certified; CSR label (coffee, tea, cocoa)2006: 2006: RTRS; Responsible Soy RTRS; Responsible Soy2008: 2008: membership RSPO; Sustainable Palm Oil membership RSPO; Sustainable Palm Oil2009: 2009: Bonsucro; Better Sugarcane Initiative Bonsucro; Better Sugarcane Initiative2010: 2010: BCI; Better Cotton Initiative BCI; Better Cotton Initiative
  4. 4. Solidaridad approach
  5. 5. Solidaridad approach
  6. 6. Pyramid of ChangeSolidaridad is active on all levels of the pyramid as systems are Solidaridad is active on all levels of the pyramid as systems arecomplementary. Total approach and dynamics within the pyramid will complementary. Total approach and dynamics within the pyramid willonly lead to the necessary change for more sustainable supply chains. only lead to the necessary change for more sustainable supply chains.
  7. 7. Solidaridad network organization: Solidaridad network organization: ● Regional Expertise Centers ● Regional Expertise Centers ☉ Country offices in palm oil regions ☉ Country offices in palm oil regions ● ● ●● ☉ ☉● ● ☉ ● ☉ ● ●
  8. 8. Global distribution oil palmsmallholders
  9. 9. Facts on oil palm smallholders● Six million directly employed, of which half in Indonesia● ‘Tied’ vs ‘Independent’ smallholders● Produce 20-30% of global output on 40-50% of planted area● Median planted area 2-4 hectares, average yields 2-3 t/ha● Oil palm is not a traditional smallholder crop outside West Africa…● …and in West Africa there is hardly any access to modern technology and planting material
  10. 10. Is it really so difficult forsmallholders?smallholders?● Well, it depends● Situations differ from country to country● Witin countries, sub-national comparisons show differentiation ● Equivalent institutions across a country respond in different ways via causal mechanisms● Linking state policy, local regimes, corporate strategies and how change is interpreted locally all create different outcomes
  11. 11. Malaysia Riau West Kalimantan (KalBar) Jambi Indonesia
  12. 12. Key outcomes● Smallholder outcomes in Indonesia are largely influenced by the evolution of state-society- agribusiness configurations ● State-Regime interests & capacities ● Decentralisation and Reformasi ● Agribusiness attempts to minimize risk● The challenges for smallholders – tied and independent – are in general considerable but scope and agency provide opportunities for improved livelihood outcomes
  13. 13. Variation a key to outcomes World Bank Poverty & Economic Indicators:District Poverty Fiscal GRDP per Headcount Revenue capitaRiau Low High HighJambi High High HighKalbar Low Low Low
  14. 14. Variation a key to outcomesVariation over time in:● State capacity & interest● Available resources ● Regional taxation and fiscal strength ● donor policy & aid flows● Decentralization heightened variation ● Many key factors local ● Type of plantation company at the district level ● Private company vs state-owned company
  15. 15. Variety key outcomes in KalBar● Best practice plantation ● Solid plantation profit ● Smallholders credit free within three-four years● Critical factors: ● Smallholders: leadership, agency & unity ● Reject the 7.5:2 hectare ratio division ● Government desire for this plantation to work ● High quality seedlings; access to fertiliser ● High CPO prices ● Smallholder training executed
  16. 16. Key issues commonly heard● Land tenure issues ● Certifikasi Hak Milik (Land certificates) Agro-● Agro-economic issues ● Harga Pupuk (Fertiliser prices) ● Lack of guidance/help on farming● Infrastructure issues ● Kondisi Jalan (Road conditions)
  17. 17. Key issues commonly heard● Supply chain governance issues ● Janji yang tidak terpenuhi oleh perusahaan (Company promises not met /misunderstanding) ● Sistem pola yang tidak adil (unfair scheme arrangements) ● Petani berdasi (literally ‘farmers wearing ties’) ● Bapak angkat to mitra benaran (Role of Cooperatives)
  18. 18. Conclusion● Provision of advice and training to smallholders a key – technical and organizational● Oversight and follow-up critical● Conflict management systems at the local level● Outreach and implementation monitored more closely by government
  19. 19. Roundtable on SustainablePalm Oil ● In 2004, a round table dialogue of industry, producers and NGOs has started to address this ● WWF and Unilever were among the founders, Solidaridad joined in 2008 as a member ● RSPO provides a code for Sustainable Palm Oil production ● POPSI provides producer support towards RSPO certification
  20. 20. POPSI program● Set up by Solidaridad for RSPO members● WWF in advisory role● Support small farmers and farm workers to apply good practices according to RSPO● With technical support, farmers can improve their skills on soil, crop and pest management● With organizational support, farmers are able to get better prices and improve marketing● In 2009-10, POPSI was active in Indonesia, Malaysia, Papua New Guinea, Ghana, Brazil and Colombia
  21. 21. Tribal communities andworkers,workers, Sarawak ● 100 tribal community smallholders ● 1,500 plantation workers ● Linkage to Keresa: RSPO-certified palm oil mill with intl. clients
  22. 22. Palm oil smallholders, Ghana smallholders, ● With POPSI support, 5,500 farmers are trained ● First 500 certified in 2011, rest in 2012/13 ● Linked to RSPO member GOPDC ● Three more mills with outgrowers potentially interested
  23. 23. Cooperatives andsmallholders,smallholders, Latin America ● Brazil, Colombia, Honduras ● Cooperative with 120 members and 750 family farms supported to meet RSPO by 2013 ● Another 4,000 ha and cooperative under development ● Unilever indicated to buy CPO from 2012
  24. 24. POPSI open for applications● For RSPO members● Preferably in supply chain consortium● Benefits to smallholders and/or workers● 1-3 year projects● 40% cofunding by POPSI of overall budget● In-kind applicant / supply chain contributions acceptable under some conditions
  25. 25. attention! Thank you for your attention!For more information
  26. 26. Photo creditsDisclaimerEfforts have been undertaken to contact the authors of all photo’s in this presentation. However, this hasnot been realised for the smallholder pictures obtained from the internet on slides 23-25. Please do notduplicate these for external use. Photographers that claim copyrights for photo’s on slides 23-25 can getin touch with solidaridad to have their photo’s properly credited.Slide 1,8 © WildAsia/POPSISlides 4-7, 9, 27 © SolidaridadSlide 21 © Pieter Sijbrandij/Solidaridad