Engaging oil palm smallholders in the supply chain could be key to transforming the palm oil industry

Bangkok, 3 December, 2020: Thai policymakers, business actors, and consumers have a key role to play in supporting sustainable palm oil by demanding it from their favourite brands and encouraging Thai smallholders to gain improved access to international markets through the global certification standard.

These topics were heavily discussed during a business forum “Road to Transforming the Sustainable Palm Oil Market in Thailand” held at the Hotel Nikko Bangkok and co-hosted by the Roundtable on Sustainable Palm Oil (RSPO) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, through their Sustainable and Climate-friendly Palm Oil Production Project (SCPOPP).

Speaking at the event, Dr. Matthias Bickel, GIZ Director of Agriculture and Food Cluster, said “Mobilising investments in knowledge and micro-finance capacity for oil palm smallholders and local communities to shift toward sustainable palm oil production is essential for improving local livelihoods and the global food supply while reducing the climate and environmental impact.”

GIZ works with both public and private partners to promote sustainable palm oil production in Thailand, following the RSPO standards and have organised a series of ongoing training sessions to enhance smallholders’ capacity of sustainable agricultural practices to achieve RSPO certification, and gain improved access to international markets.

“Through the SCPOPP, we aim to train over 3,000 oil palm smallholders on sustainable practices, as well as reduce 9,600 tonnes of greenhouse gas emissions from oil palm cultivation and production costs by 20%, within 2022,” Dr. Bickel said.

Beverley Postma, RSPO’s Chief Executive Officer-Designate, said “Ensuring greater inclusion of smallholders in sustainable solutions that positively impact their livelihoods has long been a goal of the RSPO Secretariat and our members. We recognise the important role smallholders play in market transformation and we see this as a shared Responsibility that all players in the palm oil supply chain must commit to supporting.”

Oil palm smallholders account for the majority of oil palm production in Thailand, yet they lack opportunities to access microfinance programmes, skills and knowledge about sustainable farming, and certification standards which would enable them to access global markets.