News

RSPO certifies largest ever group

29 Aug 2016

Smallholder Support Fund, a group of more than 2,700 independent smallholders covering 5,500 hectares in South Sumatra, Indonesia, has received RSPO certification, making it the world’s largest individual group of independent smallholders to be certified.

With support from Wilmar International Limited’s (Wilmar) subsidiary, PT Tania Selatan, and financial assistance from the Roundtable on Sustainable Palm Oil (RSPO) Smallholder Support Fund, a group of more than 2,700 independent smallholders covering 5,500 hectares in South Sumatra, Indonesia, has received RSPO certification, making it the world’s largest individual group of independent smallholders to be certified.

Made up of seven village-level cooperatives under the registered group name ‘Sapta Tunggal Mandiri’ (STM), these smallholders collectively produce approximately 92,000 metric tonnes (MT) of certified Fresh Fruit Bunches (FFB). Four of the seven cooperatives were former plasma smallholders tied to Wilmar’s PT Tania Selatan mill.

The certified products from the STM group will be sold via the mass balance supply chain.

Smallholders are, said RSPO, pivotal to the palm oil industry as they account for about 40% of the world’s total palm oil output. Over the years, the industry has been seeking ways to help this group of stakeholders adopt sustainable practices so they can also have a share of the export markets that requires certified sustainable palm oil (CSPO) which can bring about higher income and improve their livelihood.

“To support multiple smallholding farmers and ensure compliance can be very challenging, but because value creation is at the heart of Wilmar’s approach to helping smallholders towards sustainable development, we undertook the challenge with the view of developing an inclusive sustainable value chain model that can be replicated and scaled up in other regions and districts of Indonesia,” said Jeremy Goon, Wilmar’s Chief Sustainability Officer. “We are proud of Sapta Tunggal Mandiri’s achievement; it also gives us more confidence to advance our cause on this front.”

“We are very happy to be awarded the RSPO certification,” said Amin Rohmad, one of the certified independent smallholders from the Dwi Tunggal cooperative and also the group manager of STM. “The ability to produce sustainable FFB not only will improve our livelihood but also helps link us in South Sumatra to the global sustainable market. We have shown that independent smallholders are capable of complying with international sustainability standards if given adequate support. We are also proud to represent the South Sumatra Province.”

“Today, more and more plasma smallholders are reaching a level of maturity allowing them to become independent and stand on their own,” said Julia Majail, Smallholder Programme Manager of RSPO. “This said, it is crucial for companies such as Wilmar, NGOs and governments to continue promoting smallholder inclusiveness and capacity building and to support Independent Smallholders so that they can achieve RSPO Certification. Through certification, Independent Smallholders can increase their yield, improve profits, access to international markets while at the same time protecting the environment through adoption of good agricultural practices.”

To date, the RSPO says it has helped 113,673 individual smallholders gain certification and helped facilitate partnerships between smallholders, NGOs and the private sector. A total of certified area for smallholders is 263,371 ha.