New Report: Smallholder Inclusivity: Sustainable Procurement Practices for sustainable oil palm

Smallholders produce up to 40% of the world’s palm oil and they are vulnerable to climate shocks, market volatility, and increasingly complex regulatory demands.

On 6 March IDH and Solidaridad have released a new report: “Smallholder Inclusivity: Sustainable Procurement Practices for Sustainable Oil Palm”.

The report, written by Efeca, explores strategies, options and opportunities to make palm oil value chains more inclusive of smallholders. The report explores among other things the diversity of smallholders and the need to diversify strategies, the overlooked but essential role of dealers; and practical steps for companies and governments to strengthen and ensure inclusion of smallholders in their value chains.

The message is clear: The inclusion of smallholders in value chains to Europe will require intentional action. And in order to create and maintain landscapes where oil palm is grown and managed sustainably, their inclusion in these value chains is essential.  

The report builds on the 4 Principles for Procurement for Prosperity published by Solidaridad in the Palm Oil Barometer 2025, Procurement for Prosperity