Palm Oil

Challenges

High environmental and human costs

Palm oil is an extremely efficient oil to produce. However, its production is often associated with high environmental and human costs.

Lack of resources for smallholders

Palm oil production and trade is dominated by large enterprises, yet a substantial portion of worldwide production (40%) is produced by small farmers. Smallholders often harvest lower yields due to a lack of knowledge on good farming practices, and this translates to lower incomes. It can also be difficult for small scale producers to meet the certification requirements.

Environmental impacts and deforestation

Palm oil is responsible for 0.5% of global deforestation. However, in some geographic areas, Indonesia in particular, it can have a significant impact. It’s important to support the introduction of better practices, combined with better planning.

“[The Roundtable for Sustainable Palm Oil] RSPO has really brought our social performance to a higher level. Implementing RSPO inspired us to go out and talk to surrounding communities.”
Ms. Suyapa, Sustainabiliyy Honduras Agrotor, Honduras

Solutions

Bringing stakeholders together

Production challenges in the oil palm sector, such as poor farming practices and land mismanagement, need focused solutions. We seek country- and context-specific solutions for smallholders, mills, and companies by bringing stakeholders together and supporting the implementation of sustainable practices.

Better agricultural practices and market access

Solidaridad supports farmers to adopt better practices, and to access technology and inputs. In Indonesia we partnered with a credit union to train its smallholder members in financial literacy and agricultural best practices. This approach helps improve incomes and reduce the environmental impact of farming.

Engaging the private sector

Working with palm oil traders, corporations and retailers is key to fostering sustainability within the palm oil industry as they can set the tone for practices throughout the supply chain. This is why we work directly with companies, assisting them in sustainable sourcing and project investment.

Better landscape management

Improving land management is vital in the creation of a sustainable palm oil industry. That’s why we work closely with government departments responsible for land use planning.

“Through the training, I learnt about the management standards for oil palm oil plantations in relation to crop maintenance and fertilizer application. Now, I’m saving more money from my plantation!”
Silvanus Seyron, palm oil smallholder, Farmer Field School, West Kalimantan, Indonesia

Achievements

Advancing with the producers

The implementation of a gender policy for the Oil Palm Development Association in Ghana led to a threefold increase in the number of women chosen as executives for the association.

In Latin America, we supported the first group of 41 independent small-scale producers in Colombia (Entrepalmeros) and Peru (APROMAN) in their efforts to become RSPO certified.

Moving forward

We continued to lead dialogue spaces to address zero deforestation, decent work and RSPO certification. We worked with multiple stakeholders to support the conservation of more than 69,933 hectares of Guatemalan natural reserves. We provided technical assistance to 3,592 Mexican smallholders, and we raised 2,017 Honduran workers’ awareness about decent work.

We raised more than 520,000 seedlings, out of which 479,881 were distributed for replanting, reclamation and promoting livelihood diversification. In Ghana, more than 2,800 oil palm farmers were trained in climate-smart agriculture. In Nigeria, 327 trained artisanal mill operators improved their milling practices.

Extension Solutions

Solidaridad’s digital application, Extension Solution, was adopted by Fedepalma, a sector organization, to assess their Sustainability Index among 3,000 palm producers across Colombia. In Peru, we concluded the first stage of our partnership with Alicorp, the country’s largest retailer, to provide training to 401 of their producers and 136 of their workers on the implementation of RSPO standards.

In West Africa, over 1,250 artisanal mill operators and processors received training to improve the quality and quantity of palm oil. 187,000 out of 223,000 improved seedlings raised were distributed. In Liberia, we supported the RSPO National Interpretation, which was endorsed and declared effective by the Board of Governors.

Collaboration for results

In West Africa, more than 12,400 trained oil palm farmers are applying best management practices on 26,996 ha of farmland. In Liberia, the average weight of fresh fruit bunches increased from 8.66 kg to 10.77 kg while yield increased from 1.17 tons/ha/yr to 9.27 tons/ha/yr. In Sierra Leone, 7,424 smallholder farmers have been identified for RSPO certification. In Central America, we worked with 9 lead auditors and 50 public, private and civil society actors in three countries to drive the RSPO Principles & Criteria National Interpretations. Guatemalan and Honduran working groups collaborated remotely in a total of 57 webinars and led public consultations through the MAPA online platform. Nicaragua began with 15 workgroup meetings.

Climate-smart interventions

In Indonesia, the Farmer Field School programme engaged 48 farmer groups, addressing forest preservation, renewable energy, clean water supply, and green villages. In West Africa, four multi stakeholder platforms were supported in Côte d’Ivoire, and advisory committees were established in Nigeria and Ghana to guide implementation of climate-smart oil palm interventions. Meanwhile, the Mesoamerican Palm Oil Alliance (MAPA) facilitated significant sustainability achievements throughout Central America. Key partnerships were launched in South America to increase use of sustainable methods and assess sustainability gaps in the supply chain.

Creative partnerships

Our corporate partner Henkel launched a new beauty care product line ‘Nature Box’ with Solidaridad’s logo on the pack, and the tagline: ‘We support local farmers’. Since 2012 Henkel has invested in seven Solidaridad palm oil improvement projects in Indonesia, Ghana, Nigeria, Colombia, Mexico, Nicaragua and Honduras. Together we’ve reached nearly 25,000 farmers with a combined area of nearly 300,000 hectares. Overall an average yield increase of 16% has been reported since the collaboration started.

A bold commitment

In Colombia, palm oil producers and industry leaders have committed to eliminating deforestation from their palm oil supply chains. Colombia is the first country to present a national agreement on deforestation. In West Kalimantan Indonesia, 1,885 farmers were trained in good agricultural practices and 1,891 farmers were trained in financial literacy. In the village of Sepulut, a total of 14,16 hectares of communal forest was mapped and a regent decree was secured to ensure the forest’s protection.

Investments see results

Smallholders’ investment in implementing best management practices in Ghana led to more than tripling of yields, proving that with the right investment West Africa could become self-sufficient in palm oil production. In Asia, national and regional sustainability initiatives for large producing and consuming countries gained momentum in China, India and Malaysia. In Central America, national palm oil sectors are starting to take significant steps towards RSPO certification.

Creating connections

Solaridad developed its first palm oil supply chain programmes, linking major brands and companies, such as Johnson & Johnson and CONO, with palm-oil smallholders working on RSPO compliance.

Thanks to a 30 million EUR grant from the Dutch government, Solidaridad launched its cross-commodity Farmer Support Programme together with five different roundtables, including the RSPO, which will support 400,000 smallholders by the end of 2015.

Where we work

Featured Programmes

NISCOPS

Taking place in landscapes across Nigeria, Ghana, Colombia, Malaysia and Indonesia, with a focus on European and Asian markets (including India), the National Initiatives for Sustainable and Climate Smart Oil Palm Smallholders aims to close the sustainability gap in palm oil production