ILUS
Regenerative agriculture is a worthwhile investment for us oil palm smallholders.”
This is a sentiment shared by many Malaysian small-scale farmers, such as Ilus Siti, a 47-year-old oil palm farmer hailing from Balai Ringin in the state of Sarawak. Ilus has been cultivating oil palm on his 4-hectare farm for the past nine years. Previously a production supervisor for a stationery company, he became a full-time farmer in 2021. That same year, he joined the regenerative agriculture programme in Sarawak.
“I taught myself farm management by watching videos and reading articles. But, these could only provide me with theoretical knowledge,” says Ilus. “Only after joining the programme was I able to attend on-field demonstrations which showcased good practices in fertilization, harvesting and how to overcome the reliance on chemical fertilizers.”
Instead of randomly applying fertilizers on the farm, he adopted the 3R (right amount, right time, right place) method of application, and soon noticed the difference. His monthly yield rose from 5 tonnes of fresh fruit bunches (FFBs) to 7.5 tonnes. Furthermore, today Ilus also applies other natural inputs such as chicken manure (as much as 10 kg per year) to maintain soil fertility. He also hopes to attend composting sessions in the future.
DENIS
The journey of Denis Justin Tonek, a 58-year-old oil palm farmer from Bau in Sarawak, follows a similar trajectory. A primary school teacher by profession, he cultivates oil palm on two hectares of land as a secondary source of income.
Like Ilus and hundreds of other Malaysian smallholders, the main challenge Denis faced was a lack of access to information, which prevented him from improving his farming skills and his income. “I had no idea that open burning and uncontrolled herbicide use could jeopardize the environment and soil fertility,” says Denis. However, ever since joining the regenerative agriculture programme, he has been able to turn over a new leaf. The programme strongly advocates for crop residue management through zero burning requirements.
While the yield has been stable, up from 8 tonnes to 8.1 tonnes (worth 4,000 MYR or 870 euros) per month, Denis is saving on input costs. The practice of rainwater harvesting has brought down his water-use bill on the farm.
“Regenerative agriculture has the potential to serve as a system of ‘checks and balances’ for the smallholders’ farm ecosystems,” says Law Chu Chien, Country Manager of Solidaridad Malaysia. “In the local context of palm oil, the primary rationale is to improve the soil’s physical and chemical health before and during the planting cycle—replenishing the nutrients and organic carbon that dissipated from the soil after removing FFBs from the farm ecosystem, as well as ensuring the land is not depleted of its natural capital. By integrating organic matter and moisture-retention practices, we are essentially preserving the soil. This helps the land remain a viable asset for the next generation, rather than a spent resource.”
CLIMATE CHANGE: A GROWING THREAT TO THE SUPPLY CHAIN
The main nemesis—for farmers and other actors in Malaysia’s palm oil supply chain—is climate change.
“As the manager of an FFB collection center, I have seen firsthand how climate change is directly hitting our bottom line and the livelihoods of our farmers,” says Jacqualine Daniel Guchi of the FFB Collection Center of Neraja Engineering Parts & Supplies Sdn Bhd. “The erratic weather, from scorching droughts to relentless downpours, has a dual impact: it’s not just reducing the amount of FFBs the trees produce, but it’s also destroying the very roads we need to get them. This double whammy has created a huge bottleneck in our supply chain. The broken, muddy roads are making it a nightmare for our trucks to collect the FFB, leading to significant delays and increasing our operational costs,” she shares. “It’s a logistical crisis on top of a production crisis, and it’s making the entire process far less profitable for everyone involved.”
REGENERATIVE AGRICULTURE AS A NEW DIRECTION
A year later, Ilus and Denis were selected for a sustainability audit in the Serian region under the regenerative agriculture programme. The audit comprehensively covered key intervention areas such as field management, soil fertility management, nutrient management, water management, data recording, safety and health, financial literacy and biodiversity conservation. Over the course of the year, the programme provided thorough training on the aspects covered by the audit process.
The regenerative agriculture programme in Malaysia has the potential to be a stepping stone for smallholders to adopt regenerative agriculture, crucial in maintaining soil health and fertility. The project’s audit of oil palm farmers, conducted in 2022, certified 22 farms and 500 smallholders cultivating the crop over 2,000 hectares in the Serian division in the state of Sarawak. Overall, an estimated 23,000 metric tonnes of oil, worth 25,000,000 MYR (~5.3 million euros), was produced by the 500 certified farmers during that exercise.
For the smallholders, the programme has brought about a change in their practices—starting with growing multiple crops. “I cultivate chilli and sour brinjal in addition to oil palm for our personal consumption,” says Ilus. Denis, who had already been cultivating and selling durian with his brother before joining the programme, has diversified even further, adding rambutan and jackfruit to his farm.
Economically, the programme has reaped significant dividends for Ilus and Denis. From his oil palm harvest, Ilus is earning an estimated 21,000 MYR (~4,500 euros) every year—up from the 15,000 MYR (~3,000 euros) he was earning before certification. For Denis, the corresponding annual jump has been from 42,470 MYR (~9,000 euros) to 48,550 MYR (~10,500 euros).
More importantly, for the certified farmers, regenerative practices have led to a significant improvement in soil organic matter (SOM), as indicated by soft grass coverage of 60%–80% on the farms. The farmers are also applying treated organic matter such as empty fruit bunches, fronds and chicken manure as fertilizers. For water conservation, they assembled rainwater harvesters using zinc roofs and empty barrels (every barrel storing 158 litres of water), and built field drains to avoid stagnant water.
AN EVOLVING CONCEPT WITH LONG-TERM PROMISE
“For oil palm smallholders, regenerative agriculture is an evolving concept, often entangled with challenges such as how a monoculture plantation crop can exhibit diversification without compromising the yield of the main crop,” says Sumit Roy, Asia Lead—Palm Oil, Solidaridad. “Discussions around such issues are ongoing and a solution is still awaited, but in the wake of changing climate, regenerative agriculture is seen as a system worth investing in for sustained returns,” he adds.
Through the regenerative agriculture programme, implemented by Solidaridad, smallholders in Sarawak are now hoping for more positive outcomes and a cleaner future. “Being part of the regenerative agriculture project has been a rewarding experience. It has helped our farmers adopt regenerative practices that not only protect the environment but also support long-term, on-farm productivity,” says Jacelyn Robert, Solidaridad programme coordinator in Sarawak.