KOTA KINABALU: The smallholder standard currently being developed by Roundtable of Sustainable Palm Oil (RSPO) is looking to address the problem of certification cost, among others, which remains a challenge for smallholders trying to catch up with production of sustainable palm oil.
Smallholders are those with plots measuring below 50ha.
Co-chairman of RSPO Datuk Carl Bek-Nielsen noted that smallholders only produce less than 1.5% of total sustainable palm oil supply today.
The smallholder standard, which is to be applicable to independent smallholders only, will enable them to enter the RSPO system via a standard tailored specifically to their needs thus reducing unnecessary barriers to certification.
With this proposed new standards, smallholders will also have access to tools and training that respond to their requirements, improving capacity for farming practices and agronomy, resulting in increased yield.
The process is currently running and is expected to be completed in May or June next year. It will be ratified at the 2019 Annual General Assembly.
Draft 1 of the proposed new standard was put for public consultation from June to July this year, while draft 2 is expected to be unveiled in February.
RSPO CEO Darrel Webber said cost and financing are an issue for smallholders. He added that RSPO is also looking to have more players from the supply chain, such as buyers and growers to lend their support to smallholders to offset their burden when it comes to cost of certification.
RSPO also has a smallholder certification financing scheme partly financed by RSPO and supported by players such as growers.
“Smallholders need help not only in terms of financing but also organising,” he noted.
Bek-Nielsen said via good agricultural practices, which the RSPO can provide to this group, they will be able to embrace more economic viability and improved livelihood.
In terms of crude palm oil production yield, smallholders only produce 2.4-2.5 tonnes per ha compared to the national yield level of 3.6 tonnes and that of private companies which produces to the tune of five tonnes per ha.
On another note, Webber noted that the Malaysian government’s efforts towards pushing for palm oil producers to be fully certified with Malaysian Sustainable Palm Oil complements the RSPO, and further strengthens sustainability in palm oil production.
