Independent Small Holders Trying to Implement P&C_experienceSETARA

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Certification for Independent Smallholders:

Is it Possible?Experience from Jambi, Indonesia

Rukaiyah Rofiq (SETARA Foundation - [email protected])Jalal Sayuti (Anggota SPI Bungo Tanjung)



Palm Oil in Jambi

• Jambi Province in Sumatra, Indonesia has450,000 hectares oil-palm plantation, around91,000 hectares (20%) managed byindependent smallholders with production325,539 tons FFB annually.

• In April 2009, the provincial government ofJambi asked all of estates managed bycompanies and smallholders to develop

themselves in a sustainable way in reference toRSPO



Independent Smallholders and RSPO

• Many people believe that independent smallholderswould have never complied to sustainable palm oil

principles and criteria• The main problem: independent smallholders are

unorganised:

– Difficult to develop joint initiative to ensuretraceability of their FFB (documentation, agriculturalpractices, joint marketing, mixing of products)

– Difficult to learn to improve practices complying tostandards



Independent smallholders in Jambi

• Lacking of access to quality seeds, fertilizer, estatemanagement knowledge and pest management

– Scheme smallholders are helped by the nucleus company – Government programs focused on scheme smallholders

• 60% smallholders using grade-B seeds with lowerproductivity and not catching-up to recent best

practices• FFB is sold to intermediary with lower prices due to

quality problem. But many smallholders prefer tostay independent (without any linkage to nucleuscompany) without obligation to repay credit

• Smallholders do not have land certificate, almost allof them only have Village Head’s Letter as the basisof land use/ownership

• Smallholders are unorganized and not familiar indocumentation.



Jambi Smallholders and RSPO

• Jambi independent smallholders work with SETARA Foundation since2005: – Organising smallholders: developing common objectives, improving management

skills – Develop the capacity to communicate with company (including in reading the

contract), analysing problems related to their plantation, and influence policy forimproving business environment

• Independent smallholders can be organised and develop joint initiatives in

improving their livelihood• Since 2008, smallholders and Setara Foundation realised that quality andtechnical knowledge should be given attention, including to developsustainable palm oil referring to RSPO P&C

• The development of sustainable palm oil is integrated in the works to

strengthen smallholders’ organisation and capacity• SETARA Foundation in partnership with Hivos and Biocert developed a pilotproject in which smallholders can try to implement RSPO P&C in BungoTanjung village, Hitam Ulu sub-district, Merangin district. – Involving 220 farmers working in 230.78 hectares and produced 250 tons/month

FFB – Pilot project for group approach involving independent smallholders



Lokasi

Project Location Map



Organising Independent smallholders

• Started with developing good relationship with smallholders based onmutual objective to promote sustainable development

• Learning together: problems faced by smallholders, options to improve

livelihood, group certification through internal control system (ICS)• RSPO is learned to see opportunities for smallholders in improving

livelihood• Achievements up to now:

– smallholders have better understanding about RSPO and P&C – Development of group approach by developing internal control system based on

RSPO P&C – Familiar to develop records for their activities – Mobilise stakeholder interest to RSPO and independent smallholders’ initiatives

(government, private sector, RSPO, development agencies

• Challenges in organising independent smallholders: – Lack of awareness and enthusiasm from smallholders to organise themselves – Lack of knowledge because of limited access to recent technology and

knowledge development. – Usually independent smallholders are indebted to intermediary traders

– Smallholders are skeptical without having land certificate, and access tosubsidised fertilisers and quality seeds



Project Framework

Organizing and

StrengtheningFarmer organization

- Capacity building:organization,

management,good agricultural practice

and RSPO P&C-Identifying common

problems:

land certificate,subsidised fertilizer

Quality ManagementDevelopment

(Implementing P&C)Learning about ICS(training, study visit),

documentation of estateand production data,

implementing ICS,learning technical

knowledge(documentation,

and estate

management andmaintenance)

EnsuringSustainability

- Mobilise supports

from government,mill-companyaround project

area, other smallholders,NGOs and RSPO

- Developing futureintervention:

establishing cooperative,making inputs

from natrual materials,

access to seeds and capital,access to replanting

programme



Assistance

to Group



Capacity Building

Training of ICS23-24 June 09

Study visit in ICS Kulonprogo1-9 June 2009

est practice management training25-26 June 2009

Congress of ICS8 Oct 2009





…. still some questions

• Is there any appreciation given to independent

smallholders producing sustainable palm oil, likepremium price, and support for certification

– Easier certification considering limited farmers’

capacity – Premium price

• Is there any support from government and

development organisation in accessing capital,subsidised palm oil, certified seeds, extensionservices



Thank You

Kuala Lumpur, 3th November 2009

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Independent Small Holders Trying to Implement P&C_experienceSETARA