Furthermore, upgrading equipment, improving land management and transitioning to more environmentally friendly methods all require capital that many smallholders simply do not have. Banks and financial institutions might be hesitant to extend credit due to perceived risks like limited financial history or lack of collateral.
Beyond financial limitations, a lack of technical knowledge also poses a crucial challenge. Sustainable oil palm harvesting requires a broad understanding and implementation of best practices in areas such as soil management, fertilisation, pest control, efficient resource use and proper harvesting techniques. Without access to training services, smallholders struggle to acquire this crucial knowledge, hindering their ability to adopt sustainable practices and keep up with evolving certification requirements.
Smallholders also face economic challenges due to their weak position in the supply chain. They often end up accepting lower prices for their fruit, making it difficult to generate the capital needed for sustainable practices.
Further compounding the issue is the volatile nature of palm oil prices. This creates a vicious cycle, where a limited income restricts their ability to invest in sustainability, which can ultimately hurt their long-term profits and yields.
Governments must play a progressive role by implementing targeted support programmes tailored to the specific needs of smallholders. Financial support, such as subsidies or low-interest loans, would help smallholders transition to sustainable practices. Additionally, comprehensive training programmes on best agricultural practices, certification requirements and responsible land management are essential.
Indonesia has been using export levies to support smallholders, which is a positive step. However, a more comprehensive approach might be necessary to ensure its range is wide enough.
Certification bodies such as the RSPO also have a crucial role to play in making sustainability more inclusive for smallholders. This could involve simplifying the application process, reducing costs associated with certification and creating group certification options that allow smallholders to pool resources and expertise.
The RSPO’s smallholder strategy is a commendable initiative, but its current scope needs significant growth to effectively serve a wider range of smallholders. Additionally, collaboration among different certification organisations to harmonise standards might help reduce the burden on smallholders and streamline the certification process.
This is where the democratisation of technology comes in. There are user-friendly tools being developed that require minimal technical expertise. Think of simple interfaces with SMS updates. Additionally, exploring alternative methods like community radio broadcasts or local extension worker training programmes can ensure everyone benefits from technological advancement.
Consumer education is another powerful tool to help push the change to sustainable oil palm cultivation. Educating consumers can empower them to make informed choices.
However, systemic change is also crucial. Non-governmental organisations, the media, universities and responsible companies all have a role to play when it comes to raising awareness and advocating for fair and sustainable practices throughout the supply chain. That also goes for supporting the inclusion of smallholders.
The path to sustainable oil palm in Southeast Asia is not an easy one, but there is an inclusive path that we must undertake. Some researchers predict that smallholders will double their production capacity over the next decade. As we strive for sustainability, we must ensure that we’re not leaving them behind.
Mohammad Yunus is an independent researcher currently pursuing a master’s degree in biological sciences at Khon Kaen University, Thailand
