Task Force on Smallholders
Presentation in Kuala Lumpur1st November 2009
Coordinators’ Report Coordinators’ Report The RSPO Task Force on SmallholdersThe RSPO Task Force on Smallholders
Objectives of this Meeting:Objectives of this Meeting: Inform participants of Task Force progress Inform participants of Task Force progress Review progress with standard setting for ‘scheme Review progress with standard setting for ‘scheme
smallholders’ including lessons from pilot audits smallholders’ including lessons from pilot audits Review progress developing Group Certification Review progress developing Group Certification
Protocol for independent smallholdersProtocol for independent smallholders Highlight broader issues that need to be Highlight broader issues that need to be
addressed by Task Forceaddressed by Task Force Generate consensus on suggested next stepsGenerate consensus on suggested next steps
Agenda for todayAgenda for today Opening by President of RSPO Jan Kees VisOpening by President of RSPO Jan Kees Vis Progress report by Task Force LeadersProgress report by Task Force Leaders Definitions of smallholders : PNGDefinitions of smallholders : PNG Trial Audit: PT HindoliTrial Audit: PT Hindoli Smallholders’ concerns: SPKSSmallholders’ concerns: SPKS Expanding the role of TFS: OxfamNovibExpanding the role of TFS: OxfamNovib Experiences from Schokland Fund: SolidaridadExperiences from Schokland Fund: Solidaridad Supporting Smallholders: IFCSupporting Smallholders: IFC Group Certification: BioCertGroup Certification: BioCert Getting smallholders into the SPO Getting smallholders into the SPO
supply chain: Green Palmsupply chain: Green Palm Wrap Up by Task Force LeadersWrap Up by Task Force Leaders Meeting of TFS Steering Group 6 pmMeeting of TFS Steering Group 6 pm
Why the Task Force?Why the Task Force? Major proportion of palm oil comes from Major proportion of palm oil comes from
smallholders: range of 10% - 90%smallholders: range of 10% - 90% Original P&C conceived mainly with large Original P&C conceived mainly with large
estates in mindestates in mind Can’t expect smallholders to have same Can’t expect smallholders to have same
documentation for auditors to followdocumentation for auditors to follow Smallholder situation complex and Smallholder situation complex and
variedvaried Ensure smallholders directly participate Ensure smallholders directly participate
in RSPO processesin RSPO processes
MandateMandate Ascertain the suitability of the Ascertain the suitability of the
RSPO Principles & Criteria for RSPO Principles & Criteria for smallholders and make smallholders and make proposals on how best these proposals on how best these can be adjusted, nationally can be adjusted, nationally and/or generically to ensure and/or generically to ensure favourable smallholder favourable smallholder involvement in SPO productioninvolvement in SPO production
Steering GroupSteering Group Task Force Leaders: SW and FPPTask Force Leaders: SW and FPP PNG: PWM, NBPOL, PKPKM, OPRAPNG: PWM, NBPOL, PKPKM, OPRA Malaysia: FELDA, NASH, MPOAMalaysia: FELDA, NASH, MPOA Indonesia: IPOC, Asian Agri, SPKS, Indonesia: IPOC, Asian Agri, SPKS,
WWF-I WWF-I Board members: Oxfam, GAPKI, HSBCBoard members: Oxfam, GAPKI, HSBC
Main challenges for Main challenges for smallholderssmallholders
Standards Org. Tech. $
Secure production base (land rights) X ? ? ?
Getting a fair deal (prices and credit terms)
X GC ? ?
Improving production X ? ? ?
Accessing markets X GC ? ?
Schematic work planSchematic work plan NIs Generic Guidance Trial audits Group NIs Generic Guidance Trial audits Group
CertificationCertification
Existing drafts
Existing drafts
Redraft
Verify if redrafted text is workable
Develop system for independent small-holders
Redraft
Physical Meeting Email consultation
Redraft
Submit to EB
Redraft NI Guidance
National consultations and trials
Process since November Process since November 20082008
Convened Steering Group at RT6Convened Steering Group at RT6 Got request from Board to progress Got request from Board to progress Scheme Scheme
Smallholder GuidanceSmallholder Guidance (SSG) ahead of independents (SSG) ahead of independents Met in April to agree working text of SSGMet in April to agree working text of SSG Sent SSG for comments May to JuneSent SSG for comments May to June Incorporated comments end of JuneIncorporated comments end of June SSG SSG AdoptedAdopted by Board July 2009: by Board July 2009: can now be usedcan now be used Group CertificationGroup Certification ProtocolProtocol for independent for independent
smallholders drafted by BioCert during 1smallholders drafted by BioCert during 1stst part of year part of year Draft for comments – August – SeptemberDraft for comments – August – September 22ndnd draft now in your pack draft now in your pack Also trial audits carried out: report today and in plenaryAlso trial audits carried out: report today and in plenary National level actions: will be reported in plenaryNational level actions: will be reported in plenary
Compliance by millsCompliance by mills The unit of verification is the mill and
its supply base. The protocol requires that mills ensure
that all scheme smallholders supplying the mill are brought into compliance with the RSPO standard within 3 years of the mill and its nucleus estate being certified
(Or July 2009 for mills certified earlier).
Definitions: smallholdersDefinitions: smallholders Farmers growing oil palm,
sometimes along with subsistence production of other crops, where the family provides the majority of labour and the farm provides the principal source of income and where the planted area of oil palm is usually below 50 hectares in size.
‘‘Independent’ smallholdersIndependent’ smallholders independent smallholders while very varied in
their situations are characterised by their: freedom to choose how to use their lands, which crops to plant and how to manage them; being self-organised, self-managed and self-financed; and by not being contractually bound to any particular mill or any particular association. They may, however, receive support or extension services from government agencies
‘‘Scheme’ smallholdersScheme’ smallholders smallholders who are structurally bound by
contract, by a credit agreement or by planning to a particular mill. Scheme smallholders are often not free to choose which crop they develop, are supervised in their planting and crop management techniques, and are often organised, supervised or directly managed by the managers of the mill, estate or scheme to which they are structurally linked
The definitions are not a The definitions are not a straitjacketstraitjacket
Task Force recommended flexibility Task Force recommended flexibility in the way the definition is appliedin the way the definition is applied
This was accepted by the BoardThis was accepted by the Board NI’s thus have to review definitions NI’s thus have to review definitions
and clarify how they adhere or and clarify how they adhere or depart from it.depart from it.
PNG example nextPNG example next
Main issues with scheme Main issues with scheme smallholder guidancesmallholder guidance
ResponsibilityResponsibility: although smallholders are : although smallholders are accountable to their manager the accountable to their manager the responsibility for compliance lies with the responsibility for compliance lies with the scheme manager from the estate or mill to scheme manager from the estate or mill to which smallholder is tied.which smallholder is tied.
IndicatorsIndicators: not changed from ‘mother’ : not changed from ‘mother’ standard but can be revised after 2 year standard but can be revised after 2 year interim phase.interim phase.
Existing National Interpretations on Existing National Interpretations on smallholderssmallholders: should be revised within one : should be revised within one year (ie by July 2010) to bring them into year (ie by July 2010) to bring them into conformity with generic standard while conformity with generic standard while taking into account national differences.taking into account national differences.
Next stepsNext steps Review Group Certification Protocol (start Review Group Certification Protocol (start
today)today) Develop draft guidance for Independent Develop draft guidance for Independent
Smallholders taking account of:Smallholders taking account of: GCPGCP Pilot audit resultsPilot audit results Suggestions from smallholdersSuggestions from smallholders
Hold SG meeting to review draft textHold SG meeting to review draft text Submit text for public commentSubmit text for public comment Revise textRevise text Submit to BoardSubmit to Board Dates need to be agreed Dates need to be agreed today if possibletoday if possible
Main questions for breakout Main questions for breakout groupsgroups
Finalising the Protocol (Group 1 Finalising the Protocol (Group 1 EnglishEnglish and Group 2 and Group 2 BIBI))
Menyelesaikan protokolMenyelesaikan protokol Traceability and documentationTraceability and documentationKeterlacakan dan pendokumentasianKeterlacakan dan pendokumentasian Equitable benefit sharingEquitable benefit sharingPembagian keuntungan yang adilPembagian keuntungan yang adil Flexibility in market accessFlexibility in market accessFleksibilitas dalam hal akses pasarFleksibilitas dalam hal akses pasar IntermediariesIntermediariesPerantaraPerantara Models for groupsModels for groupsModel untuk kelompokModel untuk kelompok Risk assessment requirementRisk assessment requirementPersyaratan penilaian resikoPersyaratan penilaian resiko
Group 3 and 4Group 3 and 4 Adapting the protocol to national realities Adapting the protocol to national realities
(Group 3 (Group 3 EnglishEnglish and 4 and 4 BIBI ) ) Do they have land ownership titles and if not what? \Do they have land ownership titles and if not what? \ Apakah mereka memiliki surat kepemilikan atas Apakah mereka memiliki surat kepemilikan atas
tanahnya; bila tidak apatanahnya; bila tidak apa?? How deal with community land / How deal with community land / Bagaimana berurusan dengan tanah adat atau Bagaimana berurusan dengan tanah adat atau
ulayatulayat Are there useful/ useable models for groups Are there useful/ useable models for groups Apakah ada model yang berguna dan bisa Apakah ada model yang berguna dan bisa
dipraktekkan?dipraktekkan?
Group 5Group 5 Implications of the Protocol for P&C (G&I) for Implications of the Protocol for P&C (G&I) for
independent smallholders (Group 5 – independent smallholders (Group 5 – both both languages interpreter pleaselanguages interpreter please))
Apakah dampak dari Protokol untuk Prinsip dan Apakah dampak dari Protokol untuk Prinsip dan Kriteria ini bagi petani swadayaKriteria ini bagi petani swadaya
What P&C are most difficult to comply with as What P&C are most difficult to comply with as a group? eg 2.2 and 2.3 land ownershipa group? eg 2.2 and 2.3 land ownership
Apa prinsip dan Kriteria yang paling sulit Apa prinsip dan Kriteria yang paling sulit dipenuhi oleh kelompok? Contoh 2.2 dan 2.3 dipenuhi oleh kelompok? Contoh 2.2 dan 2.3 tentang kepemilikan tanahtentang kepemilikan tanah
Others? Others? This is your chance to flag the key This is your chance to flag the key issues!!issues!!
Hal lain? Ini kesempatan yang baik untuk Hal lain? Ini kesempatan yang baik untuk mengutarakannyamengutarakannya