More RSPO certified smallholders have begun to reap the benefits of their sustainable palm oil journey thanks in part to their enrolment in the Musim Mas smallholder programme – part of Musim Mas’ sustainability policy to improve livelihoods and integrate smallholders into the deforestation-free and exploitation-free palm oil supply chain.

After the first batch of RSPO certified smallholders from Musim Mas’ programme successfully gained access to the certified sustainable palm oil market, four other farmers’ associations holding RSPO certification have followed suit.

The four associations – PT Siringo Ringo (SRR), PT Bahana Nusa Interindo (BANI), PT Sinar Agro Raya (SAR) and PT Indomakmur Sawit Berjaya (ISB) – from Musim Mas’ smallholders’ programme have just sold their RSPO Independent Smallholder Credits to consumer goods companies Unilever, PepsiCo and Nestlé. This Musim Mas’ smallholders programme was jointly developed and implemented with IFC (International Finance Corporation), a member of the World Bank. IFC led the negotiation with Unilever, PepsiCo, and Nestlé, on behalf of the associations.

These farmers’ associations, certified by RSPO last year, are located in the vicinity of Musim Mas’ mills across Riau and North Sumatra.

Thanks to the deal, these smallholders will be receiving Rp 6 billion (US$430,000), which will be used to maintain their farmers’ associations and RSPO certifications and improve their livelihoods. Together with IFC, 2,092 farmers are now RSPO certified and have received RSPO credits for the production of 18,386 MT IS CSPO and 2,068 MT IS CSPKO.

The chairs of the four farmers associations received a ceremonial check from Musim Mas to celebrate the milestone.

Smallholders who join the Musim Mas programme have more opportunities as they are exposed to a curriculum consisting of best agricultural practices, best management practices and modules beyond agronomy, such as financial literacy.

Additionally, the programme encourages smallholders to group themselves into farmers associations and seek RSPO certification.

Last year, two farmers’ associations from the programme sold their RSPO Independent Smallholder Credits to Unilever.

Joining the Musim Mas program means gaining access to a wider market, as the global palm oil company, headquartered in Singapore, has a global operational presence in 13 countries.

Currently, Musim Mas is scaling up its reach to independent smallholders through the Smallholders’ Hub concept. Within the precompetitive Hub, Musim Mas trains government village extension officers to provide training to smallholders in their area.

Strong support for RSPO certified smallholders

Olivier Tichit, Director of Sustainable Supply Chain at Musim Mas, said “Achieving RSPO certification required a steadfast commitment from these smallholders, which must be rewarded fairly. Recognition by our customers of the challenges and achievements of smallholders is critical for an inclusive and sustainable supply chain.”

“We hope this milestone will encourage more independent smallholders to embark on their sustainability journey.”

Guntur Cahyo Prabowo, RSPO Smallholder Program Manager for Indonesia, said, “Without pressure and demand for sustainable palm oil from buyers and consumers, the likely outcome is more unsustainable palm oil.”

He went on to say, “Unilever, PepsiCo and Nestlé are leading the transition to a more sustainable market without leaving smallholders behind by purchasing RSPO Smallholder Credits.”

Martin Huxtable, Sustainable Sourcing Director at Unilever, said, “For Unilever, smallholders are at the core of our strategy to tackle deforestation and improve livelihoods in the palm oil supply chain.”

“By investing in RSPO smallholder credits, we can directly incentivise and support the livelihoods and sustainable agricultural practices of independent smallholders, while securing more sustainable palm oil for our products,” he added.

Natasha Schwarzbach, Sustainable Commodities at PepsiCo, remarked, “PepsiCo congratulates, recognizes and thanks the smallholders and the on-the-ground teams for their efforts to deliver sustainable palm oil. We are very pleased to support this progressive initiative.”

“Improving the inclusion of smallholders in global supply chains and the purchase of independent smallholder credits are policy commitments of PepsiCo and we hope to continue our work together in the future,” she added.

Emily Kunen, Global Climate Delivery Leader for Forests at Nestlé said, “Nobody should be left behind if we are to truly address the issue of deforestation. The inclusion of smallholders in the supply chain is central to our Forest Positive strategy,” she pointed out.

“We will continue to buy from suppliers who are actively conserving and restoring forests while promoting sustainable livelihoods and respecting human rights.”

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