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Smallholders’ livelihoods meet light once again with SMILE Program
Sustainable practices have proven itself to not only be a transformation towards a better life, but a strengthening of community bonds for a greater future.
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A hope for humanity can be found in sustainable growth.
Sustainable practices have proven itself to not only be a transformation towards a better life, but a strengthening of community bonds for a greater future.
This message in particular echoes the hearts of smallholders who are the pillar of Indonesia’s agricultural community–especially palm oil production. And yet, they are often neglected in aspects of building a secure life.
As the leading vegetable oil processor, Apical Group (Apical) offers hope that smallholders’ economic and social livelihoods will improve.
An expanding global footprint of over 50 countries that actualized its promise towards their 5Cs philosophy, Apical aims to give back to “the community, country, climate, customer and only then will it be good for the company,” and today–they pivot on upscaling visibility of the community. Especially those who have cemented the foundation of our local food chain.
This strengthened the company’s urgency to foster smallholders’ inclusion - driving transformative changes across their operations by equipping them with the resources to promote responsible agricultural practices and work towards improved livelihood.
In light of this issue, Apical’s ongoing collaboration with leading companies in the palm oil industry - Kao Corporation and Asian Agri - have made tremendous strides in creating positive change in the lives of smallholders through the SMallholder Inclusion for better Livelihood & Empowerment (SMILE) program.
With the vision of becoming the most reliable integrated processor of vegetable oil, it is no wonder that Apical’s role enlightened such transformative change as this program elicits their ability to add value to each step following the downstream production chain. This is parallel to their hierarchical value of what one might call, ‘others come first’ as such method brings prominence when controlling product-related impurities.
Launched in 2020, the program draws on the strengths of the three companies to aid independent oil palm smallholders, empower them to become active participants in sustainable agriculture, and overcome barriers to increase yield through access to knowledge, training and resources.
"We are proud of the positive impact that the SMILE programme has had on smallholders' livelihoods and the communities in which they live," opens Bremen Yong, the Director of Sustainability at Apical.
Their resilience to achieve synergy across their business activities with an extensive distribution network worldwide is exemplified by their on-going collaboration with their two peers, which strives for ceaseless social inclusivity. Bremen further supported this visionary journey.
"We are striving for a more inclusive and sustainable future by giving smallholders the tools to empower and encourage them in practicing responsible agricultural practices."
Tuesday marks the first time Apical, Asian Agri and Kao have traveled together to one of the Koperasi Unit Desa (KUD) of the smallholders - KUD Anugerah in Riau. The visit included a productive dialogue session with smallholders from the KUD, who were introduced to the SMILE programme and informed of the significant roles performed by the three companies.
Participants also enjoyed a guided tour of the smallholder plantation, school area, and residences of smallholders, which provided valuable insight into the efforts of the local community to promote sustainable agriculture practices.
Since its inception in October 2020, the SMILE program has engaged with 3,018 smallholders and assisted 390 smallholders in receiving RSPO certification. The program plans to audit three new KUDs in 2023, with participation from approximately 1,105 smallholders in North Sumatra and Jambi.
The SMILE programme was quick to address internal issues smallholders encounter in the face of production, as it is tailored to help independent smallholders overcome barriers by lowering the smallholders’ cost by at least 30 percent and increase yield through access to knowledge, training and resources. At the same time, sustainable palm oil produced by participating smallholders will be sold at a premium.
By prioritizing sustainable and inclusive practices, the SMILE program aims to increase the smallholders’ income, consequently improving their livelihood and fostering long-term sustainability.
Smallholders fulfill our local food chains and simultaneously encounter significant challenges from operating within the hardest areas to reach and having thin access to wider markets in potentially expanding their customer base and business.
Ivan Novrizaldie, Asian Agri's Head of Sustainability illustrates how the initiative's results emotes the significance in bridging the knowledge gaps.
"Through the SMILE programme, we have been able to create positive change in the lives of smallholders," he said.
Meanwhile, Nobuyoshi Yamaguchi, Kao’s Vice President of Procurement noted that the initiative aligns with Kao's commitment to sustainability and inclusivity.
“We are excited to be part of this initiative and look forward to contributing to its success."
KUD Anugerah's Head thanked Apical, Asian Agri and Kao, “We are thankful to Apical, Asian Agri and Kao for the SMILE programme, which has helped us improve our livelihoods and promote sustainable agriculture [...] and making strides towards a better tomorrow.”
According to RSPO Acting Head of Smallholder Programme, Guntur Cahyo Prabowo, collective action must be taken to close the gap between the supply demand of RSPO certified palm oil and for solutions to be effective, it is important to make shared responsibility work in practice proven that, “this is why RSPO has been working with our partners in both oil palm producing and consuming regions to keep collaborations as inclusive as possible.”
Implementing integrity at all times, Apical’s growth demonstrates the value of transparency and commitment to sustainability when it sits on making the betterment for all. Aligned to Pillar 4 - Inclusive Progress of their strategic sustainability roadmap, Apical2030, the SMILE program is just one of the many affirmations that credits their long-held values, and it is definitely the place to be for customers who longs for an end-to-end solution. As per attained, community always comes first.
