Task Force on Smallholders

Presentation in Kuala Lumpur

1st 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 Review progress with standard setting for

‘scheme smallholders’ including lessons from ‘scheme smallholders’ including lessons from pilot audits 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 variedSmallholder situation complex and varied 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 draftsExisting 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

Redraft NI Guidance

National consultations and trials

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 Do they have land ownership titles and if not

what? \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