Certified sustainable palm oil
Mon 7th March 2016
Global support for independent oil palm smallholders
Tags: palm oil, smallholders, independent smallholders, sustainable
Indonesia oil palm smallholder weighting fresh fruit bunches
The introduction of traceable certificates back to mill and supply base level for 2016 is GreenPalm’s biggest step yet on the journey towards a sustainable oil palm industry. And, for the smallholders responsible for an estimated 40% (independent and schemed) of global oil palm production, it’s an even stronger link to the businesses that support them.

Since 2012, independent small-scale farmers working with GreenPalm have collectively earned a total of $815,418 (USD) for their certified sustainable production.

Transparency for Sustainable Premiums: GreenPalm certificates traceable back to certified independent smallholder co-operative (Nov 2012 to Feb 2016) 
 
Certificate Type Volume Sold Average Price
Palm oil 44,575 $14.28 
Palm kernel expeller 4,422 $1.50
Palm kernel oil 5,725 $30.05

Total sustainable premiums earned $815,418

The Book & Claim system is “a necessity” for smallholders, according to Darrel Webber, CEO of the Roundtable on Sustainable Palm Oil, who was speaking in a radio interview in Malaysia’s BFM 99.9, The Business Station 

“Many smallholders do not have access to the physical supply. They only produce fresh fruit bunches, and then they sell it off to the mill. They don’t own the mill, they don’t sell oil, so they can’t get into the physical supply chain, especially independent smallholders.

“So these smallholders get direct benefits from what we call the Book & Claim system, where, say, a retailer in somewhere in the US said they want to support a smallholder to supply sustainable palm oil.

“So while the smallholder does not directly supply that particular retailer, that smallholder can get direct benefit from that retailer buying a certificate from the smallholder.

“So we see Book & Claim as a necessity, even now.” 

Listen to the full interview  
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Christine Jarvis: christine.jarvis@bluestormdesign.co.uk  or 01482 649343
Julie Leydon: julie@bluestormdesign.co.uk or 01482 649343