2.

Smallholder Organising for RSPO Certification

How do your partners organize

smallholders? Lessons learnt to date

October 2012

Rationale of Cooperatives

• Asked to talk about cooperatives • Before that, there is a need to ask, what is

rationale of cooperatives? • In smallholder farming systems it is one way to

reach better economies of scale quicker for small farmers – Better livelihood outcomes; better community

outcomes – Better chance of reaching certification

• Cooperatives are not the only way – Integrated mill model, role of the local middleman,

credit union

• Need to address: how does the RSPO fit into the smallholder’s business case? – benefit of certification shown through the gains that farmers get

from farm/ fertiliser management/BMP /economies of scale

• There is no template training solution for developing associations – what ‘works’ in one country is not directly transportable – Over-exuberant belief in training: not a magic bullet

• Important to include livelihood indicators as well as number of smallholders certified – Spending patterns: Who really benefits from

certification? How can we ensure it is smallholders?

Initial lessons and observations

• Benefits of certification need to be in terms

smallholders believe in

• This needs to come from smh themselves • Leadership from smh groups • Peer to peer encouragement a key

• Local plantation - RSPO member or not – is an

important stakeholder here in terms of awareness raising – Certification is the “cream on top of the coffee”

Awareness raising for the group

• An ICS is a set of documented procedures

developed by the Group Manager to ensure that all group members implement the standard

• When the certification body assess the Group Manager, it mainly evaluates whether the Internal Control System is working

• Having a professional ICS is critical to independent smallholder certification (Asril 2012)

Smallholder Internal Control System (ICS)

ICS and Smallholder certification

Critical documents: NI RSPO P&CSustainable Palm Oil Production For Independent Smallholders , NI RSPO P&CSustainable Palm Oil Production For Scheme

Smallholders

29 October 2012 7

Wildasia example (based on Keresa experience)

Scope of project:

– 4 plasma smallholders’ estates under PIR-Trans scheme

– Involves approximately 20,000 smallholders

Going for RSPO certification

– Building awareness about RSPO, changing of mindset

– Commitment from the parent company, supported by smallholder organizations & dedicated Plasma Management team

Provision of RSPO trainings using concept of ToT (Training of Trainers):

• Trainings were given per Cooperative

• Selection of participants e.g. Head of Cooperatives, Community Head and smallholders

• Transfer of knowledge to other farmers

8

Asian Agri example

• Scope of project: 4 plasma smallholders’ estates; approx 20,000 smallholders

• Factors in going for RSPO certification: – Building awareness about RSPO – changing of mindset of smallholders – Commitment from plantation, supported by smallholder

organization & dedicated plasma team • RSPO trainings using ToT: Trainings per Cooperative • Selection of participants e.g. Head of Cooperatives,

Community Head and smallholders • Transfer of knowledge to other farmers

Setara Jambi example

Kami memulai berkelompok ketika ada kebutuhan memperbaiki jalan kebun. Lalu membentuk kelompok-kelompok kecil dan kemudian menjadi besar, karena

ada persoalan besar yang dihadapi bersama.

Problem bersama

Harga, akses,pengetahuan, modal, pasar

Pelatihan GAP (perawatan, pemanenan,

pasca panen, dan budidaya)

Kelembagaan petani

Kemudahan akses

informasi, pasar dan

modal

Bargaining posisi, perbaikan

harga

Pelatihan kelembagaan (managerial,

dokumentasi dan keuangan)

Certification of RSPO

Kami sudah sampai disini

Association model for grouping in Jambi

Concluding thoughts

• Forming farmer cooperatives is one of the most effective ways in reaching better economies of scale for small farmers – Better livelihood outcomes – Better community outcomes – Better chance of reaching certification

• Cooperatives are not only way – Integrated mill model/ variations of mill-smallholder relationship – Role of middleman/service provider

• Important to have livelihood indicators built into certification process – These are both within and as well as RSPO P&C indicators

14

Every ppt must have training photos

RSPO P&Cs Harvesting

HCV Cooperative Management