THE P&G Center of Sustainable Small-owners (CSS), at the Asia School of Business (ASB) recently announced the release of the CSS Impact Report 2024 on June 15 highlighting the performance and impact of the P&G Smallholders Program.
The programme is a collaboration between ASB, P&G and Temasek Foundation, which aims to promote sustainable and good agricultural practices, and facilitate the production of certified sustainable palm oil from among independent smallholders in the districts of Pontian and Batu Pahat in Johor Baru, Malaysia.
The report—through March 2024—highlights the significant achievements and insights gained over the course of the programme. Some of the key findings include:
> Increased certification rates: Over 400 smallholder farmers have now achieved the internationally recognised Roundtable for Sustainable Palm Oil (RSPO) Independent Smallholder (ISH) Certification (RISS) under the programme, with a further 400 ISHs anticipated to be certified by the end of 2025.
> Enhanced livelihoods: 306 certified independent smallholders have received a total of USD 42,630 (over RM200,000) in premium in 2021-2023 for their certified palm produce, increasing their livelihoods.
> Environmental impact: Implementation of good agricultural practices promoting better waste and chemical management among smallholder farmers, including the right use and application of fertilisers.
> Community empowerment: CSS facilitated the establishment of Pertubuhan Tani Niaga Lestari Negeri Johor (Pertaniaga), an association that is owned 100% by independent smallholders, and has guided it through training, certification and yield improvement leading to a path of continuous improvement. Pertaniaga membership has now increased to over 700 smallholders.
> Training and awareness: The programme has also developed a simplified CSS curriculum on Good Agricultural Practices (GAP). Since July 2022, CSS has successfully trained 1,972 smallholder farmers on GAP and Best Management Practices. This GAP training and awareness is set to expand its reach through collaborations with state and district agricultural departments and farmer associations.
The Center for Sustainable Small-owners (CSS) was first launched in 2019—by funding from Procter & Gamble (P&G)—to deliver on its Ambition 2030 goals through the P&G smallholders initiative.
Under ASB, CSS is committed to empowering and improving smallholders’ livelihoods through traceability, compliance and capacity building through training and implementation of sustainable and best in class agricultural practices in accordance with global standards.
P&G Chemicals Sustainability Program director Francis Wiederkehr shared, “The P&G Smallholder Program is entering its fifth year, and we are proud to have seen it go from strength to strength.
“It has demonstrated the power of research-driven but practically focused and inclusive on the ground programmes in fostering sustainable agriculture. This year’s report once again underlines the importance of collaboration and shared responsibility among all the players across the supply chain. And it demonstrates the role of RSPO certification can play in promoting environmental stewardship and economic resilience among smallholders,” Wiederkehr added.
Meanwhile, Temasek Foundation Climate & Liveability head Heng Li Lang reiterated the foundation’s commitment to supporting people-centered sustainable development.
“The programme embarks on a continuous improvement strategy to enhance livelihoods of independent smallholders through sustainable and good agricultural practices including waste, peat and nutrient management. We are happy to partner with ASB and P&G to catalyse impact over the long term with the reduction of the overall ecological footprint of oil palm production by these very small farmers.”
ASB chief executive officer, president and dean Dr Sanjay Sarma noted that, “The outcomes reflected in this report are a testament to the dedication and hard work of the CSS Research Center at ASB along with the smallholder organisation Pertaniaga.
“We are happy that this collaboration between ASB, P&G and Temasek Foundation is able to create such a positive impact,” he added.
Malaysia is the second largest palm oil producer globally. There are over 275,000 independent palm oil smallholder farmers in Malaysia, who collectively account for an estimated 17% of total oil palm planted area in the country.
Compared to organised smallholders, independent smallholders have smaller land areas and limited access to knowledge, technology and guidance.
The full Impact Report can be accessed at https://publuu.com/flip-book/288834/1140129.
