Fostering Sustainable Palm Oil Supply Chains in Latin America Through Strategic Connections
Strengthening Sustainable Supply Chains in Latin America
In an essential move towards sustainability, representatives from prominent consumer goods companies in the United States, Mexico, and Brazil embarked on a significant journey to the Ucayali region in the Peruvian Amazon. Among them were key players like Hershey's, The J.M. Smucker Company, Blommer Chocolate Company, Edgewell Personal Care, Natura, and Grupo Bimbo. This visit was organized by the Roundtable on Sustainable Palm Oil (RSPO) to strengthen collaborations and foster sustainable practices within the palm oil industry.
The tour showcased several local players involved in Peru’s sustainable palm oil sector, including the Association of Palm Growers of Monte Alegre in Neshuya (APROMAN) and the Central Committee of Palm Growers of Ucayali (COCEPU). It emphasized the pivotal role that independent smallholders and local processors play in advancing sustainability efforts in the region.
Insights from the Field
During this milestone tour, participants gained unique insights into the sustainable palm oil production models established by certified independent smallholders in Peru, Colombia, Mexico, and Honduras. With the guidance of experts from RSPO and the Solidaridad Network, they visited several critical sites. These included an organic farm run by COCEPU, a palm oil mill named OLAMSA, and a value-added palm products company known as AOPSA. They even toured a farm owned by APROMAN, recognized as the first group of independent smallholders in Peru ready for RSPO certification.
This initiative not only strengthened connections between growers and buyers in the sustainable palm oil supply chain, but it also illustrated how the Peruvian smallholder production model has transformed traditional agricultural methods. The improvements observed led to increased productivity and a more efficient natural resource utilization. Pedro Seijas Cárdenas, Technical Manager of APROMAN, stated, "Collaborative strategies and tailored approaches based on a whole-supply-chain perspective can empower more producers to commit to a prosperous palm sector that safeguards the environment."
Bridging Global and Local Perspectives
Emphasizing the power of direct interactions, Erika Meschkat, Associate Manager of Sustainability at J.M. Smucker, remarked, "Hearing directly from the individuals who contribute to our food is enlightening, especially regarding a commodity that encompasses numerous steps before reaching consumers. Seeing the origins of these ingredients shortens the value chain and humanizes everyone involved."
Bella Sosa, the RSPO Smallholders Regional Manager for Latin America, pointed out the importance of these interactions in bridging the gap between global sustainability goals and local realities. She noted how smallholders benefit from insights into international market demands and sustainability standards. Conversely, buyers gain a deeper understanding of the challenges faced by smallholders, including limited access to necessary training, resources, and markets to meet sustainability criteria.
A Growing Commitment to Sustainability
Latin America stands out as the fastest-growing region for RSPO certified sustainable palm oil production, accounting for 35% of its total output as of 2024. Furthermore, North America has emerged as one of the fastest-growing consumer markets globally, with 88.5% of all palm oil imports covered by RSPO certification.
Building upon this momentum, RSPO aims to facilitate ongoing exchanges that connect smallholders and buyers across both regions. This collaboration is vital to amplify the impact across the supply chain, supporting a more sustainable future for palm oil production.
About RSPO
The Roundtable on Sustainable Palm Oil (RSPO) is a global initiative aimed at making palm oil sustainable. Established in 2004, it is a multi-stakeholder non-profit organization that unites stakeholders from across the palm oil value chain, including producers, processors, traders, consumer goods manufacturers, retailers, and NGOs. As a partnership committed to fostering positive impacts, RSPO encourages sustainable practices and provides assurance by setting certification standards.
In conclusion, this initiative highlights the importance of connecting palm oil growers in Latin America with key buyers to promote sustainable practices and foster a resilient future for all stakeholders involved in the industry's value chain.