RSPO Calls for Enhanced Smallholder Involvement and Adoption of Technology for Sustainable Palm Oil
The Roundtable on Sustainable Palm Oil (RSPO) held its annual conference in Kuala Lumpur, Malaysia, known as RT2025, where global stakeholders gathered to discuss pressing issues surrounding sustainable palm oil. The focus was primarily on incorporating smallholder farmers more significantly into the production process and enhancing the adoption of technology to boost productivity, quality, and sustainability within the sector.
One of the main highlights of the conference was a call from experts and leaders in the industry to employ existing scientific and technological tools more effectively. These tools can help in fostering equity for smallholders while increasing the resilience of the supply chain in the face of various regulatory and geopolitical challenges. The shift towards smarter data use, digitalization, and diligence was emphasized as a means to unlock the potential of the palm oil sector.
Dr. Ravigadevi Sambanthamurthi, Chair of the Department of Biology at the Academy of Sciences Malaysia, presented a keynote address stressing the significant role that scientific solutions play in promoting a sustainable palm oil industry. She pointed out that groundbreaking innovations—from DNA testing for seed quality to leveraging biomass within a circular economy—have been developed to drive sustainable production forward. However, she stressed that the greatest challenge now lies not in innovation, but in implementation.
During the conference, the discussion made it clear that smallholders make up about 40% of the total oil palm cultivation area but often find themselves excluded from national, regional, and global markets. Smallholders face an increasing variety of challenges, such as diminished credit access, reduced government funding for developmental finance, and disrupted trade relations due to changing tariff policies.
Joseph D'Cruz, the CEO of RSPO, remarked on the struggles smallholders face despite their hard work in achieving certifications that demonstrate sustainable practices. He stressed that their inclusion in the sustainable palm oil supply chain is crucial for transforming the industry. A unified voice was advocated among major producers, downstream actors, and various stakeholders to create better market incentives for RSPO-certified independent smallholders, which would help them gain access to the market.
Practical solutions discussed in the dialogues included introducing price premiums, enhancing access to funds, sharing risks, and establishing long-term contracts as effective pathways for integrating smallholders into the sustainable palm oil market.
One particularly moving moment came from Pedro Seijas Cárdenas, a representative of the smallholder group Asociación de Productores Monte Alegre de Neshuya (APROMAN) in Peru, as he spoke on behalf of smallholders. He reminded the audience that every loan sold, every certified hectare, and every empowered community signifies that sustainable palm oil thrives not in boardrooms, but in the fields under the sun, in the hands of those who cultivate hope.
In 2024, the RSPO facilitated the purchase of 284,188 independent smallholder credits worth $6.5 million, benefiting 116 RSPO-certified independent smallholder groups. To further promote this engagement, a memorandum of understanding was signed among the National Association of Smallholders of Malaysia (NASH), the Asia School of Business (ASB), and the RSPO to facilitate capacity-building for smallholders and access to international sustainable markets.
Expanding RSPO certification to places like São Tomé and Príncipe and Sri Lanka last year has seen certified oil palm areas increase to 5.1 million hectares across 24 countries, with a significant 425,597 hectares now under RSPO certification. This area is equivalent to 17 times the size of Kuala Lumpur, with an additional 29,469 hectares of shoreline protection areas also secured.
D'Cruz explained that while certification is a crucial milestone, it represents just part of the sustainability journey. The global community is now beginning to measure impacts not solely through certificates and hectares, but also through thriving, resilient communities, protected forests, and empowered farmers. The industry is striving to transition from a ‘badge’ economy towards one where measurable outcomes and evidence-based impacts are prioritized.
An example of this strategic approach includes an MoU signed between the Nanjing Hongshan Forest Zoo and the RSPO aimed at promoting biodiversity conservation and awareness about sustainable palm oil in China. The RT2025 also honored various members for demonstrating exemplary commitment to sustainability through the RSPO Excellence Awards across five categories. Recipients included PT Dharma Satya Nusantara for 'Conservation Leadership,' Perkumpulan Petani Mitra Harapan for the smallholder award, Lestari Capital for innovation, Wild Asia Group Scheme for 'Communicating for Good,' and AAA Oils & Fats for 'Shared Responsibility.'
The RSPO functions as a global multi-stakeholder initiative aimed at promoting sustainable practices in palm oil production. Established in 2004 as a non-profit organization, it unites stakeholders throughout the palm oil supply chain, including producers, processors, retailers, NGOs, and financial entities, all with a vision for a transformational change in the industry that ensures sustainable palm oil production and consumption. As an international organization based in Zurich, Switzerland, with offices in Malaysia, Indonesia, and other global locations, the RSPO continues to be a pivotal force in advancing sustainability within the palm oil sector.
One of the main highlights of the conference was a call from experts and leaders in the industry to employ existing scientific and technological tools more effectively. These tools can help in fostering equity for smallholders while increasing the resilience of the supply chain in the face of various regulatory and geopolitical challenges. The shift towards smarter data use, digitalization, and diligence was emphasized as a means to unlock the potential of the palm oil sector.
Dr. Ravigadevi Sambanthamurthi, Chair of the Department of Biology at the Academy of Sciences Malaysia, presented a keynote address stressing the significant role that scientific solutions play in promoting a sustainable palm oil industry. She pointed out that groundbreaking innovations—from DNA testing for seed quality to leveraging biomass within a circular economy—have been developed to drive sustainable production forward. However, she stressed that the greatest challenge now lies not in innovation, but in implementation.
During the conference, the discussion made it clear that smallholders make up about 40% of the total oil palm cultivation area but often find themselves excluded from national, regional, and global markets. Smallholders face an increasing variety of challenges, such as diminished credit access, reduced government funding for developmental finance, and disrupted trade relations due to changing tariff policies.
Joseph D'Cruz, the CEO of RSPO, remarked on the struggles smallholders face despite their hard work in achieving certifications that demonstrate sustainable practices. He stressed that their inclusion in the sustainable palm oil supply chain is crucial for transforming the industry. A unified voice was advocated among major producers, downstream actors, and various stakeholders to create better market incentives for RSPO-certified independent smallholders, which would help them gain access to the market.
Practical solutions discussed in the dialogues included introducing price premiums, enhancing access to funds, sharing risks, and establishing long-term contracts as effective pathways for integrating smallholders into the sustainable palm oil market.
One particularly moving moment came from Pedro Seijas Cárdenas, a representative of the smallholder group Asociación de Productores Monte Alegre de Neshuya (APROMAN) in Peru, as he spoke on behalf of smallholders. He reminded the audience that every loan sold, every certified hectare, and every empowered community signifies that sustainable palm oil thrives not in boardrooms, but in the fields under the sun, in the hands of those who cultivate hope.
In 2024, the RSPO facilitated the purchase of 284,188 independent smallholder credits worth $6.5 million, benefiting 116 RSPO-certified independent smallholder groups. To further promote this engagement, a memorandum of understanding was signed among the National Association of Smallholders of Malaysia (NASH), the Asia School of Business (ASB), and the RSPO to facilitate capacity-building for smallholders and access to international sustainable markets.
Expanding RSPO certification to places like São Tomé and Príncipe and Sri Lanka last year has seen certified oil palm areas increase to 5.1 million hectares across 24 countries, with a significant 425,597 hectares now under RSPO certification. This area is equivalent to 17 times the size of Kuala Lumpur, with an additional 29,469 hectares of shoreline protection areas also secured.
D'Cruz explained that while certification is a crucial milestone, it represents just part of the sustainability journey. The global community is now beginning to measure impacts not solely through certificates and hectares, but also through thriving, resilient communities, protected forests, and empowered farmers. The industry is striving to transition from a ‘badge’ economy towards one where measurable outcomes and evidence-based impacts are prioritized.
An example of this strategic approach includes an MoU signed between the Nanjing Hongshan Forest Zoo and the RSPO aimed at promoting biodiversity conservation and awareness about sustainable palm oil in China. The RT2025 also honored various members for demonstrating exemplary commitment to sustainability through the RSPO Excellence Awards across five categories. Recipients included PT Dharma Satya Nusantara for 'Conservation Leadership,' Perkumpulan Petani Mitra Harapan for the smallholder award, Lestari Capital for innovation, Wild Asia Group Scheme for 'Communicating for Good,' and AAA Oils & Fats for 'Shared Responsibility.'
The RSPO functions as a global multi-stakeholder initiative aimed at promoting sustainable practices in palm oil production. Established in 2004 as a non-profit organization, it unites stakeholders throughout the palm oil supply chain, including producers, processors, retailers, NGOs, and financial entities, all with a vision for a transformational change in the industry that ensures sustainable palm oil production and consumption. As an international organization based in Zurich, Switzerland, with offices in Malaysia, Indonesia, and other global locations, the RSPO continues to be a pivotal force in advancing sustainability within the palm oil sector.
Topics Policy & Public Interest）
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