RSPO Calls for Increased Inclusion of Smallholders and Adoption of Technology for Sustainable Palm Oil Industry
For instance, she highlighted the use of DNA testing for seed quality and biomass in a circular economy as groundbreaking advancements that can drive sustainable production. However, she pointed out the severe consequences of failing to adopt these technologies. For example, countries like Indonesia and Malaysia lose an estimated $6 billion and $1 billion annually, respectively, in productivity due to inadequate technological integration, thus exacerbating the vulnerability of smallholders.
The conference discussions reaffirmed that smallholders, who account for roughly 40% of palm oil plantations, often find themselves marginalized within national, regional, and global markets. Many face increasing obstacles, such as a downturn in credit availability, cuts in government development funding, and disrupted business relationships due to changes in tariff policies.
Joseph D'Cruz, the RSPO CEO, emphasized the importance of supporting smallholders who have demonstrated sustainable production practices by attaining RSPO certification. He mentioned, “Despite their commitment, smallholders are burdened with dwindling support. Their effective integration into the sustainable palm oil supply chain is crucial for the transformation of the sector.”
To address these challenges, representatives from large producers, downstream players, environmental and social NGOs, insurers, and financial actors called for more diverse market incentives to facilitate access for independently certified smallholders to physical markets. Discussions highlighted practical solutions such as price premiums, access to financing, risk-sharing, and long-term contracts as potential pathways for broader inclusion of smallholders.
In a powerful speech delivered on behalf of smallholders during the opening ceremony, Pedro Seijas Cárdenas, from Peru’s APROMAN smallholders association, stated, “Every credit sold, every certified hectare, every empowered community reminds us that sustainable palm oil is cultivated not in boardrooms but in the fields, under the sun, through the efforts of those nurturing hope.” In 2024 alone, 284,188 credits for certified independent smallholders worth $6.5 million were acquired to support 116 RSPO-certified groups.
To further solidify this engagement, a memorandum of understanding was signed between the National Association of Smallholders of Malaysia (NASH), the Asia School of Business (ASB), and the RSPO to enhance the capacity building of smallholders and their access to sustainable international markets.
Last year, RSPO certification expanded to São Tomé and Príncipe and Sri Lanka, raising the total area of certified palm oil to 5.1 million hectares across 24 countries. Additionally, a total of 425,597 hectares are now reserved under RSPO certification, a land area 17 times larger than Kuala Lumpur, with 29,469 hectares designated as buffer zones for protection.
D'Cruz noted, “While certification is a vital step, it is merely a part of the journey towards sustainability. The world is no longer satisfied with merely measuring impact through certificates and certified hectares. We must also demonstrate success in terms of resilient communities, protected forests, and empowered farmers.” This focus on measurable outcomes and evidence-based impact was further exemplified through a partnership agreement signed with the Nanjing Hongshan Forest Zoo in China aimed at promoting biodiversity conservation and raising awareness around sustainable palm oil.
The RT2025 conference also recognized the achievements of members who exemplified sustainable commitments by presenting RSPO Excellence Awards in five categories: PT Dharma Satya Nusantara for conservation leadership, Perkumpulan Petani Mitra Harapan for the smallholder award, Lestari Capital for innovation, Wild Asia Group Scheme for effective communication, and AAA Oils & Fats for shared responsibility.
The RSPO is a multi-stakeholder non-profit organization launched in 2004, aimed at promoting sustainable palm oil by bringing together members from across the palm oil value chain, including producers, transformers, traders, consumer goods manufacturers, retailers, banks, investors, and NGOs focused on environmental and social improvement. Through its commitment to facilitating global change for sustainable palm oil production and consumption, the RSPO emphasizes collaboration, sets certification standards, and highlights the environmental and social benefits of sustainable practices within the industry.
Challenges Faced by Smallholders
The conference discussions reaffirmed that smallholders, who account for roughly 40% of palm oil plantations, often find themselves marginalized within national, regional, and global markets. Many face increasing obstacles, such as a downturn in credit availability, cuts in government development funding, and disrupted business relationships due to changes in tariff policies.
Joseph D'Cruz, the RSPO CEO, emphasized the importance of supporting smallholders who have demonstrated sustainable production practices by attaining RSPO certification. He mentioned, “Despite their commitment, smallholders are burdened with dwindling support. Their effective integration into the sustainable palm oil supply chain is crucial for the transformation of the sector.”
To address these challenges, representatives from large producers, downstream players, environmental and social NGOs, insurers, and financial actors called for more diverse market incentives to facilitate access for independently certified smallholders to physical markets. Discussions highlighted practical solutions such as price premiums, access to financing, risk-sharing, and long-term contracts as potential pathways for broader inclusion of smallholders.
In a powerful speech delivered on behalf of smallholders during the opening ceremony, Pedro Seijas Cárdenas, from Peru’s APROMAN smallholders association, stated, “Every credit sold, every certified hectare, every empowered community reminds us that sustainable palm oil is cultivated not in boardrooms but in the fields, under the sun, through the efforts of those nurturing hope.” In 2024 alone, 284,188 credits for certified independent smallholders worth $6.5 million were acquired to support 116 RSPO-certified groups.
To further solidify this engagement, a memorandum of understanding was signed between the National Association of Smallholders of Malaysia (NASH), the Asia School of Business (ASB), and the RSPO to enhance the capacity building of smallholders and their access to sustainable international markets.
Certification and Conservation Milestones
Last year, RSPO certification expanded to São Tomé and Príncipe and Sri Lanka, raising the total area of certified palm oil to 5.1 million hectares across 24 countries. Additionally, a total of 425,597 hectares are now reserved under RSPO certification, a land area 17 times larger than Kuala Lumpur, with 29,469 hectares designated as buffer zones for protection.
D'Cruz noted, “While certification is a vital step, it is merely a part of the journey towards sustainability. The world is no longer satisfied with merely measuring impact through certificates and certified hectares. We must also demonstrate success in terms of resilient communities, protected forests, and empowered farmers.” This focus on measurable outcomes and evidence-based impact was further exemplified through a partnership agreement signed with the Nanjing Hongshan Forest Zoo in China aimed at promoting biodiversity conservation and raising awareness around sustainable palm oil.
The RT2025 conference also recognized the achievements of members who exemplified sustainable commitments by presenting RSPO Excellence Awards in five categories: PT Dharma Satya Nusantara for conservation leadership, Perkumpulan Petani Mitra Harapan for the smallholder award, Lestari Capital for innovation, Wild Asia Group Scheme for effective communication, and AAA Oils & Fats for shared responsibility.
Conclusion
The RSPO is a multi-stakeholder non-profit organization launched in 2004, aimed at promoting sustainable palm oil by bringing together members from across the palm oil value chain, including producers, transformers, traders, consumer goods manufacturers, retailers, banks, investors, and NGOs focused on environmental and social improvement. Through its commitment to facilitating global change for sustainable palm oil production and consumption, the RSPO emphasizes collaboration, sets certification standards, and highlights the environmental and social benefits of sustainable practices within the industry.
Topics Policy & Public Interest）
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