Editor's Note: This article first appeared on NUS Giving. Reprinted with permission. Ms Belinda Tanoto strongly believes in spending a lot of time with stakeholders on the ground to discover...
Managing 60,000 hectares or 40% of Asian Agri’s oil palm plantation land, smallholders remain central to Asian Agri’s ongoing drive to produce sustainable palm oil.
Asian Agri’s Premium Sharing with Partnered Plasma Smallholders
In addition to many existing successful smallholder-focused programmes, Asian Agri has taken the initiative to share with them profits from palm oil sales. The latest Premium Sharing session was held January 2016 and saw portions of 2014 profits totaling IDR 2 billion (USD 150,000) disbursed to 6 plasma smallholder estates (77 cooperatives).
The first Premium Sharing was held September 2014, and portions of 2013 profits for the sale of sustainable palm oil totaling IDR 2.2 billion (USD 165,000) were shared with 4 plasma smallholder estates (43 cooperatives).
Building a Sustainable Supply Chain with Smallholders
As a member of The Forest Trust, Asian Agri commits to building traceable and responsible supply chains. With almost 30 years’ experience in smallholder partnerships, Asian Agri has played a pivotal role in helping its partnered Plasma smallholder obtain certification, in addition to helping them improve their productivity and yields.
— Asian Agri (@Asian_Agri) 27 January 2016
[above: Asian Agri helped its partnered Plasma smallholders obtain RSPO certification. Follow Asian Agri on Twitter for the latest updates.]
Smallholder-Focused Sustainable Palm Oil Producer
This goodwill gesture adds to the strengthening of already close relationship between the company and its partnered smallholders, a journey which has seen smallholders benefit from skills training, improved agronomic practices, high-yield seeds, improved infrastructure and living standards.
Smallholder recipients of the Premium Sharing can use the monies to build capacities such as receiving training in sustainable plantation management and best management practices, and also develop village infrastructure.
[above video: Find out more about how Asian Agri engages its partnered Plasma smallholders]
Benefits to Community, Country, Environment
Implementing sustainable practices and enhanced infrastructure projects will hopefully build a virtuous cycle that continues to create value and benefits at the levels of families, communities, the country and the environment.
Through Premium Sharing, Asian Agri recognises, supports and incentivises the sustainability efforts of its Plasma smallholders.