PALMOILMAGAZINE, JAKARTA – The primary focus on maintaining sustainability in palm oil plantations, particularly concerning independent smallholders certified by the Roundtable on Sustainable Palm Oil (RSPO). A key strategy to support the development of these plantations is through the purchase and sale of fresh fruit bunches (FFB).
On February 5, 2024, Cargill and the Perkumpulan Petani Swadaya Mitra Harapan (PPMH) conducted a trial purchase of RSPO-certified FFB from the Paku Juang mill in Manis Mata, Ketapang Regency, West Kalimantan Province. This trial involved members of PPMH and KUD Sinar Beraduk Jaya, with daily transactions totaling approximately 15-20 tons of FFB.
Yunita Widiastuti, Sustainability Lead at Cargill Tropical Oils, stated that the company is committed to purchasing FFB from independent smallholders with RSPO certification at the Paku Juang mill. This trial aimed to integrate them into the segregated product supply chain.
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“Cargill is fully committed to support FFB physical trade from independent smallholders by planning to purchase 100 percent their FFB that got RSPO certificate,” Yuanita said, as in the official statement to Palmoilmagazine.com, Thursday (29/2/2024).
Meanwhile Manager PPMH, Sandi Priana told that the initiative was not only about trade but also the long term – partnership for both sides to always improve sustainable palm oil governance. “By the purchase, independent smallholders would have the alternatives to maximize RSPO certificate advantages,” he said.
Rukaiyah Rafik, Secretariat Head of Forum Petani Kelapa Sawit Berkelanjutan Indonesia (Fortasbi) told that the test to physically purchase independent smallholders’ FFB by Cargil, would be ideal trade, namely if it has something to do with delivering answer about traceability and partnership between independent smallholders and mill.
“This model should be the alternative to encourage good partnership with the company and make sure that RSPO products produced by independent smallholders would be sold through the certified supply chain. The most important thing is that this should be the model to implement European Union Deforestation Regulation (EUDR),” she whose nick name, Uki, said.
Cargill would also involve two independent smallholders’ associations in FFB physical trade, they are, PPSK (Perkumpulan Petani Swadaya Ketapang) in Air Upas Regency of Ketapang, West Kalimantan Province and PPSMH (Perkumpulan Petani Swadaya Mitra Hindoli) in Musi Banyuasin, South Sumatera Province.
PPMH itself got RSPO certificate in 2023, and in progress to get Indonesian Sustainable Palm Oil certificate with the supports from Cargill, IDH, JDE, and Fortasbi. (T2)
