Supporting Smallholders

Smallholders are important stakeholders in our supply chain. We understand that smallholders face numerous challenges in their production processes, including access to cost-efficient materials and technological advancements to improve yields, especially in view of extreme climate pressure. We recognise that without addressing the concerns of smallholders, we simply cannot claim a fully sustainable and responsible supply chain.

In sourcing for external fresh fruit bunches (FFB) from smallholders, we are guided by our Responsible Sourcing Policy that strictly adheres to the No Deforestation No Peat No Exploitation (NDPE) standards. However, if a smallholder does breach the NDPE, it is not our policy to suspend them. Working with smallholders needs a different approach that is guided by dedicated programmes to help build their capacity. We work actively in partnership with governments of countries we operate in to lift smallholders to a certifiable standard of sustainability, so they can continue to earn a living without causing harm to the environment.

We currently work with independent smallholders in Malaysia (21.8%) and scheme smallholders across the rest of our supply chain (78.2%) in Papua New Guinea and Indonesia. We take a localised approach to meet the needs of communities in each of the geographical landscapes we operate in.

 


Performance of Smallholders Supplying to SDP Mills in 2019