Thai oil palm smallholders increase production and income from RSPO certification
17/06/2024 (Oil & Fats International) - Oil palm smallholders in Thailand have increased production volumes and their income as a result of Roundtable on Sustainable Palm Oil (RSPO) certification, the RSPO announced.
RSPO certification also helped smallholders reduce environmental, social, and economic impacts, the association said on 21 May.
In 2023, the RSPO commissioned the Prince of Songkla University in Southern Thailand to conduct research into the environmental, economic and social impacts of the Thai palm oil sector as well as looking into the impact of RSPO certification, particularly within the country’s smallholder-dominated landscape.
The oil palm sector in Thailand, the world’s third largest producer of palm oil, is predominantly sustained by smallholders, who manage more than 70% of the country’s total oil palm cultivated area.
According to the Oil Palm Development in Thailand: Trends and Progress of Sustainability Efforts in Palm Oil Production and Procurement report, palm oil production in Thailand has grown annually by 5.64% from 1.893M tonnes in 2012 to 2.960M tonnes.
Predominantly concentrated in the southern region, key provinces such as Surat Thani, Krabi, Chumphon, Nakhon Si Thammarat, and Phanga served as focal points of production and the sector provided livelihoods for approximately 400,000 farm households in the country, the report said.
“This report serves as a policy advocacy tool to support government agencies in guiding oil palm smallholders towards sustainability by providing accountable information,” RSPO technical manager (Thailand) Radda Larpnun said.
As of May 2022, RSPO Thailand’s oil palm growers’ membership included 63 groups of small-scale and large-scale farmers, with 19 of them RSPO Certified independent smallholder groups. This accounted for over 5,400 farmers with a certified area of 27,295 ha, equivalent to 2.8% of the total oil palm plantation area.
Adoption of RSPO certification yielded positive economic outcomes for smallholders, even for groups of 60 members, and could lead to annual gains of up to 10.416M Thai Baht (THB) (US$287,401) for groups with 260 members, the RSPO said.
Certification also improved smallholders’ access to resources, market opportunities and premium prices for fresh fruit bunches (FFB) resulting in higher yields.
At 637,826 THB (US$17,600), the net oil palm income of certified smallholders in 2022 compared to income of 279,943 THB (US$7,720) for non-certified smallholders.
According to the study, initiatives such as the Surat Thani Provincial Oil Palm and Palm Oil Development Plan and the SCPOPP Project were helping to increase the adoption and recognition of the RSPO Standard in Thailand.
A not-for-profit international organisation formed in 2004, the RSPO’s objective is to promote the growth and use of sustainable oil palm products through global standards and stakeholder engagement.