Cargill works with IDH to empower Indonesian palm oil smallholders increase yields

More than 8,900 independent smallholders will be trained in good agricultural practice as part of Cargill’s commitments to smallholder inclusion.

 

Cargill has signed an agreement with IDH, The Sustainable Trade Initiative to support sustainable palm oil production by independent smallholders in Indonesia. The aim is to increase productivity in approximately 16,600-hectare of smallholder plantations in the provinces of West Kalimantan and South Sumatra for the benefit of more than 8,900 independent smallholders.

The partnership expects to increase the farmers’ yields from the current annual average of 14 tonnes of fresh fruits bunches (FFB) per hectare to at least 20 tonnes per hectare, while upholding the environmental requirements for sustainable palm oil certification. The plantations are located in villages surrounding Cargill’s PT Poliplant Sejahtera (PSA) and PT Harapan Sawit Lestari (HSL) in Ketapang, West Kalimantan, as well as PT Hindoli in Musi Banyuasin, South Sumatra. The project aims to improve independent smallholders’ livelihoods sustainably by balancing economic interests and environmental protection.

In collaboration with the implementation partners Bentang Kalimantan and Indonesian Sustainable Palm Oil Farmers Forum (FORTASBI), over the next two years, Cargill and IDH will provide training on Good Agriculture Practices and Sustainability Principles. Cargill has been operating similar partnership with 21,000 smallholders in South Sumatera and West Kalimantan, and will bring its knowledge and experience into this new initiative.

Richard Low, managing director of Cargill Tropical Palm, said: “Good agricultural practices have always been the cornerstone of our plantation operations. We implement the practices in all operational activities and extend these to our stakeholders, such as smallholder partners. Our partnership with smallholders encourages the adoption of sustainable plantation standards. We are committed to protecting the environment and improving the livelihood of communities where we operate while meeting the increasing demand for sustainable palm oil.”