CPOPC’s 2nd smallholder outreach webinar promotes good agricultural practices

The Council of Palm Oil Producing Countries (CPOPC) recently held a webinar to highlight the importance of promoting good agricultural practices of smallholder farmers in the Asia Pacific, Central Latin America and Africa. 
The CPOPC provides a platform for smallholder networks to share their experience and knowledge and learn from each other.

Addressing these opportunities through a webinar, was Kepson Puspita, a representative of oil palm smallholders from Papua New Guinea, Djono Albar Burhan, a representative of the oil palm smallholders in Indonesia and CPOPC Deputy Executive Director Dupito D. Simamora.  

A panel was assembled, consisting of eminent personalities from all areas of the palm oil cultivation process – planters, business and academia – to provide views, opinions and assessments of the global palm oil cultivation landscape. The speakers presented all topics relating to smallholder sustainability, sharing real stories, real-life issues and experiences. 

The webinar showcased a number of good agricultural practices that can be implemented in Sri Lanka, going forward and presented a number of reasons as to how the cultivation of palm oil can be sustainable, environmentally friendly, boost national growth and ensure further economic stability.

Sharing his expertise on palm oil production In Indonesia, Burhan from the International Relations and People Development Department in Indonesia Oil Palm Smallholder Association, touched on the benefits to smallholders through good agricultural practices. Looking at the economic and welfare impacts of palm oil production in Indonesia, Burhan stated that Indonesia consists of 16.38 million hectares with smallholder farmers owning a big percentage of palm oil land. Palm oil is a big player, relied on by millions of people across Indonesia, contributing to 3.5 percent of its GDP, significantly improving the rural economies.

He further stated that in October 2019, the price of fresh fruit branches (FFP) was US $ 0.11 per kilo for smallholders in average and as of October 2021, the price increased up to US $ 0.20 per kilo, thereby positively affecting smallholders, allowing them to further implement good agricultural practices.

Burhan spoke of the smallholder programme managed by the Government of Indonesia, which provides 30 million rupiah per hectare to smallholders across Indonesia for a replanting programme to switch from old palm oil trees to new ones. He mentioned that the benefit of the replanting programme is that it is integral towards increasing the implementation of biofuels, which in turn requires an adequate supply of FFB. 

In a bid to increase domestic palm oil consumption, the Indonesian government’s usage of biodiesel entered the B30 phase in 2018. Currently B30 absorbs 10 million of CPO. Therefore, to reach B40, increased productivity of smallholders is required. 

Another important agricultural practice Burhan spoke of is followed by smallholders in Indonesia, which is improving the intensification versus the extensification. Intensification has a huge potential to increase palm oil yields by optimising production and productivity without opening more land for cultivation. Addressing these needs creates a huge opportunity to produce more palm oil through an intensification programme. 

Also sharing his experience, National Association of Smallholders Malaysia Deputy President Azmi Hassan touched on the role of supply and demand in palm oil cultivation contributing towards economic growth.
Hassan explained that the development of palm oil in Malaysia is strongly supported by the government and is based on a policy that helps smallholder farmers improve their welfare, in turn reducing poverty levels in the country. Smallholders are given a small plot of land as part of an organised model financed by the government, allowing them to start palm oil production. 

He further mentioned that in order to increase the oil palm yield, good planting material is required for them, which you will obtain a good FFB, which you can sell to the mill and obtain the maximum oil, which in return increases sustainable power production. All smallholders operate under a licensed model, which they have to buy from the licensed nursery operator.  He highlighted that in Malaysia, there are 840 industry operators licensed under MPOB and under the licensing regulation nursery, important legitimacy of land is a requirement. 

Sharing his expertise on good agricultural practices, Hassan emphasised on the importance of good fertiliser practice, which in turn ensures good agricultural practices. For this, soil conservation needs to be carried out to ensure efficient fertiliser usage thereby reducing soil erosion and sludge deposit in ditches, which in return result in water contamination due to pesticides. It is important to use fertiliser recommended procedural agricultural practices to obtain maximum benefit and minimise nutrient loss.

Further, in Malaysia, zero manning practices and the policy on those common practices by smaller connected under the national environment act no burning is permitted.