Food production is critical to meet the needs of a fast-growing population. One of the staple commodities of the global diet - palm oil - has come under fire for being damaging to the environment.
Rob Nicholls, General Manager of Programs and Projects at Musim Mas Group, says that sustainability is essential to the company’s ethos:
“Palm oil is not the problem. The method of production is the problem. The benefits we get from palm oil, such as personal care, animal feed, and household products, are things we cannot live without. Musim Mas understands this, and we work hard with our stakeholders to address their concerns such as greenhouse gas emissions, biodiversity loss, labor, and human rights.”
Independent smallholders currently contribute around 40 percent of Indonesia’s oil palm production area, with the number set to rise to 60 percent by 2030. These smallholders are in a vulnerable position: many lack good agricultural practices (GAP) knowledge and land deeds. Financially, few can secure loans for replanting or obtain other resources such as fertilizer.
Collectively, oil palm smallholders play an increasing role in deforestation and peat degradation, yet they hold the key to higher yields without the need for land expansion. Hasbi Salem, Village Extension Officer (Trainer), says that the answer is education:
“Smallholders must engage with palm oil companies and regulators to ensure a sustainable supply chain. Musim Mas has a responsibility to ensure that their smallholders have legitimacy, resources, and improved market access. Much of this work can be achieved through training.”
Salem explains how Musim Mas Group, which works alongside other stakeholders that engage in the palm oil industry, provides smallholders with essential training.
“We are focused on sustainable practices, emphasizing the importance of biodiversity to smallholders. We also believe in the benefits of training smallholders in financial literacy to tackle poverty and raise the standards of living for the communities with which we work. So far, over 35,000 smallholders have benefited from these efforts, and Musim Mas is now shifting focus to educating trainers across every district.”
Trainers like Salem can reach out to smallholders and provide practical knowledge across a range of skills.
Rob Nicholls says that Musim Mas recognizes that as a company operating in Indonesia that sells to the world, it is accountable for sustainability across its supply chain and aspires to be a responsible leader in its space and a driver of sustainability through innovation.
“The palm oil space will evolve as sustainability, and empowered smallholders become the new normal. Musim Mas Group is determined to play a leading role in creating this new future.
We want to answer the question of how we can provide food for a growing world population. The answer is not about banning palm oil but about asking ourselves how we can sustainably produce palm oil and help solve the pressing problem. We have the ability to get in on the ground and make a huge difference - so that is what we are doing.”
