Palm oil has been a source of significant livelihood improvements for many rural communities in Indonesia and Malaysia. Demand for palm oil from India and China is growing rapidly given their population and economic growth. Solidaridad is aiming for improving sustainability performances for inclusive and long-term sustainability of palm oil sector in Asia through better inclusion of smallholders, sustainable production and trade while safeguarding the environmental value.
Smallholders are an economically vulnerable group who cannot always take advantage of the economic benefits. This is mainly due to uncertainty about market access, dependency on intermediaries, market price fluctuations and lack of knowledge to maintain their plantations. National sustainability initiatives such ISPO and MSPO (for palm oil in Indonesia and Malaysia respectively) are better able to combine local realities with smallholder and local business interests.
