Transcript DoR Introduction - Roundtable on Sustainable Palm Oil

Smallholder Definitions PNG National Interpretation Working Group
RSPO TFS Meeting - 1 November 2009
Presentation:
• Oil palm smallholders in Papua New Guinea
• Smallholder classification and how this fits with the
PNG reality
• PNG NIWG definition and draft guidance for a 3rd
category of smallholder
Introduction:
• RSPO has adopted a binary classification system for
smallholders; ‘scheme’ & ‘independent’ smallholders
• PNG doesn’t fit adequately within this classification system
• PNG is using the ‘independent’ smallholder definition as this
best describes the smallholders themselves, however higher
standards of compliance are achievable
• The PNG NIWG agreed that the development of a third
category of smallholder was necessary and has prepared a
definition and draft guidance for ‘Associated’ smallholders
Oil Palm in PNG:
Factors that affect growth :
Kavieng
Vanimo
1987 New Ireland
Rainfall 1800 - 5000 mm / year
VOP
Sunshine
min of 2000 h / year
Wewak
Rabaul
1967 Hoskins
between
22 – 32o C
VOP
LSS
LSS 1969
Altitudeless than 500 m VOP
above
SL Bialla
VOP
Temperature
Kimbe
Mt. Hagen
Gusap
2005 Ramu
Lae
1976 Popondetta
Popondetta
LSS
VOP
Daru
Port Moresby
VOP
Alotau
1985 Milne Bay
Types of smallholder:
Land Settlement Scheme (LSS)
• ~ third of all current smallholdings; alienated land; 99-yr
Government lease; settlers from areas of high popn with poor
development potential; now 3rd/4th generation; inward
economic migration; population & land pressures; no more
LSS
Village Oil Palm (VOP)
• Villagers growing oil palm on their own customary land; low
productivity;
Customary Rights Purchase Blocks (CRPB)
• Purchase of usage rights, not title; Customary Land Usage
Agreement; more significant in areas of high population
pressure
Smallholders receive support from:
• A national statutory organisation (OPIC) that
provides extensions services to smallholders
• A national R&D service provider, PNGOPRA, which
is an NGO that works for both smallholders and
plantations; and
• Milling companies that provide, variously, FFB
transport, extension support and credit for tools &
fertiliser
FFB production and planted area in PNG:
Area Estimates 2008 (ha)
Project Area
Hoskins (NBPOL )
Bialla (Hargy Oil Palms )
Popondetta (Higaturu Oil Palms )
Milne Bay (Milne Bay Estates )
New Ireland (Poliamba Ltd )
Ramu (RAI )
TOTAL
FFB Production in 2008 (tonnes)
Project Area
Hoskins
Bialla
Popondetta
Milne Bay
New Ireland
Ramu
TOTAL
Plantation
34,783
9,800
8,984
11,629
5,689
6,546
77,430
57.7%
Smallholder
25,223
12,698
14,285
1,837
2,533
234
56,810
42.3%
Total
60,006
22,498
23,269
13,466
8,222
6,780
134,240
44.7%
16.8%
17.3%
10.0%
6.1%
5.1%
61.5%
Plantation
751,481
168,293
136,638
190,575
101,634
32,264
1,380,885
65.4%
Smallholder
379,498
162,767
158,661
11,833
18,999
0
731,759
34.6%
Total
1,130,980
331,061
295,299
202,408
120,633
32,264
2,112,645
53.5%
15.7%
14.0%
9.6%
5.7%
1.5%
69.2%
Smallholder oil palm blocks in PNG:
Number of smallholder blocks (Dec '08)
Project Area
# blocks
Hoskins
7,181
Bialla
3,649
Popondetta
5,707
Milne Bay
773
New Ireland
1,282
Ramu
110
Total
18,702
Smallholder related issues in PNG:
• Low smallholder productivity
• High population, esp. in areas with LSS
• Limited land access for development
• Poor (or non-existent) government support services esp.
social and physical infrastructure
UN Human Development Index for oil palm producing countries
50%
94.9% of global CPO
%of global CPO production 2008
45%
40%
SE Asia
Central & South America
35%
30%
25%
Papua New Guinea
African Countries
India
20%
15%
10%
5.1% of global CPO
5%
0%
0.30
0.40
0.50
0.60
UN HDI
0.70
0.80
0.90
Smallholder Definitions:
Independent smallholders:
• freedom to choose how to use their lands, which
crops to plant and how to manage them
• being self-organised, self-managed and selffinanced
• not being contractually bound to any particular
mill or any particular association
• They may, however, receive support or extension
services from government agencies
Smallholder Definitions:
Scheme smallholders:
• Structurally bound by contract, by a credit
agreement or by planning to a particular mill
• Often not free to choose which crop they develop
• Supervised in their planting and crop management
techniques
• Often organised, supervised or directly managed
by the managers of the mill, estate or scheme to
which they are structurally linked
Smallholder Definitions:
Certification:
 Scheme smallholders should be certified along
with the mill with which they are associated
 Independent smallholders, who may sell their
fresh fruit bunches either directly or through
intermediaries to a number of mills, are to be
certified on their own through a Group
Certification Protocol
Smallholder characteristics:
• Is the smallholder's FFB certified (as opposed to CPO at the
mill)?
• Are the smallholders themselves certified?
• Do smallholders pay for certification themselves?
• Does the mill collect & transport the smallholder's FFB?
• Does the mill represent the only available market place for
smallholder's FFB?
• Do the smallholders have a contractual obligation regarding FFB
supply to the mill?
• Does the mill have a legal or contractual right to enforce (or
demand) smallholder compliance?
• Do the smallholders legally own or have legally protected
customary usage rights to the land (independent of any
involvement by the mill)?
Smallholder characteristics (cont.):
• Does the mill fully acknowledge the customary rights of
smallholder landowners?
• Are the smallholders fundamentally ‘Independent’ in terms of their
rights of choice?
• Does the mill, either through Government or some other parallel
process, make provision for full and complete technical support to
smallholders? And…
• …is this technical support limited to influencing (as opposed to
enforcing) compliance through education and awareness?
• Is a project manager responsible for compliance?
• Are the credit systems available to smallholders on a secured
basis?
Smallholder characteristics (cont.):
Thematic Areas:
• Certification
• FFB market
• Smallholder rights & obligations
• Smallholder support services
Smallholder characteristics (cont.):
Thematic grouping: CERTIFICATION
Characteristic
Smallholder Type
Scheme ASSOCIATED Independent
Is the smallholder's FFB certified (as opposed to CPO at
mill)?
No
No
Yes
Are the smallholders themselves certified?
No
No
Yes
Do smallholders pay for certification themselves?
No
No
Yes
Smallholder characteristics (cont.):
Thematic grouping: FFB MARKET
Characteristic
Smallholder Type
Scheme
ASSOCIATED Independent
Does the mill collect & transport smallholder's FFB?
Yes
Optional
Optional
Does the mill represents the only available market place for
smallholder's FFB?
Yes
Yes1
No
1
By current circumstance only; not legally binding; could change; in most cases no alternative outlets
Smallholder characteristics (cont.):
Thematic grouping: SMALLHOLDER RIGHTS & OBLIGATIONS
Characteristic
Smallholder Type
Scheme
ASSOCIATED Independent
Do the smallholders have a contractual obligation regarding FFB
supply to mill?
Yes
No
No
Does the mill have a legal or contractual right to force (or
demand) outgrower RSPO compliance?
Yes
No
No
Do the smallholders have legally protected customary or
leasehold usage rights to the land (independent of any
involvement by the mill)?
No-'check'
Yes
Yes
Does the mill fully acknowledge the customary rights of
smallholder landowners?
Yes
Yes
Yes
Are the smallholders fundamentally ‘Independent’ in terms of
their rights of choice?
No
Yes
Yes
Are the credit systems available to smallholders on a secured
basis?
Yes
No
No
Smallholder characteristics (cont.):
Thematic grouping: SMALLHOLDER SUPPORT SERVICES
Characteristic
Does the mill, either through Government or some other
parallel process, make provision for full and complete technical
support to smallholders? And…
Smallholder Type
Scheme
ASSOCIATED Independent
Yes
Yes
No
…is this technical support limited to influencing (as opposed to
enforcing) compliance through education and awareness?
No
Yes
n/a
Is a 'scheme' or project manager responsible for compliance?
Yes
Yes
No
A definition for PNG ‘Associated’ smallholders:
Associated smallholders retain legal authority over their
land and farming systems choice without any mandatory
or contractual obligations to the mill. In most cases the
milling company represents the only available FFB
market. The milling company and the statutory extension
service have a significant level of responsibility for
supporting and encouraging the smallholders in being
able to meet RSPO requirements. Credit from financial
institutions and milling companies is unsecured and land
cannot be forfeited for default on repayment or other
non-compliance
Guidance for PNG ‘Associated’ smallholders:
Using the generic guidance for ‘scheme smallholder’ as a
template, the guidance for PNG Associated smallholder has a high
degree of correlation with that for scheme smallholders (>90%);
but with the following key differences (outside of normal NI
variance):
• Project Managers cannot ensure, enforce or manage
compliance [e.g. 4.1, 4.4, 5.3, 7.7] but should show evidence
of provision of awareness, training and active support
towards compliance (including monitoring of compliance)
• Project Managers cannot control but can actively discourage
[e.g. 4.6, 5.2]
Guidance for PNG ‘Associated’ smallholders:
So why not just accept scheme guidance?
• PNG smallholders are fundamentally independent in
terms of their rights of choice with no mandated or
contractual obligations to the mill or any other body
• Ensuring, or enforcing, compliance would need the threat
of excluding smallholders from their only (currently)
available FFB market
• The PNG NIWG holds the view that exclusion of
smallholders from their only available FFB market must
not be used as a means of enforcing RSPO conditionality;
to do so would negatively impact livelihoods and would
drive many to a situation of poverty
Back to the human development context:
• PNG’s smallholders have a long way to go to reach the
levels of self-reliance and farming mindset that exists in
most of the world’s palm oil producing areas
• This fact needs to be considered when applying
conditionalities upon countries and communities with
little exposure to education, and where illiteracy and
innumeracy are barriers to development
UN Human Development Index for palm oil producing countries
50%
94.9% of global CPO
%of global CPO production 2008
45%
40%
35%
30%
25%
HIV/AIDS is a critical and overriding
sustainability issues
20%
15%
10%
5%
0%
0.30
0.40
0.50
0.60
UN HDI
0.70
0.80
0.90
Thank you