Sustainable farming methods, efficient production and high occupational health and safety standards are some of the most important conditions for certified palm oil production.
Smallholders can learn how to fulfill these requirements locally in dedicated training programmes. Since 2015, Henkel has been supporting the 5-year-project in the Indonesian province of West Kalimantan.
Earlier this year, BASF joined the effort as an additional industrial partner. The smallholder programme is implemented by Solidaridad in cooperation with its partners Good Return and Credit Union KelingKumang (CUKK).
The Australian non-governmental organisation Good Return coaches and supports the teachers who carry out training on the ground and who will continue the farmer support programme after the project ends. The teachers are employees of CUKK, the second largest local credit organisation in Indonesia.
Solidaridad and its partners want to establish sustainable supply chains for palm and palm kernel oil that both effectively improve smallholders’ living conditions and are eligible for certification according to the criteria of the Roundtable on Sustainable Palm Oil (RSPO).
Of the 5,500 farmers who will be reached by the project, 1,600 will learn about the different aspects of good agricultural practice (GAP) in direct training that will include measures for sustainable farming as well as for increasing crop yields.
Furthermore, around 3,900 smallholders will be reached not only through a multiplier effect, but also through farmer field days and regular text messages on their mobile phones. The project spans an area of roughly 16,000 hectares.

Committed to a sustainable palm oil industry
“We want to change the market to develop a sustainable palm oil industry. To do so, we also need solutions and projects that allow small farms to increase productivity on their plantations – and we are making an important contribution to that by supporting local partners and initiatives,” explained Thomas Muller-Kirschbaum, corporate senior vice president in the laundry & home care business unit and deputy chairman of Henkel’s Sustainability Council. “With BASF supporting this smallholder project as an additional industrial partner, we’re sending the signal that we are joining forces to make the palm oil market more sustainable.”
“BASF is one of the largest global manufacturers of ingredients for the cosmetics industry as well as the home care industry and one of the links in the palm oil supply chain from smallholders to end consumers. We believe that we can only find solutions for sustainable, certified palm oil products by working together to preserve the forests and improve the living conditions of the people in the farming areas,” said Jan-Peter Sander, senior vice president at BASF Personal Care Europe. “That’s why we are collaborating intensively with our customers and suppliers, and also want to involve more smallholders in the dialogue. The project in West Kalimantan is an important step in this direction.”
Higher yields and income for smallholders
The productivity of small farms in the palm oil industry is estimated to be 40 percent lower than the average when compared with larger companies. Measures ranging from farmer trainings to sustainable farming methods are expected to increase palm fruit yields and increase smallholders’ revenue. “We are delighted that Henkel and BASF are supporting this project in West Kalimantan,” said Marieke Leegwater,programme manager palm oil at Solidaridad. “We think that it is of great interest that companies using palm oil products take responsibility beyond just buying sustainable palm oil, and contribute to investing in more sustainable and inclusive palm oil supply chains on the ground. This project is expected to make a significant contribution to improve the livelihoods of independent oil palm farmers in the province of West Kalimantan, one of the poorest regions in Indonesia.”

Previously available only through a small distribution channel, now Rice Buddy will be sold in 121 Tesco Lotus hypermarkets around Thailand as well as its online grocery-shopping platform. The targeted volume this year is more than 20 tonnes, still with a huge room for growth, as Tesco Lotus currently operates more than 1,800 stores nationwide.
The concept behind Rice Buddy was for farmers and consumers to sell and buy directly, without going through middlemen. The “buddies” connect through the help of organisations such as Channel 3 and Tesco Lotus, who form “bridges” that raise awareness and drive sales on a much larger scale than would have been possible otherwise.
“The very concept of Rice Buddy is very much what Tesco Lotus stands behind,” said Charkrit Direkwattanachai, head of corporate communications and sustainability at the retail giant.
“We launched our direct-sourcing programme in 2010, and the volume of fruits and vegetables purchased directly from farmers has increased every year. This year, we will be purchasing more than 150,000 tonnes of local produce through direct sourcing.
“The partnership we have forged with the farmers, the Bank for Agriculture and Agricultural Cooperatives and Channel 3 is under the Pracha Rath framework, whereby the strengths of each partner are leveraged to help drive the grass-roots economy.
“Tesco Lotus is not only the channel of distribution with a nationwide multi-platform reach, but we are also able to lend our expertise in customer insight, product quality and retailing to the farmers.”
Adirek Wongkongkam, vice president of the BAAC, added: “This partnership marks a very significant milestone for the farmers and the bank, as our intention from the beginning was to reach a large market of consumers through the help of a modern retail operator with a nationwide network. Buying organic rice will be simple and affordable. Farmers will have more incentive to produce quality organic rice.”
Rice Buddy is a brand of organic jasmine rice grown in the Thung Kula Rong Hai plain, which covers five provinces in Thailand. The rice has received Q Organic certification, testifying to its safety and quality. Rainwater and herbal remedies are used in place of pesticides. The rice is milled by an ISO 17065-certified mill in Si Sa Ket province operated by Agricultural Marketing Cooperatives Ltd.

This donation was part of the automaker’s “Giving a Smile” project, which initially focused on child development in three areas: nutrition, physical health and education.
Sanjay Mishra, chief executive officer of Tata Thailand, said this was an opportunity to express the company’s commitment to social responsibility.
He said the donation of sports equipment was meant to support the children’s physical health and develop their sports skills. Tata hopes this support will help some of the kids become sport professionals in the future.
“We will continually sustain our ‘Giving a Smile’ project to arrange this kind of activity for helping Thai children and to contribute to Thai society.”

Saithip Montrikul na Ayudhaya, chief executive officer of GMM Channel Digital TV, the operator of GMM 25 digital TV station, said entertainment content should be differentiated from rival offerings and be meaningful for audiences.
She pointed to “Club Friday The Series” as a good example. This drama series is based on true stories told by listeners of Green Wave, a radio |station run by GMM Grammy, the |parent company of GMM 25.
She discussed this issue at a forum called “Let’s Go! Thai Entertainment Industry” held yesterday by managers of the Media Appreciation and Product Service Strategies Programme at Dhurakij Pundit University.
“When we entered the digital terrestrial TV business almost two years ago, we acknowledged that our station could not compete with the incumbents such as Channel 7 and Channel 3,” Saithip said. “Therefore, we set our target audience as people aged 15 to 34 and offered unique content that suited this target group.
“We strongly believe that different ideas can help spread word-of-mouth messages and build trust for the content. This is a way to create TV programme as a brand,” she stressed.
Because of the uniqueness of content based on true stories, “Club Friday The Series” offered a different viewing experience for audiences from traditional soap operas, which were available widely at rival stations targeting mass audiences.
Saithip said she aimed to build GMM 25 as a “living brand” that has a strong relationship with its audiences.
Puwanart Kunpalin, director of the news department of GMM 25, said that once this unique content was well accepted by the mass audience, the brand of the programme and GMM 25 channel would benefit.