CHANGE THAT MATTERS. CHANGE THAT MATTERS THE SOLIDARIDAD SUSTAINABLE PALM OIL PROGRAMME RESULTS, LESSONS, RISKS & RECOMMENDATIONS 21 April 2016,

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Presentation transcript:

CHANGE THAT MATTERS

THE SOLIDARIDAD SUSTAINABLE PALM OIL PROGRAMME RESULTS, LESSONS, RISKS & RECOMMENDATIONS 21 April 2016, Vereniging Tropische Bossen

Results Honduras Project 2013-2015 Consortium for Sustainable Palm Oil set up, representing 80 % of palm production capacity 6777 farmers supported SH yields improved from 9 ton FFB ha -> 14 ton FFB /ha

Results Ghana Indonesia: BMP plots implemented with farmers Palm Oil Yields went up from 6 ton FFB /ha -> 15 ton FFB/ha Indonesia: Credit Union involved in extension on Better Practices for Oil Palm Production 500 farmers reached Upscale to 5500 farmers foreseen

Lessons Big Improvement Potential within Oil Palm Value Chains for farmer livelihoods, and environmental goals Programmes focussing on individual supply chains limited effect; Need for Landscape Approach Policy/Government Involvement

RISKS FMCG Focus on Traceability/ Segretated/ever increasing standards Two Issues Two Tier Market/ with flow to Europe and rest remains business as usual Independent Smallholders excluded from value chains

value of Traceability? Traceability creates increased visibility & transparency BUT Traceability in itself will NOT reduce deforestation! Globally palm oil volumes are communicating vessels; As long as not all global demand asks for sustainable volume -> There is substantial leakage of ‘unsustainable’ volume If you use palm oil (even if it is ‘super sustainable’) it creates demand where requirements are lowest...

GLOBAL SUPPLY & DEMAND FOR PALM OIL: MAP OF MAJOR TRADE FLOWS EU 6.9 Million MT USA China 6.6 Million MT 1.2 Million MT India 8.9 Million MT 12% 2% 11% 15% %age of of global palm oil consumption 21% Palm Oil Is there; We all use it! The EU consumes around 12% of the global palm oil volume, or 6.9 million metric tons. Sources: USA – USDA, UN Comtrade EU – RSPO & Mielke Oil World, WWF Palm Oil Buyers Scorecard India – USDA, Observatory of Economic Complexity China – Mielke Oil World, UN Comtrade Indonesia & Malaysia – UN Comtrade Indonesia & Malaysia 85% of global palm oil production 12.5 Million MT consumption Sources: USDA, UN Comtrade, RSPO, Mielke Oil World, WWF Palm Oil Buyers Scorecard

What do we Need? Continued investment in Sustainable Demand Improve/Build Landscape Approaches (FMCG) companies to focus investments to create real benefits on teh ground –not only invest in own supply chain, but also outside, where issues are worst!

Thank you for your attention!