Cargill Marks Significant Milestone in Sustainable Palm Oil Production with RSPO Certification Support for Independent Smallholders

Jakarta, December 17, 2024 — Cargill has reached a significant milestone in its journey toward a transparent, traceable and sustainable palm supply chain. Cargill has awarded the first RSPO premium to independent smallholder group Perkumpulan Petani Mitra Harapan (PPMH) in Ketapang Regency, West Kalimantan Province.

PPMH, which obtained its Roundtable on Sustainable Palm Oil (RSPO) certification in 2023, received the RSPO premium for its ability to meet rigorous environmental and social standards. This milestone also marks Indonesia’s first physical delivery of certified Fresh Fruit Bunches (FFB) and premium handover to RSPO IP-certified mills from independent farmers. The RSPO premium helps to incentivize smallholders financially and encourages sustainable palm oil production.

Azlan Adnan, Managing Director of Cargill’s Tropical Oils Business, remarked, “Our commitment to empowering independent smallholders with the tools, training, and certifications they need to produce sustainable palm oil is central to what we do at Cargill. By providing tailored capacity-building programs, we enable farmers to achieve RSPO certification, access to sustainable markets, and improved livelihoods. These efforts not only benefit our smallholders but also help us collectively meet regulatory standards. Together, we’re advancing a sustainable and compliant palm oil supply chain that benefits people, the planet, and the global market.”

Cargill has developed tailored programs to assist small holders like PPMH in transitioning to sustainable practices and achieve RSPO standards. These initiatives include:

• Training programs for farmer representatives
• RSPO Independent Smallholder Standard (RISS) audits
• Integrated social impact assessments in partnership with social NGOs
• Strengthening of internal control systems.

These programs have enabled smallholders in Indonesia to become the first in the country to sell physically certified FFB to Identity Preserved mills through a fair premium-sharing model. Cargill’s efforts in certified FFB production and sales address critical regulatory challenges posed by the EU Deforestation Regulation (EUDR) and NDPE (No Deforestation, No Peat, No Exploitation) requirements, while ensuring preparation for other global regulations.

A Transformative Moment for the Palm Oil Sector

Guntur Cahyo Prabowo Head of Smallholder Global RSPO emphasized: “This milestone represents a transformative moment for the palm oil sector, demonstrating how collective action can drive meaningful change. The revised RSPO Standard not only strengthens sustainability commitments but also highlights the critical role of Identity Preserved (IP) and Segregated mills in supporting independent smallholders. By fostering inclusivity and promoting resilient business models, we can build supply chains that benefit both communities and the environment.”

He added, “In regions like Indonesia, where independent smallholders heavily rely on credits, adopting a dual approach—integrating physical sustainability with the credit system—has the potential to set a new norm. By encouraging IP mills to proactively support independent smallholders, we are paving the way for a more inclusive and impactful future for sustainable palm oil.”

Following the success of PPMH, Sandi Priana, The Group Manager of PPMH, was invited to speak as a panelist at the Roundtable on Sustainable Palm Oils in Bangkok, Thailand. Reflecting on the achievement, Sandi Priana said, “Receiving the RSPO certification and premium award is a significant achievement for our community. It is a testament to our commitment to sustainable practices and demonstrates that independent smallholders can indeed meet global environmental and social standards. We hope this partnership will continue to support the continuity of RSPO certification, especially in overcoming regulatory challenges to ensure our compliance.”

Cargill’s Broader Commitment to Building Resilient Supply Chains

Cargill’s efforts in responsible sourcing and transparency extends beyond the palm oil industry, to strengthen the entire supply chain and promotes more resilient agricultural practices that benefit both people and the planet. By supporting more than 24,000 independent farmers, in West Kalimantan and South Sumatra, Cargill to helps them achieve RSPO standards and increase their incomes. The company provides comprehensive training and resources aimed at enhancing efficiency, improving farming practices, advancing sustainability and increasing incomes.  

Yunita Widiastuti, the Sustainability Lead of Cargill’s Tropical Oils business, said, “Improving agricultural efficiency and sustainable farming practices go hand in hand. Our goal is to not only empower these smallholders to achieve higher yields and better-quality harvests, but also improve their quality of life. This comprehensive approach underlines Cargill’s dedication to building a sustainable future across all facets of its operations, fostering a healthier, more equitable, and environmentally responsible world.”