Cargill and Institut Pertanian Bogor to Establish Indonesia’s First Oil Palm Teaching Farm

As part of this agreement, Cargill will also leverage the teaching farm to conduct training for its employees as well as lend its expertise to joint research projects with IPB.

19 Jul 2012 --- Cargill announced a collaboration with one of Indonesia’s leading agriculture institutes, Institut Pertanian Bogor (IPB), to build Indonesia’s first oil palm teaching farm. The teaching farm, essentially a scaled down commercial oil palm plantation, will also be the first such collaboration between a commercial oil palm grower and an educational institute. Located in the Jonggol sub-district of Bogor, the teaching farm will provide high quality and industry standards training on the latest plantation production and management techniques.

The announcement ceremony between Cargill and IPB was witnessed by the Minister of Agriculture, Suswono, as well as representatives from IPB, Cargill and the Badan Pertanahan Nasional (BPN - National Land Agency) of Indonesia.

As part of this agreement, Cargill will contribute IDR 2.355 billion (US$250,000) to the construction of the palm oil teaching farm.

Named the “IPB-Cargill Kebun Pendidikan Kelapa Sawit” (IPB-Cargill Oil Palm Teaching Farm), the farm will enable research in the plantation sector as well as provide high quality training to students in plantation production and management for a sustainable agricultural system. The farm will also serve as a reference to other palm oil companies in the application for Roundtable on Sustainable Palm Oil (RSPO) and Indonesia Sustainable Palm Oil (ISPO) certification.

Cargill’s PT Hindoli plantation was amongst the first plantations in Indonesia to be RSPO-certified in February 2009, and its smallholders were later certified under the RSPO Guidance for Scheme Smallholders in August 2010. With its established know-how in the sustainable production of palm oil, Cargill will be lending its expertise in agriculture production technologies and plantation management to the IPB, noted for its excellent facilities and for offering innovative programs in education and research suited to the national as well as international development.

“We are proud to be setting an industry-leading example with this partnership, the first-ever initiative between a commercial oil palm grower and an educational institution. This is a demonstration of the significant role played by education in realizing next generation industry experts who appreciate and understand the importance of sustainable practices in palm oil. These future professionals will help to further industry standards on palm oil sustainability,” said Angeline Ooi, Chief Executive Officer, Cargill Tropical Palm.

As part of this agreement, Cargill will also leverage the teaching farm to conduct training for its employees as well as lend its expertise to joint research projects with IPB. IPB will conduct at least two research projects each year using sustainable resources, with guidance provided by Cargill.

“It is an honor for our institution to partner with an international agribusiness company such as Cargill,” said Prof. DR. Ir. Herry Suhardiyanto, M.Sc., Rector, IPB. “We continually strive towards becoming one of the world’s leading research-based universities in the world with major competencies in agriculture. This partnership will help us move closer towards this goal and we are excited to see where this partnership will take us.”

This partnership aligns with Cargill’s corporate responsibility initiatives, of which education and community development are key focus areas. With the construction of this oil palm teaching farm, the community of Bogor is well-placed to enjoy the fruits of this partnership through future associated community projects and the economic importance placed on Bogor as the venue of this inaugural teaching farm.