Cargill Smallholders Receive First Premiums for RSPO Certified Sustainable Palm Oil

The smallholders receiving more than IDR 870 million (approximately US$100,000) in combined premiums today are organized in 17 cooperatives with 17,594 hectares of planted oil palm as part of Cargill’s plantation operations.

6/28/2011 --- Smallholders at Cargill’s oil palm plantation, PT Hindoli, today received their first premiums for the certified palm oil they produced. The smallholders were first to be certified under the Roundtable on Sustainable Palm Oil (RSPO) Smallholder Principles & Criteria in late 2010.

“The premium received by our smallholders today shows that sustainable farming practices can contribute to the livelihoods of rural farmers,” said Anthony Yeow, president director of PT Hindoli. “In addition to an increase to their incomes, the farmers also reap other significant benefits such as increased crop productivity and enhanced operational efficiency. We deeply appreciate our partnership with the smallholders and will continue to advance sustainable practices with them.”

“Our partnership with Cargill has enabled us to successfully produce sustainable palm oil that helps improve our standard of life,” said Bambang Gianto, a PT Hindoli smallholder. “More importantly, we have also learnt how to care for our land and maintain its productivity for the long term so that our children will continue to be provided for. We hope that more consumers and companies will support smallholder initiatives.”

The smallholders receiving more than IDR 870 million (approximately US$100,000) in combined premiums today are organized in 17 cooperatives with 17,594 hectares of planted oil palm as part of Cargill’s plantation operations. PT Hindoli’s crushing mills in South Sumatra process fresh fruit bunches from its own oil palm estates as well as those purchased from the smallholders’ scheme.

Cargill’s own palm estates at PT Hindoli received certification from both RSPO and International Sustainability and Carbon Certification (ISCC) in 2009 and 2010 respectively, and the company is currently working towards RSPO certification for its other palm plantations, PT Harapan Sawit Lestari and PT Indo Sawit Kekal.