BIPOSC Project

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BIPOSC Project

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BIPOSC Project

In the past few years, the palm oil industry has attracted the world because of its rapid development, and several issues related to social, and economic, particularly the environmental impact of deforestation and biodiversity losses. On the other hand, the global demand for palm oil is expected to continue growing in the coming decades.  In response to rising international pressure and consumer concerns, an increasing number of palm oil companies make public commitments to reduce or eliminate deforestation in their supply chains.  In Indonesia, smallholders manage more than 40% (4.2 million hectares) of all plantations, and independent smallholders own more than 3.1 million hectares of oil palm farmland. These independent smallholders receive limited support and risk exclusion from the (sustainable) markets as they cannot meet the demands. North Sumatera is one of the central palm oil plantations in Indonesia, producing an average of 1.7 million tons of CPO Per year, and this amount reached 8.23% of the total national production of CPO per year.

Therefore  SNV  as a lead project developer and Livelihoods Fund for Family Farming (L3F) project proposes a new approach to supply chains to address all these issues simultaneously, the investments in large-scale projects enabling farmers to produce higher yields of better quality through sustainable agricultural practices,  to strengthen the connection between groups of family farmers and business supply chains and in addition focus on biodiversity preservation, water resources management, and CO2 sequestration. The project would focus on the development of a smallholder sustainable palm oil project implemented by a consortium of Mars and Danone (investors, buyers), Musim Mas (Off-taker) in North Sumatra (Districts of Labuhanbatu and Labuhanbatu Utara), the World Agroforestry Centre (ICRAF, designing and piloting new palm oil production models).  As an implementer or lead project, SNV understands that the impact on reducing deforestation will be limited if smallholders are not included in the conversation since smallholder farmers are key players in the palm oil sector.  There are some of the key components in the project that will be demonstrated together with SNV partners by involving interrelated stakeholders. Together with L3F, a co-designer of the project and responsible for its field implementation, SNV will implement the Deforestation Free Supply Chain (DFSC) approach using experiences for improving productivity and product quality, replanting and implementing agroforestry, and strategic interventions to scale. Specifically, SNV will Provide the expertise in delivering BMP or Better Management Practices, training for farmers towards the adoption of Regenerative Agriculture practice adapted to Palm oil and collaboration with Financial Access on the assessment of financial needs. To ensure the monitoring, evaluation, and achievement of the KPIs, goals, targets, and related milestones of the projects, as well as to support the governance of the project, including the implementation and monitor the project activities.

There are some components of the proposed activities of the BIPOSC Project as, Better Management Practise (BPM) Field School for Farmer, the project is intended to improve the productivity and quality of Palm Oil Independent Small Holders (POISH) plantations using regenerative agriculture concepts and integrate some of them with the agroforestry models. Institutional Development – to establish and build the required capacity of 50 farmer groups to support the implementation of BMP Training. RSPO Certification – to support the development of the Internal Control System unit in each cooperative and jointly train/facilitate RSPO certification compliance. Replanting – to conduct a credit risk assessment (in collaboration with Financial Access[1]) and support those POISH through training and access to supplies and markets in alternative income-generating activities. Agroforestry Demo Plot Development where we will develop demo plots for all types in every village, including the nurseries. Forest Protection (Community Forest Permit – HKM)- to support the business plan development for groups, including the implementation of an agroforestry scheme in the concession areas. Rubber will be one of the main commodities, and Knowledge Management and Stakeholders Engagement.

As an Implementer partner, SNV has a responsibility to monitor, evaluate, and achievement of the KPIs, goals, targets, and related milestones of the projects. Therefore, it is necessary to have a kickoff meeting within the internal key staff of SNV to ensure that respective the individual in the team has an understanding of the project, the kickoff meeting plan to behold in Medan, will be executed for two days. This internal kickoff meeting will be participated by the SNV team of Agriculture, the Agriculture Adviser team, Field Facilitator, as a well as finance and administration staff who will be actively involved in the project and will be led by the Country Director, the meeting will continue to the field visit in the SNV intervention area – District Labuhanbatu, particularly to identify the potential location for the agroforestry program as well as the regenerative agriculture in the next two days,  together with the team of the respective adviser of the component.

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