Business Model to Endorse Oil Palm Smallholder. Onei Hercuantoro, ST. PT Prosympac Agro Lestari

Transcription

1 Business Model to Endorse Oil Palm Smallholder Onei Hercuantoro, ST. PT Prosympac Agro Lestari

2 PT Prosympac Agro Lestari CPO Mill Capacity 45 ton/hr Location Sidomuti Village Sub-district : Gelam River District : Muara Jambi Start Production : 20 July 2017 Coverage Smallholders: 2500 Gelam River 1500 Kumpeh Ulu 700 Bayung Lencir (South Sumatera)

3 Why Smallholders Private Companies State-Owned Enterprises Smallholder Farmers Planted Area 5,366,854 Ha 803,817 Ha 3,133,711 Ha CPO Prod. 15,012,254 MT 2,378,214 MT 9,504,982 MT Palm Kernel Prod. 3,1170,671 MT 522,516 MT 1,886,280 MT Number of Actors 1,442 Companies 15 PTPN 1,458,319 households North Sumatera Riau Jambi West Sumatera Aceh Bengkulu South Sumatera Lampung West Kalimantan Central Kalimantan East Kalimantan West Sulawesi Source: BPS 2013

4 Business Architecture Independent Group Smallholders Plantation Good Agriculture Practices & Assistance, CSR, etc Crude Palm Oil Buyer Fresh Fruit Bunch Processing CPO Mill Price Incentive??? Sustanability Certification

5 The Business Model Heads of farmer group Local company/bumdes Local collectors/middlemen Cooperatives Government (Disbun) Research Center (PPKS) Bank NGO / Donor Institution Apkasindo GAP activities & trainings Grading awareness trainings On Field visit trainings Socialization meetings DISBUN Price (open) Lower transport cost Fair % price deduction Local resources vendor Revenue transparancy Productivity awareness Priority entry processing Replanting Planning EFB to fertilizer Bank transaction (support) Social responsibilty care Partnership Manager WA Group /open discussion Supplier monthly meeting Independent Smallholder 0 < radius area < 45 KM Investment Permit Farmer Group Supporting letter Supplier FFB Contract GMP/BMP training material DISBUN weekly meeting CPO Mill investment Sustainability Certification Tracebility Delivery Order Training Activities Instructors Salary Audit & Certification CSR Fund Higher OER Steady of FFB supply volume Certification insentives

6 FFB Pricing Range (Disbun Jambi) Rp /kg Rp /kg Energy < Food CPO Price Increased & Steady Energy >< Food RSPO + insentives CPO Fund to support biodiesel

7 The Activities Training and Mentoring of Oil Palm Good Agriculture Practices smallholders can practice GAP and sustainable management to improve the quality and quantity of yield Production. Until now we have carried out training in the classroom and direct field practices in field for about 2982 smallholders We develop Good Agricultural Practices (GAP) training materials which is copied at 1500 units DVD Video and distributed to the Smallholder in collaboration with SNV Netherlands Development Organizer, we conducted a Training for Trainer, who are ready work with smallholder in field to share their knowledge about GAP.

8 The Activities RSS Smallholder-Risk Assessment September 2015 with SHARP-Partnership collaborated on an RSS Smallholder-Risk Assessment. The objective of the risk assessment is to Assess how smallholders in the supply base are performing against the three core issues (land right and conflicts, deforestation and land conversion, Labour right and working conditions) and identify risks related to their performance. Mapping June 2016 PT PAL did Mapping for smallholder farmer area to determine the borderline and actual of smallholder farmer s area so get polygon form of smallholder farmer s plantation area. We have done mapping for Ha (3743 smallholder farmers).

9 The Activities Pest and Disease Census August 2017 together with SNV Netherlands Development Organizer and MCAI conducted P&D census activities in the smallholder farmers' This activities aim to know the potential and distribution of pests and diseases that attack the oil palm farmers. And can be prevented or control of pests in an integrated (natural) to prevent the occurrence of attacks Pests and Diseases.

10 Closing This activities as a form of corporate responsibility to the communities surrounding the company. From this partnership activities PT PAL does not expect any return from the smallholders who have received mentoring and assistance. They are free to sell their FFB to other Mills/fruit collectors The business model has been making progress since low harvesting season (August, September, October 2017) we have received FFB with average volume ton/day and average 21.3% OER which we still hope FFB receiving volume will increasing more up to 950 ton/day in peak season Some suppliers (middleman, cooperatives, PT/CV) which collaborate with our mills still have some difficulties for applying tax regulations. Challenging in making more engagement with smallholders that required financing for their replanting.

11 Thank you WPLACE 2017