Proposed development of training in BMPs (Better Management Practices) for smallholders producing oil palm in Sumatra

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Darcy Hardy
6 years ago
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1 Proposed development of training in BMPs (Better Management Practices) for smallholders producing oil palm in Sumatra Abstract The International Finance Corporation (IFC), which is the private sector finance arm of the World Bank, has a history and a portfolio of oil palm cultivation and palm oil production and refining investments throughout the world. For an existing project in Indonesia, IFC will utilize a donor fund that was established for the purposes of assisting IFC finance recipients with programs that go well beyond compliance with host country laws and regulations and with World Bank policies and guidelines. The fund, the Corporate Citizenship Facility, has agreed to provide a grant for the specific Indonesian project. The proposed activities in this document are aimed at planning and assisting with design and implementation of Better Management Practices (BMP) program designed to aid the IFC client palm oil producer design and implement an effective independent farmer (small holder) technical development and training program to achieve sustainable farming, production and agricultural practices among the independents that supply a significant percentage of fresh fruit bunches to the oil palm producer. Supplemental objectives of the BMP program include increasing long-term viability of operations, enhanced product quality and volume and, thereby, independent farmer income. Proposed development of training in BMPs (Better Management Practices) for smallholders producing oil palm in Sumatra 1. Background The International Finance Corporation (IFC), the private sector investment arm of the World Bank, have asked a qualified international consulting company (Consulting Firm) to prepare a proposal to support an Indonesian oil palm producer (Palm Oil Producer) to: identify opportunities and constraints facing smallholders producing oil palm around the Palm Oil Producer-owned plantations in Sumatra and possible responses to these; and develop appropriate training for smallholders to improve environmental performance, quality and quantity of palm oil FFB supplied to Palm Oil Producer. The proposal consists of three major elements: 1. Identification of specific areas of concern about smallholders production methods which can be addressed through training and will lead to improved environmental performance and better quality product. 2. Identification of institutional issues and constraints affecting smallholders supply of FFB to Palm Oil Producer (such as access to credit, transport, seed availability, prices) and possible responses to these constraints. 3. Development of basic training materials and delivery methods to be provided to smallholder farmers by either Palm Oil Producer own staff or locally contracted trainers. 1

2 2. Methodology The project will be carried out in the following steps: 2.1 Project planning, team identification The project will be co-ordinated overall by Consulting Firm in cooperation with Palm Oil Producer and IFC. Initial project planning will involve ensuring that all parties are agreed on the precise objectives, methodology and outputs to be expected from the process. Consulting Firm will also review and gather existing information and relevant materials which might be usefully incorporated into training materials for Palm Oil Producer. Consulting Firm will be responsible for identifying and contacting a technical working group of approximately 8-10 people. This working group will bring together the necessary expertise needed in a number of fields including: Expertise in specific issues of oil palm management, particularly integrated pest and ecology management, soil and water management, biodiversity conservation. Local expertise in farmer participatory training for smallholders Existing knowledge of the opportunities and constraints facing oil palm smallholder farmers in the region (particularly drawing on experience gained by Local Consulting Firm in previous surveys) and preferably smallholder representative(s). International experience of environmental and social performance requirements, and ways of demonstrating good management to international markets. Staff members from Palm Oil Producer (EPS) estates/ mill managers Possible working group members are as follows: Organisation Notes on role and inputs expected Consulting Firm Facilitator and co-ordinator; experience of international market demands for environmental and social performance. LOCAL CONSULTING FIRM Feedback from assessment study and identification of issues for smallholders Palm Oil Producer estates/mill managers Needs, capacities and experience of Palm Oil Producer; possible provider of training; technical expertise which Palm Oil Producer would like to share with smallholders; opportunities for Palm Oil Producer to address institutional issues. 2

3 Unilever Ghana Experience with existing OP smallholder programmes. Smallholder representative e.g. nominated demonstration farmer Capacities and limitations affecting target audience Local/ national government representative Co-ordination and consistency with government programmes and policies Possible technical inputs could be sought from: Technical consultant on Integrated pest management/ integrated ecology management External advice on best management practices in small holder produced oil palm World Education Indonesia Office North Sumatra Office Local experience with IPM and environmental management programs locally Balai Perlindungan Tanaman/ field Foundation Indonesia Farmer field school expertise in Indonesia and biological controls of pests / community IPM NB. For adequate functioning of the working group, ability to speak basic English will be essential, or a translator will be needed. 2.2 Workshop Working group members will be invited to participate in a workshop to be held at Palm Oil Producer in January Prior to the workshop Consulting Firm will define the scope of the inputs required from each participant and prepare a summary of the information and expertise which each group member brings to the table. The workshop will be scheduled for five days during which time the following issues will be covered: Institutional issues/ barriers facing smallholders supplying Palm Oil Producer and opportunities for Palm Oil Producer to assist them to overcome barriers, develop appropriate incentives for small holders to supply good quality and consistent quantities of FFB. Training needs of smallholders to improve environmental performance, as well as to deliver good quality and quantities of FFB. Training areas are likely to cover simple aspects of soil and water management, IPM, erosion control and biodiversity conservation. There will be an emphasis on conveying a simple and limited amount of information on key issues. 3

4 Discussion of delivery mechanisms for training including responsibility for provision, methods, material requirements and timescale. It will be important to decide who will be responsible for delivery, as training materials may need to focus on training the trainers, or on direct training for farmers. One day field visit (2 nd or 3 rd day) to ensure focussed discussion on smallholder issues. 2.3 Development of training materials Following the workshop, Consulting Firm, in consultation with working group members, will produce three main outputs based on the workshop discussions: 1. Basic, first stage training materials and delivery mechanisms. These will be developed by Consulting Firm in collaboration with other participants at the workshop. These materials will focus on delivering existing information on good practice to smallholders in an appropriate format. (It should be noted that if the workshop identifies a need for new research information on IPM, or considerable development work needed to feed into training materials, this would entail considerable further work which this project does not propose to cover.) International expectations in terms of social and environmental performance, as well as themes of importance to Palm Oil Producer, will be incorporated into the training materials. Consulting Firm will also provide guidance on ways of monitoring smallholders implementation of the training to provide assurances of good practice. 2. Proposals for modifications to Palm Oil Producer s service package and relationships with smallholders, for consideration by Palm Oil Producer. 3. A report on the outcomes of the workshop for a wider audience, summarising the results in a practical form which will be of use to other organisations in preparing their own training for similar situations. In addition, if appropriate, proposals will be developed for further work on internationally applicable training materials for smallholders working with oil palm. This would be undertaken in collaboration with other organisations (such as CAB International) that have considerable experience of developing farmer participatory training and research materials in cocoa and have expressed an interest. Although this would potentially turn into a much bigger project, it might be an excellent opportunity to produce materials of interest to other members of the Oil Palm Roundtable, with much wider dissemination and uptake. Co-funding would be sought for this project. 2.4 Implementation of training It is expected that training will be implemented as a medium term activity in an on-going format rather than as short courses. As such, it will be best delivered either by Palm Oil Producer staff directly or by a locally contracted specialist in farmer participatory training methods. Consulting Firm will carry out a follow-up visit after 4-6 months to monitor implementation of the training, receive feedback which can be incorporated into training materials and review progress. 4

5 3. Timing of activities The table below presents a preliminary outline of the expected timing of the activities. Activity Timing 2.1 Project planning & team identification Weeks Workshop Approx. week Development of training materials Weeks Implementation of training Weeks 30 onwards 4. Costs The estimated costs for the project which are to be paid by the Corporate Citizenship Facility of the IFC include professional fees for all Consulting Firm activities described in this proposed approach, including co-ordination and facilitation of the workshop and production of training materials. Expenses Allowable World Bank per diems will be charged and are included in the budget. Travel, visas and other expenses will be charged at cost. VAT and other applicable taxes VAT or other locally applicable taxes are not included in the amounts set out in the budget and will be charged additionally at standard rates. If you are exempt from paying VAT please inform us. Additional costs of workshop The proposal envisages bringing a person from Unilever (Ghana) to attend the workshop. It is expected that this person would not need to be paid fees, although a per diem would be required. Estimated air travel costs for this person are included in the budget. All other costs will be covered by Palm Oil Producer, including local (within Indonesia) travel costs for national workshop participants, fees to local consultants, local accommodation and facilities for the workshop. 5

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