A coalition of leading international companies has launched a large-scale regenerative agriculture palm oil project in North Sumatra, Indonesia, Eco Business wrote.
Designed to address climate change and soil degradation in the sector, the Livelihoods Funds is being implemented in Labuhan Batu by non-profit company SNV, according to the 20 August report.
The aim of the project - backed by consumer goods firms Danone, Mars, L’Oréal and palm oil company Musim Mas - was to build a deforestation-free supply chain, regenerate degraded land, protect local biodiversity, and improve the socio-economic welfare of independent palm oil smallholder farmers in the area, the report said.
As part of the project, smallholders would be trained in regenerative agriculture techniques – covering soil health, animal welfare and fairness for farmers – and helped to access finance to replant old palm trees and grow a variety of crops to diversify their income.
Independent smallholder oil palm farmers – those not affiliated to a specific company or mill – account for about a quarter of the total planted oil palm area in Indonesia, according to the report.
Smallholder farmers faced a number of challenges including poor palm fruit productivity – due to a lack of good quality seedlings and resources to farms sustainably – Musim Mas general manager of programmes and projects Rob Nicholls was quoted as saying.
“Regenerative agricultural practices may potentially help them improve yields and sustainability, which could open the doors for them to more markets,” Nicholls said.
The project in Labuhan Batu aims to regenerate 8,000ha of degraded land that had previously been intensively-farmed as monoculture oil palm plantations, and protect 4,000ha of forest, with around 2,500 smallholders provided with seedlings, compost and training, according to the report.
