Ban Srakhao Sufficiency Economy Community Enterprise

Ms Saowanee Nuanrod, thetreasurer of the Ban Srakhao Sufficiency Economy Community Enterprise in the La Mae subdistrict, Lamae district, Chumphon province, shared insights into the recent shift of local farmers towards oil palm cultivation. Previously, most of them engaged in monoculture farming; however, an economic downturn in the agricultural sector prompted the need for diversified income sources and reduced expenses.

The farmers formed a group. Currently, it comprises 56 members who collectively manage approximately 1,126 rai of oil palm plantation areas, yielding an average of 3.2 tonnes per rai per year. The group operates a business that collects palm oil products and provides loans for purchasing agricultural equipment. Structurally, it features committees, working groups, and networks, and it holds extraordinary and general meetings to set  specific goals to promote farmers’ well-being and strengthen agricultural stability.

Employing a hybrid oil palm management system and advanced production technologies, the Ban Srakhao Lamae group diversifies income streams and embeds the Sufficiency Economy Philosophy into their lives. They maintain active participation and collaboration across various sectors, utilising their locale as a foundational base.

“The group believes that being an RSPO member will help lower production costs, improve oil palm production efficiency, and leverage the performance of agricultural organisation and marketing management,” Saowanee explained.

“The RSPO standard defines the requirements for a sustainable environment, farmer well-being, and disease-free conditions. Furthermore, the standard emphasises increasing the efficiency of sustainable oil palm management systems and connecting with the market. This aims to improve quality, standards, and processing of oil palm products, making them more valuable and offering job opportunities for local communities to reduce economic impacts,” she added.

Saowanee detailed that some group members practice mixed cropping on 13 plots with a variety of vegetables, herbs, fruits, and perennial trees like Hopea odorata and pine. Additionally, they run animal farms raising bees, pigs, fish, and black chickens, among others.

“Farmers aim to develop their farms into integrated agriculture that serves as hubs for learning and sharing production technology,” Saowanee stated. “This approach aligns with the Sustainable Development Goal of achieving “Stable, Prosperous, Sustainable agriculture”, reflecting the Sra Khaolamae group’s ambitions.”

Nevertheless, the group needs help with challenges related to high production costs for quality oil palm and misaligned selling prices due to the small size of individual oil palm plots. They seek partnerships to secure financial support for credit purchasing, certification funds, RSPO certification, and assessments. Besides that, they need expertise in modern farm management technologies and access to funding sources for the sustainable development of oil palm farms. The aim is to bolster confidence amongst the 200 current and new members who will be participating in the second phase of the agricultural initiative.

Such support would strengthen the group’s management system and the development process of the initial batch of leaders in the group. It could also serve as a consultant for new leaders assuming management roles, young individuals returning to their hometowns, new entrepreneurs who engage in sustainable agriculture, and those seeking stability in ancestral professions.