Sanfan Pela Pattana Settakit Community Enterprise

Sanfan Pela Pattana Settakit Community Enterprise
From Upstream to Downstream RSPO: Supporting Group Formation and Purchasing RSPO-Compliant Produce

“We want local farmers to grow quality oil palm. When they do, the company provides support, and the profits ultimately go to the farmers. Meanwhile, the company gains recognition from international organisations and certified palm oil buyers. Palm oil companies can then demonstrate that they are sourcing legally and sell RSPO certified oil to partners who require such standards, often at a better price. That’s why the company must support this initiative—forming groups and purchasing certified produce for oil extraction and onward sale.”

—Thanawin Khongkaew recounts the origins of the Sanfan Pela Pattana Settakit Community Enterprise. As an employee of Palmpanlan Co., Ltd., he currently also serves as the President of the community enterprise group.

This community enterprise was initiated by Palmpanlan Co., Ltd., which aimed to produce RSPO certified crude palm oil. In 2020, the company’s executives sent staff for training with GIZ to implement the certification process and subsequently introduced the initiative to farmers in Khlong Thom District, Krabi Province.

This move was a response to criticisms raised more than a decade ago that oil palm cultivation encroached on forest areas, harmed wildlife, and disrupted local communities, which provided the impetus for adopting RSPO standards.

Thanawin explains, detailing the steps and activities involved, much like he would to a farmer, “The first step was finding farmers willing to start with us and explaining what RSPO is, why it matters, and what the benefits are.”.

A direct benefit is the premium added at the mill when they sell their palm. The profit can be reinvested into maintaining the plantation. The plantation must be well managed; no burning is permitted, as it causes pollution and destroys organic matter. Every household must record farm activities, maintain accounts, and keep all receipts and expenses. Harvesting cycles, sales, and wages must all be documented. At the year’s end, they will be able to assess profit or loss and decide what should be increased or reduced. This data also serves as a tool for price forecasting.

Soil and palm leaf samples are collected to assess nutrient conditions and monitor disease status. The plantation must also be located on undisputed land and must not encroach upon protected areas that serve as habitats for local wildlife.

Like many smallholder farmers, those in the area were initially unfamiliar with these concepts, having relied on traditional farming methods passed down through generations. However, after gathering members and communicating the benefits, the Sanfan Pela Pattana Settakit Community Enterprise successfully achieved RSPO certification in April 2024.

The first group of 48 members covered 232.16 hectares and produced over 3,620 tonnes in their first year, selling all credits for nearly 400,000 baht, in addition to the premium price already received from selling fresh fruit bunches to the mill. The income from credit sales is reinvested into the group, funding activities and training.

Under RSPO standards, membership must increase by at least 50% annually. Remarkably, the Sanfan Pela Pattana group has exceeded this requirement, with membership in the second year growing by nearly 80%, expanding by approximately 400 hectares to reach a total of 640 hectares. The group president projects that by the third year, the area will increase to 1,040 hectares.

“With three generations of members, we expect to cover 1,040 hectares, producing around 21.87 tonnes per hectare annually. If farmers sell to Palm Pan Lan Co., Ltd., they’ll receive a premium of 0.1 baht per kilogramme, and the company will contribute a further 0.1 baht to the group for management costs and dividends—on top of the premium paid directly to farmers at the time of sale,” says Thanawin.

Currently, the group’s annual management costs remain below income; however, its largest expense is the cost of annual assessments. The first and second audits were supported by RSPO, but from the third year onwards, the group must be financially self-sufficient. RSPO auditing costs will also escalate with the expansion of cultivation areas.

In addition to operational funding, knowledge and capacity-building remain crucial. The Sanfan Pela Pattana group still relies heavily on support from partner networks.

“Convincing farmers to understand and participate can be quite challenging at times. Most of them do not yet understand what RSPO is, and our reach is limited—we are a small team and cannot engage with everyone. At present, there is no trusted agency to promote this standard publicly,” explains Thanawin.

The group president suggests that government or private organisations should take a more active role in supporting RSPO-quality oil palm production:

“RSPO could be included in training programmes by the Department of Agriculture, and interested farmers could be surveyed in advance. This would make it easier for us to continue the work because they’d already have a basic understanding.

“At present, we must explain everything from scratch each time. When we request documents, some farmers worry we might be scammers. If a government or private body could promote this standard through the media or host awareness activities—explaining what RSPO is and how to register—that would help immensely. Currently, RSPO is not part of the everyday lives of most farmers; only those involved in the group are familiar with it. We want someone to educate farmers—someone who can demonstrate, reference, and answer their questions with confidence.”

Total area covered by the project
255 Ha

Number of smallholders benefitting from this project
48 Smallholders

Number/percentage of women supported by this project
27.08% women in this project

The Sanfan Pela Pattana Settakit Community Enterprise is a collective of farmers who have taken bold steps to shift from traditional palm cultivation methods to practices aligned with the internationally recognised RSPO standard — a certification that emphasises environmental protection, community wellbeing, and transparency across the entire supply chain.

Today, the group is seeking substantial support to grow sustainably and with confidence into the future, particularly in the areas of:

• Funding — to expand activities, support new members, and maintain certification standards.
• Practical knowledge and technical expertise — to empower farmers to produce high-quality palm oil
• Stronger collaborative networks — to expand awareness of RSPO standards among smallholder farmers.

Having already achieved measurable results, such as increased yields, more stable incomes, and steadily expanding cultivation areas, one key challenge remains: reaching out to new farmers who are still unfamiliar with or uncertain about the RSPO approach.

 This offers a valuable opportunity for government agencies, private–sector actors, and development organisations to drive lasting, sustainable transformation by:

• Effectively communicating and raising awareness of RSPO standards within rural farming communities.
• Organising practical training sessions and workshops tailored to farmers’ real-world needs.
• Establishing accessible and trusted channels of information to assist farmers in adopting sustainable practices.

Supporting this initiative today represents an investment in the long-term sustainability of Thai agriculture. Join in setting a new benchmark for the Thai palm oil industry — one that not only enhances the livelihoods of farmers but also aligns with global values of environmental stewardship and fairness throughout the supply chain.

Representative Contact
Mr.Thanawin Kongkaew | Group Manager | [email protected] |

Miss Kanokwan Boonthong
Vice Chairman
(+66) 99 879 1988
[email protected]

Sanfan Pela Pattana Settakit Community Enterprise

Sanfan Pela Pattana Settakit Community Enterprise

Sanfan Pela Pattana Settakit Community Enterprise

Sanfan Pela Pattana Settakit Community Enterprise

Sanfan Pela Pattana Settakit Community Enterprise

Sanfan Pela Pattana Settakit Community Enterprise

Sanfan Pela Pattana Settakit Community Enterprise