Closing the Traceability Gap: How Thailand is Working With Collection Centres to Certify Smallholders

by: Wandee Krichanan

In Thailand, a promising initiative is helping to close a critical gap in the sustainable palm oil supply chain. The “Khanom Model”, a collaboration between Thailand’s Department of Agriculture, Walailak University, and the Thailand Smallholder Facilitator Network, works with independent collection centres in Nakhon Si Thammarat Province to support smallholders in achieving certification under the RSPO Independent Smallholder (ISH) Standard, while linking them to mills and strengthening the physical supply chain. 

The project also promotes the adoption of Best Management Practices (BMPs) and supports the transition toward low-carbon production. In parallel, it fosters a peer-to-peer support system, empowering smallholder extension networks to deliver raining, facilitate RSPO compliance, and promote continuous improvement at the landscape level.

“The concept of sustainability today is no longer limited to reducing negative impacts; rather, it has expanded to creating value and generating positive impacts across economic, social, and environmental systems,” said Dr. Suteera Thawornrat, Senior Expert in Crop Production Management in the Upper Southern Region, Department of Agriculture, Ministry of Agriculture and Cooperatives. 

“The concept of sustainability today is no longer limited to reducing negative impacts; rather, it has expanded to creating value and generating positive impacts across economic, social, and environmental systems.”
– Dr. Suteera Thawornrat, Department of Agriculture, Thailand

Intermediaries as strategic access points

The Khanom Model targets a structural challenge that has long limited the reach of sustainability certification: the role of intermediaries. In Thailand, these are known as “lan tae” (“collection centres”), which are facilities that aggregate Fresh Fruit Bunches (FFB) from independent smallholders before supplying them to mills. A significant volume of FFB continues to be traded through these centres, often resulting in the exclusion of smallholders with certified physical FFB from traceability systems.

Although collection centres are not yet formally integrated into the RSPO System, engaging with them presents a key opportunity to strengthen their role as strategic access points to smallholders, who constitute their primary supplier base. 

A major challenge arises at the early stage of smallholder organisation, as farmers often face difficulties forming strong and sustainable groups. Working through collection centres can help bridge this gap, enhance traceability, and support the transition toward more sustainable production systems.

Collection centres in Thailand operate under various models. Many mills have established their own centres to expand their sourcing networks, allowing physical FFB passing through them to remain within traceable supply chains. However, independent collection centres, as well as those operated by cooperatives, often remain outside formal traceability systems.

Connecting Krabi cooperatives

Cooperatives functioning similarly to collection centres have also been strengthened through the project, “Development of an RSPO-Aligned Cooperative Network for Sustainable Oil Palm Supply Chains in Southern Thailand,” supported by Prince of Songkla University (Surat Thani Campus) in collaboration with I-Tap and Ao Luk Settlement Cooperative, which achieved RSPO ISH Certification in the past year. The project has connected 21 cooperatives in Krabi Province and surrounding areas, including the Krabi Oil Palm Growers Cooperative Federation, to systematically support smallholders in accessing and achieving RSPO Certification.

Within this structure, cooperatives act as aggregation and management points for members’ FFB – similar to collection centres – while cooperative federations, the crushing mill,  play a key role in strengthening marketing capacity, coordination, and standards compliance. This supports a more efficient and transparent physical supply chain. 

“Strengthening smallholder resilience through shared resources, coordinated management, and integrated system is key to long-term sustainability,” said  Dr. Benjamaporn Pimpa, Prince of Songkla University (Surat Thani campus).

“Strengthening smallholder resilience through shared resources, coordinated management, and integrated system is key to long-term sustainability.”
– Dr. Benjamaporn Pimpa, Prince of Songkla University

The networked approach reflects a collective economic model aimed at strengthening smallholder resilience through shared resources, coordinated management, and integrated systems, ultimately contributing to long-term sustainability.

To ensure the long-term sustainability of collection centre management, however, it will be essential to further explore and identify viable business models tailored to the diverse operational structures of these centres. Identifying these models will be a critical next step in RSPO’s broader effort to build inclusive, traceable, and resilient palm oil supply chains across Thailand and beyond, driven by strong collaboration among smallholders, the private sector, and the government.

About the author: Wandee Krichanan is RSPO’s Smallholder Manager (Thailand). To get in touch with the RSPO team in Thailand, contact: [email protected].