Palm Plangyai Bang Sapan District Community Enterprise

Palm Plangyai Bang Sapan District Community Enterprise

Cooperation for a Better World for Future Generations

 

“We are the first and only RSPO certified group in Prachuap Khiri Khan and the ninth province in Thailand to achieve this,” says Bua Thoomphet with pride. He is one of the core team members of the Bang Sapan District Large-Scale Palm Plantation Community Enterprise.

 

“It’s a source of pride that we, as farmers, meet the international RSPO standards. Whenever you mention RSPO, it’s recognised globally.”

 

The Palm Plangyai Bang Sapan District Community Enterprise was established through the collaboration of large-scale oil palm farmers in Bang Sapan District, located at the northernmost tip of the Malay Peninsula, and Thong Mongkol Oil Palm Industry Co., Ltd.

 

“We have operated as a large-scale palm group since 2016 and formally registered as a community enterprise on 4 July 2017. Our guiding principles are to reduce production costs, increase yields, improve efficiency, ensure good management, and create market linkages. We won first prize in the provincial large-scale farming competition. However, at the national level, we were marked down on field management. Agricultural officers suggested we adopt RSPO standards. That’s when we partnered with Thong Mongkol – the only oil palm mill in Bang Sapan,” explains Bua.

 

“The company agreed to support us and officially signed the commitment on 3 July 2023. Experts trained us in 16 RSPO-related modules designed for smallholders. We conducted internal plot inspections and later hired external auditors for a formal assessment. We officially received RSPO certification on 29 September 2024.”

 

According to Yuttana Rueangthamrong, a Thong Mongkol staff member who also manages the community enterprise, “The farmers were keen to join the RSPO initiative. The company supported us by covering the inspection costs for the first group – a total of 800,000 baht – and will continue to assist us until the group becomes self-sufficient.”

 

The initial cohort comprised 35 farmers (25 men and 10 women) managing 1,014 rai (162.24 hectares). The second and third batches, comprising 51 additional farmers, are currently awaiting certification.

 

To join the RSPO programme, farmers must first become community enterprise members, own land with verified documentation, and avoid encroaching on public land. Farms are inspected for eligibility, after which  farmers undergo training in 16 RSPO-based courses (derived from RSPO’s four main principles). Finally, external audits are conducted, and successful farmers are officially recognised as RSPO members.

 

Once certified, farmers are required to:

• Keep accurate records and financial accounts.
• Test soil nutrients to determine the appropriate fertiliser to apply.
• Ensure that all workers undergo environmental and safety training.
• Manage waste responsibly and adopt natural pest control methods.

 

“For instance, I use rhinoceros beetle traps and plant coral vine to attract beneficial insects. This creates a model farm with clear indicators,” Bua shares, reflecting on his own experience.

 

“Farmers need true commitment. But the benefit is theirs – they gain knowledge, and certified members can pass that on to their peers,” the group manager emphasises.

 

What Are the Benefits?

Farmers gain increased self-awareness through record-keeping, clearer understanding of expenses and income, and improved pricing. Certified farmers earn an additional 0.5 baht per kilogramme above the base factory price. Furthermore, they can sell RSPO credits once the factory completes its RSPO supply chain certification.

 

This results in:

• Increased income from both direct sales and credits.
• Funding for group meetings and member activities.
• A competitive advantage for the factory in international markets.

 

“The factory has now obtained RSPO Supply Chain Certification, meaning it can process our group’s palm into RSPO certified palm oil. We currently buy from around 6,000 farmers,” Yuttana shares optimistically.

 

He added that RSPO represents the future:

“Eventually, RSPO standards will become mandatory. It’s best to prepare now.”

 

This synergy between local farmers and Thong Mongkol has become a strength of the community enterprise, blending farmer collaboration with industrial partnership to elevate local palm oil to international sustainability standards.

 

Beyond certification, RSPO group members also benefit from access to palm fruit residues (leftover after oil extraction) from the factory, which is useful for making compost and reducing chemical fertiliser costs.

 

All these factors strengthen the group’s sustainability and contribute to broader global environmental resilience.

 

“I believe RSPO leads to sustainable prosperity and well-being. It enhances competitiveness, safeguards ecosystems, and benefits future generations.

 

“We are now professional farmers on a global platform. In practical terms, we earn income. But the intangible reward is a profound sense of pride – to have stood on this Earth and contributed to sustainable farming worth passing on to the next generation,” Bua concludes.

Total area covered by the project
162.24 Ha

Number of smallholders benefitting from this project
35 Smallholders

Number/percentage of women supported by this project
28.57% women in this project

In Thailand, smallholders are at the heart of oil palm production, with over 80% of the total oil palm cultivation area managed by independent smallholders. Your support, therefore, goes far beyond enabling smallholders to meet RSPO standards for sustainable palm oil. It plays a critical role in strengthening sustainability across the entire supply chain—from farm to final product. By supporting smallholders, you are helping to drive a more inclusive and resilient agricultural system, ensuring long-term sustainability that benefits all stakeholders.

50 Moo7 Kamnoet Nopphakhun Sup-district, Bang Saphan District, Prachuap Khiri Khan Province, Thailand, 77140

Representative Contact
Mr.Yutthana Ruangthamrong | Group Sustainability Manager | [email protected] |

Mr.Jettanan Ueanomjikul
Data Management and Document Controller
(+66) 92 267 5666
[email protected]

Palm Plangyai Bang Sapan District Community Enterprise

Palm Plangyai Bang Sapan District Community Enterprise

Palm Plangyai Bang Sapan District Community Enterprise

Palm Plangyai Bang Sapan District Community Enterprise

Palm Plangyai Bang Sapan District Community Enterprise

Palm Plangyai Bang Sapan District Community Enterprise

Palm Plangyai Bang Sapan District Community Enterprise

Palm Plangyai Bang Sapan District Community Enterprise

Palm Plangyai Bang Sapan District Community Enterprise

Palm Plangyai Bang Sapan District Community Enterprise