Sustainable Palm Oil Enterprise Network Pakpanang

“It took huge effort to form the group. Most people believed that certification would provide no value. Some farmers were afraid to present copies of their title deeds because they were concerned the documents might be misused. Farmers hesitated to participate in the group because it was something new for them.”

Ms. Benjarin Juliratchaneekron, Manager of Sustainable Palm Oil Enterprise Network Pakpanang

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“Palm growers used a lot of chemicals before, particularly herbicides.  After the group was formed, regulations banning chemical usage were implemented. Growers now mow the lawn as an alternative to herbicide application. This is good farm management practice,” shared Benjarin Juliratchaneekron, Manager of Sustainable Palm Oil Enterprise Network Pakpanang.

“The reason the group decided to apply for sustainable palm oil certification is that members aim to produce higher-quality palms and apply better farm management methods, such as no chemical usage on farms. Farmers expect to earn greater income and increase productivity.

“In the past, there was no formula to calculate the amount of fertiliser to use. Many people mixed their own fertilisers or sought advice from store vendors. However, after attending the group’s trainings, farmers understand how to properly apply fertilisers, which really helps them save costs. Certified palm can generate premium prices of 5 satang higher than uncertified products,” Benjarin stated regarding the benefits of group certification as sustainable palm oil producers.

Benjarin continued, “Other benefits from the group’s sustainable palm oil plantation initiative include healthier environments because smallholders have stopped using chemicals, mostly herbicides, switching to mowing the grass for insect control instead. To address the concern that farmers might grow palm in peat swamp forest, the group reiterated that encroachment into peat swamp forest is prohibited due to previous forest fires.” 

Benjarin further stated, “After achieving RSPO Certification, there are economic and social impacts on the communities surrounding palm plantation areas. The economy has improved and farmers earn more income from increased productivity. The surrounding community remains unaffected but is more bustling now because villagers are shifting from growing rice, which requires a lot of water, to palm trees. Palm can be grown even without water, and the yield can be harvested in the long term. Because factories are located nearby, the palms can be sold at a good price. ”

The Manager of Pak Phanang continued, “The group offers social and environmental activities for members to participate in. For example, we have the Plant Conservation and Reforestation project. In addition, annual training sessions are held for members on product delivery and good farm management practices. Collaboration has been very good.”

In terms of partnership, Benjarin stated, “Thai Talow and Oil Co., Ltd. provides support such as facilities to formulate the group and funds to organise trainings. Furthermore, the company offers funds in advance to procure notebooks, soil detectors and other supplies.” 

With regards to the High Conservation Value (HCV) application, Benjarin shared, “The group has not yet used the application. They brought the tool to the farm once but it was difficult to operate. The signal on the farm was poor. However, if the group needs to use it in the future, they must learn everything about this tool and find someone to monitor this application.”

When asked about the obstacles of changing to sustainable cultivation, Benjarin explained, “Prior to establishing the group, it was difficult to get farmers to change their attitudes about RSPO Standards. Most people believed that certification would provide no value. Some farmers were afraid to present copies of their title deeds because they were concerned the documents might be misused. Farmers hesitated to participate in the group because it was something new for them.

“The majority of farmers are between 50-60 years old and their children are away from home. They have no one to help them, so they aren’t sure that complying with RSPO Standards will achieve higher palm prices. It was rather difficult to form a group, and it took a long time for farmers to accept and follow the requirements. But after some members implemented the sustainable program, other farmers became interested. Early on, we had to visit communities quite often to advocate for sustainable projects. However, farmers have recently approached us so we don’t need to explain so much anymore,” said Benjarin.

Speaking about next year and five-year goals of sustainable palm plantation growth, “Pak Phanang Network targets an increase of the number of members to 300–400 people over the next five years. This is quite a sizable number. Because the area in the neighbourhood has a large number of palm plantations, productivity is expected to rise in proportion to the number of members. But we have not yet estimated the tonnage increase.

“After shifting to sustainable palm plantation, farmers earn significantly more income and have higher productivity due to better farm management. Earlier, farmers grew rice but have recently shifted to cultivating palm. Some areas are unsuitable for growing rice and most other crops except palm. After increasing productivity and income, farmers have switched to growing palm as the main crop. Their living conditions have improved and they no longer need to work elsewhere,” the Group Manager said.

Based on personal experience, Benjarin suggested, “The key factor enabling smallholders to be certified in the long term is cooperation among members. The group committee should stay in touch with members and constantly update information. For a specific way to engage with smallholders, the group continuously communicates and makes periodic announcements through Line chat groups.

“Key drivers in maintaining the group’s sustainable palm plantation practices are collaboration among members and compliance with the principles, such as keeping good farm records and better palm frond management. Before, farmers threw palm fronds away because they did not know palm fronds contain nutrients. Once they were trained on the benefits of palm fronds, they chopped and spread them on the farm. Now some farms do but some still don’t because there may be issues with cars entering farm areas.”

In terms of multiple revenue streams, Benjarin noted, “Most farmers keep bees in nest boxes. Some raise cows on the farms but there is no integrated cropping.”

Reflecting on future challenges after RSPO Certification, Benjarin predicted, “Member retention and maintaining palm quality can be rather difficult. It is sometimes hard to get members to follow RSPO Standards in all respects, but the group is confident that members can comply with the standards if we provide ongoing, directed guidance.”

Total area covered by the project
1466.10 Ha

Number of smallholders benefitting from this project
515 Smallholders

Number/percentage of women supported by this project
45.05% women in this project

Those interested in supporting the group can support and promote the group in every aspect, such as participating in projects, providing training, speakers, funding, information documents about RSPO and oil palm

Representative Contact
Jutharat Seekaew | Group Manager | [email protected] |

Somjet Loetsakrai
ISH Manager
(+66) 87 891 2192
[email protected]

Representative Contact

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Sustainable Palm Oil Enterprise Network Pakpanang

Sustainable Palm Oil Enterprise Network Pakpanang

Sustainable Palm Oil Enterprise Network Pakpanang

Sustainable Palm Oil Enterprise Network Pakpanang