Sustainable Palm Oil Production (Thachana-Chaiya) Community Enterprise

“…More members have requested certification because of the higher income benefits. Previously, farmers sold their palm at Oil Palm Bunch Collection Centre for THB 5, but as RSPO Members, they get THB 5.20, same as the factory price, and all of this without having to transport the products a long distance.”

Ms. Jettana Insuwan, Former Group Manager of Sustainable Palm Oil Production (Thachana-Chaiya) Community Enterprise 

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“The difficulty in transitioning to sustainable cultivation is that farmers still cling to their old knowledge, such as applying fertiliser without considering soil and palm leaf analysis. They would simply follow the instructions from the store where they purchased the fertiliser. Some farmers tried to change while others still believed it unnecessary to take care of their palm plantation, just letting nature take its course,“ Jettana Insuwan, Former Group Manager of Sustainable Palm Oil Production (Thachana-Chaiya) Community Enterprise shared about the initial challenges of changing to sustainable plantation practices.

“The group’s decision to become certified members was inspired by expectations of higher member prices,” Jetttana said. “Uncertified farmers who sell palm to Smothong Group Co., Ltd’s factory will be paid the market price as announced on the announcement board. But after becoming an RSPO Certified Group and signing the memorandum of understanding (MOU) with factories, the group can request premium prices. No matter where they sell, prices are the same. Price at the Oil Palm Bunch Collection Centre is approximately 20–30 satang more than the factory price. Because of its proximity, most members will sell at the Oil Palm Bunch Collection Centre. After the group was certified and signed the MOU, farmers earn incrementally higher prices.”

Speaking about the positive impacts of changing to sustainable oil palm plantation practices, the Former Group Manager added, “Members gained significant monetary benefits. Previously, farmers sold their palm at Oil Palm Bunch Collection Centre for THB 5, but as RSPO Members, they get THB 5.20, same as the factory price, and all of this without having to transport the products a long distance. They earn more income and have standardised and defined farm management methods. This includes proper waste management, designated waste storage areas and changes in chemical application methods, allowing them to track the amount of chemical usage as well as cost-effectiveness. 

“RSPO Certification generates positive outcomes for the surrounding communities. The group allocates some of the added income to support community initiatives such as granting scholarships or requesting by-products from the factory to be used as fertiliser.”

Jettana spoke about their partner, Samorthong Group Co., Ltd at Tha Chana Branch, which supports the group by granting funds and providing personnel. “The registration fee for applying for RSPO Certification is relatively high. Samorthong Group provides financial support based on the volume of palm provided. For example, if a member delivers 1 kilogram (kg), the company will give the group 5 satang to be used for internal administration.”

When asked about overcoming challenges associated with transitioning to sustainable plantation, Jettana responded, “Some farmers still believe they do not need to take care of their palm plantation. It’s necessary to change this mindset, so we have invited experts to provide trainings. Selecting high-quality farms as models made it easier to demonstrate to farmers and help them gain a better understanding.”

Regarding sustainable palm production goals for the next year and the five-year plan, Jettana said, “The group’s policy is to increase certified areas by at least 15–20% each year. As for productivity, the group targets an increase from 3.2 tons per rai per year to 3.3 tons per rai per year.”

According to Jettana, “The most significant change in moving toward sustainable palm plantation is cost reduction and the clear example is the use of fertilisers. Farmers used to apply fertilisers according to their whims. They earlier didn’t consider technical principles but have since adjusted their methods by using Nitrogen Phosphorus Potassium (NPK) fertilisers instead of mixed fertilisers. Because NPK is less expensive, this results in cost savings.”

The Former Group Manager of Sustainable Palm Oil Production (Thachana-Chaiya) Community Enterprise assessed, “The key factor in ensuring that smallholders continue to be certified long-term is increased income through higher product prices and cost reductions. This motivates farmers to continue complying with RSPO Standards.”

Regarding future challenges following RSPO Certification, Jettana concluded, “We must continue to encourage members to recognise the importance of adhering to RSPO Guidelines. Personally, I believe that complying with RSPO Standards is not difficult. However, some members still believe in old practices and do not fully see the importance of environmental protections, or the benefits of database management. This could be because most palm growers are elderly and it takes time to change their perceptions.”

Total area covered by the project
1679 Ha

Number of smallholders benefitting from this project
337 Smallholders

Number/percentage of women supported by this project
45.70% women in this project

Organize training the ISH standard to groups committee.

Representative Contact
Kwanjai Phachana | Group Manager | [email protected] |

Representative Contact

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Sustainable Palm Oil Production (Thachana-Chaiya) Community Enterprise

Sustainable Palm Oil Production (Thachana-Chaiya) Community Enterprise

Sustainable Palm Oil Production (Thachana-Chaiya) Community Enterprise