Supporting smallholders through strategic partnership for a more robust palm oil industry
At Asian Agri, we believe that smallholders play a key part in the development of our industry and our business. Through the provision of training, facilities, and market access, we help independent smallholders across our areas of operation improve their productivity, financial yields, and environmental management capabilities. Our assistance also covers finding alternative sources of income during the oil palm replanting period. These partnerships aim to raise the welfare, skills, and productivity of these smallholders.
Our smallholder partnership began in 1987 when we pioneered the Indonesian government’s Transmigration Program (PIR-Trans) in Riau and Jambi. The program was expanded throughout North Sumatra in 2012. Today, we partner with more than 30,000 smallholders in Indonesia covering 101.500 hectares of plantations.
In 2016, Asian Agri established One to One Partnership Commitment, which is a plan to match one hectare of company’s plantation with one hectare owned by smallholder farmers.
Bringing about positive impact
As well as providing smallholders with a market for their crops, Asian Agri provides on-going support to raise living standards and boost yields of their plantations, such as training, assistance and modern equipment. We also provide smallholders with alternative sources of income when oil palms reach the end of their useful lives and must be replanted.
To date Asian Agri partners with more than 30,000 smallholders, bringing about positive impact on their quality of life while helping them farm more sustainably.