Month: April 2020

The COVID-19 pandemic is impacting the entire natural rubber supply chain. It has triggered car and tire manufacturing companies to operate with a reduced workforce, or temporarily halt production plants altogether. Strict lockdown measures have caused a drastic fall in the sales of consumer tires across Europe. Global demand for natural rubber has dropped, the effects of which will be felt by the 6 million natural rubber smallholders in Asia, Africa and Latin America.

Many smallholders live in poverty, depending on daily wages to feed their families. Their situations will only be exacerbated by the COVID-19 crisis. Already, the Association of Producers and Processing Plants of the State of São Paulo (APABOR) has estimated that for Brazil alone, the subsistence of around 100,000 natural rubber farmers and their direct relatives is at risk.

While COVID-19 exposes the vulnerabilities of smallholders, it also reveals the potential they have to be agents of change and drivers of transformation. The pandemic has reminded us of the connections between human health, resilient landscapes, economic stability and livelihoods; the post COVID-19 world is more likely to devote greater attention to tackling environmental, social and economic impacts of its many supply chains. Smallholders, who produce 85% of the world’s natural rubber supply, are thus key to advancing GPSNR’s vision of a fair, equitable and environmentally sound rubber value chain.

One of GPSNR’s major outcomes for this year has been welcoming our new smallholder members. As of today, a total of 27 smallholder members (with additions from Myanmar) have joined GPSNR. The inclusion of smallholders into the fabric of the Platform provides them the opportunity to drive the agenda for sustainable natural rubber and, in the long-term, realize the social, economic and environmental benefits that sustainability brings. 

We encourage GPSNR members to communicate this outcome through the communication channels of their respective organizations. To this end, we launched a quarterly Members’ Communication Toolkit which outlines the suggested key message and provides ready-to-use content for communicating the message. GPSNR Members may access the Members’ Communication Toolkit for Q2 2020 in the GPSNR Forum.  

More is being done to fully include these smallholders in the Working Groups and Executive Committee. The Smallholders Representation Working Group continues with its efforts in designing a programme for onboarding smallholders prior to the General Assembly. In the meantime, some of our new smallholder members are already actively involved in Working Group discussions. Additionally, having recognized the urgency to address the impacts of COVID-19 on smallholders, the Equity sub-Working Group is developing a position paper on the issue.

What are the challenges that prevent the production of sustainable natural rubber in rubber-producing countries, and why do they exist?

What initiatives can be taken, and by whom, to effectively overcome these challenges?

How can GPSNR best support the natural rubber sector in becoming more sustainable?

In setting out to find the answers to these questions, the Capacity Building Working Group has established four regional sub-Working Groups to focus on developing country-specific capacity building goals and strategies for the following countries: Indonesia, Thailand, Côte d’Ivoire and Myanmar. 

Since the first week of April, the regional sub-Groups have been holding weekly calls to get their respective projects started. Their first order of business? Identify the main challenges preventing the adoption of sustainable natural rubber practices within their countries of focus. Already, some commonalities have been revealed: the lack of implementation of best agricultural practices and poor diversification of farmers’ income. While challenges may be similar across the countries, proposed initiatives may differ due to a variety of factors such as technology and infrastructure, culture, degree of (or lack of) government support. The role that GPSNR can play in supporting these strategies would also depend on the particular conditions within each country.  

The sub-Groups are currently working on prioritizing the identified challenges to capacity building, and will be linking expected outcomes to the components of the GPSNR Desired State.

Roland Baroan is the first GPSNR smallholder member to take part in a Working Group discussion. A rubber farmer with 37 hectares of land and current President of the Association of Natural Rubber Producers of Côte d’Ivoire (APROCANCI), Roland lends his local expertise and knowledge to the Côte d’Ivoire regional sub-Group. Smallholders from the other countries of focus will also be involved via a consultation process.

While we hope to see more smallholders participating in and contributing to the work of GPSNR, we must also ensure that the right support systems are in place for them to effectively connect and communicate with all members. To this end, the Smallholders Representation Working Group is finetuning a proposed programme to onboard our smallholder members. The Working Group is also discussing a suitable funding mechanism for future smallholder participation in GPSNR.

By laying the groundwork for smallholder inclusivity, we can support the natural rubber value chain in its efforts to become more sustainable, and thus more resilient to global catastrophes.

Many are calling these “unprecedented times”, and undeniably so. The COVID-19 pandemic has brought the world many firsts – from the closing of international borders to country-wide lockdowns and quarantines, and extreme social distancing measures applied to everyday activities such as exercising and grocery shopping. In this sense, many of the impacts of COVID-19 have been unprecedented. 

‘Unprecedented’, however, does not necessarily translate into ‘unexpected’. This is especially true for a significant link of the natural rubber value chain: the millions of smallholders and farm workers that supply the world with around 85% of its natural rubber. These smallholders, seasonal workers and their families are some of the most vulnerable people within the natural rubber sector, living in poverty and without adequate access to social services. Poor diversification of farmers’ incomes means that farmers are solely dependent on tapping rubber trees to make a living. When a pandemic occurs and global demand for natural rubber falls, it comes as no surprise that smallholders are the hardest hit. 

The Equity sub-Working Group was formed to look into the issue of equity in the natural rubber value chain and to define what GPSNR’s role will be in promoting equity along the supply chain. It is chaired by Robert Meyer (Halcyon Agri) and co-chaired by Hendrike Braun-Issa (GIZ). The sub-Group has, in its first few calls, recognized the importance of addressing the impact that COVID-19 has on the supply chain, in particular the natural rubber smallholders. In view of this, discussions have been centered around producing a set of short-term recommendations to counter the impact of the COVID-19 crisis. These recommendations are particularly aimed at supporting small-scale natural rubber farmers and their families.

The International Rubber Study Group (IRSG), represented by Secretary-General Salvatore Pinizzotto, is also participating in the sub-Group discussions to provide advice in the area of cooperation with Governments. 

Along with the short-term recommendations, the sub-Group is also looking at long-term efforts to address the underlying systemic issues, and are carrying out a study to inform the Platform on the subjects of Living Wage and Living Income.

Improving the capacity and livelihoods of smallholders is just one of the strategies undertaken by GPSNR. It is equally important for the other players in the industry to advance GPSNR’s vision of a sustainable natural rubber value chain. The Policy Toolbox Working Group continues to finalize the proposed member policy requirements and reporting requirements, with consultation from all member categories. Meanwhile, the Traceability and Transparency Working Group is focused on acquiring a better understanding of tools to achieve greater traceability and transparency within supply chains. Both groups will be aligning on key issues such as supply chain risk assessment.