Addressing the Impact of COVID-19 on Natural Rubber Smallholders

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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.

More To Explore

Members

GPSNR Working Groups Update: March 2021 (Members Version)


Strategy and Objectives Working Group

The S&O Working Group has received inputs to the platform Theory of Change from the Smallholders Representation, Capacity Building, and Traceability and Transparency Working Groups. A task team from the S&O Working Group will now work to synthesize these different contributions into a single document. This compiled Theory of Change template will then be developed into the platform Theory of Change through a workshop which will involve representatives from all the working groups.

The Equity Sub-Working Group completed a summary of the Living Income studies that the platform commissioned in 2021 and presented the summary through a webinar. The webinar recording and slides can be found here. The reports are also available here on the member’s portal. The Equity Sub-Working Group will now work to develop recommendations on how GPSNR can address priority risks and boost equity in the value chain.

‘Policy Toolbox’ Working Group

The Policy Toolbox Working Group has selected a combined consultant team of Proforest and Are We There Yet to lead the development of the Implementation Guidance for GPSNR. The development is expected to be a consultative process that concludes with a set of draft guidance that will be ready by July 2021.

To facilitate consultation on the Implementation Guidance, the Working Group will set up category-specific focus groups that members are encouraged to join. The focus groups will meet twice to review the draft guidance and provide feedback and inputs to improve the document. Each focus group is only expected to meet twice and members are only required to spend a few hours before each meeting reviewing the draft documents. The focus groups will be set up in the following manner:

Focus Group 1
Growers
Traders of Raw Materials

Focus Group 2
Processors
Traders of Processed material

Focus Group 3
Tire makers and other manufacturers

Focus Group 4
End users (incl. car makers and other downstream stakeholders).

In line with the assessment of policy documents against the policy framework, the Secretariat has collated company policy documents that were submitted and will proceed to review the policy documents submitted for review. The Secretariat has received responses from all 29 ordinary member companies that were required to submit documents and will spend the next month assessing the submissions.

‘Capacity Building’ Working Group

The Capacity Building Working Group has created three separate task forces that will work on working group tasks. The first task force will focus on developing mechanisms to measure impacts of capacity building activities, the second task force will develop a strategy to attract and recognize GPSNR members’ funding of capacity building activities, and the final task force will develop systems to ensure that the national sub-groups tasked with implementing capacity building activities in each country remain aligned with the broader working group. In addition to the Good Agricultural Practices Task Force, the Working Group now has four Task Forces that will work to deliver on their tasks in the coming months.

‘Traceability and Transparency’ Working Group

The Traceability and Transparency Working Group will continue to meet in its sub-groups to develop recommendations on minimum benchmarks for traceability tools and data sharing in the platform. With the submission of the Working Group’s input to the Theory of Change, the Working Group is pleased to announce that its first sub-group has completed the assigned tasking and will no longer meet.

Smallholder Representation Working Group

The Smallholder Representation Working Group has now onboarded smallholders from Indonesia and Vietnam into the Working Group. The Working Group has also divided into two groups within the working group. The first sub-working group will work to develop a strategy to onboard smallholders from countries that are not represented in GPSNR yet. The second group will work to deepen engagement with smallholders who are already members of the platform and also develop strategies to improve representation among minority groups in countries that are already represented in GPSNR

Members

From Strategy to Implementation: Next Steps for Capacity Building (Members Version)

One of the key strategies identified by GPSNR to achieve our vision of a fair, equitable and environmentally sound natural rubber value chain is to ensure that there is capacity amongst smallholders and industrial plantations to adopt best practices in natural rubber production.

In 2020, the Capacity Building Working Group, through various stakeholder interviews and Working Group discussions, proposed a set of country-specific capacity building activities for four countries as a start: Côte d’Ivoire, Indonesia, Myanmar and Thailand. In developing these strategies, the Working Group sought to first identify threats to the sustainable production of natural rubber within the different local contexts, as well as the underlying causes for these threats. From this initial research, the working group developed proposed capacity building actions, along with main objectives and rationales for each chosen action. The approach adopted by the Working Group in designing these actions is to allow for immediate engagement and implementation on the ground.

Following the Executive Committee’s endorsement of the Working Group’s capacity building proposals, the Working Group will be conducting a sharing session for all GPSNR members, during which more details about each national capacity building strategy will be presented.

Recruiting Members to Capacity Building National Sub-Groups

Now that the capacity building strategies are in place, the Working Group is inviting interested GPSNR members to join the soon-to-be-created National Sub-Groups that will be mandated to oversee, guide and implement the national capacity building strategies and to promote GPSNR policies and initiatives. 

The development of the National Sub-Groups recognizes existing local capacity building initiatives in the rubber sector and their independence of GPSNR and aims to cooperate with local efforts and stakeholders to achieve mutually agreed outcomes.

To learn more about the Working Group’s strategies and about how to participate in their operationalization, please register for the webinar which will be held on Wednesday, 17 February at 8:00pm (GMT+8).

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