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.

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Natural rubber stakeholders align on GPSNR governance

A 22-23 January stakeholder workshop in Singapore saw Founding Members of the GPSNR and other stakeholders, align on a multi-stakeholder governance structure that includes a greater share of voting weight for civil society members. “This is a significant development,” said Stefano Savi, GPSNR Director “the model aligned on last week in Singapore comes out of a November 2018 workshop in Geneva – it’s a product of the dedication of all stakeholders to the shared goal of sustainable natural rubber – we’ve seen compromise from all parties, there’s a spirit of cooperation and inclusivity that shows there’s real commitment to make this work.”

The proposed governance structure will be put forward for adoption at the platform’s inaugural General Assembly (GA) planned for 21 March 2019, Singapore, scheduled in conjunction with the World Rubber Summit. Whilst multiple stakeholders have provided valuable input to the development of the platform thus far, governance roles and rights-to-vote are reserved for platform members only.

The platform includes the enrollment of smallholder members amongst its priorities. Despite the challenges associated with recruiting smallholder representatives, the more than 50 GPSNR stakeholders present at the workshop agreed that this critically important stakeholder group should be part of the GPSNR decision making structure. A dedicated working group will be established to coordinate actions to identify and secure adequate smallholder representation.

The workshop also confirmed the need for targeted member-recruitment to bolster the inclusion of rubber processors, NGOs specialized in social aspects relevant to rubber production, as well as non-tire manufacturing rubber makers.

“Agreement on platform governance is excellent progress and means the platform can better focus on the work ahead. We’re all aware of the critical challenges that remain, but there’s a feeling that, together, we can meet those challenges” said Savi, speaking at the close of the two-day workshop.

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GPSNR Working Groups Update: January 2024

Strategy and Objectives Working Group: ASI finished the initial draft of the Assurance Model proposal and presented it to Working Group (WG) members in December for their feedback. To gather more specific insights, feedback calls were arranged with various categories. Based on the feedback received, ASI plans to revise the draft and present it for further discussion at the February in-person meetings.

Smallholders Representation and Capacity Building (SCB) Working Group: Smallholder representatives attended the 5th Sustainable Rubber Plantation and International Conference in Buriram, Thailand, from December 13-15, 2023, to discuss sustainable practices. A consultation on the assurance model was held on January 25, 2024. Both SNV-Proforest’s Indonesia GAP and SNV-IRRI’s Disease Fighting project concluded in December 2023, with final reports submitted. Koltiva’s Indonesia GAP project, extended until September 2024, received additional funding from Goodyear. 

The Thailand agroforestry project signed a supplemental agreement for more projects. Southland and Sri Trang joined the Thailand GAP project as processors, with training material under review. 

The Digital Knowledge Sharing Platform (KSP) task force completed its user acceptance test, releasing the Rubber Wiki app on the Google Play Store. Koltiva was awarded the third phase of KSP for content development with the task force’s content development phase kicking off on January 25, 2024.

Continental pledged funds for capacity-building in Cote d’Ivoire. The Cote d’Ivoire subgroup will discuss new Continental-funded projects.

Two SCB WG meetings were scheduled on December 26 and 31 for final presentations and updates on various projects, including endorsements. The Thailand Agroforestry project plans training for late January 2024, and the Thailand GAP project aims to start training in late January or February 2024. The Income Diversification and Rubber Agroforestry task force is planning its third agroforestry workshop in Liberia from May 22-24, 2024.

Shared Responsibility Working Group: The Working Group is initiating initial steps to explore ways to develop a value transfer mechanism in GPSNR. The Secretariat has discussed possible paths with the co-chair, who will present these plans to the EC in the near future.

Executive Committee: The EC convened for an in-person strategy planning session in Paris, where they identified and outlined key strategic priorities in a Gantt chart. he Secretariat, along with members and WGs, will collaborate to implement these strategic priorities set forth by the EC.

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