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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Updates from the Working Groups

Strategy and Objectives Working Group

The study on Human Rights and Labour Rights’ Risk Mapping in the Global Natural Rubber Value Chains conducted by independent consultants James Griffiths & Associates Sàrl has been submitted to the Working Group. The full study will be published on the GPSNR website shortly, and the document will be open to stakeholders for comments.

Meanwhile, the Strategy and Objectives Working Group has started to engage with the rest of the Working Groups on aligning with the Theory of Change, and developing platform KPIs. 

The Equity sub-Group has collected comments from the Strategy and Objectives Working Group on the proposed definition of equity. The sub-Group is also exploring engaging consultant James Griffiths to conduct research into equity risks along the natural rubber supply chain, with the plan to have the findings of this study feed into the definition. The sub-Group is currently in the process of establishing an operational plan to define the various workstreams, processes, timelines, and  responsibilities for the Living Income study. The first phase of the study will involve collecting existing benchmark data and doing desk research on national poverty lines, minimum wages, and other relevant information. For greater alignment with the Capacity Building Working Group’s scope, the Equity sub-Group has decided to focus on the same four countries: Côte d’Ivoire, Indonesia, Myanmar and Thailand. 

‘Policy Toolbox’ Working Group

The proposed Policy Components and Baseline Reporting Requirements are open for member consultation until 3 July 2020. Find out more here

‘Capacity Building’ Working Group

The regional sub-Groups described the various findings and recommendations in a presentation to the larger Working Group at the end of May. Eight initiatives were proposed to be shared across the four focus countries, each corresponding to a critical issue identified through stakeholder interviews. These eight initiatives are: access to pure certified (re)planting material, promote the CO2 compensation scheme, promote value rubber wood, improve access to finance, disease fighting, dissemination of Good Agricultural Practices (GAP), income diversification, and improve reach and quality of extension services. Depending on the initiatives recommended for each country, three priority actions have been suggested, forming the basis for a 3-year programme.

The sub-Group for Thailand organized a call with some of Thai smallholder members to seek their opinion on the proposed initiatives. The discussion proved to be a fruitful one, with the smallholders providing advice and suggesting alternative initiatives for the sub-Group to consider. The subgroup for Côte d’Ivoire, which has a smallholder member who is a representative from a local producer association in participation, has also contextualized the proposed initiatives to the local conditions of smallholders and industrial plantations.

The other sub-Groups are also planning to get smallholder members’ input on the capacity building initiatives for their respective countries of focus.

‘Traceability and Transparency’ Working Group

The Working Group has started discussions on risk assessment, and will be linking up with the Policy Toolbox Working Group as well as consultant James Griffiths on the results of the social risks study.

The terms of reference for the two pilot proposals have been finalized after several rounds of additional revision. The documents will be submitted soon to the Executive Committee. 

Smallholders Representation Working Group

The Working Group continues to plan and prepare for the smallholders programme prior to the General Assembly. In particular, terms of reference are being drafted for a professional facilitator to manage the smallholder workshop sessions for the pre-GA programme.

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GPSNR Working Groups Update: May 2023

Strategy and Objectives Working Group: The consortium of Agridence and Koltiva have initiated field trials for the Risk Subgroup Traceability Pilot. The Risk Subgroup is also planning the next steps for the deliverable from ASI regarding the Risk Assessment Framework, including internal piloting and cross-walking with GPSNR commissioned studies to identify any gaps. 

Additionally, the Risk Subgroup and Basel Institution are in preliminary discussions for a potential collaboration to investigate corruption risk in the supply chain. The Assurance Model Task force will convene to receive updates on KPI alignments, the due diligence system, and the progress model of its members.

Smallholders Representation and Capacity Building (SCB) Working Group: The SCB WG has formally endorsed the Terms of Reference (TORs) on April 27, and the Smallholders Policy-Equivalent (SPE) Taskforce is currently working towards securing the SCB WG’s endorsement for the final recommendations presented in their report.

The Thailand National Subgroup recently announced a tender for GAP Coaching on May 4, with a proposal submission deadline of June 30, 2023. Meanwhile, the Agroforestry-Income Diversification Taskforce is working on finalising the workshop schedule for the years 2023-2024. Lastly, the SCB WG will continue to oversee all projects taking place in Indonesia and Thailand.

 Policy Toolbox Working Group: The working group has chosen consultant Petra Westerlaan to propose a quantitative approach for the reporting matrix, including a crosswalk with other reporting frameworks (CDP Forest, GRI, and ZSL-SPOTT), aiming to facilitate data aggregation and simplify the evaluation of annual progress. They will evaluate and decide on the consultant’s proposed revisions to the reporting framework, and make recommendations to improve the reporting process and timelines.

The Policy Toolbox WG has to agree on the TRR, update Reporting Guidance to reflect the proposed changes, and finalize the Compliance Panel TOR and operational guidance based on the Assurance Model. The WG is currently conducting meetings that will continue during the in-person meetings. 

Shared Responsibility Working Group: The face-to-face meeting included a presentation on governance and guiding principles, and manufacturers to submit a revised document. The WG is currently awaiting the outcomes of discussions on shared investment principles at the manufacturers’ category level before proceeding with their work. Once the proposal from the manufacturers is available, the WG will revamp the discussions on data sharing and value transfer.

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