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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GPSNR Working Groups Update: July 2022

Start here for a full update on the working groups since the July 2022 General Assembly!

Strategy and Objectives Working Group

The Executive Committee (EC) approved the creation of the Assurance Model Task Force, which will look into finalizing GPSNR’s Assurance Model design by the end of this year. Members interested to join the Task Force should look out for a call-for-participation that should be sent out soon. The Risk subgroup also received feedback from the EC on its plans and will discuss the feedback while continuing to refine GPSNR’s risk-based approach.

Smallholder Representation Working Group

In July 2022, the Smallholders WG began discussions on the following developments: Smallholders Policy-equivalent Framework with HCVN; ‘Intro to Agroforestry’ pilot workshops with CIRAD and Dr Maria Wang; and HCSA Toolkit field trials with HCSA. Preparations are also being made for an onboarding workshop for smallholders in Malaysia to be held in the first week of August!

Policy Toolbox Working Group

On updates for the Policy Toolbox Working Group, the Implementation Guidance was approved by the General Assembly and the latest version of the guidance is available here. The guidance will continue to be updated regularly, starting with updates for section 7.1 and 7.2 for all categories. The Reporting Requirements process has also started and the Secretariat is processing the responses from the PPT category.

Capacity Building Working Group

The Capacity Building WG is currently reviewing proposals for the Comprehensive Disease Fighting Approach in Indonesia, and will formalize a decision in August 2022. Projects in Indonesia, Thailand and Cote d’Ivoire are also being advanced, with concrete developments expected to be shared in August. 

Shared Responsibility Working Group

The working group is putting forward the plans to implement the shared responsibility framework, which was recently approved by the General Assembly. 

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This article was published in the April 2023 edition of the Global Tire Intelligence Report, compiled by Shaw Information Services trading as Tire Industry Research.
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