GPSNR Working Groups Update: January 2021 (Members Version)

In the August newsletter we have informed you that we will organize smallholders workshop in 5 different countries with the primary objectives of:

1. Understanding the local needs and motivations of the smallholder farmers;
2. Understanding and recommending solutions to the barriers for smallholders and their representative organizations to join and actively participate in the GPSNR;
3. Observing and explaining the interaction and chemistry between farmers and representative organizations.

Now we are proud to tell you that we are ready to launch the first smallholders workshop in Jambi, Indonesia on October 7th – 9th. 20 smallholders and smallholder representative organizations that have been nominated by several local partners on the ground such as SNV, WWF Indonesia, Kirana Megatara, etc. will meet up in Jambi with various categories of GPSNR working group members to further explore the future of sustainable natural rubber production.  The participants from GPSNR side is limited to 6 persons to ensure the discussions are organically contributed by smallholders.

The 3 days workshop will start with self introduction, understanding each other, understanding the current and future trends of rubber market.  It will spread out to what the platform is and how the platform can work for and with smallholders to create a win-win solution.

Four more workshops to be organized this year after Indonesia will be held in Thailand, Vietnam, Cote d’Ivoire and Brazil.  After the 5 workshops are finished, we will recommend the smallholder representations to the Executive Committee during the General Assembly in March 2020.

Stay tuned for the dates and venues of the upcoming workshops. For more information please contact kobrat@gpsnr.org.

We can draw parallels to the coffee industry, which similarly comprises small plantation owners and more profitable downstream actors. In his recent sustainability report on the coffee industry, economist Jeffrey Sachs’ proposal for a global fund to fill the financial gaps for sustainability investments in coffee producing regions garnered vivid discussion.  

Currently, low and unpredictable rubber prices are a constraint to smallholders who produce the bulk of global rubber output. Transparency is critical in the purchasing process, and this kind of disruption typically comes hand in hand with embracing new strategies. 

Under the purview of the Strategy & Objectives Working Group, capacity building and extension services have been identified as potential measures to mitigate the root causes of the social and environmental impact from the natural rubber supply market. Implementing these at scale for the whole industry will require considerable financial investment.   

With the above considerations in mind, GPSNR is exploring new approaches to funding that would not be borne by a single segment of the industry, but in a manner incorporating the spirit of our shared responsibility. 

Enterprise Singapore organized an industry meeting on 14 January 2020, and invited GPSNR and Singapore Exchange to better understand the available options of an e-trading platform that could contribute to our funds. The meeting also discussed what could be the options, through GPSNR, to increase the uptake of the e-trading platform.

Tapping the vast potential of digitalization could present an exciting avenue of possibilities for GPSNR to better advance our vision of a fair, equitable and environmentally sound rubber value chain.      

The meeting was initiated by representatives from Enterprise Singapore, and panel speakers comprised representatives from GPSNR, Singapore Exchange and HeveaConnect. Participants included GPSNR members as well as other Natural Rubber buyers, producers, processors and traders .