PUBLIC CONSULTATION: GPSNR’s Assurance Model

Several challenges of sustainable natural rubber production were brought up and discussed among rubber farmers and GPSNR members, but front and foremost was the issue of livelihoods and future of labour. After the field visit and 3 days workshop, the rubber farmers both in Indonesia and Thailand agreed that to solve such issues, smallholders should be put at the center of the solution.  They agreed that including smallholders’ representatives in the new governance model is the way forward to achieve this.  As for the criteria of the organizations, apart from having a personnel with extensive knowledge around rubber from cultivation, transportation to processing, the farmers also said that it is important that any representing organization should have a democratic governance. The smallholders also pointed out to a few farmers from different regions that could directly represent smallholders in GPSNR.  A few organization names were also proposed which will then be followed up by Smallholders representation working group to ensure active engagement for further collaboration.

“I am happy to hear that the downstream of natural rubber users like tire makers wish to establish a direct relationship with the upstream natural rubber producers like us. Personally I believe that sustainable supply chain will work only when every actor in the chain work together to find potential solutions together.” said one rubber smallholder in Thailand. Smallholders also emphasised on the importance for engagement to be long term if results are to be achieved.

The dates for the last 3 smallholder workshops have been confirmed and will be held in Brazil (20 – 21 Nov), Cote d’Ivoire (26 – 28 Nov) and Vietnam (16 – 18 Dec) respectively. The aim of the workshops is to gain a better understanding of smallholders, how smallholders can be meaningfully represented within GPSNR and to further explore the future of sustainable natural rubber production from a smallholders perspective at local level.

We will keep you posted on our progress in our upcoming newsletters. Stay tuned !

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 .