Secretariat Update – January 2020

GPSNR recognizes the need to work towards economic sustainability within the natural rubber industry, ensuring that the earnings of millions of smallholders and farmworkers are enough for them to enjoy a decent standard of living. This is why ensuring equity along the value chain is one of our 12 principles critical to achieving a desired, sustainable state of the natural rubber industry. 

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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 .

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Addressing the Impact of COVID-19 on Natural Rubber Smallholders

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.

GPSNR Staff April 26, 2020

From Scrubs to Sustainability

 

As I stood in the rubber processing factory of Halcyon Agri, the burnt smell of rubber and the deafening thumping of the machines assuaging my senses, I couldn’t help but reflect on the remarkable turn my life had taken in the past two years. 

 

In 2023, I traded my scrubs, the fast-paced emergency cases and the quintessential chaos of veterinary clinics to join the Global Platform for Sustainable Natural Rubber (GPSNR) as a Communications and Membership Outreach Associate. As the smell, heat, and sheer scale of operations of Halcyon’s processing plant continued to burn an imprint on my mind, it made me realise the transition to GPSNR has been grounding me in a reality far removed from any veterinary clinic.

 

A worker performs quality control, carefully removing foreign pieces from compacted rubber before it gets packaged

In the veterinary field, where precision and care are everything, from diagnosing a complex case or suturing a wound, every action demands meticulousness. At the plant, while the scale and context were vastly different, the underlying principle remained unchanged. Every stage of rubber processing, from chopping the raw material into finer pieces to washing, drying, and packaging, played a critical role in meeting the exacting standards of tyre manufacturers. 

 

As I observed the Halcyon team navigating the plant with practised ease, I couldn’t help but draw parallels between my two worlds. Just as a misstep in surgery could mean life or death, inefficiencies in the supply chain could have far-reaching consequences for sustainability and livelihoods.

 

The factory floor reminded me that the path to sustainability is not linear. It’s a series of interconnected actions, each requiring deliberate effort and foresight. From supporting smallholder farmers to refining processing methods, every step in the rubber supply chain offers an opportunity to make an impact.

 

Water treatment facility located in Halcyon Agri

 

This interconnectedness is also reflected in how Halcyon manages its most essential resource: water. Any water used to wash the rubber is filtered, treated, and reused, creating a closed-loop system that minimises waste. This approach exemplifies the idea that sustainability is not about isolated actions but about fostering a system where resources flow and regenerate, much like nature itself. It’s a reminder that every step, no matter how small, contributes to a larger ecosystem of care and responsibility.

 

Chopped rubber before drying

This experience reinforced an essential truth for me: no matter the industry, meaningful change requires collaboration, innovation, and a willingness to learn. It also reminded me that stepping out of my comfort zone was not just a career move but a personal growth journey.

 

The journey from scrubs to sustainability has been anything but straightforward, yet it’s filled with lessons that resonate deeply. Whether it’s the precision of factory operations or the broader mission of creating a sustainable future, the experience at Halcyon’s processing plant reminded me why I chose this path.

 

The smell of processed rubber may fade from my memory, but the lessons learned here will stay with me. Sustainability, much like veterinary care, is about ensuring a thriving future, one step at a time.

 

GPSNR Secretariat January 9, 2025
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