Smallholders Representation Working Group Update – December 2019

Assurance Model Task Force: As we approach the General Assembly in 2024 where the Assurance Model will be put up for voting, the taskforce is meeting regularly to discuss comments and incorporate comments from the second public consultation which is currently ongoing. This consultation focusses on feedback on Assessment Checklist, Assurance Protocol and Remediation Protocol, and will be accepting comments till 27 September 2024.  You can access the documents here and provide feedback here. 

Smallholders Representation and Capacity Building (SCB) Working Group: To operationalise projects with the funds collected from the Shared Investment Mechanism, the working group is setting up a project management subgroup to help in reviewing and monitoring projects under the SIM. The TOR is available here, and interested members should email cheewei@gpsrn.org by 11 October 2024. 

Additionally, Smallholders from all GPSNR member countries have nominated representatives for two positions following internal discussions within their countries: the Shared Investment Panel and the Project Management Subgroup. The final international voting is anticipated to conclude by the end of September 2024.

Shared Responsibility Working Group: The nominations for voting seats for the Shared Investment Panel are now open. Five voting seats will be allocated to manufacturers, while four voting seats will be reserved for non-manufacturers. To ensure equitable representation, each eligible member category will nominate one member to take up a voting seat.  All GPSNR member categories are currenting discussing this internally and will choose a nominee by October 2024. Please reach out to your EC representative for more details if you are not already in the discussions. 

Please note that nominees should ideally not submit capacity-building proposals this year, as they would need to recuse themselves from voting. If a category is unable to reach an agreement on a nominee, all seats will be opened for self-nominations from any member, regardless of category. In this case, the Executive Committee will vote to decide the final allocation of seats, which may result in multiple seats being held by members of the same category. 

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 .