Smallholders Representation Working Group Update – December 2019

On December 18th 2019, the first rubber smallholder with 2.4 hectares of rubber farm from Thailand has submitted his application form to GPSNR after the characteristics of GPSNR smallholders have been finalized together with the approval of onboarding procedure by the EC.

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The Smallholders Representation Working Group has agreed to propose the new main characteristics for potential representatives of GPSNR smallholders as below:

Smallholder: individual natural rubber farmers with all following characteristics:

  • The primary source of income for the smallholder is the farm (not only Natural Rubber); 
  • The Natural Rubber production unit size is less than 50ha (although the farm may be larger);
  • Profits from the farm accrue primarily to the owner of the farm and their family.

The new definition combines the qualitative and quantitative aspects with the intention to offer a pragmatic and standardized definition. The working group members understand that average farm size differs from country to country, hence having a universal threshold in farm size might not guarantee that the farmer is a small grower in that particular country. However, a quantitative indicator should be in place in order to give an objective and clear understanding to all audiences. The threshold of 50 hectares is established as an interim quantitative indicator based on the discussion in the working group that more than 80% of natural rubber supply comes from the farm which is smaller than 50 hectares.

The Country Champion is collecting application form from the smallholders that have been nominated durinng GPSNR Smallholder Workshop.  While membership fee is waived to smallholder member, funding to participate the General Assembly in March 2020 in Singapore is limited to 20 seats. The Working Group will further look at the profile of the smallholders  to design the criteria for funding mechanism.

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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
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Secretariat Update – November 2019

About BCSD Singapore Ltd

Since its inception, GPSNR was in the need of a host and BCSD Singapore Ltd. was chosen because its mission is very much aligned with that of GPSNR. From October 2018, BCSD Singapore Ltd. acted as the legal entity under which GPSNR operations were conducted. This role was formalised with the approval of GPSNR’s Statutes in March 2019. The services provided to GPSRN were about all administrative aspects of the platform which include but not limited to invoicing, accounting, procurement, and HR services. 

About WBCSD Asia Pacific Ltd

WBCSD Asia Pacific Ltd. has been established as a non-profit legal entity in Singapore in January 2019. This entity is an affiliate of WBCSD and its purpose is to support more effectively global WBCSD Members and projects in the region. With a regional office in Singapore, WBCSD is in a better position to understand regional and national specificities, business priorities and practices, political and regulatory landscape and learn from cultural diversity and perspectives of local communities.

What will change ? 

  • This transition will not result in any changes of the day to day activities of GPSNR. 
  • The organizational and governance structure of the platform remains the same as decided in the last General Assembly.  
  • Future incoming and recurring GPSNR membership would be invoiced through WBCSD Asia Pacific Ltd (instead of BCSD Singapore Ltd) as of 1st December, 2019.
  • WBCSD Asia Pacific Ltd would act as the legal entity and host for the Global Platform for Sustainable Natural Rubber (GPSNR) as of 1st December, 2019 until the platform decides to change hosting or create its own legal entity.

If you have any questions on the transition, please contact GPSNR Director, Stefano Savi (stefano.savi@gpsnr.org). 

GPSNR Staff November 21, 2019
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