Strategy and Objectives Working Group Update – July 2019

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 .

On Friday 7 February, Singapore announced that it was stepping up its risk assessment level. Previously at ‘Yellow’ on the Disease Outbreak Response System Condition (DORSCON) scale, the country is now at ‘Orange’. This change triggered additional precautionary measures such as an advice to cancel or defer all non-essential large-scale events. More countries are also putting in place such measures, from enforced quarantine for certain travelers to outright travel restrictions.

The safety and comfort of all members remains our utmost priority. The Secretariat will continue to monitor the situation closely, with the intention to hold the General Assembly once it becomes more stable. The new date for the General Assembly will be in 2020, and will be communicated with due notice to all members. 

During this time, all Working Groups will continue to advance their work in establishing a policy toolbox, shaping capacity building initiatives, achieving transparency and traceability, and solidifying smallholder inclusivity in GPSNR. 

The GPSNR Executive Committee has agreed to extend the deadline for submission of General Assembly resolutions and Executive Committee nominations to Tuesday, 31 March 2020.

For the latest updates on the progress of our Working Groups, please refer to the News and Publications section of our website.