Coconut Oil Project Helps Boost Income of Certified Farmers

The combined expertise of US agribusiness giant Cargill, German chemicals company BASF and global consumer goods firm Procter & Gamble (P&G) helped ensure the success of the Sustainable Certified Coconut Oil production (SCNO) programme resulting in 47%  increased earnings for certified coconut farmers in the Philippines and Indonesia, Cargill said last month.  

Between October 2015 and October 2019, more than 4,100 coconut farmers were trained in Good Agricultural and Processing Practices (GAP) as well as farm management practices.  About 1,600 farmers received additional training and were certified against the Rainforest Alliance’s Sustainable Agricultural Standard.  Farmers who were trained and certified had, on average, a 47% higher income than farmers who did not participate in the programme, Cargill said. Certified coconut farmers also harvested more and productivity was 26% higher in comparison to non-involved farmers.   

The first Rainforest Alliance certified coconut oil was produced in 2018 with the support of this three-company partnership.  Certified farms had to meet comprehensive requirements for sustainable agriculture relating to environmental protection, social equity and economic viability.  Farmers were mostly smallholder or tenants with less than four hectares of land and limited access to know-how and financing.  “Cargill will continue to scale our support, based on the great work already achieved with smallholder coconut farmers to increase their agricultural productivity and income while advancing the supply of sustainable coconut oil in the world,” said Jonathan Sumpaico, general manager of Cargill Oil Mills Philippines.