Smallholders

Associated smallholders

In Papua New Guinea, HOPL works with “associated” smallholders. These farmers are independent, owning their land and making their own crop and management decisions. However, because of their location, they sell only to nearby mills under a standing arrangement with HOPL, and are classified for certification purposes as scheme smallholders.

Associated smallholders supply around 39% of the fresh fruit bunches (FFB) processed in HOPL’s three mills. HOPL works with them directly and through the Local Planning Committee, which includes representatives from the Oil Palm Industry Corporation (OPIC), Bialla Oil Palm Growers Association (BOPGA), Oil Palm Research Association (OPRA), East Nakanai Local Level Government (ENLLG), and HOPL.

Hargy Oil Palms operates a smallholder transport department, collecting crops directly from each smallholder. The company provides tools and fertiliser at cost, with interest-free credit available where needed, and supports replanting using only quality seedlings.

Payments are made directly to each smallholder via bank transfer every fortnight. Where requested, payments can be divided among household members, allowing women in the family to receive their share directly.

RSPO certification

All smallholders in HOPL’s supply base are certified under the Roundtable on Sustainable Palm Oil (RSPO) standard. Unlike many of SIPEF’s scheme smallholders in Indonesia, these growers manage their own farms and must individually comply with HOPL’s policies and RSPO Principles & Criteria.

Hargy Oil Palms supports smallholders through regular training, block inspections, internal audits, and field days, ensuring they stay up to date with Best Management Practices and maintain their certification. Since 2009, all 3 635 smallholders have been integrated into HOPL’s certification and share in the premiums earned from the sale of certified products.

Details on premiums paid to smallholders in Papua New Guinea are available in SIPEF’s Sustainability Reports

Supporting smallholder productivity

In addition to maintaining RSPO certification, HOPL smallholders aim to sustain their current planted area and achieve a production rate of 20 tonnes per hectare by 2025. A key challenge is closing the gap between company plantation yields and smallholder yields while consistently improving productivity.

Since 2017, HOPL has increased its direct involvement in extension services, working closely with farmers to improve their knowledge of effective production practices. This collaboration has been highly positive, with yields expected to increase over time.

Both the Oil Palm Research Association (OPRA) and the Oil Palm Industry Corporation (OPIC) provide extension, research, and development services to smallholders. Their work focuses on increasing productivity, promoting better farm management techniques, offering guidance on oil palm production, and enhancing smallholder well-being. Services include integrated pest management, pest and disease control, outreach, awareness programmes, and community development projects.

The General Manager of HOPL is active on OPRA’s board.

For more information on OPRA, please visit www.pngopra.org