Palm Oil

Creating Transparency: a new supply chain alert system

The three pillars of supply chain development are Trust, Transparency and Sustainability. This can be difficult to achieve when smallholder farmers and artisan producers in developing countries are involved at the start of the supply chain. However, this is where GeoT focuses, offering innovative technology systems to help companies working with smallholder farmers and artisan producers. Trust and transparency are achieved through geo-data collection on the production of goods and tracing the movement of those goods from farm to export. The information gathered can then be used to support sustainability initiatives and monitor their progress. However, our latest feature – the Alert System – allows companies to go one step further.

In many supply chains, accurate timely data is important for managing and coordinating activities, whether this is organising delivery trucks or monitoring the quality of produce. With the GeoTraceability System, it is now possible to gather data on independent farmers, trace produce from these farmers through the supply chain (even when middle men are involved), record delivery of goods at processing plants, and send alerts (via email or SMS) when there are delays in the delivery of goods or issues with the quality. This allows action to be taken in a timely fashion.  

Whether you are a commercial company looking to improve your supply or implementing a development program to improve farmer livelihoods, the new Alert System (combined with the suite of other GeoT tools saves time and hassle). Instead of having to regularly check the data to be aware of issues, you can set-up alerts for the areas that matter most for your business and supply chain. The geo-data collection on farmers and farming practices combined with the traceability data allows you to target initiatives where they are most needed. The Alert System is another tool for monitoring the success of initiatives and improving the supply chain. Our competitive rates and flexible fee structure, means this is also an affordable option for many organisations.

You can learn more about the System by reading the case study below or by getting in touch with us (Contact us).

 

Palm Oil Case Study

A key challenge in the palm oil supply chain is minimising the time between when the fruit is harvested and processed. The quality of the Fresh Fruit Bunches (FFBs) deteriorates very quickly and it should ideally, be processed within 48 hours of harvesting. However, this can be a challenge for the mills purchasing fruit from independent small holder farmers who are farming in remote locations. The new GeoT Alert System allows those managing the logistics of the supply chain to be informed when the time between harvesting FFBs and processing them is in excess of 48 hrs.  This allows the FFB procurement team to monitor these instances and minimize them in order to improve FFB quality and the oil extraction rate. In addition, alerts can be sent notifying the logistics team of farms where there is fruit that has not been collected and is still sitting on the roadside. This transparency can facilitate an efficient collection process.

Further information on GeoT’s innovative work in palm oil can be found here Geotraceability for Palm Oil.pdf

 

Traceability for Palm Oil now Commercially Available

Over the last two years Geotraceability has been working with the largest names in the palm oil sector to develop a ground-breaking software solution to assist with some of the industry’s key sourcing challenges.

Geotraceability’s purpose is to better integrate small-scale farmers in global supply chains. We do this by providing tools to, improve supplier relationship management, deliver traceability, increase FFB volume and quality for the mill, then, using the same data, we can simultaneously produce individualised Farm Business Plans, to improve smallholder productivity and livelihoods.

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Our approach involves adapting and configuring the Geotraceability system according to your needs and the processes which already exist in your business. We then combine this with our specialist in-house support and training services, to offer cost-effective and scalable solutions for;

 

  • Accurate GPS farm mapping
  • Farmer surveys on mobile Apps

  • FFB supplier quality management & analysis

  • Bespoke FFB traceability systems from field-to-mill

  • Live dashboards with total system synchronisation

  • Tailored productivity improvement plans for growers

Following the completion of a successful prototype, we can now offer this solution at a very attractive commercial rate both for initial set-up and on-going cost.

See the GeoT for palm oil briefing for more information and please get in touch if you’d like to see a demo of the solution or have any questions.

Please also note that Geotraceability will be at the upcoming RSPO EU Roundtable in London, June 12-13th, 2017, and we’d be happy to arrange a meeting with you in person.

Innovative Smallholder Fresh Fruit Bunch Traceability System Improves Palm Oil Supply Chain Transparency

Canada, 8 November 2016 - GeoTraceability, Wilmar International Limited (Wilmar) and Wild Asia announced today that the first phase in the development of a new smallholder traceability system is successfully completed. The new system enables mills to map their smallholder supply base and trace smallholder fresh fruit bunch (FFB) deliveries from the mills back to their farms. A key innovation in this project is the ability to provide smallholders with agronomic recommendations from mills and supporting organisations for increasing productivity, as part of their participation in the traceability system.

This project, supported by IDH, the Sustainable Trade Initiative (IDH), is currently piloted in Wilmar’s Sapi Plantation in Sabah, Malaysia. The ability to trace smallholder FFB supply is critical to Wilmar in ensuring compliance by its third-party mill suppliers, and their independent smallholder suppliers with its No Deforestation, No Peat and No Exploitation policy. Since July 2016, more than 90% of the smallholder supply base of the mill has been surveyed and mapped, with 1,400 traceable deliveries of smallholder FFB recorded. The next steps in the project are to roll out the system to an additional Wilmar-owned mill as well as a third-party supplier mill, both in Sabah.

Jeremy Goon, Wilmar’s Chief Sustainability Officer, said, “Smallholders are a key stakeholder group in our pursuit of a sustainable and transparent supply chain. We have committed substantial resources to empowering smallholders to improve their livelihoods and to ensure they share in the benefits of oil palm development.

"Our collaboration with GeoTraceability and Wild Asia to develop this smallholder specific traceability tool is a win-win for the industry and smallholders.

"Benefiting from agronomic expertise is an important incentive that will further strengthen sustainability take-up amongst smallholder producers. We hope this tool can help facilitate the traceability agenda of our external mill suppliers and the wider industry.”

Dr. Reza Azmi, Executive Director and Founder at Wild Asia said, “Our Wild Asia Group Scheme (WAGS) is a programme to promote traceability and better production among groups of small independent palm oil producers. Systematic, electronic data on the small producers means that we can accelerate our work, and that our agronomists can deliver individualised support to our group members.

"More importantly, we want to be able to empower local producers with tools that can provide meaningful insights to their own production data.”

Pierre Courtemanche, Chief Executive Officer at GeoTraceability, said, “Our software and training is designed to support mills, NGOs, development agencies and Governments in better delivery of support to smallholders. This combination of tools supports a ‘New Deal’ for farmers: allow us to use your data to improve transparency and you’ll receive improved support services.”

GeoTraceability’s Digital Agronomist is a new software technology which allows the delivery of agronomists’ expertise to each individual smallholder farmer, and his or her fields. The agronomic recommendations for increasing smallholder productivity are compiled in individual “Farm Business Plans”, which can be further supported with field-input credit, training and ultimately Roundtable for Sustainable Palm Oil (RSPO) Group certification. This package of opportunities to improve productivity and profitability for smallholder farmers presents a compelling alternative path to the farm expansion model.

IDH has been working with industry actors to coordinate and accelerate progress on traceability since 2014 and is supporting platforms such as GeoTraceability as critical innovations on the path to sustainability. IDH is supporting the project financially and has informed project design with the objective of maximising lessons learned that may be of value to the wider industry.


ABOUT WILMAR’S SUSTAINABILITY

As a leading agribusiness group, Wilmar recognises we have a fundamental role to play in developing quality products required by the world while ensuring a responsible and sustainable manner of production. We adopt a holistic approach to sustainability that is fully integrated with our business model. Guided by the philosophy that our business must enhance stakeholder value while minimising our environmental footprint, our business practices are aligned with universally acceptable social and environmental standards. Wilmar’s No Deforestation, No Peat and No Exploitation policy underpins our aspiration to make a positive impact and drive transformation across the palm oil industry.   

For more information, go to www.wilmar-international.com/sustainability.

ABOUT WAGS

WAGS (Wild Asia Group Scheme) is an initiative of social enterprise Wild Asia. As a methodology, it has been developed from the ground-up, to addresses the challenges of traceability in the palm oil supply chain, to understand the challenges palm oil suppliers face to meet “zero deforestation” commitments and challenges of small producers in enhancing their productivity and best management practices. Visit http://oilpalm.wildasia.org/small-producers/wags/ for more information.

ABOUT IDH

IDH convenes companies, CSOs, governments and others in public-private partnerships. Driving the joint design, co-funding and prototyping of economically viable approaches to realize green and inclusive growth at scale in commodity sectors and sourcing areas. Approaches are designed to drive sustainability from niche to norm, delivering impact on the Sustainable Development Goals. Impact focuses on deforestation, living incomes and living wages, working conditions, responsible agrochemicals management, and gender. IDH is supported by multiple European governments, including institutional donors: SECO, DANIDA and BUZA and over 500 companies, CSOs, financial institutions, producer organizations and governments in 11 sectors and 11 landscapes in over 50 countries worldwide. www.idhsustainabletrade.com

 

MEDIA CONTACTS

GeoTraceability: Steven Ripley, Head of Palm Oil, s.ripley@geotraceability.com

Wilmar International Limited: Iris Chan, Corporate Communications,  iris.chan@wilmar.com.sg

Wild Asia: Smita Jairam, Technical Manager, smita@wildasia.org 

IDH: Reuben Blackie, Program Manager,  blackie@idhsustainabletrade.com

The 14th Annual Roundtable Conference on Sustainable Palm Oil

GeoTraceability will be at the 14th Annual Roundtable Conference on Sustainable Palm Oil, 7-10 November, 2016, Shangri-La Hotel, Bangkok, Thailand.

Pierre Courtemanche, GeoTraceability’s CEO, will be one of the speakers on November 8 taking part in Preparatory Cluster 2 discussing ‘How Legal and Traceable are your Palm Fresh Fruit Bunches?’.

CLEARED LAND, EAST SABBAH

This will be an opportunity to brief the participants on the progress made by GeoTraceability and its partners Wilmar and Wild Asia on the implementation of an industry first FFB traceability system in Beluran, Sabah State, Malaysia.  This project supported by the Dutch Sustainable Trade Initiative (IDH) aims to collect and use digital data on smallholder producers to engage with them, trace their supply and support them to improve their productivity.

Pierre will use this case study to explain how appropriate technology can help engaging smallholder producers in complex supply chains.

To learn more, consult this web site at: http://www.rt14.rspo.org/