FAIR Company-Community Partnerships
With the purpose to both foster economic development opportunities as well as reduce the adverse impacts of rapid expansion of palm oil production on local communities, the FAIR company-community partnership model offers a re-redesign of development models in palm oil production and trade.
Oxfam’s vision is that the people living in a particular landscape can decide themselves on how best to combine export crop production, local food crop production and nature conservation. Smallholders and their communities should benefit from livelihoods of their choice in terms of food security, safeguarded land rights and diversified income.
FAIR is an acronym that stands for 1. Freedom of choice; 2. Accountability; 3. Improvement of benefits; and 4. Respect for rights. FAIR company-community partnerships work on the basis of these four principles in order to arrive at better practices in company-community relationships in palm oil production and trade within a landscape. We consider FAIR partnerships a precondition for climate-friendly, land-efficient and pro-poor palm oil production.
In this programme we engage with numerous commodity sector and financial sector companies. These companies include palm oil plantation and mill companies, consumer goods manufacturers, commercial and development banks, and institutional and impact investors. We collaborate with buyers and investors to engage and support palm oil producers who, in turn, engage smallholder suppliers and their host communities.
Partnerships will be established in multiple locations in Indonesia and Africa. We aim to scale up the FAIR company-community partnerships through investments, making this innovative model the industry standard. To read about our progress to date, please download the ‘FAIR Company-Community Partnerships: Summary Co-creation Day and Way Forward’-report in the downloads section.
Facts
- Project period: 2018-2024
- Target group: smallholders in palm oil sector
- Locations: South East Sulawesi and Riau, Indonesia; Liberia
- Proponents: Oxfam Novib in cooperation with Oxfam in Indonesia and Oxfam in Liberia
Details
URGENCY
Indonesia and Liberia are countries with abundant natural resources, including rich ecosystems, where palm oil production offers economic development opportunities such as job creation, (export) markets for commodities, and services. The rapid expansion of palm oil production has, however, raised serious concerns about the impact of this industry on land-use and on landscape stakeholders. Local communities are affected by land conflicts, food insecurity and adverse working conditions. The adverse environmental impacts include deforestation, peat land fires and greenhouse gas emission.
Indonesia, the world’s largest producer of palm oil, intends to double its palm oil production, requiring at least 5 million more hectares of plantation land. In Liberia, the expansion of palm oil plantations forced farmers to give up their community lands for large-scale export crop production, limiting their incomes and food security.
Smallholders often lack the organisation or access to credit and technical assistance that would enable them to compete and negotiate fair prices and contracts. Price mechanisms are not transparent, and unfairly dominated by governments and companies. The voice of smallholders is not heard in land use planning.
PROJECT
The long-term objective of FAIR company-community partnerships is to create exploitation-free and deforestation-free commodity supply chains, with economic benefits for smallholder families and protection of community land rights.
In cooperation with local and international partners, Oxfam will co-create partnerships between companies and communities that demonstrate the economic, social and environmental business case for investing in smallholder suppliers.
Many CSOs and companies across the palm oil value chain in Indonesia and Liberia are willing to commit to the programme: growers, millers, consumer goods manufacturers, banks and investors. Existing partners in Indonesia are JKPP, Teras, TuK, KPA and SPKS.
IMPACT
We expect that by 2024, two FAIR company-community demonstration projects show increased land efficiency and productivity, resolved land conflicts, and reduced greenhouse gas emission through avoided deforestation.
The company-community partnerships will prove attractive economic, social and environmental returns on investment in a way that can be replicated elsewhere, establishing a new norm that changes the 'business as usual' growth model.
We expect a shift from expanding monocultures of oil palm towards better planned and agreed mosaic landscapes of forest land, subsistence farming land, and large and small scale oil palm production.
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FAIR Company-Community Partnerships: Summary Co-Creation: Day and Way Forward
Oxfam Company-Community Partnerships Co-Creation: June 2016 Update
Oxfam Mission Team Report: Organizing Communities
