In the Netherlands, a new report, “Palm Oil Barometer 2025: Procurement for Prosperity,” calls for a fundamental shift in how palm oil is procured. Palm oil is a highly productive crop crucial for food security and millions of smallholders. Independent smallholders produce 25-30% of global palm oil but receive inequitable value distribution, hindering their ability to invest in sustainability and leaving them with near-zero net income despite the sector’s overall profitability.
The report advocates for a “Procurement for Prosperity” approach beyond sustainability certifications, focusing on fairer trading practices and genuine partnerships. Key principles include integrating smallholder recognition in company policy, implementing fair pricing that rewards sustainable practices and addresses living income gaps, fostering partnerships that include farmers’ perspectives, and developing programmes to support suppliers with technical capabilities and finance.
This shift is vital for creating an inclusive value chain, ensuring fair value distribution, and supporting the prosperity of smallholder farmers critical to the industry’s future.
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