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Based on commitments to the Agriculture Sector Roadmap, companies launch program to support smallholder farmers on the path to more sustainable agriculture.

Singapore, 15 November 2023 – Bunge (NYSE: BG) and Musim Mas Group announced a collaboration to promote the use of sustainable practices among smallholder farmers in Sambas, West Kalimantan, Indonesia.

The collaboration, co-funded by Bunge and Musim Mas through 2025, aims to train more than 1,000 independent smallholders in sustainable production of palm oil.

The partnership aligns with the Agriculture Sector Roadmap to 1.5 degrees convened by the Tropical Forest Alliance, designed to halt commodity-linked deforestation in line with the 1.5 degrees pathway while enhancing the livelihoods of smallholder farmers and supporting the sector’s transformation toward forest-positive land-use management.

“Bunge strives to be the preferred sustainable solutions partner for producers and customers,” said Ben Vreeburg, Bunge Senior Director of Sustainability. “We believe that together with our customers, we can build sustainable supply chains by sharing our know-how and experiences to support the smallholder farmers, -promoting the productivity, profitability, and sustainability of their business. By adopting sustainable farming practices, smallholders can increase their yields and reduce their dependence on expanding into the forest areas.”

Bunge and Musim Mas believe broader sector collaboration is critical in addressing agriculture’s impact on climate and empowering smallholders to be part of the solution.

Musim Mas’ Smallholders Hub trains Village Extension Officers (VEOs) in good and sustainable agronomic practices

The Smallholders Hub: Supporting Smallholders to Halt Commodity-Linked Deforestation

Central to this partnership is the formation of Musim Mas’ sixth Train-the-Trainers Smallholders Hub. Sambas is also the first smallholder hub on the island of Kalimantan for Musim Mas.

Musim Mas trains local government Village Extension Officers (VEOs) in these hubs. The VEOs, equipped with this knowledge, then share their expertise with smallholder farmers within their communities over time, resulting in enduring, long-term impacts.

The training covers good agricultural practices, business management, and NDPE (No Deforestation, No Peat, No Exploitation) approaches to palm production. The program will help smallholders increase yields and earnings from their existing farmland, improve their understanding of the environmental impacts of their activities, and foster responsible practices. As most deforestation occurs outside corporate concession areas, such programs are vital.

Furthermore, the partnership facilitates market access and raises the awareness for certification programs such as Indonesia Sustainable Palm Oil (ISPO) and Roundtable for Sustainable Palm Oil (RSPO). While West Kalimantan only contributes 5% to Musim Mas’ supply base, it is integral to the group’s overall sustainable sourcing strategy.

Bunge’s and Musim Mas’ Experiences with Independent Smallholders

Musim Mas builds on its experience in developing and implementing smallholder programs, having engaged over 42,000 independent growers since it started its programmes in 2015, including a notable partnership with the International Finance Corporation (IFC), a member of the World Bank Group.

“Each region has producers of various sizes growing a whole range of commodities as well as companies that make intermediate and final goods, local governments and civil society,” said Olivier Tichit, Director of Sustainability, Musim Mas Group. “To make an enduring impact, we need to show our commitment and work together – the landscape-based approach. We look forward to working with Bunge in the Sambas region and making a meaningful contribution together.”

Bunge also brings valuable experience in supporting smallholders through initiatives like ILHAM (Inisiatif Lestari untuk Hasil Agrikultur Mampan), which focuses on improving farm management practices, implementing long-term fertilizer programs, and meeting sustainability requirements. Through this collaboration, Musim Mas hopes to leverage Bunge’s knowledge from their work in Malaysia and enhance and expand the program in Sambas.

About Musim Mas

Musim Mas Group is an integrated palm oil company, operating in 13 countries. From plantations, to mills, refineries, kernel-crushing plants, oleochemicals, and specialty fats plants, Musim Mas manufactures palm oil products and value-added derivatives. Musim Mas is one of the largest domestic producers and exporters in Indonesia. Inter-Continental Oils and Fats (ICOF), a member of Musim Mas Group, undertakes global marketing activities.

The Group is committed to sustainability and was the first company with significant operations in Indonesia to join the Roundtable on Sustainable Palm Oil (RSPO) in 2004. Committed early to emissions reductions, Musim Mas is a signatory to the Agriculture Sector Roadmap to 1.5 Degrees convened by the Tropical Forest Alliance. The roadmap aims to halt commodity-linked deforestation in line with the 1.5-degree pathway while enhancing the livelihoods of smallholder farmers and supporting the sector’s transformation toward forest-positive land-use management. In January 2024, Musim Mas announced that it will strive to achieve net zero by 2050, aligning with climate science as per the Science Based Targets Initiative (SBTi). Musim Mas also manages the most extensive independent smallholder programs in Indonesia.

About Bunge

At Bunge (NYSE: BG), our purpose is to connect farmers to consumers to deliver essential food, feed and fuel to the world. With more than two centuries of experience, unmatched global scale and deeply rooted relationships, we work to strengthen global food security, increase sustainability where we operate, and help communities prosper. As the world’s leader in oilseed processing and a leading producer and supplier of specialty plant-based oils and fats, we value our partnerships with farmers to bring quality products from where they’re grown to where they’re consumed. At the same time, we collaborate with our customers to develop tailored and innovative solutions to meet evolving dietary needs and trends in every part of the world. Our Company has its registered office in Geneva, Switzerland and its corporate headquarters in St. Louis, Missouri. We have approximately 23,000 dedicated employees working across approximately 300 facilities located in more than 40 countries.

Musim Mas Contact Details
Phone: (65) 6576 6500
Media Enquiries: (65) 9012 1582 (WhatsApp Calls only)