Helping small-holders go green while raising incomes

Asad says it’s unfortunate that sustainability standards generally lack a business case for livelihood improvement.

ASAD ATA is an advocate in the implementation of an efficient supply chain system in the agriculture sector.

Having worked for more than 12 years in South-East Asia in various sector supply chains, the associate professor of operations and supply chain management at the Asia School of Business says agriculture has always been his passion.

He tells StarBizWeek that some of the most pressing problems, like hunger, are not due to production issues but supply chains.

“For example, I got to see that while there was enough wheat produced in Punjab, India, the produce couldn’t reach the states that needed it the most. The problem was logistics.

“I also realised that, in the case of food and agricultural supply chains, the post-harvest losses worldwide are huge.

“Again, logistics are the issue,” Asad says.

Working in the agriculture industry, especially with the exposure he obtained in South-East Asia, he says there are enormous opportunities for building supply chain efficiencies, and the supply chain talent gap is big.

“My work with small and medium enterprises (SMEs) showed that a small disruption could throw them out of business, and in that context, Covid-19 was a big disruption.

“I have previously worked with and learned from the poultry, banana, and vegetable supply chains,” he says.

With a team of more than 35 researchers, field officers, and consultant agronomists, he leads a sustainability organisation known as the Centre for Sustainable Small Owners (CSS) for SMEs and small-scale farmers of oil palms in Malaysia.

He works with the small farming communities to design supply chains that are socially responsible, environmentally sustainable, and economically viable.

Asad is working with communities based in Johor and he believes this can be replicated throughout the nation or even on a global scale.

The mission of CSS is to protect the interests of small, independent growers, enhance their livelihood, and promote ethical and responsible sourcing in the palm oil industry.

CSS upholds commitments to no deforestation, no new plantations on peatlands, and no exploitation in the supply chain.

“By this year, we target to have 640 independent smallholder farmers certified with the Roundtable on Sustainable Palm Oil’s Independent Smallholders Standard.

“To enable this, and to promote community empowerment, we have facilitated the establishment of an independent smallholder association called Pertaniaga that is run and owned by these farmers in Johor,” he explains.

He says it’s unfortunate that sustainability standards generally lack a business case for livelihood improvement.

“We try to address this by making sure that livelihood improvement runs parallel and is tied to certification.

“In making this case, we are targeting to develop 250 learning farms, where we demonstrate sustainable and good agricultural practices tied to yield intensification,” he stresses.

To ensure CSS’s work is inclusive and that surrounding communities benefit from its knowledge and expertise, he says the centre has a diffusion programme aimed at creating awareness about sustainable and good agricultural practices among a larger group of small-scale farmers and growers who may not be enrolled in the smallholder programme.

CSS advocates for certification standards that encompass independent smallholder farmers.

Its efforts extend beyond certification, as the centre provides support to the farmers to enhance their livelihood and build their capacity for sustainable agricultural practices.

The centre has 5,000 farmers working together to embrace sustainability.

“Building trust and establishing good relationships with the farmers is a significant challenge for our team.

“While we bring technical knowledge, tools, and expertise, we recognise that the farmers have cultivated the land for years, perhaps even across generations. Thus, establishing connections and meaningful engagement are crucial aspects of CSS,” he says.

The other aspect of the programme addresses the fact that the recent palm oil expansion has primarily relied on opening new land.

“However, oil palm productivity worldwide remains below its potential, particularly for independent small-holder farmers,” he says.

Through a sustainable yield intensification programme, the centre aims to counter the pressure of meeting production targets without resorting to deforestation or opening new land, he adds.In the context of independent smallholders, he says research reveals that farmers do not replenish the soil with sufficient nutrients.

Each tonne of palm fruit removes significant amounts of nitrogen, phosphorus, and potassium from the soil, he says.

“Encouraging proper nutrient management proves challenging for farmers, as additional expenses are viewed as burdensome investments, even if they help counter soil degradation.

“To address this, we have implemented a barter system within the supply chain management, allowing farmers to exchange fruit deductions for fertiliser. This system is facilitated by our centre, resulting in nearly 100% recovery,” he says.