Palm oil production figures prominently in the media as a cause of deforestation, biodiversity loss and climate change. However, by isolating its impact on the environment from the poverty crisis, to which it is directly linked, it’s easy to overlook the vital role smallholders play in palm oil production. More than three million smallholders and their families produce roughly 30 percent of the world’s palm oil. And a multitude of workers find jobs in oil palm production.

In Indonesia alone there are around 16 million workers in the palm oil sector, of which the majority is employed by smallholders. The contribution of smallholders in the overall supply of palm oil is only expected to increase, as industrial scale companies are forced to limit expansion due to zero-deforestation commitments.

Smallholder interests are not only overlooked in the value chain, their role and interests are also ignored in the public debate. Campaigns by NGOs and commercial brands call for a palm oil boycott to combat biodiversity loss. Many academics and conservation organizations agree that banning palm oil would simply shift the problem elsewhere, threatening other habitats and species. Instead of boycotting palm oil, the industry should invest in sustainable palm oil production by smallholders, the Barometer states.

Heske Verburg, managing director Solidaridad Europe recommends that “companies and governments in consuming and producing regions must include smallholders’ interests when developing and implementing policies. The EU should ensure that smallholders will be supported to meet the requirements of the EU Regulation on deforestation-free products and in partnership with producing countries tackle the root causes of deforestation, including poverty.”

The Palm Oil Barometer by Solidaridad can be downloaded here.