increase font size
FGV Holdings Berhad (FGV), a leading agribusiness and one of the world’s top producers of crude palm oil, reaffirms its commitment to sustainability and human rights by enhancing the livelihoods of smallholders, including FELDA settlers and independent smallholders, through comprehensive support programmes aimed at increasing income and promoting sustainable practices.
In general, FELDA settlers and independent smallholders often encounter obstacles such as lower incomes, limited access to resources and training, and challenges in meeting sustainability standards. Recognising the challenges faced by these vital contributors, FGV engages with smallholders through targeted awareness campaigns, extensive outreach programmes, and technical advice on agronomy and industry training. These efforts seek to ensure that smallholders and settlers are well-equipped to meet sustainability-related requirements and thrive in the evolving palm oil industry and global market.
In line with its commitment to sustainability certification of its palm oil, FGV fully supports the Malaysian Sustainable Palm Oil (MSPO) certification scheme. All of FGV’s palm oil mills and estates are MSPO certified, and all suppliers, including smallholders who deal with the company, are similarly required to comply with the relevant sustainability certification schemes.
As an active member of the Roundtable on Sustainable Palm Oil (RSPO), FGV is encouraged by FELDA’s commitment to RSPO certification and will support this exercise through technical advice and awareness-raising programmes. This certification allows smallholders to access premium markets, enhance their income potential, and promote sustainable agricultural practices.
“FGV significantly contributes to the economic well-being of FELDA settlers by purchasing a substantial amount of Fresh Fruit Bunches (FFB) from them. FGV owns 66 mills across Malaysia, processing over 18 million MT of Fresh Fruit Bunches (FFB) annually, 72% of which are sourced from FELDA settlers and independent smallholders, among others,” said Nurul Hasanah Ahamed Hassain Malim, FGV’s Group Chief Sustainability Officer, adding that the initiative to facilitate the certification of smallholders under sustainability schemes brings several benefits for not only the participants but the industry as a whole.
Being certified has many benefits including improved marketability as certified products are often preferred by buyers who are conscious of sustainability, and fetch premium prices in the market. Certification also requires adherence to strict environmental standards, which not only helps in preserving the environment but also ensures the long-term resilience of agricultural practices. Certification schemes often include social criteria which require fair labour practices and seek to improve working conditions, and promote the well-being of the community.
Dato’ Mohd Banuri Aris, FELDA’s Deputy Director General (Community Development), said FELDA and FGV collaborate through various programmes and initiatives aimed at enhancing the livelihoods of smallholders, including training sessions and technical support to help settlers meet sustainability standards and improve their agricultural practices. Additionally, they work on broader community support projects such as improving plantation infrastructure and providing educational opportunities.
“The collaboration between FELDA and FGV has led to increased productivity, better market access, and improved sustainability practices among settlers, contributing to their economic and social upliftment. FELDA has played an important role in ensuring that all our schemes are MSPO certified so that we have an extensive market access to our CPO. This will consequently translate into a stable income for our settlers,” said Dato’ Mohd Banuri.
He added that FELDA operates with a dual focus: empowering and supporting the settlers through the social arm while generating income through the commercial arm. This structure allows FELDA to fulfil its objectives of sustainable development and the well-being of its stakeholders.
Leveraging on the upcoming 67th Merdeka and Malaysia Day celebrations, FGV has also launched its “Teruskan Meneroka” campaign as an appreciation to the unsung heroes who have “explored” their own ways in contributing to the progress of Malaysia including the blood, sweat and tears of FELDA settlers and smallholders. “Teruskan Meneroka” is currently featured across FGV Holdings’ social media platforms including Facebook, Instagram,
