Expanding smallholder participation in sustainable palm oil markets: The future of sustainable palm oil depends on whether independent smallholders can participate

Independent smallholders produce a significant share of the world’s palm oil but remain underrepresented in the traceable, certified, and compliant supply chains increasingly shaping market access. The Global Palm Oil Outlook 2025 finds that barriers to participation are often structural rather than farm-level, and that progress is strongest where sustainability requirements, government action, landscape and jurisdictional approaches, and supply-chain actors work together to address traceability, legality, productivity, and market access. As sustainability requirements become more stringent, the sector’s ability to achieve deforestation-free production, improve livelihoods, and maintain resilient landscapes increasingly depends on producers who remain least able to participate in them. Expanding practical pathways for participation will require coordinated action that connects producer support, traceability, finance, and forest protection at scale. Landscape and jurisdictional approaches offer one of the strongest mechanisms for achieving this.

Publication date:
09/06/2026
Author:
IDH
Link to external website:
Region:

Luwero, Nakaseke, Kassanda, Mubende, Bukomansimbi, Kyotera, Omoro, and Nwoya

Target group:

Smallholder farmers, traders, state and non state actors, and processors

Key activities:
  • Capacity building of smallholder coffee farmers in production practices and sustainable land use management.
  • Establishing traceability system and facilitating access to sustainable financing 
  • Facilitate inclusive business partnerships between producer organizations and supply chain actors​ 
  • Promote multi-stakeholder cooperation​ 
Commodities:
Region:

Huánuco, Ucayali, Pasco and Junín

Target group:

Public and private stakeholders, especially exporting companies, cooperatives and smallholder producers

Key activities:
  • Strengthen the supply chains to meet EUDR requirements 
  • Facilitate access to sustainable finance and knowledge exchange
  • Training of smallholders to sustainable manage their production systems 
Commodities:
Region:

Ngozi and Kayanza 

Target group:

Smallholders

Key activities:
  • Training on the use of traceability tools and support on collection of geolocation data for EUDR compliance 
  • Support the development of a national coffee sector dashboard for traceability and transparency
  • Capacity building of smallholder coffee farmers in production practices and sustainable land use management.​ 
Commodities:
Region:

Centre, South West, Littoral, South, East and West regions

Target group:

Smallholder farmers, women, youth, and indigenous peoples

Key activities:
  • Develop inclusive business partnerships with the private sector 
  • Facilitate access to finance for sustainable business models 
  • Support and train farmers in open-source traceability systems 
  • Promote multistakeholder dialogues to improve legal and regulatory provisions 
Commodities:
Region:

(Lower) Kafue Catchment Ecosystem

Target group:

Farmers and community forest management groups

Key activities:
  • Support community forest management groups in the
    sustainable management of natural resources and livelihood creation
  • Support farmers to produce soy in line with the EUDR and increase productivity, and implement transparency and traceability pilots
Commodities:
Region:

Lampung, West Kalimantan, and Central Sulawesi

Target group:

Smallholder farmers, private sector, and civil society organizations along the value chains

Key activities:
  • Empowering Smallholder Farmers and Farmer Organizations by facilitating traceability and legality, building capacity on Good Agriculture Practices (GAP), and strengthening farmer organizations, ensuring inclusive support for both men and women farmers.
  • Promoting sustainable practices and collaboration by supporting village HCV/HCS conservation efforts, testing and strengthening the National Dashboard for traceability and legality, and fostering national and regional exchanges.
Commodities:
Region:

Son La, Gia Lai ​​

Target group:

Smallholder farmers and marginalized groups

Key activities:
  • Support coffee value chain actors
  • Foster deforestation-free, sustainable, and legal supply chains
Commodities:
Region:

Yangambi Biosphere Reserve, Salonga National Park North, Salonga National Park South, Virunga National Park, Kahuzi-Biéga National Park​

Target group:

Public and private sector

Key activities:
  • Promote sustainable agricultural practices
  • Minimize forest degradation
  • Prevent deforestation
Commodities:
Region:

Provinces of Orellana and Sucumbíos

Target group:

Smallholder farmers, women, indigenous people and youth

Key activities:
  • Promoting Multi Stakeholder Dialogues
  • Improving traceabilty systems
Commodities:
Region:

Xingu territory, State of Pará

Target group:

Family farmers

Key activities:
  • Improve market access, value creation, and access to sustainable finance
  • Integrate farmers into traceability systems
Commodities:
Global activities