Industry Urged to Prioritise Resilience in Sustainable Palm Oil Supply Chains

To address the urgent need for resilient palm oil supply chains, IDH and the Roundtable on Sustainable Palm Oil (RSPO), with support from Proforest, brought together more than 200 stakeholders on 9 June 2026 for the Europe Sustainable Palm Oil Dialogue (SPOD). With the theme, Resilience in Palm Oil: Thriving in a Turbulent World, participants explored how a focus on climate, nature and people can create long-term market advantage and resilient supply chains.

Smallholder inclusion was a recurring topic throughout the programme, recognised as essential for resilient and deforestation-free supply chains. The dialogue also highlighted how nature-positive solutions and landscape and jurisdictional approaches can strengthen resilience since sustainability issues are addressed at a geographical level, increasing the potential to drive impact beyond the individual farm or plantation level.

The industry was reminded that resilience is a continued state of progress and was encouraged to learn from issues within the supply chain and build resilience into their business design. “Resilience comes from ensuring that sustainability remains a business imperative,” Inke Van Der Sluijs, Director Market Transformation concluded.

The event was hosted at Chester Zoo, located in the world’s first sustainable palm oil city, connecting supply chain discussions directly to wildlife and nature conservation. Throughout the day, participants had the opportunity to take part in guided zoo discovery walks, learning about the impacts of deforestation on species and how sustainable palm oil sourcing can contribute to protecting critical habitats.

Don’t assume that the work on palm oil is done.

Despite the high uptake of certified sustainable palm oil in Europe, which is above 90%, significant effort is needed to build consumer awareness and trust and drive behaviour change, so that demand can continue to reward companies and smallholders investing in sustainable production.

Outlook on the Global Palm Oil Sector

Also at the event, IDH launched its Global Palm Oil Outlook 2025 report, examining how changing market dynamics are reshaping the sector. The report explores two important questions: What is preventing the sector from achieving deforestation-free, independent smallholder-inclusive palm oil from resilient landscapes at scale? And which pathways are most likely to overcome those constraints?

The report finds that demand is shifting away from the markets that have historically driven sustainability. Consumption in the EU fell by around 44% between 2019-2020 and 2024-2025, while Indonesia’s grew by roughly 39%, raising the risk of a split between regulated and conventional markets. It also warns that independent smallholders, who produce 35–40% of the world’s palm oil but supply only around 8% of RSPO Certified volumes, risk passive exclusion as sourcing consolidates around traceable supply. To protect long-term resilience, the report points to the need for renewed investment in smallholder inclusion, traceability, and demand in emerging markets, so that sustainable production continues to be commercially rewarded across the supply chain.

SPOD 2026 reinforced the importance of collective action and investing in people, nature and climate to help the sustainable palm oil supply chain remain resilient in a market tested by policy shifts, traceability demands and trade volatilities.

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