@Green March/April 2024 | Page 26

26 • Opinion

26 • Opinion

@ green | March-April . 2024

Path to social responsibility

Building sustainable supply chains for small farmers
BY DR ASAD ATA

IN a world where the pursuit of profit has often taken precedence over environmental and social concerns , the need for sustainable supply chains has become increasingly critical .

Over the past 12 years , my journey in the field of Operations and Supply Chain Management has provided me with valuable insights into the complex web of challenges and opportunities within this domain .
As an Associate Professor at the Asia School of Business , my focus on sustainable sourcing and supply chain management has allowed me to witness firsthand the transformative power of socially responsible supply chains .
Trained as an Operations Researcher , my journey began with a deep dive into the science of optimisation , driven by the pursuit of continuous improvement .
However , during my years in the industry , where I worked on diverse projects spanning telecom to e-commerce , I discovered the compelling intersection between my profession and its application in the food and agricultural sectors .
Hailing from a family with a farming background , I realised that many of the world ’ s most pressing issues , such as hunger , do not necessarily originate from production problems but rather from supply chain and distribution challenges .
One striking project I was exposed to involved a situation in India where one state produced a massive wheat surplus . At the same time , the rest of the country faced a dire need for it due to storage and logistical inefficiencies , preventing its distribution to other regions .
The post-harvest losses on fruits , vegetables , and cereals before they reached the consumer were staggering . This experience underscored the critical role logistics plays in food and agricultural supply chains .
My work in Southeast Asia exposed me to significant opportunities for enhancing supply chain efficiencies and highlighted the alarming supply chain talent gap . Small and Medium-sized Enterprises ( SMEs ) were particularly vulnerable to disruptions , as exemplified by the Covid-19 pandemic .
My involvement with various supply chains , including poultry , bananas , and vegetables , eventually led me to focus on oil palm , specifically on independent smallholder farmers in Southern Peninsular Malaysia .
This work has expanded my research interests , providing opportunities for meaningful leadership and stakeholder management that result in tangible impacts .
THE QUEST FOR SUSTAINABILITY IN SUPPLY CHAINS
Sustainability in supply chains can pose a formidable challenge , especially when it involves integrating sustainable practices into existing strategies . Nevertheless , the global impact of climate change has accelerated awareness of sustainability , making it evident that sustainability is no longer optional but necessary .
Companies are shifting from purely pursuing profits to embracing the triple bottom
“ One of the key lessons I ’ ve learned is that sustainability doesn ’ t have to be a zerosum game . Responsible and environmentally friendly supply chains can generate value propositions while meeting the expectations of conscientious consumers .”
line , which considers people and the planet alongside financial gains .
One of the key lessons I ’ ve learned is that sustainability doesn ’ t have to be a zero-sum game . Responsible and environmentally friendly supply chains can generate value propositions while meeting the expectations of conscientious consumers .
Transparency , traceability , and accountability have emerged as critical factors in addressing sustainability challenges , and collaboration among all stakeholders is essential to achieve these goals proactively .
ROLE OF THE SUSTAINABILITY CENTER ( CSS ) AT THE ASIA SCHOOL OF BUSINESS ( ASB )
In the palm oil industry context , small farmers contribute a substantial 40 per cent of the global supply . The Center for Sustainable Smallholders ( CSS ) is dedicated to safeguarding the interests of independent small growers and advancing ethical and responsible sourcing .
This is achieved through on-the-ground engagement and implementing good agricultural practices to improve yields , all driven by rigorous research and practical application . The centre is committed to empowering communities , ensuring sustainability , and promoting responsible sourcing through certification , with a broader goal of making a positive impact through knowledge dissemination .
By facilitating the certification of independent smallholder farmers in the districts of Batu Pahat and Pontian in Johor under the RSPO ’ s Independent Smallholder Standard ( RISS ), CSS empowers these farmers through knowledge and guidance on good agricultural practices and farm management .
The result is certified sustainable palm oil ( CSPO ), certified sustainable palm kernel ( CPK ) and certified kernel . CSS has also helped establish an independent smallholder
farmers association , PERTANIAGA , to enhance community ownership and leadership .
CSS recognises that sustainability standards must align with improving livelihoods . As part of the CSS Sustainability Journey , the centre is dedicated to developing learning farms ( LeFa ) that demonstrate sustainable agricultural practices tied to yield intensification .
Finally , CSS aims to create awareness about sustainable and good agricultural practices among a wider group of small farmers and growers through its diffusion programme , ensuring that surrounding communities benefit from the knowledge and expertise generated .
CHALLENGES FACED BY SMALL FARMER COMMUNITIES
Small farmer communities face a myriad of challenges in establishing sustainable supply chains . In Malaysia , where over 16 per cent of small farmers are independent smallholders , they often lack bargaining power , face competition from estates , and have limited access to resources and knowledge , unlike scheme farmers .
These combined , put them at a disadvantage in selling their produce fairly and transparently . Moreover , resistance to change , financial illiteracy , and the migration of younger generations to urban areas further compound these challenges .
Certification standards which focus heavily on compliance while lacking a clear value proposition for sustainability , coupled with the opaque nature of the supply chains with several intermediaries , discourage many small farmers from adopting sustainable practices .
Addressing these challenges requires a multifaceted approach that combines certification , livelihood improvement , and community engagement , developing a busi-