Embracing our Shared Responsibility: GPSNR’s newest Working Group

We can draw parallels to the coffee industry, which similarly comprises small plantation owners and more profitable downstream actors. In his recent sustainability report on the coffee industry, economist Jeffrey Sachs’ proposal for a global fund to fill the financial gaps for sustainability investments in coffee producing regions garnered vivid discussion.  

Currently, low and unpredictable rubber prices are a constraint to smallholders who produce the bulk of global rubber output. Transparency is critical in the purchasing process, and this kind of disruption typically comes hand in hand with embracing new strategies. 

Under the purview of the Strategy & Objectives Working Group, capacity building and extension services have been identified as potential measures to mitigate the root causes of the social and environmental impact from the natural rubber supply market. Implementing these at scale for the whole industry will require considerable financial investment.   

With the above considerations in mind, GPSNR is exploring new approaches to funding that would not be borne by a single segment of the industry, but in a manner incorporating the spirit of our shared responsibility. 

Enterprise Singapore organized an industry meeting on 14 January 2020, and invited GPSNR and Singapore Exchange to better understand the available options of an e-trading platform that could contribute to our funds. The meeting also discussed what could be the options, through GPSNR, to increase the uptake of the e-trading platform.

Tapping the vast potential of digitalization could present an exciting avenue of possibilities for GPSNR to better advance our vision of a fair, equitable and environmentally sound rubber value chain.      

The meeting was initiated by representatives from Enterprise Singapore, and panel speakers comprised representatives from GPSNR, Singapore Exchange and HeveaConnect. Participants included GPSNR members as well as other Natural Rubber buyers, producers, processors and traders .

The regional sub-Groups of the Capacity Building Working Group continue to advance discussions on developing country-specific capacity building goals and strategies for Indonesia, Thailand, Côte d’Ivoire and Myanmar. 

The sub-Groups have made progress in identifying three issues of priority per country. Focusing on these issues, the sub-Groups have pinpointed the drivers or causes of these issues, as well as developed priority actions to address them. Having already established who the existing stakeholders conducting on-the-ground capacity building projects are, the next step is to approach identified local agencies to discuss possible collaboration and partnership. 

The Capacity Building Working Group is developing a budget estimate that would provide a more comprehensive overview of the resources involved in carrying out the planned capacity building initiatives.

The members of the Working Group recognize the importance of involving smallholders and government agencies in the process of developing these capacity building plans, and are working towards engaging these parties in the discussion.

Meanwhile, the Smallholders Representation Working Group continues to finetune the onboarding programme for smallholders prior to the General Assembly 2020. A sub-Group has also been formed to consider the issue of financial support for smallholder participation at subsequent General Assembly meetings.