Natural Habitats Palm Possible
Impact Report 2022
10
Natural Habitats
Impact Report 2021/2022
11
4.1
WHAT? What does 100% organic actually mean?
100% ORGANIC
According to the US Department of Agriculture ( USDA ), organic agriculture uses practices that support the recycling of on-farm resources, promote ecological balance, and conserve biodiversity. Organic farming systems use natural processes and materials to maintain soil and water quality, improve crop and livestock nutrition, manage pests and weeds, and conserve biological diversity. Organic farm systems also avoid the use of synthetic fertilizers, sewage sludge, irradiation, and genetic engineering commonly used in conventional farms. Processing palm oil in a way that adheres to the organic standard means not using any chemicals to extract the oil, and only using carefully reviewed and approved processing aids. WHY? Why do we care so much about organic? Organic agriculture is essential to securing healthy and resilient ecosystems, which help clean our water, purify our air, maintain our soil, regulate the climate, recycle nutrients, and provide us with toxin-free food. Organic agriculture contributes to better health in multiple ways:
HOW? How do we meet this promise?
Moving towards 100% organic won’t happen overnight, but it is possible. We are already seeing a growing interest in organic farming in our operational landscapes. Here’s what we’re doing to help speed up the process. Help farmers convert to organic, sustainable, and ethical practices We only work with farmers that have converted to organic, sustainable, and ethical practices. To continue growing our network, we actively reach out to conventional oil palm farmers to explain that organic agriculture is not only better for the planet, but for people too, as it brings them a premium for their harvested crop. Initially, we concentrated on converting smallholder farms up to 75 hectares. However, in 2018 we started converting larger farms, as we have seen the positive impact this can have. Moving forward, we plan to convert larger farms to help us meet supply demands based on the growing interest we are seeing in the market.
▶ Soil health
▷ Organic farming builds soil quality by adding compost, animal manure, organic waste from the milling process, and organic matter from the plantations which comes from pruning & weeding. ▷ The use of cover crops helps to retain water and protect the soil from wind and water erosion.
OUR EVOLVING SUPPLY NETWORK
Our supply network has been evolving over time, with new farmers coming on board our organic palm oil journey, and farmers leaving our network due to non-compliance, crop disease or resignation. At this point in time (April 2022) we have 5,304 hectares of palm under certification. Since 2009, we have converted 12,679 hectares of palm cultivation from conventional to organic practices. Those 12,679 hectares correspond to approximately 9,130MT of chemical fertilizer eradicated from use annually. Due to the Covid pandemic and the global market price dynamics in 2021, we saw a slowdown in onboarding new farmers. Our average annual prognosis for onboarding new farmers in our supply network is 2,000-3,000 for the coming 3 to 5 years.
▶ Farmer, worker & community health
▷ The eradication of pesticides, herbicides, and chemical fertilizer means that people working at, or living close to the farm will not come into contact with harmful toxins. ▷ By converting from conventional to organic practices, the use of at least 3,600MT of chemical fertilizer is eradicated annually by the farmers in our supply network.
IS POSSIBLE
▶ Environmental health
▷ The eradication of pesticides, herbicides, and chemical fertilizer will mean no harmful toxins will be released into the air, soil, and water bodies.
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