InfoSAWIT, JAKARTA – The global palm oil industry is entering a new phase where market access increasingly depends on verified sustainability performance, posing significant challenges for smallholder inclusion.

Quoting InfoSAWIT from webinar session, on Wednesday, April 15, 2026, Fanny Butler from Koltiva stated that a truly sustainable palm oil market must be supported by transparency, traceability, and reliable data flows.

She highlighted that smallholders, who contribute 30–40% of global production, remain largely invisible in formal markets.

“Only about 7% of independent smallholder volumes are linked to certified mills,” she said.

She also pointed out that the European Union Deforestation Regulation (EUDR) will significantly reshape global market requirements, mandating proof of deforestation-free production, geolocation data, and full traceability.

However, the regulation risks excluding smallholders lacking capacity to meet complex data requirements.

“If farmers cannot provide the required data, they may be cut off from supply chains,” she warned.

She emphasized the need for collaborative and digital solutions to ensure inclusive systems where farmers can manage and own their data. (T2)