AR was part of a series of two studies conducted with Financial Access and SNV for USAID, WWF, and Target to investigate the financing needs of rubber replanting schemes for smallholders in Indonesia.
The first study for USAID focused on the impact of four types of replanting schemes on household cashflow for a smallholder. The study confirmed that replanting schemes resulted in significant cash deficits for the smallholder which acted as a big obstacle to replanting schemes.
The second study for WWF and Target examined whether the sale of rubberwood could help to offset the cash deficit for replanting schemes. The study looked at the local rubberwood industry and used field surveys to estimate the revenue that a smallholder might get. The study concluded that the revenue from rubberwood sales were not sufficient to offset the cash deficit. Additional cashflow would be needed to help smallholders tide over the maturation phase of the replanted rubber trees. It is this dilemma that AR is addressing by developing a new suite of tools for downstream supply chain actors who are interested to promote and invest in smallholder sustainability and equity.
Netherlands Organization Development (SNV)
SNV is a non-profit international development organisation that works to develop sustainable agricultural production. Through collaborations with partners, SNV promotes good and sustainable agricultural practices amongst smallholder farmers.
USAID Green Invest Asia helps agriculture and forestry businesses in Southeast Asia improve their sustainable commodity production and manage environmental risks. In the natural rubber industry, USAID Green Invest Asia supports companies with business strategies, environmental assessments and advice to promote sustainable commodity production and business practices.
Target Corporation is one of the largest U.S. retailers, and is committed to protecting the people, communities and ecosystems along its value chain. As part of its efforts to broaden the scope of its responsible material sourcing programs, Target Corporation funds projects to explore opportunities to create more responsible supply chains for its products, including connecting rubber wood to its supply chain.
World Wide Fund for Nature (WWF) is one of the world’s largest and most experienced independent conservation organisations. In the natural rubber industry, WWF actively engages its partners to find solutions to enhance the production and trade of sustainable natural rubber.
Financial Access is a financial services firm, focused exclusively on frontier and emerging markets. Financial Access provides consulting, financial advisory and financing services, including designing and delivering solutions to accelerate financial inclusion for smallholder farmers across landscapes and agricultural supply chains.