P&G Chemicals: Enhancing Livelihoods & Palm Sustainability

Join Azean Mohammad (P&G Chemicals’ Palm Sustainability Leader) in conversation with Dr. Asad Ata, Professor at the Asia School of Business (ASB) and Head of the P&G Center for Sustainable Small-owners (CSS) in Johor, Malaysia. It’s an opportunity to hear why we believe supporting smallholders is so important and to be inspired by the role of the CSS and the stories and accomplishments of our program partners.

Azean: I’m delighted today to be talking with Professor Asad Ata of the P&G Center for Sustainable Small-owners. I’d like to start by congratulating Dr. Ata on being appointed Professor at the Asia School of Business before asking him why he is so passionate about the need to support sustainable practices for palm smallholders.

Dr. Asad: Most of us don’t realize the important role played by smallholder farmers in the cultivation of oil palm. Over 40% of all Malaysian palm fruit is grown on small or family farms. If they’re left behind, the whole industry is left behind. When smallholders adopt good agricultural practices, the ripple effect is huge; they raise their yields, manage the use of chemicals better, protect the soil and rivers, and earn a better income each year. And when their lives improve, you see the change in the community, too.

Dr. Asad: Advancing smallholder sustainability takes more than on-the-ground support; while at the farmer level, everything begins with trust, that alone is not enough. To move from dozens of farmers to hundreds and eventually thousands, you need a strong partner who believes in scaling the impact. That requires bold leadership and strong cross-sector collaboration.

This is where P&G’s support has been absolutely instrumental. The CSS was created through P&G’s sponsorship, and their leadership has given us the platform to align government agencies, the Roundtable on Sustainable Palm Oil (RSPO), and farmer associations around shared goals. Today, our farmers understand that P&G’s commitment goes beyond funding. It has set the tone that smallholders matter, that sustainability is non-negotiable, and that certification and livelihood improvement can and must go hand in hand.

For organizations, the lesson is clear: when companies like P&G choose to invest deeply and consistently in smallholders, they don’t just de-risk their supply chains; they help transform entire farming communities. That’s the kind of leadership the industry needs if we want truly sustainable palm oil.

Join Azean Mohammad (P&G Chemicals’ Palm Sustainability Leader) in conversation with Dr. Asad Ata, Professor at the Asia School of Business (ASB) and Head of the P&G Center for Sustainable Small-owners (CSS) in Johor, Malaysia. It’s an opportunity to hear why we believe supporting smallholders is so important and to be inspired by the role of the CSS and the stories and accomplishments of our program partners.

Azean: I’m delighted today to be talking with Professor Asad Ata of the P&G Center for Sustainable Small-owners. I’d like to start by congratulating Dr. Ata on being appointed Professor at the Asia School of Business before asking him why he is so passionate about the need to support sustainable practices for palm smallholders.

Dr. Asad: Most of us don’t realize the important role played by smallholder farmers in the cultivation of oil palm. Over 40% of all Malaysian palm fruit is grown on small or family farms. If they’re left behind, the whole industry is left behind. When smallholders adopt good agricultural practices, the ripple effect is huge; they raise their yields, manage the use of chemicals better, protect the soil and rivers, and earn a better income each year. And when their lives improve, you see the change in the community, too.

Dr. Asad: Advancing smallholder sustainability takes more than on-the-ground support; while at the farmer level, everything begins with trust, that alone is not enough. To move from dozens of farmers to hundreds and eventually thousands, you need a strong partner who believes in scaling the impact. That requires bold leadership and strong cross-sector collaboration.

This is where P&G’s support has been absolutely instrumental. The CSS was created through P&G’s sponsorship, and their leadership has given us the platform to align government agencies, the Roundtable on Sustainable Palm Oil (RSPO), and farmer associations around shared goals. Today, our farmers understand that P&G’s commitment goes beyond funding. It has set the tone that smallholders matter, that sustainability is non-negotiable, and that certification and livelihood improvement can and must go hand in hand.

For organizations, the lesson is clear: when companies like P&G choose to invest deeply and consistently in smallholders, they don’t just de-risk their supply chains; they help transform entire farming communities. That’s the kind of leadership the industry needs if we want truly sustainable palm oil.

Dr. Asad: We’ve seen significant improvements in the livelihoods of our partner smallholders. We’ve been able to provide training, information and tools that help them make informed choices and execute Good Agricultural Practices (GAPs), which are more sustainable. On our Learning Farms, we’ve documented yield increases of up to 25% over 24 months. That translates directly into higher incomes for families.

Equally important is that farmers now feel ownership of this journey. We don’t just teach in the classrooms; we learn together in the fields, adapting practices that work locally. This approach has helped build trust and confidence. A standout achievement is PERTANIAGA, the independent smallholder association that P&G helped establish.

They were the first independent smallholder association in Malaysia to achieve RSPO ISH Certification in 2021, starting with 100 farmers. More than 900 PERTANIAGA members have now been ISH certified. If you ask me about the most important change, it’s in the farmers themselves – their pride, optimism and willingness to become community ambassadors.

So, while we are excited about these certifications, the most important thing for us is celebrating the change it can unlock for livelihoods and communities.

Dr. Asad: Thank you for this very important question. Good Agricultural Practices, or GAPs, may sound technical but for smallholders, are really about practical steps they can take on their farms. Let me explain it in two parts: GAPs with an almost immediate impact and GAPs that have a longer-term impact. For example, let’s discuss GAPs that improve yield taking and GAPs that improve yield making.

Yield taking is about efficiency for quick gains. It’s making sure that ripe fruit isn’t wasted by harvesting more often, avoiding under-pruning while removing epiphytes (plants that grow on trunks) that block harvesting, and keeping the tree circles clean of weeds and debris. These are relatively simple changes but when farmers adopt them, they see an immediate impact in the amount of fruit collected, translating to the amount of money they earn.

Yield making is about building the biological strength of the farm for the long run. Here, GAPs involve applying adequate nutrients to replace what’s removed at harvest, managing frond pruning to support growth while arranging pruned fronds to conserve soil moisture, and controlling pests and diseases. These practices may take longer to show results, but they strengthen the palm, improve soil health and ensure that yields keep improving.

On our Learning Farms, smallholders who have consistently applied both yield taking and yield making GAPs saw their yields rise by 20%-25% within 24 months. The GAPs translate to extra income that allows farmers to reinvest in their farms and build resilience. From a practical perspective, GAPs are about small steps, some that pay off quickly and others that build long-term resilience. Together, they empower farmers to grow more, earn more and do it sustainably.

Azean: We’re incredibly proud of the work of the CSS, its teams and partner smallholders – What are highlights of the CSS team’s partnership with farmers?

Dr. Asad: The CSS team is incredibly committed to this program. By “team,” I do not mean just the ASB and the CSS but also, our community ambassadors, PERTANIAGA leaders and all the farmers participating in the program. Each contribution is unique and valued. Let me share some highlights:

Rosli Abdul Rahman stands out – he is a smallholder farmer who, after joining the program, not only improved his yields but also became a community ambassador, helping other farmers implement sustainable practices. In 2025, he was honored with the Anugerah Tokoh Pekebun Kecil Sawit (Outstanding Oil Palm Smallholder Award) by the Malaysian Palm Oil Board (MPOB). We were touched by his gracious recognition that the CSS played a part in his journey. He stated that “With data and discipline, you’re building something real,” noting that finding out what works is important and being informed by data is critical.

Puan Hamisa was one of the first female farmers to participate in our program. Her enthusiasm to embrace opportunity and put learning into practice saw her grow her yield from 38 to 42 tonnes over 3 years. She is a passionate program ambassador, seizing the opportunity to attend training. And she not only encourages other women to get involved but also, organizes transport in her own vehicle to ensure they can get there. Her leadership is by example and at 69 years of age, she is an unstoppable force who shows no sign of slowing down. She sees knowledge as something to be shared, and progress as a goal to achieve together. In her words, “If we don’t teach our community, who’s going to do it?”

Mohd Nasir Bakri’s journey was from sceptic to advocate, illustrating not only what the CSS is about but also, how it can change lives. In 2020, Nasir was managing his family farm and was wary about “yet another program” but after conversations and open houses (and countless cups of coffee) with CSS team members, he started to shift his thinking. He followed the program, began helping out and now he’s part of the team as a CSS Assistant Field Officer. As he says, “I never imagined I’d be working with a laptop, managing documents and advocating for the betterment of farmers. Now, I help others see what I used to fight.”

Dr. Asad: This work is not about us telling farmers like Rosli, Hamisah or Nasir what to do; it’s about walking together with them and creating the space for them to lead. While certification and yield gains are important milestones, the real story is of dignity, opportunity and community resilience.

The success of this program has come from a spirit of “gotong royong” or communal work, which the CSS has helped revive by bringing farmers together to share knowledge, solve problems and lift each other up. If we can continue to scale this impact with the help of P&G, industry partners and others, these smallholders can help redefine what a truly sustainable palm oil community looks like serving as a model for others.

Learn more about the program by reading the 2025 CSS Impact Report or visiting the Center for Sustainable Small-owners site at the ASB online.