The Smallholder Farmers Partnership with Nestlé and PepsiCo plays a crucial role in Sustainable Agriculture Partnerships, promoting environmentally responsible farming and improving farmers’ livelihoods. The definition of smallholders varies by region, depending on land size and farming practices. Typically, smallholder farmers own small plots of land and engage in Sustainable Agriculture Partnerships to enhance livestock and crop production. In most cases, they operate as family-run businesses, where all members contribute to daily farm activities and long-term sustainability efforts.
Smallholder farms are usually smaller than five acres, yet they produce nearly 80% of the world’s food supply. Globally, there are approximately 475 million smallholder farms. However, despite their essential role in food production, they face serious challenges from climate change, including flooding and drought. Therefore, various sectors must provide better infrastructure, financial support, and access to technology to help them sustain productivity and resilience.
Source: https://www.sentangsedtee.com/exclusive/article_14560
Thailand’s diverse landscapes and resources create significant differences in agricultural products and markets across regions. Since the Green Revolution in the 1950s, Thai agriculture has shifted from domestic production to commercial trading. As a result, technological advancements, including modern machinery, have transformed farming practices.
Smallholder farmers are the backbone of the ASEAN economy. However, meeting global market demands ties their production to fluctuating prices, leading to unstable living conditions. Moreover, globalization introduces additional challenges, including economic instability, resource shortages, and natural disasters. As a result, many farmers struggle not only to sustain their livelihoods but also to compete in an increasingly volatile market.
To address these challenges, Sustainable Agriculture Partnerships play a critical role in providing resources, financial support, and technology-driven solutions. By fostering collaboration between key stakeholders, these partnerships help farmers access training, market insights, and sustainable farming techniques. Consequently, instead of being forced out of agriculture, farmers gain the tools they need to remain competitive and resilient.
At the same time, limited access to resources still creates barriers, making it essential to expand these partnerships and provide greater support for smallholder farmers. Ultimately, empowering farmers through Sustainable Agriculture Partnerships strengthens not only their livelihoods but also the global food supply chain.
Addressing these issues requires improved financial support, better resource management, and policies that strengthen the resilience of smallholder farmers in Thailand. [Thesis from Rambhai Barni Rajabhat University, Thailand]
Figure 2: Drought in North-Eastern Thailand (2016) affected the sugarcane production
Source (MGR Online): https://mgronline.com/local/detail/9590000028947
In 2017, Fairagora Asia (FAA) partnered with Nestlé and PepsiCo to launch the Impact Project (2017-2020). The initiative was a key step in fostering Sustainable Agriculture Partnerships, aligning sugarcane production in Thailand with United Nations Sustainable Development Goals (SDGs) while ensuring responsible sourcing. To drive this effort, FAA collaborated with Mitr Phol Mill, a major processing plant in Chaiyaphum Province, Thailand.
To strengthen these Sustainable Agriculture Partnerships, FAA conducted workshops for smallholder farmers, focusing on the Bonsucro Standard. This internationally recognized framework helps farmers and mills measure productivity, environmental impact, and social sustainability in sugarcane farming. Moreover, the workshops integrated all components of the Bonsucro Standard, providing practical sustainability solutions that farmers could apply directly to their agricultural practices.
By embedding Sustainable Agriculture Partnerships into its programs, FAA not only promoted responsible farming but also empowered farmers with the knowledge and tools needed to improve efficiency, sustainability, and long-term resilience in the industry.
FAA identified key stakeholders from different sectors to not only support the Bonsucro Standard’s implementation but also enhance collaboration across the supply chain. Moreover, VerifiK8, a data-driven application fully aligned with Bonsucro standards, was introduced to farmers. Since accessibility was a priority, VerifiK8 was designed as both a web-based and mobile application, ensuring it matched farmers’ varying technical skill levels.
To further drive adoption, FAA conducted comprehensive VerifiK8 training sessions. Farmers learned not only how to enter data profiles but also how to identify potential trainer candidates (coach farmers). As a result, these trainers were equipped to teach other farmers, ensuring knowledge transfer and continuous support. Throughout the project, 280 farmers were introduced to VerifiK8, while 53 farmers were trained as community trainers, further expanding outreach and impact.
The smallholder farmers involved in the project owned land smaller than 32 hectares. The project aimed to drive technological adoption, raise awareness of sustainable farming and Bonsucro standards, and support community-driven development. As a result, farmers gained better access to technology, improved farming efficiency, and built a stronger agricultural network.
To learn more about the Thai sugarcane industry and its stakeholders, read the White Paper on Thai Sugarcane Sector & Sustainability published by Fairagora Asia, in coordination with Bonsucro.
Figure 3: Sustainability workshop with smallholders in Impact project, Thailand (2017-2020)
In 2021, Fairagora Asia (FAA) launched the Impact 2 Project in partnership with Nestlé. Running from 2021 to 2023, this initiative focused on reducing greenhouse gas emissions while promoting social responsibility in the sugarcane supply chain. The project aimed to identify emission sources, collect baseline carbon footprint data, develop mitigation strategies, and analyze social risks across Thailand’s farming sector.
The project worked with processing plants in multiple provinces, including Suphan Buri, Sing Buri, and Khon Kaen. Data collection took place directly at the mills and farms, ensuring accurate tracking of environmental impacts. To improve precision, the project focused on three major emission sources: sugarcane burning, fertilizer use, and fossil fuel consumption. Additionally, all carbon footprint calculations followed the Verified Carbon Standard (VCS) methodology, ensuring credibility and alignment with global standards.
To enhance data accuracy and accessibility, FAA provided VerifiK8 training for farmers. This training enabled them to use digital tools for collecting and managing carbon footprint data effectively. Beyond environmental concerns, the project integrated social responsibility initiatives. FAA, in collaboration with social experts, implemented 12 Social Categories, covering fair recruitment, child labor prevention, health, and safety. These measures helped identify and mitigate human rights risks on farms, ensuring ethical labor practices.
By combining data-driven solutions with social impact strategies, the Impact 2 Project strengthened sustainability efforts while fostering a more responsible and resilient agricultural sector in Thailand.
At FairAgora Asia, we drive sustainability through innovative agricultural practices, social impact training, and environmental risk assessments. Partnering with global organizations, we empower stakeholders to embrace sustainability for a greener future.
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