Dunlop conducts smallholder support program toward sustainable natural rubber

Tokyo, Japan — A Dunlop Group natural rubber supply chain project in Indonesia increased farmers’ yields and incomes while reducing pressure for farm expansion that can contribute to deforestation, according to a company report.

The initiative, called the Traceability and Transparency Pilot Project, has been carried out since 2022 in South Sumatra, Indonesia, through Dunlop’s procurement subsidiary Sumitomo Rubber Singapore Pte. Ltd. and supply chain partner Halcyon Agri Corporation Ltd. and its Indonesian subsidiary PT Hok Tong.

The program focused on supporting smallholder rubber farmers by improving cultivation practices, providing agricultural inputs such as fertilizers, and strengthening traceability and transparency in the natural rubber supply chain.

Over roughly three years, including a temporary suspension during the COVID-19 pandemic, the project supported more than 1,000 farmers. Field-based training and repeated technical guidance were used to build trust and improve farming methods.

According to the report, the initiative resulted in a natural rubber yield increase of up to about 19% and an income increase of roughly 25% among participating farmers.

Farmers also reported improved tree health and easier harvesting conditions, with one participant noting that rubber output increased from about 100 kilograms to 125–130 kilograms after fertilizer use improved plant conditions.

The project was designed to address risks identified in smallholder production systems, including limited access to agricultural knowledge, unstable income, and potential land expansion that can drive deforestation. By improving productivity on existing farmland, the initiative aimed to reduce incentives for expanding rubber cultivation into forested areas.

Halcyon Agri said the long-term resilience of the natural rubber industry depends on improving smallholder livelihoods and that collaboration with Dunlop has helped strengthen farmer training and on-the-ground support.

Dunlop said the initiative aligns with its broader sustainability strategy focused on natural capital management and responsible sourcing of natural rubber, which it describes as a critical raw material for the mobility and tire industries.

The company said it plans to expand similar programs to other regions and partners as part of its efforts to support sustainable procurement and address social and environmental challenges in production areas.