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02 May 2022
2 min read



In 2020, Ferrero, alongside the Sustainable Agriculture Network (SAN), embarked on a journey to create new solutions for more sustainable palm oil farming. 

Our funded pilot project in Malaysia aims to advance Integrated Pest Management (IPM) and biodiversity conservation practices at the farm level for palm oil producers, with an emphasis on smallholders. 

Introducing beneficial insects

The project’s main objective is to propose a habitat design for “beneficial insects” that can contribute to pest control by preying on herbivorous insect pests which harm oil palm production. The project which is being implemented within a framework of effective IPM practices, aims to identify lower-risk pesticides as alternatives to hazardous chemicals that protect and benefit the environment and workers.

An expert driven project to drive palm oil sustainability

This project responds to the broader industry’s issue of synthetic pesticides, often used in palm oil plantations to protect oil palms and their fruit bunches from pests that could spoil the crop and render it unusable for production. Considering the danger that pests pose when striking at a large scale, resulting in an entire plantation losing the production cycle’s work, or creating potential supply shortages and in turn harming the economic wellbeing of farmers and their communities, the project aims to create a more sustainable solution that prevents this.

Coordinated by SAN, the international team of expert ecotoxicologists, entomologists and botanists involved include Wild Asia, Oregon State University, Srum Agroecologia, and Putra Malaysia University (UPM) to help create more sustainable solution for oil palm farming.

How we achieved this?

To set up the study, in March 2021, the Ferrero-SAN pilot project’s research team visited four oil palm plantations, mainly smallholders, and took two key steps:

First, agricultural practices were explored and mapped out. The team discovered that plant diversity significantly influences beneficial insect variety and recorded the presence of crop-damaging pests like bagworms, rhinoceros beetles and rats. Many issues tied to small and medium farmer practices were also found, including lack of access to basic information on agrochemical usage and alternatives, a full understanding of soil conservation best practices (including archival record-taking), and missing adequate waste management facilities. As such, an important opportunity for education and upskilling exists.

Secondly, a comprehensive survey of insects and plants was performed. This helped to better understand the farm ecosystem, leading to the identification of 89 insect and 121 plant beneficial species. For example, it was noted that greater fern diversity provided more refuge and water for “assassin” bugs like the Cosmolestes picticipes which prey on pests like the nettle caterpillar. Today, the observed natural barriers created by farmers are composed of four non-native, exotic plant species along one strip to guard pests from reaching oil palms. As such, the positive effects of taking a more diversified, mixed planting approach will be explored through “habitat island” blocks of 15-20 plant species distributed across the farms. 

Creating the future now

With the above baseline study set, the project is now embarking on a three-year journey to explore additional solutions towards a healthy and biodiverse palm oil production system with a roadmap that includes:

  • Year 1 (2022): piloting best practice habitat island designs and defining the least toxic IPM package possible.
  • Year 2: optimizing program implementation on more farms.
  • Year 3: scaling up solutions at a landscape level, generating maximum impact.

In parallel, the project will work to identify and implement less harmful chemical pesticide alternatives, as well as ways to leverage technological tools to empower farmers and optimize their work.

Learn more about our mission for palm oil sustainability through our Palm Oil Charter.

Ferrero began its journey in the small town of Alba in Piedmont, Italy, in 1946. Today, it is one of the world’s largest sweet-packaged food companies, with over 35 iconic brands sold in more than 170 countries. The Ferrero Group brings joy to people around the world with much-loved treats and snacks, including Nutella®, Kinder®, Tic Tac® and Ferrero Rocher®. With over 47,000 employees, we are passionate about helping people celebrate life's special moments. The Ferrero Group, now in its third generation, is based on family values with a dedication to quality and excellence, heritage, and a commitment to the planet and communities in which we operate.