DUNLOP Improves Farmer Welfare through Sustainable Natural Rubber Support Program

Since 2022, Sumitomo Rubber Industries, Ltd., the global company behind the DUNLOP brand, through its subsidiary Sumitomo Rubber Singapore Pte. Ltd., has been running the Traceability and Transparency Pilot Project (hereinafter referred to as the "SNR Project"). The project is carried out in collaboration with Halcyon Agri Corporation Ltd. through its Indonesian subsidiary, PT Hok Tong, to support natural rubber farmers in Jambi.
 
This initiative has successfully increased natural rubber productivity as well as farmers' income. With better harvest yields, farmers can earn a more stable income from their existing land without needing to open new plantation areas. This condition also helps reduce the risk of deforestation caused by land expansion. Through the various activities carried out, the project has delivered a positive impact for farmers while strengthening efforts to realize sustainable natural rubber procurement.

 

Background of the Initiative

 
In conducting sustainable business, the DUNLOP Group views natural capital, including natural rubber, as a critically important foundation. In line with the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD)—a global initiative that helps companies identify, manage, and disclose nature-related risks and opportunities—the DUNLOP Group has evaluated its business activities' dependencies and impacts on natural capital and taken the necessary measures. For the DUNLOP Group, ensuring that natural rubber remains usable as a sustainable resource in the future is one of the company's top priorities.
 
Natural rubber is an essential raw material that is inseparable from the mobility industry, including the tire industry. On the other hand, the majority of natural rubber production comes from smallholder farmers rather than large-scale plantations. Limited knowledge of cultivation and processing techniques can result in low productivity and harvest quality, as well as unstable farmer incomes. These conditions may also drive the opening of new land, leading to deforestation and various social issues in rubber-producing regions. To help address these risks, the DUNLOP Group runs various support programs aimed at improving the productivity and welfare of smallholder farmers.
 

Overview of the SNR Project

 
Through this project, DUNLOP works together with Halcyon Agri to improve traceability—the ability to trace the origin and journey of natural rubber from production to distribution—as well as to enhance supply chain transparency and farmer welfare in Jambi, Indonesia.
 
As a follow-up to the results of a risk assessment conducted through RubberWay®, an environmental and social risk assessment tool designed specifically for natural rubber supply chains, various support programs were provided to mitigate risks related to farmer income levels and agricultural practices in the region. This support includes mapping the actual conditions of natural rubber production, identifying raw material distribution channels, productivity improvement training, fertilizer provision, and guidance on proper fertilization practices.

Providing technical assistance to farmers
 

Results Achieved

 
Over approximately three years, from 2022 to 2025 (including a temporary suspension period due to the COVID-19 pandemic), the project has provided support to more than 1,000 farmers.
 
Through continuous, direct on-the-ground assistance, strong and trusting communication relationships were successfully built with the farmers. These efforts have produced significant improvements, both in productivity and farmer welfare. In the project implementation area, natural rubber production increased by approximately 19%, while farmers' income rose by approximately 25%.
 

Comments from Halcyon Agri

 
"At Halcyon Agri, we believe that the long-term resilience of the natural rubber industry is closely tied to the welfare of smallholder farmers. Through our subsidiary, PT Hok Tong, and in collaboration with DUNLOP, we run a CSR program in Jambi Province to strengthen farmers' capabilities through training, the provision of agricultural production inputs, and direct on-the-ground assistance.
 
We are honored to collaborate with DUNLOP, whose commitment and investment have been a key factor in making this initiative possible. Through this partnership, we strive to increase productivity, improve farmer welfare, and promote sustainable practices across the supply chain. We believe this collaboration will contribute to the long-term sustainability of the natural rubber industry and create meaningful value for all stakeholders."
 

Comments from Mr. Mulyono, a Farmer Receiving Support

 
"After using the fertilizer, it was clear that the condition of the rubber trees' leaves and bark improved, and the overall health of the trees increased. The leaves became greener, while the bark became thinner, making it easier to tap the latex. As a result, rubber production increased from around 100 kg to around 125–130 kg.
 
The support from Halcyon Agri and DUNLOP has helped improve our welfare. We hope programs like this can continue in the future."

Mr. Mulyono (right), a program beneficiary, discussing the project implementation with a Halcyon Agri researcher (left).
 
As part of its corporate philosophy, the DUNLOP Group has identified various material issues and integrated them into the company's long-term strategy. Through continued collaboration with Halcyon Agri, as well as the expansion of the program to other regions and partners, DUNLOP is committed to supporting the sustainable and stable procurement of natural rubber, including environmental conservation in rubber-producing areas and improving the welfare of rubber producers.
 
Since 2026, Sumitomo Rubber Industries has unified its global corporate communications under a new communication brand, DUNLOP. Through all of its products and services, DUNLOP strives to deliver three core values: "Confidence to Face Every Challenge," "Experiences that Exceed Expectations," and "Pushing Beyond Limits." DUNLOP will continue to deliver innovative experiences that bring positive feelings to people around the world. The DUNLOP brand statement, "TAKING YOU BEYOND," reflects the company's commitment to continuously unlocking new possibilities for those who dare to face challenges and helping them go beyond their limits.
 

About DUNLOP

 
Backed by a heritage of innovation spanning more than 130 years, DUNLOP continues to strengthen its global position in premium tire technology. Guided by the philosophy of "TAKING YOU BEYOND," DUNLOP is committed to delivering mobility solutions that provide the confidence to face every challenge, exceed expectations, and push beyond limits in order to deliver the best quality and performance for consumers and automotive industry partners in Indonesia.
 
In Indonesia, all DUNLOP tires are manufactured by PT Sumi Rubber Indonesia. As a strategic partner to various leading vehicle manufacturers, PT Sumi Rubber Indonesia produces DUNLOP and FALKEN branded tires as well as SRIXON golf balls at its manufacturing facility in the Indotaisei Industrial Estate, Cikampek. The entire production process is dedicated to strict quality standards and technical excellence to meet the needs of both the domestic and export markets.
 
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