Partnership models involving independent smallholders in Indonesian palm oil supply chain: A brief review (original) (raw)
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The Malaysian palm oil industry is made up of interrelated sectors that produce various palm products for their end-users. To ensure an efficient supply chain, all sectors should operate efficiently; this includes the independent smallholders. An efficient production system by the smallholders is deemed necessary in producing quality fresh fruit bunches (FFB) which can then produce quality palm oil for meeting the rising global demand. Inefficiencies can affect the whole supply chain. This article investigates the efficiency level of this sector and the structural changes that it has undergone. It was found that there is plenty of room for improvement among independent smallholders to increase their FFB yield and income so that their future can be sustained.
Elsevier, 2020
The oil palm independent smallholder (farmer) is one of the important actors in maintaining the continuity of the production cycle in the oil palm agro-industry supply chain in Indonesia. Various fundamental problems faced by the independent smallholder are related to land legality as well as their limited ability to manage good agricultural practices, access funds and information on current prices, and use of quality and agricultural production facilities. The institutional strengthening of the independent smallholder requires attention and support from government and other business actors in the supply chain of the oil palm agro-industry. This study aims to obtain a model of institutional strengthening through the application of the enrich seven steps of soft system methodology. The assumptions that must be fulfilled in strengthening this institution were described. The institutional strengthening model was developed in three stages, i.e., the establishment of smallholder corporations, the establishment of independent cooperatives, and the revitalization of the Indonesian oil palm independent smallholder association. Various individual strengthening actors were investigated and then integrated. The suggested institutional strengthening model involved cooperatives, smallholder farmers groups, and the oil palm mill, supported by regulatory, financial, and input provider agencies with a mutual partnership program.
Comparative analysis between smallholder and partnership oil palm farming system in Jambi Province
IOP Conference Series: Earth and Environmental Science
Indonesia is becoming the largest palm oil producer in the world. This commodity estate farm is carried out by smallholder, government, as well as big private companies. As the law rules it, both government and big private companies are urged to run the oil palm plantation in partnership system. This study is aimed to compare the oil palm estate revenue between smallholder and partnership farmer in Jambi Province. Data is analyzed in quantitative descriptive model analysis. The results showed that the average farm income of smallholder is significantly higher than the oil palm partnership farmer. Statistical Analysis also showed that the fresh fruit bunches price (TBS), fertilizer, and labour factors used were significantly affected the oil palm estate benefit.
International Journal of Sustainable Development and Planning, 2021
The smallholder oil palm farmers (SHFs) manage almost half of the Indonesian oil palm area, often associated with unsustainable oil palm sources. There has been limited research conducted to assess SHFs status in Indonesia. This study analyzed sustainability of existing Multi-tier Supply Chain Management through Rapfish diagnostic application with Multi-Dimensional Scaling (MDS) in oil palm mills, suppliers, and SHFs. This study found triadic typologies of MSCs in the Kutai Kartanegara District and six sustainability dimensions including economic, social, ecology, political, and institution to improve the regional strategy for sustainable palm oil plantations in the East Kalimantan Province. The closed triadic relationship in Gunung Sari and Pulau Pinang Villages has better performances on four sustainability dimensions compare to other villages. The oil palm mills could connect directly with SHFs and reduce asymmetric information and rent-seeking behavior through the traceable land...
EasyChair Preprint No 601 Partnership Models for Inclusive Oil Palm
The role of oil palm plantations in improving smallholders’ income has been widely accepted. However, lack of managerial skills and capital causes smallholders to receive high interventions from third parties. This study is conducted to analyze the impact of various partnership models to the inclusive oil palm smallholdings. The data is collected from 390 smallholders in North Sumatra, South Sumatra, Jambi and Riau. Four types of partners including state, local private, foreign private companies, and NGO are covered. Inclusive levels are measured with ownership, voice, risk and reward, and compared with Mann Whitney test. Binomial Logit Model is applied to estimate the inclusive influencing factors. The results show that all types of partnerships improve smallholders’ ownership and voice, but decrease their participation in risk management. The inclusive scores are significantly influenced by existence of contract, involvement in planning and FFB pricing, and endowment.
Independent Oil Palm Smallholder’s Challenges in Malaysia
The International Journal of Academic Research in Business and Social Sciences, 2018
This study discusses the challenge and strength of independent oil palm smallholder in Malaysia. The ability to become independent farmers is a good way to increase household income. Even so there are various challenges that need to be addressed before giving good results. Sometimes it succeeds, but the initial failure of something is certain. These farmers' capabilities are explored through the experience of 30 palm oil farmers in Malacca. This study uses the convenient sampling research paradigm that focuses on understanding and narrations of the Independent smallholders' in the District of Merlimau, Malacca on how their experienced were resulted. The sample was selected using the non-probability sampling that is the purposive sampling and the snowball sampling. A total of 190 informants were selected in this study to be interviewed in-depth and with questionnaires as major instrument. Quantitative Method used in this study with descriptive statistics. The study found that the role of MPOB consists of information sharing on oil palm cultivation, providing assistance with seeds. The type of challenge and strength that has been built consists of the individual financial and marketing of the oil palm products. In conclusion, MPOB is only instrumental as an agent in the Independent oil palm smallholder's community along with the knowledge and guarantee quality of seeds. There is still a lot of effort needed to reach the group in empowering life through the cultivation of oil palm.
Uncertain Supply Chain Management, 2023
Palm oil commodity in Indonesia is the cash crop for smallholder farmers especially in the dry land area. This smallholder has contributed to produce Crude Palm Oil (CPO) about more than 40 percent in the supply chain. This study is aimed to identify downstream and upstream in the line of CPO palm oil. Secondly, is to know the role of the actors in the CPO supply chain and its traceability. This study employed the traceability method of networking of CPO supply chain in Southeast Sulawesi. Indonesia. Two research sites were conducted as the implementation of survey, observation, interviews and Focus Group Discussion (FGD). The respondents have chosen from the downstream to upstream of the CPO supply chain. Independent farmers, middlemen, delivery order, and Fruit Fresh Bunches (FFB) mills to produce CPO have been interviewed as the key informant of this research. Traceability study shows that the main source of FFB came from the core of PT. Damai Jaya Lestari both in the research site, plasma, and independent farmer. In North Konawe, the downstream line that farmers sell the FFB to the middlemen then they bring to the agency who has the delivery order from the CPO mills. Meanwhile, in Kolaka District, Independent farmers sold the FFB to the agency who has the contract with the PT. Damai Jaya Lestari in Plasma Village, Poliggona Sub District. In terms of the green economy, waste such empty bunches were limited access for farmers who wanted to proceed with the waste for organic fertilizer and feeding cows. The role and the traceability study show that independent farmers have no access to utilize the waste of empty bunches, no protection from the Damai Jaya Lestari as the CPO mills, and have no institutional farmers as the farmers group.
Indonesian oil palm smallholders in an inclusive global supply chain
2019
IIndonesia is the largest palm oil producer and exporter in the world. In the past, the palm oil industry was dominated by big state and private companies, but since 1984 oil palm smallholdings have increased. In 2002, the total area of smallholdings reached 35% of the country’s total oil palm plantation area; this increased to 42% in 2003, and was 41% in 2018. Accordingly, smallholder producers must play active roles in the global palm oil supply chain.
Smallholders socio-economic characteristics of oil palm value chain: Constraints and prospects
CERN European Organization for Nuclear Research - Zenodo, 2022
The study on the Smallholders SocioEconomic Characteristics Oil Palm Value Chain: Constraints and Prospects was conducted in the Littoral region of Cameroon with the used of multi-sampling technique. The study made used of secondary and primary data sources. Data that were collected through survey involved the distribution of structured questionnaires to a sample of 400 smallholders who were purposively selected from two subdivisions. The data collected through these questionnaires were analysed using Statistical Package for Social Science and Micro Soft Excel, and the interpreted resulted were presented using descriptive method, pie charts and in tables. Results indicated actors in the value chain were faced the constraints of inadequate capital, inadequate storage facilities, and fluctuation in market prices, inadequate roads, among others. Results further indicated that the activity was important as it provided opportunities such as job creation, health enhancement, education enhancement, income amelioration among others to the actors in the value chain.