Is Sustainable Oil Palm Production Possible for Smallholders? (original) (raw)
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Sustainability
Smallholder oil palm plantations play an essential role in the Indonesian economy, both on a national, regional, local, and household scale. However, no data or studies show how much smallholder oil palm plantations contribute to achieving in each sustainable development goals (SDGs). The development of smallholder oil palm plantations, like other economic developments, wherever conducted needs to provide benefits to the community such that it exceeds the costs incurred, including the costs of preserving and protecting the environment. To assess its contribution, it is essential to examine the Sustainable Development targets in which smallholder oil palm plantations contribute. Therefore, this study is aimed at examining sustainable development goals to which smallholder oil palm plantations can contribute. Based on focus group discussion and the literature review, there are 13 SDGs for smallholder oil palm plantations that contribute and play a role in achieving the targets set by ...
E3S Web of Conferences
Balancing efficiency and sustainability of fresh fruit bunches (FFB) production remains a critical issue facing by oil palm (Elaeis guineensis Jacq.) producing countries like Indonesia. To address those issue, we analyze trade-offs of those 2 variables in plantation managed by smallholders and compare the result to the one of the companies. The trade-offs are estimated by dividing the GHG emission to the partial factor productivity (PFP) of FFB production based on data from previous LCA assessment. Our study revealed that current practices implementing by smallholders are economically less efficient and ecologically unsustainable comparing from the FFB production practices implementing by companies. For smallholders, the trade-offs of ecological impact and economic efficiency reached 0.86 kg CO2-eq/kg FFB or 2.6 times from the trade-offs of FFB production by companies (0.33 kg CO2-eq/kg FFB). Several changes in nutrient management such as adjusting the fertilizers rate at smallholde...
Exploring yield gaps in smallholder oil palm production systems in eastern Sumatra, Indonesia
Agricultural Systems, 2016
Oil palm (Elaeis guineensis) has become the most important oil crop throughout the world. The growing palm oil production was mainly based on the expansion of cultivated area into forest areas, causing serious environmental and social concerns. Increasing yields on existing plantations is a potential pathway to reduce the undesired ecological impacts of oil palm agriculture while enhancing its social benefits. Although oil palm production is still dominated by large private estates, smallholder farmers are increasingly engaging in its cultivation. While there is some evidence that smallholders' palm oil yields show large variations and are often far below plantation standards, empirical studies on their agronomic performance are scarce. Based on crop modeling analysis and farm household survey data from Sumatra, Indonesia, this paper quantifies smallholder yield gaps relative to exploitable yield levels and analyses smallholders' production constraints. Results show that oil palm smallholdings offer a tremendous potential for future yield increases, because they obtain, on average, only around 50% of the cumulative exploitable yield over a 20 year plantation life cycle. In particular, we find yield gaps to be largest during the most productive phase of oil palm. Our results indicate that farmers do not adapt their labor and fertilizer inputs to the higher resource demand of the palm. In general, significant determinants of yield gaps are management practices such as fertilizer dosage, length of harvesting intervals and plant mortality. Supported smallholders perform relatively better compared to independent farmers. In summary, our study shows that there is large potential to increase productivity of smallholder oil palm systems in Sumatra. In order to exploit this opportunity, farmers' awareness about the changing management requirements of oil palm over the plantation life cycle needs to be enhanced.
Journal of World Science
This research aims to analyze various literature that discusses problems and strategies for accelerating the realization of the national sustainable smallholder oil palm rejuvenation (PSR) program. The primary method used in this research is a literature study (desk study). The results of the study show that there are several strategies that the government must implement to accelerate the realization of the sustainable PSR program in Indonesia. The strategies in question include mandatory ISPO certification in 2025 (Indonesian Sustainable Palm Oil) for smallholder oil palm plantations, increasing the resource capacity of smallholder oil palm growers in implementing good agricultural practices (GAPs), providing access to smallholder oil palm growers to production inputs, resolving legality issues. Smallholders' land, encouraging land productivity and strengthening smallholders in fulfilling ISPO certification requirements, strengthening the institution of smallholders as a forum ...
Good agricultural practices in oil palm and smallholder inclusion in Indonesia
2019
There has been steady growth in the number of smallholders managing oil palm plantations in Indonesia since the late 1970s, when polices enabled them to benefit from the expanding sector. In 2004, the Roundtable on Sustainable Palm Oil (RSPO) was established, an international and sector-wide initiative to reduce the negative environmental and social impact of palm oil production. Its main goals are to reduce deforestation and protect high conservation and high carbon stock areas and peat lands when increasing the area of oil palm plantations, while also providing economic opportunities for smallholders. Before oil palm growers can acquire RSPO certification, they must implement “good agricultural practices.” These include a wide variety of farm operations that increase the efficiency of production, thereby reducing the “Technical and social rearrangements in smallholder practices can lead to more inclusive palm oil production.”
Experimental Agriculture, 2018
SUMMARY Oil palm has become an important source of revenue for smallholders in Indonesia, but productivity of smallholder plantations is generally poor. Nutrient limitations have been suggested as an important agronomic constraint to yield. Our research aimed to quantify fertiliser use, soil and tissue nutrient status, and palm growth and yield in a sample of independent smallholder plantations. We selected 49 plantations in Indonesia in two provinces with contrasting soils. For all plantations, we obtained self-reported fertiliser use and yield data, collected soil and tissue samples, and analysed vegetative growth. More than 170 kg N ha−1 year−1 was applied in one site, and P was applied in excess of recommended quantities in both sites, but on average farmers applied less than 100 kg K ha−1 year−1. Soils in the palm circle were poor in N, P and K in 29, 40 and 82% of the plantations, and deficiencies were measured in 57, 61 and 80% of the leaflet samples, respectively. We found s...
Agricultural Systems, 2019
Palm oil has become a leading vegetable oil over the past 30 years and smallholder farmers in Indonesia, with more than 12 million hectare the world's largest producer of palm oil, have massively engaged in oil palm (Elaeis guineensis) cultivation. In Sumatra, where more than 60% of Indonesian palm oil is cultivated, smallholders currently cover roughly 50% of the oil palm area. The rapid expansion of palm oil however did not happen without controversy. In current efforts by the Indonesian government, NGO's and private sector to improve sector performance, smallholders are often characterized as the Achilles heel of the oil palm sector due to poor practices and low yields compared to companies. However, 'oil palm smallholders' is a container concept and there has been only limited research into smallholder diversity beyond the organised versus independent farmer dichotomy. This research delves into the implementation of Good Agricultural Practices (GAP) among seven types of independent smallholders in Rokan Hulu regency, Riau province. The research area consisted of a relative established agricultural area on mineral soils and a relative frontier, mostly on peat. Smallholder types ranged from small local farmers to large farmers who usually reside in urban areas far from their plantation and regard oil palm cultivation as an investment opportunity. The underlying hypothesis is that larger farmers have more capital and therefore implement better agricultural practices than small farmers, who are usually more cash constrained. A wide range of methods was applied, including farmer and farm surveys, remote sensing, tissue analysis and photo interpretation by experts. These methods provided data on fertilizer use, nutrient conditions in oil palms, planting material, planting patterns, and other management practices in the plantations. Results show that yields are poor, implementation of GAP are limited and there is much room for improvement among all farmer types. Poor planting materials, square planting patterns, and limited nutrient applications were particularly prevalent. This implies that farmers across different typologies opt for a low-input low-output system for a myriad of reasons and that under current conditions, initiatives such as improving access to finance or availability of good planting material alone are unlikely to significantly improve the productivity and sustainability of the smallholder oil palm sector.
E3S Web of Conferences
The development of oil palm plantations and their production is not only expected to generate foreign exchange for the country, but it is also expected to have a positive impact on the social and economic development of the community, which must be in line with the sustainable development goals (SDGs). The development of oil palm plantations that involves the people through the Nucleus Estate and Smallholder (NES or PIR) Scheme with its various variations has several weaknesses that are detrimental to farmers, causing various conflicts and weaken farmers’ bargaining position, unclear determination of plantation development costs and unclear criteria in determining the quality and price of fresh fruit bunches (FFB) produced by farmers. This study aims to study whether oil palm development is able to improve socio-economic conditions of the people in Indonesia, mainly in main oil palm producing provinces in accordance with the SDGs targets, including no poverty (Goal-1), reduced inequ...
Why do Farmers Prefer Oil Palm? Lessons Learnt from Bungo District, Indonesia
Small-scale Forestry, 2010
Indonesia has been the world's largest producer and exporter of palm oil since 2008. This paper discussed the livelihood impacts of oil palm development in Indonesia, based on lessons learnt from Bungo district, in the province of Jambi. The various communitycompany partnerships that structure the sector are reviewed and the difficulties raised by the joint ventures schemes are discussed. The merits and drawbacks of oil palm as a smallholder crop are then analysed, based on household socio-economic surveys conducted in 2007-10. The main causes of conflicts between oil palm companies and communities are unclear land tenure, and a recurrent lack of leadership in smallholders' cooperatives. Under fair partnerships between smallholders and companies, oil palm could become a smallholder friendly crop. The land-use profitability analysis demonstrates the high returns that can be generated by oil palm independent smallholdings, making it highly competitive with rubber, and much more profitable than rice production.