scholarly journals Does investment in palm oil trade alleviate smallholders from poverty in Africa? Investigating profitability from a biodiversity hotspot, Cameroon

PLoS ONE ◽  
2021 ◽  
Vol 16 (9) ◽  
pp. e0256498
Author(s):  
Lacour M. Ayompe ◽  
Raymond N. Nkongho ◽  
Cargele Masso ◽  
Benis N. Egoh

In this study we investigate whether the increasing investment in smallholder oil palm plantations that contributes to deforestation is motivated by financial gains or other factors. We evaluate the financial viability of smallholder farmers selling fresh fruit bunches (FFBs) to intermediaries or agro-industrial companies with mills, or processing the FFBs in artisanal mills to produce palm oil. We use data collected in four oil palm production basins in Cameroon and carried out a life cycle assessment of oil palm cultivation and CPO production to understand financial gains. We use payback period (PBP), internal rate of return (IRR), benefit cost ratio (BCR) and net present value (NPV) for 1 ha of oil palm plantation over 28 years at a base discount rate of 8% to asses viability. Our results show that smallholders make more money processing their FFBs in artisanal mills to produce CPO than selling FFBs to intermediaries or agro-industrial companies with mills. The sensitivity analysis show that land ownership is the single most important parameter in the profitability of investment in palm oil cultivation and trade. In addition to land cost, smallholders suffer from borrowing at high interest rates, high field management costs, while recording low on-farm FFB/processing yields. To improve the financial viability of smallholders investing in oil palm cultivation, measures are needed to encourage them to access land, get loans at reduced interest rates, reduce the cost of field management, adopt good agricultural practices to improve on-farm FFB/processing yields, as well as to generate additional revenue from the sale of other products.

2020 ◽  
Vol 3 (2) ◽  
pp. 29-39 ◽  
Author(s):  
GH YUE ◽  
Baoqing Ye ◽  
Antonius A Suwanto

The oil palm is the most productive oil-producing crop. To yield the same volume of oil that is from one hectare of palm, eight hectares of soybean are needed. Palm oil is used an ingredient in over 50% of packaged supermarket products and also as biofuels. The palm oil sector provides over 4.5 million jobs for on-farm laborers in developing countries. However, palm oil is often blamed for deforestation and loss of biodiversity. We argue that palm oil sustainability is not only about the environment and biodiversity but also about people and their prosperity. Palm oil sustainability can be achieved with joint efforts from palm oil players including the smallholders, plantation companies, governments, certification agencies, consumers and researchers.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Andi Irawan ◽  
Saefudin Saefudin ◽  
Melli Suryanty ◽  
M. Zulkarnain Yuliarso

PurposeThis study aimed to determine the impact of the COVID-19 pandemic on the oil palm smallholders' income, which includes both on-farm and off-farm resources.Design/methodology/approachThis study used a simultaneous equations system for arranging the oil palm household economic model.FindingsThe results showed that the negative effect of demand disruption (decreasing of household income) is more than supply disruption (production declining). Declining household income due to COVID-19 caused farmer households to have no access to both basic need and other goods.Research limitations/implicationsThe samples for before-pandemic data differed from the situation during COVID-19 in both the location and the person due to technical constraints in research sites.Originality/valueThe main contribution of this study was providing an empirical understanding of how the COVID-19 pandemic influences the economic behavior of the most vulnerable entities in the Indonesian palm oil industry (oil palm smallholder farmers' households). This study would provide baseline information on the impact of the COVID-19 pandemic on the economy of oil palm smallholder's household income.


2017 ◽  
Vol 6 (1) ◽  
pp. 85
Author(s):  
JAWARI JAWARI ◽  
ANI MUANI ◽  
RADIAN RADIAN

This study was aimed to analyze the competitiveness of farming palm oil (competitive and comparative advantage), Random Sampling method was used to select 88 respondens was determined purposive. The reason for choosing of Subah District because this area is largest palm oil producers and largest and oil palm planting area in the Sambas Regensy . The data used primary and secondary data. The Policy Analysis Matrix (PAM) method was used to analysis data. farming palm oil in Subah District has competitive and comparative excellence.Private propitability(PP) and Social propitability (SP)is positive value of,   Private Cost Rasio (PCR) 0,24, Domestic Resources Cost Ratio (DRCR) is 0,15. Transfer Output (TO) is value negatif Rp – 6.909.408,00/ha/year , it’s shows nothing transfer from consument to produsent, value 0,80 Nominal Protection Coefficient on Output (NPCO) or NPCO < 1,  output price not significant for farmers income.


Author(s):  
Eeen Supriyadi ◽  
Musriyadi Nabiu ◽  
Septri Widiono

The research was conducted in two places; in Tunggang village and Padang Gading Village subdistrict of Sungai Rumbai, Mukomuko District, Bengkulu Province on February 5 to March 5, 2011. These research  areas were selected purposively. Tunggang village is just exactly the same as the plant location of PT Bumi Mentari Katya while Padang Gading Village, as comparison village. The objective of this research is to examine the impact of establishment of PT Bumi mentari Karya on farming income in the communities around the oil palm plant. In this study, the palm oil farmers which are being sampled are 69 people. On regard with it, this study only performs with and without analysis; the initial state of the palm oil farmers (before the company) is described qualitatively which is Padang Gading Village as the comparison village and the state of palm oil farmers after the company is established.  Income farming Crude plam more the  after  PT.  Bumi Mentari karya means were statistically difference These results indicate presence of the oil palm industry PT. Bumi Mentari Karya  Giving a positive impact on farm income of oil palm Tunggang Village. Keywords: income, palm planters 


2019 ◽  
Vol 3 (1) ◽  
pp. 15-28
Author(s):  
Rachmi Wildan Aghnia Meutia Putri ◽  
Arya Hadi Dharmawan

The expansion of oil palm plantations is an effort to improve peoples' welfare through land clearing. This expansion led to changes in household livelihood strategies around the plantation area. Various tactics and mechanism are conducted by a household to adapt to changes in order to maintain and improve their life. The expansion of forest areas into oil palm plantations leads to changes in livelihoods structures in all layers of the farm household. Widespread of palm oil plantations cause a shock to farm household. Shock is able to be faced by utilizing file livelihood assets (natural capital, human capital, social capital, physical capital, financial capital). The purpose of this paper is to identify the expansion of plantations occurring in farm households and to livelihood structure of farm households. The method used this research is a quantitative method supported by qualitative data. The result of this research shows that the higher economic level of a farmer household, the faster expansion of oil palm farmland. The palm oil on the farm sector contributes the most income of oil palm household.Key words: expansion plantations, livelihood strategy, livelihood structureABSTRAK Ekspansi perkebunan sawit merupakan upaya peningkatan kesejahteraan masyarakat melalui pembukaan lahan. Ekspansi ini menyebabkan perubahan strategi nafkah rumah tangga sekitar kawasan. Ekspansi kawasan hutan menjadi perkebunan kelapa sawit mengakibatkan perubahan struktur nafkah pada semua lapisan rumah tangga petani. Perkebunan kelapa sawit yang meluas menimbulkan kesulitan bagi rumah tangga petani. Kesulitan tersebut dihadapi oleh rumah tangga petani dengan cara memanfaatkan lima modal nafkah (modal alam, SDM, sosial, fisik dan finansial). Tujuan dari penulisan ini adalah untuk mengidentifikasi ekspansi perkebunan yang terjadi pada rumah tangga petani sawit dan menganalisis struktur nafkah rumah tangga petani sawit. Pendekatan yang digunakan dalam penelitian ini adalah pendekatan kuantitatif yang didukung oleh data kualitatif. Hasil dari penelitian ini adalah semakin tinggi lapisan ekonomi rumah tangga petani sawit, maka semakin cepat ekspansi lahan yang dilakukan. Sektor on farm kelapa sawit menyumbang pendapatan paling tinggi pada struktur pendapatan rumah tangga petani kelapa sawit.Kata Kunci : ekspansi perkebunan, strategi nafkah, struktur nafkah


Author(s):  
Aprizal Aprizal ◽  
Aprizal L

This study aimed to analyze the competitiveness of palm oil farming (competitive and comparative advantage), the impact of government policies on output and input oil palm cultivation, and the competitiveness of sensitivity to changes in oil palm farm output and input. Stratified Random Sampling method was used to select 86 respondents purposively. The reason for choosing of Mukomuko district is because this area has largest palm oil producers and largest palm oil planting area in the province of Bengkulu. The data used primary and secondary data. The Policy Analysis Matrix (PAM) method was used to analyze the data. The result shows that Bumi Mulya Village has competitive and comparative advantages. PP and SP have positive value of PCR (0,91), and DRCR (0,72).  The impact of government policy on output are disincentive as shown by OT value negative Rp.5.521.890/Ha/year, value NPCO is 0,80.  The impact of government policy subsidy to input is fertilizer.  NT has negative value, EPC is 0,80, and SRP about 0,166. Government policy shows that the fertilizer is still needed on palm oil farming. The sensitivity analysis shows that the maximum limit that can be accepted to change the output when the input-output and prices drop below 3 percent, price increases of more than 100 percent of herbicides, inorganic fertilizer price increases below 55 percent, rising interest rates below 1 percent. Combination of sensitivity analysis shows that the fluctuation in input-output is very sensitive to oil palm farming in Bumi Mulya, Mukomuko district. Keywords: Palm oil, competitive and comparative advantage, governmental policies, and sensitivity.


2021 ◽  
Vol 7 (2) ◽  
pp. 131-134
Author(s):  
Aifaa Nazmi Ali ◽  
Mimi Nahariah Azwani Binti Mohamed ◽  
Siti Sarah Binti Omar

Sustainability certification such as Roundtable on Sustainable Palm Oil (RSPO) certification outlines the agricultural practices that need to be followed by all the stakeholders within the supply chain so that the loss of environmental resources can be reversed, and social effects can be reduced. Despite its crucial role, the supply chains, particularly the independent smallholder farmers, do not seem to take sufficient efforts to obtain this certification. The reason for this lack of efforts may be due to communication barriers, leading to lack of awareness in the existence of such certification. This paper is a systematic literature review of the available studies on sustainability certification and issues in obtaining the certification. The studies selected were published between 2015 and 2020. The review identified three-layered challenges that led to communication barriers to obtaining the sustainability certification. The layers included engagement, pre-certification, and post-certification. The identification of these layers provides insight into the communication barriers that hinder the independent smallholder farmers from accessing information and obtaining the certification. It is hoped that the issues and challenges identified could help the researchers to propose a framework that can reduce and resolve the communication barriers in obtaining the sustainability certification.


Author(s):  
Tinur Fitri Ayu Harahap ◽  
Arya Hadi Dharmawan

This study aims to identify the structure and strategy of the household livelihoods, identify the utilization of livelihood capital that influences household livelihood strategies of oil palm farmers and identifies the utilization of social relationships of oil palm farmers' households. There is a difference in the livelihood structure of households of oil palm self-reliant with plasma palm oil farmers. This research is done by quantitative method supported by qualitative data. The result of this research is explaining that the average of households' livelihood structure of palm oil farmers is from non-farm sector, whereas in households of plasma oil palm farmers is dominated by on farm sector supported by non-farm sector. The utilization of subsistence capital by two types of oil palm farmers is also different. Both types of farmers have diverse social relationships in support of farm household income.Keywords: livelihood assets, livelihood strategies, oil palm farmer household, social relations----------------------- ABSTRAK Penelitian ini bertujuan untuk mengidentifikasi struktur dan strategi nafkah rumah, mengidentifikasi pemanfaatan modal nafkah yang mempengaruhi strategi nafkah rumahtangga petani kelapa sawit serta mengidentifikasi pemanfaatan relasi-relasi sosial rumahtangga petani kelapa sawit. Terdapat perbedaan struktur nafkah rumahtangga petani kelapa sawit swadaya dengan petani kelapa sawit plasma. Penelitian ini dilakukan dengan metode kuantitatif yang didukung oleh data kualitatif. Hasil penelitian ini memaparkan bahwa secara rata-rata struktur nafkah rumahtangga petani kelapa sawit swadaya berasal dari sektor non farm, sedangkan pada rumahtangga petani kelapa sawit plasma didominasi oleh sektor on farm yang didukung oleh sektor non farm. Pemanfaatan modal nafkah oleh dua jenis petani kelapa sawit juga berbeda. Kedua jenis petani ini memiliki relasi sosial yang beragam dalam mendukung pendapatan rumahtangga petani.Kata Kunci: modal nafkah, petani kelapa sawit, relasi sosial, strategi nafkah


Author(s):  
Dimas Satria ◽  
Poningsih Poningsih ◽  
Widodo Saputra

The purpose of this paper is to create an expert system to detect oil palm plant diseases in order to help farmers / companies in providing accurate information about the diseases of oil palm plants and how to overcome them and to help reduce the risk of decreasing palm oil production. This system is designed to mimic the expertise of an expert who is able to detect diseases that attack oil palm plants. The method used is forward chaining that is starting from a set of data and proving a fact by describing the level of confidence and uncertainty found in a hypothesis. The results of this study are to diagnose diseases of oil palm plants and their computerization using web programming languages.


Sign in / Sign up

Export Citation Format

Share Document