• largeholder farmers are key to making the palm oil industry
  • largeholder farmers are key to making the palm oil industry
  • largeholder farmers are key to making the palm oil industry
  • largeholder farmers are key to making the palm oil industry
  • How many people work in the palm oil industry?
  • Every year, between 5,000 to 6,000 people are newly employed in the palm oil industry, which now includes 4.2 million farmers. Bintang saw this firsthand in Sumatra: Underpaid laborers painstakingly harvesting fields of palm trees by hand to produce palm oil, for a salary far below Indonesia’s living wage.
  • Are Independent Smallholders able to pursue sustainable palm oil production?
  • Independent smallholders who do want to pursue sustainable palm oil production may find it prohibitively expensive. Researchers from Wageningen University estimated that the upfront costs for independent smallholder certification—including all the necessary documents, trainings and audits—range from 16 to 39 percent of farmers’ mean annual incomes.
  • Do smallholders produce more palm oil than agro-industrial palm plantations?
  • Counterarguments include that smallholders, who contribute close to 50% of the palm oil traded worldwide (Mutsaers, 2019), have lower production yields (Euler et al., 2016) and therefore use more land to produce the same volume of palm oil than agro-industrial oil palm plantations.
  • How does palm oil trade affect society?
  • A few studies have reported positive impacts of palm oil trade such as improvement in farmer income, economic benefit for smallholders, opportunities for employment in rural areas (McCarthy, 2010), improved livelihoods, and improvement in economic growth and GDP (Li, 2015). However, palm oil production also has direct negative social impacts.
  • How can palm oil farming be socially responsible?
  • Moreover, respecting the land rights of local communities and promoting land-use transparency are crucial steps toward making palm oil farming more socially responsible. By improving working conditions and community relations, the industry can better support sustainable palm oil farming. 3. Environmental Degradation And Soil Erosion
  • What percentage of palm oil is cultivated by smallholders?
  • Smallholders account for 30 to 40% of global land palm oil cultivation (Hambloch 2018; Euler et al. 2016). In SE Asia there are more than three million smallholders, nearly all of whom cultivate individual family-owned and managed plots of less than 50 ha and often as little as 1–2 ha.