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Jakarta Post

Poverty alleviation part of the solution toward achieving sustainable palm oil

  • Francine Pickup

Jakarta   /   Mon, October 17 2016   /  08:53 am

In spite of its infamous environmental track record, palm oil has brought considerable prosperity to rural Indonesia.

However, as market demands for sustainable palm oil rise, the future remains uncertain for many small-scale oil palm farmers who are dependent on the cash crop. Often unable to afford the capital required to invest in better agronomic practices, which limit the need for further plantation expansion, some small-scale farmers are at risk of being cut out of the market with little alternatives to turn to.

The majority of small-scale oil palm farmers who use unsustainable farming practices tend to be exposed to shocks, such as price fluctuations, and lack opportunities to diversify their incomes. They tend not to have access to financial resources such as credit, loans, technology, formal land titles or skills to engage in agriculture in more sustainable ways. ...