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Oil palm dreams and disillusions : smallhoders' plantations in a context of low inputs farming systems in Indonesia

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HAL Id: hal-02794467

https://hal.inrae.fr/hal-02794467

Submitted on 5 Jun 2020

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Oil palm dreams and disillusions : smallhoders’

plantations in a context of low inputs farming systems in Indonesia

Margot Moulin, Laurène Feintrenie, Cécile Bessou, Julie Wohlfahrt

To cite this version:

Margot Moulin, Laurène Feintrenie, Cécile Bessou, Julie Wohlfahrt. Oil palm dreams and disillusions : smallhoders’ plantations in a context of low inputs farming systems in Indonesia. 4. International Conference on Oil Palm and Environment : Oil Palm Cultivation : Becoming a Model for Tomorrow’s Sustainable Agriculture, 2014, Bali, Indonesia. 1 p., 2014. �hal-02794467�

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The gross margin of oil palm cropping systems is higher than the two rubber cropping systems if growers can access to selected seedlings and recommended fertilization rates. In the study site, we found out that:

- There is no local reliable oil palm seedlings suppliers

- Growers do not have the initial funds to pay for selected seedlings

- Fertilization mostly depends on growers available (varying from year to year)

The minimum plantation size to make a living

depends on the practices

Diversity of smallholders:

a matter of real agricultural practices

We calculated a simplified annual gross margin of mature plantation, considering the main cost and benefits of the 3 oil palm cropping systems and the 2 rubber cropping systems.

Simplified annual gross margin =

(Commodity price * yield) – (labour cost + mineral fertilization cost)

Farm gate prices in October 2013: 877Rp/kg for FFB; 10 222Rp/kg for rubber slab (DRC50)

In the study area, we found four main types of cash crop cropping systems:

- Oil palm « very low inputs » plantations with unselected seedlings without mineral fertilization

- Oil palm « low inputs » plantations with unselected seedlings and low mineral fertilization

- Rubber agroforest with local seedlings without mineral fertilization1,2

- Mono specific rubber plantation with local seedlings without fertilization1,2

We used surveys held in plasma plantations in Siak and Kampar districts (Indonesia, Riau province, Sumatra) as a reference for oil palm « high inputs » plantations with selected

seedlings and recommended mineral fertilization.

 5 traditional villages

(Kecamatan Bathin III Ulu, Bungo district, Jambi

Province, Indonesia).  Rubber is the main and

traditional cash crop. Most villagers rely on rubber slab to make a living.

« Low inputs » oil palm plantations are less competitive than

rubber mono specific plantations and rubber agroforest

Oil palm dreams and disillusions:

smallholders’ plantations in a context of poor access to agricultural inputs

Moulin M.*, Feintrenie L.**, Bessou C.***, Wohlfahrt J.* margot.moulin@mirecourt.inra.fr

1ha of « low inputs » oil palm plantations

is not enough to make a living

Based on surveys, we estimated the cost of living of an Indonesian family to 1 500 MRp/month.

We assumed that the gross margin is linearly correlated to the size of the plantation. Per family, the size of cash crop plantations is ususally:

- For oil palm: 2ha for plasma plantations, 1ha for local villagers’ plantations and 0,75ha for the latest transmigration programs

- For rubber: at least 4ha of rubber plantations and/or agroforest

The diversity of oil palm agricultural practices

leads to different annual gross margins

This work is based on Margot Moulin on-going PhD work, « Modeling futures of palm oil production land, Riau and Jambi provinces, Indonesia », part of the SPOP project funded by the French National Research Agency for the 2012-2016 period.

Sources:

- (1) Bonnart, How can the improved livelihoods of rural community and the

biodiversity conservation be integrated in the landscape mosaics in Bungo district. Master thesis. 2008.

- (2) Mienmany, Agriculture beyond the oil palm development in Jambi province,

Participatory Prospective Analysis. Master thesis. 2013.

A better description of the diversity of oil palm cropping systems leads

to assess better the sustainability of palm oil production

In our case study, the average 1ha size of « low inputs » oil palm plantation is not enough to make a living.

Most oil palm growers rely on external incomes: rubber plantations and daily works. In the study site, we found out that oil palm plantation size is mainly constrained by: - The capacity of smallholders to buy a sufficient amount of oil palm seeds

- The availability of land suitable for oil palm cultivation

Perspectives

 Extension of the survey to both other growers and areas to validate these first results.

 Recording more detailed agricultural practices for the whole oil palm cycle could improve the global assessement of oil palm cultivation.

0,00 2 000,00 4 000,00 6 000,00 8 000,00 10 000,00 12 000,00 14 000,00 16 000,00 1 2 3 Ann ual gr os s m ar gi n ( Rp /h a)

Oil palm

« very low inputs »

Oil palm

« low inputs »

Oil palm

« high inputs »

Rubber agroforest Rubber mono specific Oil palm

« very low inputs » Oil palm « low inputs » Oil palm « high inputs » Rubber agroforest Rubber mono specific

Plantations size (ha)

Ann ual in com es ( MRp ) 2ha of plasma plantations 4ha of village rubber plantations 4ha of village agroforest 1ha of villager oil palm plantations Family annual living cost

*UR 055 INRA SAD ASTER, **UR BESF CIRAD , *** UR 34 CIRAD

 Encouraged by the success of plasma plantations, the development of oil palm

plantations started around 10 years ago, as a mean to diversify the source of incomes.

Study site

Indonesia

Independent grower plantation (Bungo district)

Nursery (Siak district)

Fertilizer bag (Bungo district)

Plasma grower and assistant (Siak district)

Photo: M Moulin Photo: M Moulin Photo: M Mouli n Photo: M Moulin

Wife cooking (Bungo district)

Photo: M Moulin Photo: M Moulin Photo: M Mouli n

Rubber slab (Bungo district) FFB harvest (Bungo district)

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