Smallholders farm roughly 40 percent of Indonesian land planted with oil palm trees, but account for only 30 percent of its palm oil output due to lower yields because of low quality seeds and outdated farming techniques.
Industry leaders plan to address that inefficiency next year through more investment in and collaboration with smallholders. Smallholder output is expected to rise 20 percent next year from 11 million tons in 2016, according to the Indonesia Palm Oil Smallholders’ Association.
“Given that Indonesia cannot expand for new planting, the most possible way to increase production is through productivity improvement, particularly in smallholders,” said Joko Supriyono, chairman of the Indonesia Palm Oil Association, or GAPKI, on the sidelines of the palm conference on the resort island of Bali.
Land for planting palm plantations in Indonesia and Malaysia, which together produce nearly 90 per cent of global palm oil, has become increasingly scarce in recent years.
Environmental groups blame the industry for extensive deforestation and a choking haze that spreads across Southeast Asia at certain times of the year.
Smallholders farm roughly 40 percent of Indonesian land planted with oil palm trees, but account for only 30 percent of its palm oil output due to lower yields because of low quality seeds and outdated farming techniques.
Industry leaders plan to address that inefficiency next year through more investment in and collaboration with smallholders. Smallholder output is expected to rise 20 percent next year from 11 million tons in 2016, according to the Indonesia Palm Oil Smallholders’ Association.
“Given that Indonesia cannot expand for new planting, the most possible way to increase production is through productivity improvement, particularly in smallholders,” said Joko Supriyono, chairman of the Indonesia Palm Oil Association, or GAPKI, on the sidelines of the palm conference on the resort island of Bali.
Land for planting palm plantations in Indonesia and Malaysia, which together produce nearly 90 per cent of global palm oil, has become increasingly scarce in recent years.
Environmental groups blame the industry for extensive deforestation and a choking haze that spreads across Southeast Asia at certain times of the year.
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