Oil Palm Boom, Contract Farming, and Rural Economic Development: Village-Level Evidence from Indonesia

Gatto, Marcel; Wollni, Meike; Asnawi, Rosyani; Qaim, Matin

doi:10.1016/j.worlddev.2017.02.013

Cited by 136 publications

(117 citation statements)

References 24 publications

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“…For example, Bowen and Gerritsen (2007) find that financial gains was the main motivation for agave producers in Mexico to participate in contract farming. Similar results (Cranfield, Blandon, & Henson, 2009) have been obtained for oil palm farmers in Indonesia (Gatto, Wollni, Asnawi, & Qaim, 2017), for vegetable producers in Honduras (Gatto et al, 2017), and for sugarcane farmers in Malawi (Herrmann & Grote, 2015).…”

Section: Smallholder Attitudes Towards Contract Farmingsupporting

confidence: 75%

Achieving Sustainable Development Goals in the global food sector: A systematic literature review to examine small farmers engagement in contract farming

et al. 2019

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Contract farming, a common strategy among multinational companies in the global food sector, can help achieve Sustainable Development Goals (SDGs). However, it largely depends on whether or not small farmers can participate in contract farming programs, which has been a major issue globally. Our main objective in this systematic literature review is to identify the factors that drive small farmer participation in contract farming. We analyze 97 peer‐reviewed journal articles published between 1977 and 2017. Our review finds that farmer demographic characteristics, farm structure, farmer characteristics, and farmer attitudes influence participation in contract farming although causal mechanisms remain ambiguous. We therefore suggest the need for more comprehensive methodologies to examine small farmer participation in contract farming. In the meantime, global food sector companies must consider these factors as they develop plans toward achieving SDGs.

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Section: Smallholder Attitudes Towards Contract Farmingsupporting

confidence: 75%

Achieving Sustainable Development Goals in the global food sector: A systematic literature review to examine small farmers engagement in contract farming

et al. 2019

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“…Example of socio‐economic dimensions include land exploitation impact on native communities' rights and land rights or on pesticide use impact on the labourers' health (Rist, Feintrenie, & Levang, ). Socio‐economic issues also include the rights of palm oil labourers in developing countries and the support to smallholder farmers in order to guarantee an adequate remuneration and survival (Basiron & Weng, ; Gatto et al, ; Gatto, Wollni, Asnawi, & Qaim, ; Teoh, ). Moving to the manufacturing stage of the agri‐food chain, the ongoing debate points out that palm oil ingredient reduces production costs contributing to increase food accessibility for lower income people (Lam et al, ; Von Geibler, ).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…Example of socio-economic dimensions include land exploitation impact on native communities' rights and land rights or on pesticide use impact on the labourers' health (Rist, Feintrenie, & Levang, 2010). Socio-economic issues also include the rights of palm oil labourers in developing countries and the support to smallholder farmers in order to guarantee an adequate remuneration and survival (Basiron & Weng, 2004;Gatto et al, 2015;Gatto, Wollni, Asnawi, & Qaim, 2017;Teoh, 2010).…”

Section: Socio-economic Sustainability Dimensionmentioning

confidence: 99%

Twitter communication of agri‐food chain actors on palm oil environmental, socio‐economic, and health sustainability

Ruggeri

Samoggia

2017

J of Consumer Behaviour

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Palm oil is the world most used vegetable oil and its use as food ingredient is criticized for creating environmental, socio-economic, and health sustainability challenges. In Europe, the debate on palm oil sustainability has strongly intensified in the latest years involving several agri-food chain actors and stakeholders. The research explores Twitter content of key palm oil agri-food chain actors on palm oil multiple sustainability dimensions, focusing on the European context. First, the study applied a qualitative deductive approach to categorize palm oil sustainability dimensions. Second, among the 463 palm oil agri-food chain companies identified, 198 have an active Twitter account, including world palm oil producers, European bakery and chocolate manufacturers, and European food retailers. One hundred seven accounts tweet on palm oil. Third, a term frequency analysis and an in-depth textual analysis of tweets on palm oil sustainability issues were carried out. Results confirms that all agri-food chain actors communicate about palm oil sustainability, adopting a multi-dimension outlook. Palm oil producers actively useTwitter to promote palm oil sustainability, whereas European manufacturers and retailers limit their activity to react to consumers' questioning. Whereas palm oil producers tend to shape consumers' opinion over the benefits and the opportunities of palm oil use, food manufacturers and retailers adopt a purely informative approach on sustainability certification, avoiding the engagement over sensitive issues. Health is the most mentioned sustainability dimension. The study also confirms differences between agrifood chain actors' marketing communication. Finally, the study confirms that, in the case of sensitive issues, as for palm oil sustainability, Twitter is as able to drive companies' communication.

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“…Although oil palm is of economic value to farmers and the local regions in which it is grown, it has received environmental and social criticism, often being held responsible for deforestation (Wicke et al, 2011;Vijay et al, 2016;Gatto et al, 2017), biodiversity loss (Fitzherbert et al, 2008;Koh and Wilcove, 2008;Wilcove and Koh, 2010;Carlson et al, 2012;Krashevska et al, 2015), decreased soil carbon stocks (Guillaume et al, 2015Pransiska et al, 2016), and increased greenhouse gas emissions (Allen et al, 2015;Hassler et al, 2017). Similarly, rubber plantations have environmental impacts such as reducing the soil infiltration capacity, accelerating soil erosion, increasing stream sediment loads (Ziegler et al, 2009;Tarigan et al, 2016b), and decreasing soil carbon stocks (Ziegler et al, 2011).…”

Section: Introductionmentioning

confidence: 99%

Minimum forest cover required for sustainable water flow regulation of a watershed: a case study in Jambi Province, Indonesia

Tarigan

Wiegand²,

Sunarti³

et al. 2018

Hydrol. Earth Syst. Sci.

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Abstract. In many tropical regions, the rapid expansion of monoculture plantations has led to a sharp decline in forest cover, potentially degrading the ability of watersheds to regulate water flow. Therefore, regional planners need to determine the minimum proportion of forest cover that is required to support adequate ecosystem services in these watersheds. However, to date, there has been little research on this issue, particularly in tropical areas where monoculture plantations are expanding at an alarming rate. Therefore, in this study, we investigated the influence of forest cover and oil palm (Elaeis guineensis) and rubber (Hevea brasiliensis) plantations on the partitioning of rainfall into direct runoff and subsurface flow in a humid, tropical watershed in Jambi Province, Indonesia. To do this, we simulated streamflow with a calibrated Soil and Water Assessment Tool (SWAT) model and observed several watersheds to derive the direct runoff coefficient (C) and baseflow index (BFI). The model had a strong performance, with Nash-Sutcliffe efficiency values of 0.80-0.88 (calibration) and 0.80-0.85 (validation) and percent bias values of −2.9-1.2 (calibration) and 7.0-11.9 (validation). We found that the percentage of forest cover in a watershed was significantly negatively correlated with C and significantly positively correlated with BFI, whereas the rubber and oil palm plantation cover showed the opposite pattern. Our findings also suggested that at least 30 % of the forest cover was required in the study area for sustainable ecosystem services. This study provides new adjusted crop parameter values for monoculture plantations, particularly those that control surface runoff and baseflow processes, and it also describes the quantitative association between forest cover and flow indicators in a watershed, which will help regional planners in determining the minimum proportion of forest and the maximum proportion of plantation to ensure that a watershed can provide adequate ecosystem services.

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Oil Palm Boom, Contract Farming, and Rural Economic Development: Village-Level Evidence from Indonesia

Cited by 136 publications

References 24 publications

Achieving Sustainable Development Goals in the global food sector: A systematic literature review to examine small farmers engagement in contract farming

Achieving Sustainable Development Goals in the global food sector: A systematic literature review to examine small farmers engagement in contract farming

Twitter communication of agri‐food chain actors on palm oil environmental, socio‐economic, and health sustainability

Minimum forest cover required for sustainable water flow regulation of a watershed: a case study in Jambi Province, Indonesia

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