Palm oil is not just produced in extensive plantations by large companies – a significant proportion of production is accounted for by smallholder farmers, with millions of people worldwide reliant on the commodity for their livelihoods.
Efeca has written a briefing note that brings together information from scientific research to summarise how and why smallholder production of palm oil has developed to become a crucial part of the industry. It explores the challenges and barriers faced by many smallholder farmers in engaging in sustainable production practices, and summarises the benefits of sustainable palm oil production for smallholders, using case studies to showcase ongoing progress.
With three-million smallholders being responsible for 41% of palm oil production worldwide,[1] smallholders play an important role in the sustainability of the industry. For farmers, there is evidence that adopting Good Agricultural Practice (GAP) and growing sustainable palm oil (SPO) can bring positive impacts on wellbeing at the individual, household, and village level. Certification has been linked to improved livelihoods,[2] increases in gender parity,[3] and enhanced off-farm opportunities.[4]
However, these benefits are currently unevenly distributed across region and demographic, with economic, political, and cultural barriers preventing many farmers from adopting GAP and from accessing certification.[5] Independent smallholders in particular are vulnerable to a ‘Certification Gap’ and are less likely to experience the benefits of growing palm oil sustainably.[6]
To address these barriers, governments, the private sector and NGOs are increasingly working – often collaboratively – to improve smallholder inclusion in certification schemes, and extend the social benefits of sustainable palm oil to previously marginalised oil palm growers.[7]