Good ETHZ article on Palm Oil Smallholders

A good article on smallholders in the palm oil sector. The drop in global price shows how smallholder’s resilience is affected. up to 60% of production costs are made up by fertilizers, which farmers can’t afford anymore when prices go up. there must be ways to create a more resilient system.

Another interesting point highlighted: in Africa, large scale concessions are not flourishing as one thought they might have. The business case of large scale concessions is not so clear anymore: high risk and high costs to take in account all the social and environmental safeguards might lead to palm oil developments that rely more on outgrowers and smallholders in the future.

These are things we are exploring in the field with Rurality.