Smallholder is the important player in Indonesian palm oil business. They contributed significant raw materials for the palm oil processing owned by large scale companies. Low productivity, managing small lands and poor planting materials are common characteristics found in the practices of Indonesian oil palm smallholders.
Smallholder in South Sumatra could be exception as they assisted by the Cargill, a giant multinational company work on agriculture products. Cargill’s smallholders certified their palm oil they produced under RSPO standards. The certification leads to the premium as they received recently.
How much they received?
The smallholders receiving more than IDR 870 million (approximately US$100,000) in combined premiums today are organised in 17 cooperatives with 17,594 hectares of planted oil palm as part of Cargill’s plantation operations. PT Hindoli’s crushing mills in South Sumatra process fresh fruit bunches from its own oil palm estates as well as those purchased from the smallholders’ scheme. —the bioenergysite
In 2009 and 2010, Cargill’s own palm estates at PT Hindoli received certification from both RSPO and International Sustainability and Carbon Certification (ISCC).
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