Philipp Grundmann

Transactions in the Supply Chain of Oil Palm Fruits and Their Relevance for Land Conversion in Smallholdings in Indonesia

The expansion of oil palm plantation by smallholders in Indonesia is taking place mainly by conversion of forest and arable land. This article aims to understand how institutional arrangements in the supply chain of oil palm fresh fruit bunches (FFB) affect decisions of smallholders to convert more land for oil palm cultivation instead of increasing productivity. Based on an analysis of in-depth interviews with involved actors we find that institutions meant to regulate land conversion are superseded by the structures that govern the transactions in the supply chain of FFB and that this reinforces decisions of smallholders to convert more land. Strategies designed to regulate land conversion need to look carefully at the interactions with the institutions ruling the supply chain of FFB. Institutional innovations such as establishing integrated governance structure from land use to market may induce farmers to focus on increasing productivity.

Increase without spatial extension: productivity in small-scale palm oil production in Africa—the case of Kigoma, Tanzania

Abstract The global demand for palm oil has increased sharply in the past and is expected to double over the coming decades. Land use changes resulting from the concomitant expansion of oil palm cultivation have caused further deforestation, which in turn has had a severely negative impact on the environment and climate. Sustainable intensification strategies are therefore required to meet the growing demand for palm oil while simultaneously improving farm household incomes, increasing food security and self-sufficiency. Palm oil production in Africa and especially in Tanzania is dominated by small-scale subsistence farming systems that are characterised by low productivity and low yields, even in regions with the most suitable cultivation conditions. By conducting stakeholder interviews, focus-group discussions and a household survey, we analysed palm oil production in the Western Tanzanian Province of Kigoma in order to gain a more complete picture of oil palm farming in smallholder systems and to better understand how smallholders evaluate certain options for the intensification of palm oil production. We identified and evaluated locally existing best practices from the farmers’ perspective and identified factors which may have a positive impact on production levels. Our case study sites are characterised by large oil palm plantations that have been operating since colonial times. Also examined were farm plots with an average of 35.7 palm oil trees per acre. Palms are cultivated to produce edible vegetable oil and are used for firewood. The results indicate large differences between output levels that result from the agricultural management practice employed (e.g. using hybrid varieties, sub-optimal planting densities and low weeding or organic fertilising inputs). The processing technology used in the households examined was not conducive for changing the situation from low to high yields and productivity levels. A shift from subsistence to market-orientated production generates income opportunities for farmers and helps meet the ever-increasing demand for palm oil. Our results indicate that an improved small-scale palm oil production system, including agroforestry or mixed cropping and general intensification of plant maintenance, may increase yields without putting additional pressure on natural forests—a step towards ensuring palm oil is produced in a supply chain that avoids deforestation.

The impact of global trends on bioenergy production, food supply and global warming potential – an impact assessment of land-use changes in four regions in Germany using linear programming

Agricultural land use faces global trends such as increasing energy costs, rising agricultural commodity prices and augmenting demand for bioenergy. Our aim is to assess the impact of these trends on the use of arable land for bioenergy and food production, as well as on greenhouse gas emissions and energy requirements from crop production, using linear programming farm type models for scenario simulations in four case study areas in Germany. The results suggest that the analysed global trends are critical for the allocation of land for food or energy crop production. The impacts of agricultural production on farm incomes and services, such as the provision of food and bioenergy, vary notably between the case study areas and the analysed trends. Different agricultural production systems will respond differently to changing boundary conditions in terms of bioenergy production and food supply. Assessing the impact on bioenergy and food production requires taking into account the particular setting in which production is carried out, as well as the local-specific interdependencies of land use and the provision of ecosystem services.