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Analysis of the Agronomic and Institutional Constraints to Smallholder Yield Improvement in Indonesia

The global demand for palm oil continues to rise. If current practices persist we shall see a significant increase in land conversion, with potentially megative social and environmental impacts. There is an urgent need to reduce the pressure on land by increasing productivity on current land holdings. In Indonesia smallholders are responsible for one-third of the total crude palm oil production while yields are substantially below average. Aidenvironment and GSA were commissioned by Oxfam Novib and The Prince’s Rainforests Project to analyze the interaction between agronomic variables and institutional constraints affecting Indonesian smallholder oil palm productivity and formulate recommendations to promote change within the smallholder sector.

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