Authors
Sakti Hutabarat, Maja Slingerland, Petra Rietberg, Liesbeth Dries
Publication date
2018/7/14
Journal
International Food and Agribusiness Management Review
Volume
21
Issue
6
Pages
681-700
Publisher
Wageningen Academic
Description
Sustainable certification schemes have surged in recent years. The introduction of these schemes poses serious challenges to smallholders. One such certification scheme is the Roundtable on Sustainable Palm Oil (RSPO), which uses certification to increase equitable and sustainable production of palm oil. This study calculates upfront and recurrent costs and monetary benefits of RSPO certification for the Amanah Independent Oil Palm Smallholders Association in Ukui District, Indonesia. Survey and interview data was collected between 2013 and 2015. Results show that upfront costs of certification were 86 euro per hectare. Furthermore, despite generating up to 21% higher revenues from sales, certification created up to an 8% loss of net income per hectare on average per smallholder in the first year after certification, compared to the situation prior to certification. To motivate smallholders for RSPO certification …
Total citations
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Scholar articles
S Hutabarat, M Slingerland, P Rietberg, L Dries - International Food and Agribusiness Management …, 2018