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What happened
A study from the University of Hawaii reveals that independent palm oil farmers in Indonesia are largely excluded from sustainable supply chains, with certified mills sourcing only 7% of their fruits despite these farmers producing 34% of the total. This exclusion limits their access to market benefits and highlights barriers to equitable palm oil production. The study calls for increased engagement and collaboration among stakeholders to address these issues.
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Key insights
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1
Passive Exclusion
Independent farmers miss out on market opportunities due to lack of engagement.
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2
Market Share Disparity
Certified mills source only 7% from independent farmers despite their significant production.
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3
Call for Collaboration
The study urges stakeholders to work together to improve smallholder access.
Takeaways
The findings underscore the need for systemic changes to support independent farmers in the palm oil market.