Does investment in palm oil trade alleviate smallholders from poverty in Africa? Investigating profitability from a biodiversity hotspot, Cameroon

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cg.authorship.typesCGIAR and developing country instituteen
cg.contributor.affiliationUniversity of Californiaen
cg.contributor.affiliationInternational Institute of Tropical Agricultureen
cg.contributor.affiliationUniversity of Buéaen
cg.contributor.donorUK Research and Innovationen
cg.coverage.countryCameroonen
cg.coverage.iso3166-alpha2CMen
cg.coverage.regionAfricaen
cg.coverage.regionMiddle Africaen
cg.creator.identifierCargele Masso: 0000-0002-3980-6832en
cg.howPublishedFormally Publisheden
cg.identifier.doihttps://doi.org/10.1371/journal.pone.0256498en
cg.identifier.iitathemeNATURAL RESOURCE MANAGEMENTen
cg.isijournalISI Journalen
cg.issn1932-6203en
cg.issue9: e0256498en
cg.journalPLOS ONEen
cg.reviewStatusPeer Reviewen
cg.subject.iitaAGRONOMYen
cg.subject.iitaBIODIVERSITYen
cg.subject.iitaLIVELIHOODSen
cg.subject.iitaPLANT BREEDINGen
cg.subject.iitaPLANT PRODUCTIONen
cg.subject.iitaSMALLHOLDER FARMERSen
cg.subject.iitaSOCIOECONOMYen
cg.subject.impactAreaPoverty reduction, livelihoods and jobsen
cg.subject.sdgSDG 1 - No povertyen
cg.subject.sdgSDG 2 - Zero hungeren
cg.subject.sdgSDG 8 - Decent work and economic growthen
cg.subject.sdgSDG 9 - Industry, innovation and infrastructureen
cg.subject.sdgSDG 12 - Responsible consumption and productionen
cg.volume16en
dc.contributor.authorAyompe, L.M.en
dc.contributor.authorNkongho, R.N.en
dc.contributor.authorMasso, C.en
dc.contributor.authorEgoh, B.N.en
dc.date.accessioned2021-09-28T14:10:43Zen
dc.date.available2021-09-28T14:10:43Zen
dc.identifier.urihttps://hdl.handle.net/10568/115209
dc.titleDoes investment in palm oil trade alleviate smallholders from poverty in Africa? Investigating profitability from a biodiversity hotspot, Cameroonen
dcterms.abstractIn this study we investigate whether the increasing investment in smallholder oil palm plantations that contributes to deforestation is motivated by financial gains or other factors. We evaluate the financial viability of smallholder farmers selling fresh fruit bunches (FFBs) to intermediaries or agro-industrial companies with mills, or processing the FFBs in artisanal mills to produce palm oil. We use data collected in four oil palm production basins in Cameroon and carried out a life cycle assessment of oil palm cultivation and CPO production to understand financial gains. We use payback period (PBP), internal rate of return (IRR), benefit cost ratio (BCR) and net present value (NPV) for 1 ha of oil palm plantation over 28 years at a base discount rate of 8% to asses viability. Our results show that smallholders make more money processing their FFBs in artisanal mills to produce CPO than selling FFBs to intermediaries or agro-industrial companies with mills. The sensitivity analysis show that land ownership is the single most important parameter in the profitability of investment in palm oil cultivation and trade. In addition to land cost, smallholders suffer from borrowing at high interest rates, high field management costs, while recording low on-farm FFB/processing yields. To improve the financial viability of smallholders investing in oil palm cultivation, measures are needed to encourage them to access land, get loans at reduced interest rates, reduce the cost of field management, adopt good agricultural practices to improve on-farm FFB/processing yields, as well as to generate additional revenue from the sale of other products.en
dcterms.accessRightsOpen Accessen
dcterms.audienceScientistsen
dcterms.available2021-09-01en
dcterms.bibliographicCitationAyompe, L.M., Nkongho, R.N., Masso, C. & Egoh, B.N. (2021). Does investment in palm oil trade alleviate smallholders from poverty in Africa? Investigating profitability from a biodiversity hotspot, Cameroon. PloS one, 16(9), e0256498: 1-17.en
dcterms.extent1-17en
dcterms.issued2021en
dcterms.languageenen
dcterms.licenseCC0-1.0en
dcterms.publisherPublic Library of Scienceen
dcterms.subjectsmallholdersen
dcterms.subjectagrobiodiversityen
dcterms.subjectoil palmsen
dcterms.subjectproductionen
dcterms.subjectcameroonen
dcterms.subjectfood securityen
dcterms.typeJournal Articleen

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