Smallholder finance in the palm oil sector

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Author :
Publisher : CIFOR
ISBN 13 :
Total Pages : 4 pages
Book Rating : 4./5 ( download)

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Book Synopsis Smallholder finance in the palm oil sector by : Sahara

Download or read book Smallholder finance in the palm oil sector written by Sahara and published by CIFOR. This book was released on 2017-09-07 with total page 4 pages. Available in PDF, EPUB and Kindle. Book excerpt: Key messages Smallholder farmers require significant financing to establish, maintain and replant their oil palm plantations, in order to both increase productivity and improve the quality of the fresh fruit bunches (FFB) produced.Smallholders are also limited in their capacity to self-finance their plantation operations.There is a significant gap, both in terms of amount and accessibility, between the demand smallholders in the palm oil sector make for credit and the supply of that credit by banks and financial institutions.The majority of credit approved for smallholders can only be used for working capital and cannot cover the costs of replanting or accommodate the timeframe required for it.A credit maturity gap also exists in the majority of financing schemes, with loan repayment schedules beginning immediately after fund disbursement. Few financing schemes consider oil palm farmers' initial wait for a harvest, and thus provide loans with a grace period adapted to these timescales.Risk sharing gaps are visible when farmers repay their loans, as any variation or volatility in production costs and palm oil prices is borne by producers.Legal gaps are also evident, with many smallholders not holding proper documentation, which prevents them for using their land as collateral to access credit from banks.These gaps reduce the possibility of smallholders accessing formal credit, which in turn drives an informal local lending market with higher interest rates.In order to improve formal credit access for smallholder oil palm farmers, the different gaps (i.e. maturity, risk and legal) must be addressed.

Social impacts of oil palm in Indonesia

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Publisher : CIFOR
ISBN 13 : 6021504798
Total Pages : 61 pages
Book Rating : 4.0/5 (215 download)

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Book Synopsis Social impacts of oil palm in Indonesia by : Tania Murray Li

Download or read book Social impacts of oil palm in Indonesia written by Tania Murray Li and published by CIFOR. This book was released on 2015-05-07 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt: Oil palm plantations and smallholdings are expanding massively in Indonesia. Proponents highlight the potential for job creation and poverty alleviation, but scholars are more cautious, noting that social impacts of oil palm are not well understood. This report draws upon primary research in West Kalimantan to explore the gendered dynamics of oil palm among smallholders and plantation workers. It concludes that the social and economic benefits of oil palm are real, but restricted to particular social groups. Among smallholders in the research area, couples who were able to sustain diverse farming systems and add oil palm to their repertoire benefited more than transmigrants, who had to survive on limited incomes from a 2-ha plot.

The palm oil global value chain

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Publisher : CIFOR
ISBN 13 :
Total Pages : 55 pages
Book Rating : 4./5 ( download)

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Book Synopsis The palm oil global value chain by : Pacheco, P.

Download or read book The palm oil global value chain written by Pacheco, P. and published by CIFOR. This book was released on 2017-03-03 with total page 55 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is abundant literature focusing on the palm oil sector, which has grown into a vigorous sector with production originating mainly from Malaysia and Indonesia, and on increased palm oil consumption in many countries around the globe, particularly European Union states, China and India. This sector expansion has become quite controversial, because while it has negative social and environmental impacts, it also leads to positive benefits in generating fiscal earnings for producing countries and regular income streams for a large number of large- and small-scale growers involved in palm oil production. This document reviews how the social, ecological, and environmental dynamics and associated implications of the global palm oil sector have grown in complexity over time, and examines the policy and institutional factors affecting the sector's development at the global and national levels. This work examines the geographies of production, consumption and trade of palm oil and its derivatives, and describes the structure of the global palm oil value chain, with special emphasis on Malaysia and Indonesia. In addition, this work reviews the main socioenvironmental impacts and trade-offs associated with the palm oil sector's expansion, with a primary focus on Indonesia. The main interest is on the social impacts this has on local populations, smallholders and workers, as well as the environmental impacts on deforestation and their associated effects on carbon emissions and biodiversity loss. Finally, the growing complexity of the global oil palm value chain has also driven diverse types of developments in the complex oil palm policy regime governing the sector's expansion. This work assesses the main features of this emerging policy regime involving public and private actors, with emphasis on Indonesia. There are multiple efforts supporting the transition to a more sustainable palm oil production; yet the lack of a coordinated public policy, effective incentives and consistent enforcement is clear and obvious. The emergence of numerous privately driven initiatives with greater involvement of civil society organizations brings new opportunities for enhancing the sector's governance; yet the uptake of voluntary standards remains slow, and any push for the adoption of more stringent standards may only widen the gap between large corporations and medium- and smallscale growers. Greater harmonization between voluntary and mandatory standards, as well as among private initiatives is required. Commitments to deforestation-free supply chains have the potential to reduce undesired environmental impacts from oil palm expansion, and while this risks excluding smallholders from the supply chains, such commitments may function to leverage the upgrading of smallholder production systems. Their success, however, will require greater public and private sector collaboration.

Palms of controversies

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Publisher : CIFOR
ISBN 13 : 6021504410
Total Pages : 68 pages
Book Rating : 4.0/5 (215 download)

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Book Synopsis Palms of controversies by : Alain Rival

Download or read book Palms of controversies written by Alain Rival and published by CIFOR. This book was released on 2014-07-17 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: The rapid development of oil palm cultivation feeds many social issues such as biodiversity, deforestation, food habits or ethical investments. How can this palm be viewed as a ‘miracle plant’ by both the agro-food industry in the North and farmers in the tropical zone, but a serious ecological threat by non-governmental organizations (NGOs) campaigning for the environment or rights of local indigenous peoples? In the present book the authors – a biologist and an agricultural economist- describe a global and complex tropical sector, for which the interests of the many different stakeholders are often antagonistic. Oil palm has become emblematic of recent changes in North-South relationship in agricultural development. Indeed, palm oil is produced and consumed in the South; its trade is driven by emerging countries, although the major part of its transformations is made in the North that still hosts the largest multinational agro industries. It is also in the North that the sector is challenged on ethical and environmental issues. Public controversy over palm oil is often opinionated and it is fed by definitive and sometimes exaggerated statements. Researchers are conveying a more nuanced speech, which is supported by scientific data and a shared field experience. Their work helps in building a more balanced view, moving attention to the South, the region of exclusive production and major consumption of palm oil.

Implementing sustainability commitments for palm oil in Indonesia

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Publisher : CIFOR
ISBN 13 :
Total Pages : 68 pages
Book Rating : 4./5 ( download)

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Book Synopsis Implementing sustainability commitments for palm oil in Indonesia by : Luttrell, C.

Download or read book Implementing sustainability commitments for palm oil in Indonesia written by Luttrell, C. and published by CIFOR. This book was released on 2018-05-23 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: The palm oil sector in Indonesia has seen the adoption of zero deforestation commitments by the larger companies in the form of various pledges around No Deforestation, No Peat, and No Exploitation (NDPE). At the same time, at the national and sub-nationa

Toward responsible and inclusive financing of the palm oil sector

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Author :
Publisher : CIFOR
ISBN 13 :
Total Pages : 8 pages
Book Rating : 4./5 ( download)

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Book Synopsis Toward responsible and inclusive financing of the palm oil sector by : Kusumaningtyas, R.

Download or read book Toward responsible and inclusive financing of the palm oil sector written by Kusumaningtyas, R. and published by CIFOR. This book was released on 2017-09-07 with total page 8 pages. Available in PDF, EPUB and Kindle. Book excerpt: Key messages Many stakeholders, including governments, production and processing companies and non-governmental organizations (NGOs), are working towards a more sustainable palm oil sector. Although smallholders account for an important share of oil palm cultivation, the social and environmental challenges of smallholder practices receive relatively little attention.Financial Service Providers (FSPs), such as banks and pension funds, could play a more significant role developing a more sustainable and inclusive palm oil sector by tying Environmental, Social and Governance (ESG) conditions to the financial services they provide to palm oil companies that source products from smallholders.The majority of funds financing the major palm oil companies originate from FSPs based in Asian countries such as Japan, Malaysia, Indonesia and Singapore. Currently, these FSPs do not have adequate ESG policies.European and American FSP policies are more advanced in addressing such issues as deforestation and Roundtable on Sustainable Palm Oil (RSPO) certification. Nevertheless, they still pay very little attention to the inclusion of smallholders in sustainable supply chains.Due to the differences between ESG policies followed by European and American FSPs in comparison to Asian FSPs, palm oil companies still have ample alternatives to access financing with few conditions. As a result, the potentially significant contribution of FSPs to foster a more sustainable palm oil sector remains underutilized.Adoption of more adequate ESG policies by Asian FSPs could occur in the first place through an increased understanding by these FSPs of the financial risks involved in continuing business as usual. Second, peer pressure from European and American FSPs and sustainability initiatives would help. Third, financial regulators in the palm oil production countries increasingly look for instruments to stimulate the financial sector to contribute more to the sustainable development of their economies.

Towards responsible and inclusive financing of the palm oil sector

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Author :
Publisher : CIFOR
ISBN 13 : 6023870589
Total Pages : 54 pages
Book Rating : 4.0/5 (238 download)

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Book Synopsis Towards responsible and inclusive financing of the palm oil sector by : Kusumaningtyas, R.

Download or read book Towards responsible and inclusive financing of the palm oil sector written by Kusumaningtyas, R. and published by CIFOR. This book was released on 2017-10-04 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: The global palm oil sector faces ongoing threats to sustainability caused by deforestation, peatland development, labor rights violations and land right conflicts. Additionally, integrating smallholders into sustainable palm oil supply chains continues to be a challenge for the industry. Financial service providers (FSPs) could play a role in stimulating sustainability commitments from the palm oil companies they finance. Their potential influence stems from their capacity to set environmental, social and governance (ESG) conditions for financial services. This research shows that European and US FSPs are further along than their counterparts in Asia in adopting policies that include ESG risk assessments as part of the process for providing financial services. However, attention to smallholder inclusion is insufficient in the policies of all FSPs included in this report. Differences between European and US versus Asian FSPs in adopting ESG standards, as well as the unique markets they finance, present a risk that two parallel but separate financial systems could emerge. Efforts by both government and nongovernmental organizations should emphasize the prevention of a two-tiered marketplace with different quality requirements for palm oil. All actors in this sector still require a significant shift in thinking on the benefits of including ESG standards in cultivation and production processes. In palm oil producing countries, the lack of specific banking regulations emphasizing sustainability concerns regarding the sector forms a further hindrance to positive developments.

The Oil Palm Complex

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Publisher : NUS Press
ISBN 13 : 9814722065
Total Pages : 490 pages
Book Rating : 4.8/5 (147 download)

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Book Synopsis The Oil Palm Complex by : Rob Cramb

Download or read book The Oil Palm Complex written by Rob Cramb and published by NUS Press. This book was released on 2016-03-28 with total page 490 pages. Available in PDF, EPUB and Kindle. Book excerpt: The oil palm industry has transformed rural livelihoods and landscapes across wide swathes of Indonesia and Malaysia, generating wealth along with economic, social, and environmental controversy. Who benefits and who loses from oil palm development? Can oil palm development provide a basis for inclusive and sustainable rural development? Based on detailed studies of specific communities and plantations and an analysis of the regional political economy of oil palm, this book unpicks the dominant policy narratives, business strategies, models of land acquisition, and labour-processes. It presents the oil palm industry in Malaysia and Indonesia as a complex system in which land, labour and capital are closely interconnected. Understanding this complex is a prerequisite to developing better strategies to harness the oil palm boom for a more equitable and sustainable pattern of rural development.

Current practices and innovations in smallholder palm oil finance in Indonesia and Malaysia

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Author :
Publisher : CIFOR
ISBN 13 : 6023870597
Total Pages : 46 pages
Book Rating : 4.0/5 (238 download)

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Book Synopsis Current practices and innovations in smallholder palm oil finance in Indonesia and Malaysia by : Bronkhorst, E.

Download or read book Current practices and innovations in smallholder palm oil finance in Indonesia and Malaysia written by Bronkhorst, E. and published by CIFOR. This book was released on 2017-10-17 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: The objective of this study was to evaluate past and current policies and smallholder financing schemes in the palm oil industry in Indonesia and Malaysia. The outcomes of these models for smallholders were also evaluated, in terms of income security, sustainable practices and environmental impact. Finally, financing schemes that could contribute to more sustainable smallholder oil palm development were analyzed, and compared to past and existing schemes. The focus of this study is on oil palm smallholders, who play a crucial role in the palm oil production industry and account for the vast majority of oil palm cultivation in Malaysia, and even more so in Indonesia. A number of past and current financing schemes in Indonesia and Malaysia were evaluated through a literature analysis and field assessment. In Malaysia, the main long-term financing challenges faced by smallholders have been solved by large government-sponsored financing schemes and are, thus, less relevant for the report’s discussion. As such, the case studies regarding current innovative financing schemes are restricted geographically to Indonesia. The report proposes potential models to increase the mobilization of long-term finance to smallholders in the palm oil sector. Furthermore, it identifies and reflects on the key enabling conditions that would help overcome the bottlenecks in smallholder long-term financing and create an enabling environment for sustainable oil palm investments. These are: 1) incentives to meet sustainability requirements including Good Agricultural Practices, RSPO certification and deforestation-free production; 2) land tenure security; 3) improved market linkages between smallholders and mills; 4) support for FSPs to assess and manage risks; and 5) strong and effective smallholder organizations.

Corporate commitments to zero deforestation

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Publisher : CIFOR
ISBN 13 : 6023870732
Total Pages : 49 pages
Book Rating : 4.0/5 (238 download)

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Book Synopsis Corporate commitments to zero deforestation by : Jopke, P.

Download or read book Corporate commitments to zero deforestation written by Jopke, P. and published by CIFOR. This book was released on 2018-04-04 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: This research critically examines implementation gaps and externality problems associated with the recent proliferation of zero deforestation commitments (ZDC) by large commodity producers. By developing and employing a hierarchical framework, we evaluate

Working with Smallholders

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Publisher : World Bank Publications
ISBN 13 : 9781464819629
Total Pages : 0 pages
Book Rating : 4.8/5 (196 download)

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Book Synopsis Working with Smallholders by : World Bank

Download or read book Working with Smallholders written by World Bank and published by World Bank Publications. This book was released on 2023-11-09 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Smallholder farmers are the stewards of more than 80 percent of the world's farms. These small family businesses produce about one-third of the world's food. In Africa and Asia, smallholders dominate the production of food crops, as well as export commodities such as cocoa, coffee, and cotton. However, smallholders and farm workers remain among the poorest segments of the population, and they are on the frontline of climate change. Smallholder farmers face constraints in accessing inputs, finance, knowledge, technology, labor, and markets. Raising farm-level productivity in a sustainable way is a key development priority. Agribusinesses are increasingly working with smallholder farmers in low- and middle-income countries to secure agricultural commodities. More productive smallholders boost rural incomes and economic growth, as well as reduce poverty. Smallholders also represent a growing underserved market for farm inputs, information, and financial services. Working with Smallholders: A Handbook for Firms Building Sustainable Supply Chains (third edition) shows agribusinesses how to engage more effectively with smallholders and to develop sustainable, resilient, and productive supply chains. The book compiles practical solutions and cutting-edge ideas to overcome the challenges facing smallholders. This third edition is substantially revised from the second edition and incorporates new material on the potential for digital technologies and sustainable farming. This handbook is written principally to outline opportunities for the private sector. The content may also be useful to the staffs of governmental or nongovernmental development programs working with smallholders, as well as to academic and research institutions."--

The Impacts and Opportunities of Oil Palm in Southeast Asia

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Publisher :
ISBN 13 :
Total Pages : 82 pages
Book Rating : 4.:/5 (319 download)

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Book Synopsis The Impacts and Opportunities of Oil Palm in Southeast Asia by : Douglas Sheil

Download or read book The Impacts and Opportunities of Oil Palm in Southeast Asia written by Douglas Sheil and published by . This book was released on 2009 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt: Oil palm basics. Oil palm and palm oil. Historical summary. Palm oil biology, products and productivity. Oil palm cultivation. Yield and its improvement. Palm oil production and global trends. Palm oil production. Biofuel development, demand and expansion. Palm oil prices. The boom continues. A driver of deforestation?. Greenhouse gas emissions.

Artisanal Milling of Palm Oil in Cameroon

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Author :
Publisher : CIFOR
ISBN 13 :
Total Pages : 33 pages
Book Rating : 4./5 ( download)

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Book Synopsis Artisanal Milling of Palm Oil in Cameroon by : Yvonne K. Nchanji

Download or read book Artisanal Milling of Palm Oil in Cameroon written by Yvonne K. Nchanji and published by CIFOR. This book was released on with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study was carried out in three major palm-oil producing areas in Cameroon with the aim of investigating the artisanal milling and commercialization of red palm oil. Structured and semi-structured questionnaires were administered; focus group discussions and participatory observation were applied to obtain required information. Those involved were identified and the service providers ranged from mill owners or managers to smallholders and intermediaries, some of which were involved in two or three of the services. All told, 83% of those involved were men, and the women represented 17% of the service providers. Six different types of processing equipment were identified in the production areas and it was revealed that semi-automated press and combined motorized hydraulic digester and press system (digester screw press) were the most efficient. After harvesting of fresh fruit bunches (FFBs), the major operations were: chopping or cutting, stripping, selecting and sieving, loading to drums for boiling, off-loading to the digester or press for crushing and/or pressing, and clarifying of palm oil. Family labor, hired labor or both, contributed greatly to the success of the milling operations. Family labor was not paid, but motivations were given to family members, while hired labor was paid per activity. The average cost of labor per ton of FFB in the study area was 8,812 FCFA for both peak and low seasons. The average net return in the processing and marketing of 1 ton of FFB was 32,207 FCFA in peak season and 46,556 FCFA in low season. This income-generating activity was ranked as the first main source of income in the study area and has valuable contributions in household livelihood. The production of palm kernel oil and local soap was also recorded in the area, but this was mainly for home use and not for sale. Poor accessibility and unstable prices were the main constraints in the production process. While the men were dominant in processing, women were dominant in the commercialization of RPO. Artisanal palm-oil milling is a lucrative business in the area and will go a long way to alleviate poverty if the smallholders could come together and form a dynamic scheme.

The Tropical Oil Crop Revolution

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Publisher : Oxford University Press
ISBN 13 : 0190222980
Total Pages : 305 pages
Book Rating : 4.1/5 (92 download)

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Book Synopsis The Tropical Oil Crop Revolution by : Derek Byerlee

Download or read book The Tropical Oil Crop Revolution written by Derek Byerlee and published by Oxford University Press. This book was released on 2017 with total page 305 pages. Available in PDF, EPUB and Kindle. Book excerpt: The book provides a broad synthesis of the major supply and demand drivers of the dramatic expansion of oil crops in the tropics; its economic, social, and environmental impacts; and the future outlook to 2050. It is a comprehensive review of the oil crop sector with a major focus on oil palm and soybeans, the two most dynamic crops in world agriculture in recent decades.

Sustainable development of the palm oil sector in the Congo Basin

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Author :
Publisher : CIFOR
ISBN 13 :
Total Pages : 8 pages
Book Rating : 4./5 ( download)

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Book Synopsis Sustainable development of the palm oil sector in the Congo Basin by : Ordway, E.M.

Download or read book Sustainable development of the palm oil sector in the Congo Basin written by Ordway, E.M. and published by CIFOR. This book was released on 2019-05-09 with total page 8 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Congo Basin is rich in biodiversity and stores an estimated 25%-30% of the world’s tropical forest carbon stocks. As agricultural land becomes increasingly scarce in Southeast Asia, and regulatory pressures continue to intensify, the Congo Basin could become the next frontier for oil palm expansion. Most of the roughly 280 million hectares (Mha) of additional land suitable for oil palm in the Congo Basin are found in the Democratic Republic of Congo (60%), Cameroon (11%) and the Republic of Congo (10%). Many heavily forested countries in the Congo Basin are setting national targets to increase production to meet national and regional demands. Land area allocated to oil palm increased by 40% in the Congo Basin and five additional top-producing countries in Africa between 1990 and 2017. Without intervention, future production increases in the region will likely come from expansion rather than intensification due to low crop and processing yields, possibly at the expense of forest. Sustainability strategies initiated by companies and aimed at certifying palm oil mills are unlikely to be effective at curbing deforestation in the Congo Basin. Smallholder farmers are an engine of growth in the region’s palm oil sector, and recent evidence suggests they are actively clearing forest to expand. Because of the proliferation of non-industrial processing facilities (artisanal mills), a substantial fraction of the palm oil produced by smallholders never passes through a company’s jurisdiction. Smallholders are also disadvantaged by power imbalances and limited access to technical and financial resources. Including smallholders in sustainability strategies offers opportunities to achieve multisectoral goals. Recommendations to improve the sustainability of the palm oil sector in the Congo Basin include (1) improving access to finance for smallholders and non-industrial mill managers; (2) implementing policies to safeguard natural resources and facilitate access to appropriate market opportunities that offer incentives to prevent future deforestation; (3) intensifying production by replanting aging plantations, rehabilitating abandoned plantations with disease-resistant and high-yielding varieties, and increasing fertilization, without further expansion into high conservation value or high carbon stock forest areas; and (4) improving processing capacity and extraction rates by upgrading mill technologies. Sustainable palm oil development in the Congo Basin will require careful consideration of the governance, institutional, environmental and socioeconomic factors that underpin the complex regional supply chains.

Access to finance for forest and farm producer organisations (FFPOs)

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Author :
Publisher : Food & Agriculture Org.
ISBN 13 : 9251311323
Total Pages : 97 pages
Book Rating : 4.2/5 (513 download)

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Book Synopsis Access to finance for forest and farm producer organisations (FFPOs) by : Food and Agriculture Organization of the United Nations

Download or read book Access to finance for forest and farm producer organisations (FFPOs) written by Food and Agriculture Organization of the United Nations and published by Food & Agriculture Org.. This book was released on 2018-12-14 with total page 97 pages. Available in PDF, EPUB and Kindle. Book excerpt: Forest landscapes are inhabited by approximately 1.5 billion people. The aggregate gross annual value of these smallholder producers approaches US$1.3 trillion. Adding value to that production, through financial investment, will be key to delivering the Sustainable Development Goals (SDGs). Therefore, access to finance is an important issue. The Forest and Farm Facility (FFF) commissioned this scoping paper to assess what might be done to improve access to finance. Organisation of forest and farm producers allows finance to be channelled toward valueadded investments. But the motivation to form forest and farm producer organisations (FFPOs) varies with context, from the desire to secure resource rights for Indigenous peoples in the forest core, to the desire to strengthen economic scale efficiencies in periurban forest product processing industries. The scale and type of finance needs vary and span enabling investments (grants or concessional loans)through to asset investments (market-rate capital that requires a return). Access to finance for FFPOs requires tailored approaches. For FFPOs, enabling investments in four key areas are needed to create the conditions and necessary track record to attract asset investment: (i) secure commercial rights; (ii) strong organisation for scale; (iii) appropriate technical extension; and (iv) fair market access and business incubation. Enabling investments of this sort make FFPO businesses bankable and affords them access to finance.

Small-scale Palm Oil Processing in Africa

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Author :
Publisher : Food & Agriculture Org.
ISBN 13 : 9789251048597
Total Pages : 72 pages
Book Rating : 4.0/5 (485 download)

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Book Synopsis Small-scale Palm Oil Processing in Africa by : Kwasi Poku

Download or read book Small-scale Palm Oil Processing in Africa written by Kwasi Poku and published by Food & Agriculture Org.. This book was released on 2002 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: This publication provides information on the processing of palm oil fruits for the extraction of palm oil and palm kernel oil by small-scale mills in Africa. It is hoped that this will help promote the improvement of yield and quality of palm oil production and contribute to the modernisation of small-scale palm oil factories in Africa.