Exploring Into the Awareness Level and Sustainability Practice among Palm Oil Independent Smallholders towards MSPO Certification

Abstract

Objective - This study aims to examine the factors that influence the success or failure of the Malaysian Sustainable Palm Oil (MSPO) certification among independent smallholders. Methodology/Technique – We analysed 67 respondents from the Kedah region between February and March 2021. Our curiosity is piqued, about how awareness and sustainability practices influence the certification or non-certification among independent palm oil smallholders. Finding – Based on our survey, the finding shows that most of the respondents are aware of, and understand, the value of MSPO certification and use relevant sustainability practices on their farm. However, the result of the regression analysis suggests that sustainable practice is insignificant in explaining the failure in having the MSPO certification. The finding also shows that awareness is crucial in assisting independent smallholders to accept MSPO certification. Novelty – This study would provide insight into the Malaysian Palm Oil Board (MPOB) because it is one of the country’s most important bodies for addressing environmental and social concerns voiced by both local and international organizations and consumers. Type of Paper: Empirical JEL Classification: Q01, Q56 Keywords: MSPO certification; Independent smallholders; Sustainability; Awareness; Palm oil industry Reference to this paper should be referred to as follows: Ahmad, N; Shahar, H.K; Azhari, A. (2022). Exploring Into the Awareness Level and Sustainability Practice among Palm Oil Independent Smallholders towards MSPO Certification, GATR-Global J. Bus. Soc. Sci. Review, 10(3), 180–189. https://doi.org/10.35609/gjbssr.2022.10.3(7)