The assessment of fresh fruit bunches supply chain of palm oil independent smallholder farmers in southeast Sulawesi

Abstract

Palm oil commodity in Indonesia is the cash crop for smallholder farmers especially in the dry land area. This smallholder has contributed to produce Crude Palm Oil (CPO) about more than 40 percent in the supply chain. This study is aimed to identify downstream and upstream in the line of CPO palm oil. Secondly, is to know the role of the actors in the CPO supply chain and its traceability. This study employed the traceability method of networking of CPO supply chain in Southeast Sulawesi. Indonesia. Two research sites were conducted as the implementation of survey, observation, interviews and Focus Group Discussion (FGD). The respondents have chosen from the downstream to upstream of the CPO supply chain. Independent farmers, middlemen, delivery order, and Fruit Fresh Bunches (FFB) mills to produce CPO have been interviewed as the key informant of this research. Traceability study shows that the main source of FFB came from the core of PT. Damai Jaya Lestari both in the research site, plasma, and independent farmer. In North Konawe, the downstream line that farmers sell the FFB to the middlemen then they bring to the agency who has the delivery order from the CPO mills. Meanwhile, in Kolaka District, Independent farmers sold the FFB to the agency who has the contract with the PT. Damai Jaya Lestari in Plasma Village, Poliggona Sub District. In terms of the green economy, waste such empty bunches were limited access for farmers who wanted to proceed with the waste for organic fertilizer and feeding cows. The role and the traceability study show that independent farmers have no access to utilize the waste of empty bunches, no protection from the Damai Jaya Lestari as the CPO mills, and have no institutional farmers as the farmers group.