Oil palm prices may hold up in the medium term, with strong demand from India and China. Yet, like other non-oil commodities, oil palm prices are likely to remain volatile, and to experience a long term relative price decline. (Chapter 3). World prices are not the main problem for small farmers in PNG. Three factors are likely to place a ceiling on the economic benefits for small farmers: (i) small farmers remain at the highly competitive end of a large grower market, with little market power, keeping them as ‘price takers’; (ii) a large monopsony (all
An unprecedented increase in oil palm developments may be underway in Papua New Guinea (PNG) through controversial ‘Special Agricultural and Business Leases’ (SABLs) covering over two million ha. Oil palm development can create societal benefits, but doubt has been raised about whether the SABL developers intend establishing plantations. Here we examine the development objectives of these proposals through an assessment of their land suitability, developer experience and capacity, and socio-legal constraints.
Sustainable palm oil production is comprised of legal, economically viable, environmentally appropriate and socially beneficial management and operations. This is delivered through the application of the following set of Principles and Criteria, and the accompanying Indicators and Guidance.