The re-planting season for many smallholders’ aging oil palms has commenced. Oil palms have an average productive life span of about 25 to 30 years, and start producing fruit bunches 3 years after planting. Guided by the philosophy of the founder, Sukanto Tanoto, to operate in a manner that is good for the community, good for the country and good for the company, Apical and Asian Agri will be assisting the smallholders to upgrade their agronomic practices and provide new generation seedlings for replanting.
These better seedlings were developed through the comprehensive research and development efforts of Asian Agri Research Institute, which seeks to improve the sustainability of Indonesia's palm oil industry through a greater focus on increasing yields of the country's oil palm plantations. These new generation seedlings will lift land productivity by 50 percent in the new cycle, which means that the higher harvest is likely to double the profit margins for the smallholders.
The time that the new trees take to mature and start producing fruit bunches is also the time that the smallholders have no income generation capability. This is where Asian Agri comes in as a partner to help these smallholders seek financial assistance to tide them over the 3 years that it takes for the trees to bear fruit.
Currently, out of the 160,000 ha of oil palm plantations that Asian Agri manages, 40% is developed in partnership with smallholders. Asian Agri now seeks to increase this management of its plantation area by plasma smallholders to 60%. With this increase, palm oil yield will likely improve as the smallholders will now have access to and adopt sustainable farming skills imparted by the company, such as fertilizer usage, cultivation techniques, access to pesticides, etc. This is how Asian Agri successfully engaged with the community for their good and that translates into good for the company as well.
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Apical and Asian Agri to Help Smallholders Increase Yield with New Generation Seedlings
