Factors Affecting the Implementation of RSPO Standard Practices of the Smallholders in Surat Thani Province

Abstract

This research aims to: 1) study social, economic and participation in RSPO group activities of the smallholders,
2) examine oil palm production, plantation management, and oil palm yield of the smallholders, 3) evaluate the implementation
of RSPO practices of the smallholders, 4) analyze factors affecting the implementation of RSPO practices of
the smallholders, and 5) study constraints related to the implementation of RSPO practices of the smallholders.
Data were collected from 247 smallholders who are members of the farmer groups, in Surat Thani province,
that received RSPO certification before 2017. The data were analyzed using descriptive statistics and order logistic regression analysis. The results indicate that average age of the smallholders is 54 years old. On average, they have 18.94 years of experience in oil palm production. The average income from oil palm production is 382,086 baht per year. The smallholders have joined the RSPO groups for 3.28 years on average. Around one-fifth (22.3%) of the members also act as group committees. Most of the members (91.7%) receive 0.1 - 0.2 baht/kg higher price for their products than non-member smallholders. The smallholders have an average of 36.5 rai of oil palm plantation. The average age of palm oil trees is 15.25 years. Only 13.4 percent of the smallholders have been using fertilizer based on soil and leaf analysis. More than one-third (42.0%) of smallholders take the leaves spread over the entire plantations. The average oil plam yield is 3,038.54 kg/rai/year. Around one-fourth (26.3%) of the smallholders have implemented RSPO standard practices at a high level. About one-fifth (21.5%) of the smallholders have problem with the unclear oil palm fruit grading of the partner CPO mills. There are only three factors that positively affect the smallholders’ implementation of RSPO standard practices at a high level. Three factors are: 1) having a position in the RSPO group (α=0.1), 2) marked up price of oil palm as a result of being a group member (α=0.01) and 3) cumulative number of participations to group training (α=0.01). However, there are 2 factors that are affecting the smallholders’ implementation of RSPO standard practices in the opposite direction. Two factors are: 1) experience in oil palm production (α=0.01) and 2) ratio of annual income from oil palm production and household income (α=0.01). Nonetheless, total oil palm plantation areas negatively affect the smallholders’ implementation of RSPO standard practices at a low level (α=0.1).