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Closing yield gaps: estate technologies fall short for smallholder oil palm production

2026/01/01 by Yeong Sheng Tey, Ardiansyah · 1 voice
Agricultural and Biological Sciences · Business, Management and Accounting · Environmental Science · #Agriculture, Land Use, Rural Development #Global trade, sustainability, and social impact #Oil Palm Production and Sustainability

paper · pdf · doi:10.1051/ocl/2026013

openalex publication_date 2026/01/01 · openalex created_date 2026/05/26 · openalex updated_date 2026/06/11

Abstract

Closing yield gaps in oil palm production has become increasingly important as opportunities for land expansion diminish under sustainability and land-use policies. Whereas most previous studies have concentrated on established production methods, this study examines contemporary technologies adopted by estate companies and evaluates their applicability to smallholders. Evidence from publicly listed firms in Indonesia, Malaysia, and Singapore shows that more productive estates have implemented integrated plantation management systems that combine improved planting materials, “future-ready” plantation infrastructure, soil and water conservation, precision agriculture, and partial mechanization. These technology clusters increasingly embody features associated with a novel cluster of adaptation-to-climate-change. Expert reviews, however, emphasize that strengthening fundamental capacities remains the priority for smallholders. Replanting with improved varieties and adopting adaptive nutrient management—anchored in soil and water conservation—are viewed as practically essential. Yet, constrained by technological and structural factors, smallholders will have to follow a different pathway from estates in closing yield gaps. In this context, unlocking sustainable and resilient yield potential in the smallholder sector will depend on a balanced techno-socio-economic approach of innovations that extend beyond hardware and equipment to include institutional support, service delivery models, access to knowledge and financial systems, and diversification.

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