Preliminary growth trials have been very promising, with profitability being comparable to that of palm oil (Lee et al
Although the international palm oil industry and the big producers should be able to deliver insetting services to the smallholders contracted to big estates, a variety of commercial, NGO, and government activities will be needed to bring services to the independent smallholders. The Sabah Forestry Department has been promoting the cultivation of fast growing, indigenous timber species, such as Laran (Neolaba) and Binuang (Octomeles sumatrana) on private land. 2005). Despite a very attractive market prospect for these trees, their wood is used for veneer and pencils, the lack of market structures and financial support systems during the long gestation periods of about 12 years, make these trees not a viable option for most smallholders. In Brazil, NATURA, a major Brazilian cosmetics company that relies heavily on palm oil, in collaboration with Embrapa, the Brazilian national agricultural research agency, and CAMTA, a farmer’s cooperative, have started to integrate oil palm with cacao, despite the general perception that palm oil is not suitable for intercropping. Oil palm yields are reported to be higher than in same-aged conventional monoculture systems, while cacao yields are promising as well (Miccolis et al. 2014). Since 2005, global cacao prices have increased on average by 27% (ICCO 2015). Over-reliance on West Africa beans, which is notorious for severe structural problems, is putting the coca and chocolate industry at a potential risk (Squicciarini and Swinnen 2016). (more…)