Study Notes on Oil Palm Agroforestry in Brazilian Eastern Amazon

Daniel Palma Perez Braga, Andrew Miccolis, Helen Monique Nascimento Ramos, Lilianne Fontel Cunha, Laís Victoria Ferreira de Sousa, Henrique Rodrigues Marques
World Agroforestry Centre - ICRAF
Amazon Headquarters I Trav. Enéas Pinheiro, s/n, EMBRAPA Campus – Marco, CEP 66.095-903, Belém, Pará, Brazil

Keywords: Sustainable rural development, Family farming, Economic success, Living standard
Received: 13 November 2022
Revised: 16 January 2024
Accepted: 29 February 2024
Publication: World Development Sustainability, Volume 4, Article 100128

Despite its economic potential, oil palm has a negative reputation due to environmental impacts and mixed social outcomes.
In the Eastern Brazilian Amazon, oil palm production has rapidly expanded over the past decade.
Agroforestry Systems (AFS) have been promoted to achieve economic growth coupled with socio-environmental benefits for smallholders.
Study aimed to explore pathways to reconcile oil palm production with farmer livelihoods, surveying 198 smallholders in Tomé-Açu, Pará, Brazil.
Findings indicate diverse livelihoods and income variability, averaging USD 13,100.
85% of farmers adopted various AFS types, while only 11% adopted monocrop oil palm.
AFS contributed to one third of on-farm income, improving life aspirations.
Economic indicators show that family farmers successfully adopted AFS and that oil palm adopters achieve higher economic success.
Majority of farmers wish to expand AFS but show reluctance towards including oil palm.
Successful expansion hinges on business models that mitigate risks related to credit, plantation size, and species selection.

Responses to negative impacts of the Green Revolution prompted global sustainable rural development efforts.
Conventional agribusiness models favor monocrop plantations, causing social conflicts in Brazil's Amazon due to soy, cattle, and oil palm industries.

Brazilian law defines family farms as having small land size, family-based management, and predominantly on-farm income.
Family farmers face vulnerabilities from climate change and market instabilities.
AFS are adopted to help minimize vulnerabilities.

Renowned for AFS technological development stemming from Japanese immigrants since the 1930s.
Historical reliance on black pepper until disease outbreaks and price fluctuations destabilized incomes.
Innovations in intercropping black pepper with cocoa initiated in 1970 by Japanese farmers to mitigate these risks.

Gradual introduction of oil palm monoculture in the 1950s.
Governmental incentives in the early 2000s prompted significant monocrop expansion in line with biofuel policies.
Consequences included an increase in monoculture land use, with 15% cultivated by smallholders in Tomé-Açu.
By 2020, oil palm planted area in Pará increased to 200,000 ha, constituting the bulk of Brazil's palm oil production.

Investigated implications for small-scale farmers adopting oil palm agroforestry.
Addressed questions on living standards, economic success strategies, AFS contributions, and conditions affecting oil palm AFS scaling.

Tomé-Açu, Northeast Pará, Brazil: a population of 63,447 with a demographic density of 11 inhab/km².
Per capita GDP in 2016 was USD 2767.96, Human Development Index of 0.586 in 2010.
Predominant soil types: yellow latosols (oxisols) and petric plintosols.
Density of ombrophilous forest, humid tropical climate.

A random sample of 198 smallholder families (households) with land sizes up to 200 ha.
Survey conducted from October to December 2019 using a 178-question questionnaire.
Interviews were carried out with 85% men and 15% women.

Principal Component Analysis (PCA) evaluated 21 factors, grouped around five capitals of the Sustainable Livelihoods Approach (DFID, 1999).
Economic success was measured by an index composed of technology, housing, income, and land size, scored from 0 to 1.
Living standards were categorized as high (>0.66), intermediate (0.33 - 0.66), and low (<0.33).

Economic success heavily relies on technology, housing, income, and land size.
Living standards: 70% intermediate, 22% low, 8% high (average living standard = 0.44).
55% use semi-mechanized practices; 19% have mechanized farming; 58% face inadequate living conditions.
Average yearly income is USD 13,117± 15,178.
30% of income comes from off-farm activities (mainly retirement).
Average land size of smallholders is 31 ha, with 73% managing 10 to 50 ha.
37% have secure land titles, while 57% possess land occupation documents.

Labor availability averages to 3± 2 members (ages 18-60).
77% hire external workers, and 29% find family labor insufficient.
Organization affiliation is low, with only 44% partaking in social organizations.
Access to public services drops off with increased market distances.

Dominant production systems include AFS and perennial monocrops, notably black pepper, cocoa, açai, etc.
AFS constitute 60% of plant diversity in land use, accounting for 369 production systems.
High diversification aids in market fluctuation resilience and food security.

48% of households deforested more than 50% of their land.
Average forest cover is 48%, often exceeding limits outlined in Brazilian law.
Economic success is slightly negatively correlated with forest cover.

85% of households employ some form of AFS.
AFS contribute approximately 30% of on-farm income and 32% of food production.
Desire for AFS expansion is high, with 75% expressing interest in planting additional areas; key motivations include income and food production.

Only 11% of farmer households practice monocrop oil palm.
Low adoption reasons include land size constraints and requirements for large plantation areas.
Average plantation size is only 13 ha, highlighting business model mismatches with smallholders' realities.
While oil palm monoculture provides higher incomes, it is still subject to limitations compared to diversified farming models.

The study underscores that smallholders can secure an intermediate standard of living through diversified practices.
Agroforestry Systems present a pragmatic approach to enhancing livelihoods against climate-related shocks and market volatility.
Essential improvements in private sector business models could facilitate scaling oil palm AFS, accounting for family farmer variability in strategies, needs, and capacities.

Acknowledgment of contributions from the World Agroforestry Centre, CAMTA, and other collaborators involved in research and development.

A wide range of sources cited throughout the article, detailing studies on rural development, agroforestry systems, and economic assessments.