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ORIGINAL RESEARCH article

Front. Sustain. Food Syst.
Sec. Agricultural and Food Economics
Volume 8 - 2024 | doi: 10.3389/fsufs.2024.1418732

Corporate Farming Model for Sustainable Supply Chain Crude Palm Oil (CPO) of Independent Smallholder Farmers

Provisionally accepted
Julian Witjaksono Julian Witjaksono 1,2*Deden Djaenudin Deden Djaenudin 2*Samuel Fery Purba Samuel Fery Purba 2*Astrina Yulianti Astrina Yulianti 2*Andi Y. Fadwiwati Andi Y. Fadwiwati 2*Rislima F. Sitompul Rislima F. Sitompul 2*Delima H. Azahari Delima H. Azahari 3*Resmayeti Purba Resmayeti Purba 4*Nareerut Seerasarn Nareerut Seerasarn 5*Muslimin Muslimin Muslimin Muslimin 2*Imran Imran Imran Imran 6*
  • 1 National Research and Innovation Agency (BRIN), Bogor, Indonesia
  • 2 Research Centre for Behavioral and Economy Circular, Jakarta, Indonesia
  • 3 Research Center for Industrial Economy, Services and Trade, Jakarta, Indonesia
  • 4 Research Center for Food Crops, Jakarta, Indonesia
  • 5 School of Agriculture and Cooperative, Sukhothai, Thammathirat Open University, Nonthaburi, Nonthaburi, Thailand
  • 6 Research Center for Estate Crops, Jakarta, Indonesia

The final, formatted version of the article will be published soon.

    Independent oil palm smallholders in Indonesia contributed significantly to the sustainable of Crude Palm Oil (CPO) supply chain. On the other hand, sustainability in the process of implementing the supply chain system for independent smallholders is an issue that is extremely important for the success of the supply chain system for the CPO company. This study's objective is to develop an alternative business model with the goal of strengthening the interaction that already exists between independent farmers and cooperatives in ensuring the existence of a supply chain for raw materials and having access to financial resources, knowledge, and technology. The selection of the research location considered several factors, including the size of the area's oil palm plantations, the number of oil palm farmers who are self-sufficient, and the possibility of locating CPO plant. Study findings that, the new model by business canvas analysis as the upgraded model of existing model business recommended that it should be built based on the cooperative palm oil family which provides farmers with access to financial, replanting, intensification, and extensification and infrastructure by APKASINDO, BPDPKS, Bank, and other stakeholders to sustain the FFB supply chain in cooperation through a partnership program in a long-term scheme. This whole system was developed by corporate farming system based on the cooperative as the off taker of FFB farmers and develop mini plant CPO to produce cooking oil and biofuels and by product as the waste management system as the value added for farmers.

    Keywords: Independent, Smallholder, palm oil, cooperative, Corporate farming, Fresh fruit bunches, Busines Model

    Received: 17 Apr 2024; Accepted: 08 Jul 2024.

    Copyright: © 2024 Witjaksono, Djaenudin, Fery Purba, Yulianti, Fadwiwati, Sitompul, Azahari, Purba, Seerasarn, Muslimin and Imran. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

    * Correspondence:
    Julian Witjaksono, National Research and Innovation Agency (BRIN), Bogor, Indonesia
    Deden Djaenudin, Research Centre for Behavioral and Economy Circular, Jakarta, Indonesia
    Samuel Fery Purba, Research Centre for Behavioral and Economy Circular, Jakarta, Indonesia
    Astrina Yulianti, Research Centre for Behavioral and Economy Circular, Jakarta, Indonesia
    Andi Y. Fadwiwati, Research Centre for Behavioral and Economy Circular, Jakarta, Indonesia
    Rislima F. Sitompul, Research Centre for Behavioral and Economy Circular, Jakarta, Indonesia
    Delima H. Azahari, Research Center for Industrial Economy, Services and Trade, Jakarta, Indonesia
    Resmayeti Purba, Research Center for Food Crops, Jakarta, Indonesia
    Nareerut Seerasarn, School of Agriculture and Cooperative, Sukhothai, Thammathirat Open University, Nonthaburi, Nonthaburi, Thailand
    Muslimin Muslimin, Research Centre for Behavioral and Economy Circular, Jakarta, Indonesia
    Imran Imran, Research Center for Estate Crops, Jakarta, Indonesia

    Disclaimer: All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article or claim that may be made by its manufacturer is not guaranteed or endorsed by the publisher.