RURAL DYNAMICS DIAGNOSTIC: FARMERS SUPPLYING OIL PALM TO BOPP MILL Adum Banso Ghana Context 2 VILLAGES COVERED BY THE RURALITY PROJECT In February 2015, Nestlé was the first TFT member to engage in the Rurality journey to transform its supply chain at the farmer level.. LEGEND BOPP Mill BOPP Plantation Neung forest reserve g h ana NEUNG FOREST RESERVE Road River Villages Rurality work with GO SLOW DO SUBRISO VILLAGE NINGO VILLAGE BENSO Benso Oil Palm Plantation (BOPP) was established by the Government of Ghana in 1978 and is now currently a subsidiary of Wilmar international which ­ is involved Nestlé’s supply chain. BOPP is supplied by farmers for 35%. The company produces FFB on estate plantation and process crude palm oil. BOPP operates from Adum Banso, 32 km from Takoradi. Rurality works with outgrowers who are farmers who established oil palm plantations on private land outside ­ BOPP’s concession . Outgrowers and different from smallholder who are part of BOPP ­ smallholders’ scheme and doesn’t have ­ the decision-making power on the oil palm plot inside BOPP’s concession area. NEUNG FOREST RESERVE GO SLOW ADUM BANSO DOMINASE VILLAGE TREBUOM VILLAGE MPOHOR TRE BOPP supply chain 3 Rurality works with outgrowers who have established oil palm plantations on private land outside BOPP’s concession Outgrowers OUTside BOPP’s concession area 35% A smallholder is part of BOPP smallholders’ scheme and doesn’t have the decision-making power on the oil palm plot inside BOPP’s concession area inside BOPP’s concession area BOPP Adum Banso Mill 23% Smallholders 42% estate plantation RURAL DYNAMICS DIAGNOSTIC (RDD) METHODOLOGY Rural Dynamics Diagnostic (RDD) The RDD was conducted from November 2015 to April 2016 by Grace Obeng and Charles Boateng, Rurality field officers. They stayed in villages and shared farmers’ life. They met with each farmer more than 3 times to conduct interviews, at which time they visited the farms and learned about farmers’ lives. 4 155 214 64 64 10 farmers interviewed oil palm plots visited (785 acres) oil palm plots GPS tracked Individual Interview with a farmer. maps done through ARCGIS software and distributed to farmers group meetings GETTING TO KNOW THE FARMERS Individual Interview with a farmer. 5 How they became farmers Farmers and their families -- 78% are native to the area -- Acquired knowledge and experience from parents --Access to family lands --Half of the farmers are older than50 --5 children on average in each household --Household = mononuclear family Vision of the farmer Living conditions -- Agriculture can be a profitable activity -- Proud to be farmers -- Would like to continue oil palm production -- Think oil palm is not supported enough by the government -- Good relationship with BOPP -- Would like their children to benefit from good education and be able to --Would like their children to attain a good education and have career choices. -- Live in block or clay houses --10% don’t have access to drinking water --All have access to electricity --Between 15 to 30 min away from a health centre 6 Ebby Samuel Meeting with Ebby Samuel He is 44 years old and lives in Dominase. He considers that oil palm production is the activity that bring the most income to his household. He has 3 acres of oil palm, 4.5 acres of cocoa and 1 acre of food crop. He has two children who go to school. Lois Manso Meeting with Lois Manso Lois is 44 years old and lives in Adum Banso. She has 3 children and 2 of them are in school while one is working. She has 1.6 acres of oil palm, 0.25 acres of food crops and 9 goats. Farming is not her main activity: she is a baker and her husband works as a security officer. She is part of the farmers’ association of Adum Banso and is also part of the BOPP smallholders scheme. LIVELIHOOD STRATEGIES 7 Farming systems Household economics Land use 20% of land = food crops (Cassava, Plantain, Vegetables) 80% of land = cash crops (Oil palm, Cocoa, Rubber) Oil palm production -- Average 10 oil palm plot/farmer and 2ha/farmer -- Farmers walk on average 1.8 km to reach their plots 41% of plots are enriched with inorganic fertilizer 62% of plots are treated with herbicide for weeding Food crops production --Intercropping when oil palm is young (cassava, plantain, vegetables) -- Mostly for household consumption; extra is sold in local markets 50% of farmers grow food crops Livestock system -- Extensive systems -- Mainly for house consumption 63% of farmers have cattle (Goats, sheep and fowls) Labour -- 50% of farmers also rely on nonfarming activities: BOPP workers, shops, construction, middlemen, mining, etc. --Farmers easily cover their daily expenses, but struggle with school fees and agricultural inputs 50% of farmers consider oil palm as their main source of income 30% of farmers cite consider cocoa as their main source of income 20% of farmers cite consider non-farming activity as their main source of income --85% of farmers work on their own farms --50% of farmer have family members working on farm --87% hire labour for harvesting and weeding --No written contracts with workers --Workers are paid directly in cash TOOLS, EQUIPMENT AND PERSONAL PROTECTIVE EQUIPMENT (PPE) -- Farmers own small tools: chisel, pan, cutlass --Some farmers have to borrow equipment such as sprayers --Two thirds of farmers don’t use PPE --Commonly used PPE are Boots Stakeholders involved GSSOP Scheme (start in 2011) Works with farmers’ association = RSPO certification 8 Organise meetings with farmers through Outside Purchase Team (OPF) Handle development, maintenance and harvest in oil palm plots GSSOP: Mining Company Connect farmers to NGOs like Solidaridad BOPP Connect farmers to banks like ARB Solidaridad: NGO Provide loans + sell tools to some farmers Farmers SELL FFB Private business Provide technical training on Best Management Practices (BMP) Work with Solidaridad Provides few incentives for oil palm (last time was in 2004 with free seedlings) Government Buy FFB from farmers sell to BOPP or ABEPAPA Middlemen Ahantaman Rural Bank (ARB) Support cocoa production: subsidised agricultural inputs Provide loans for fertilizer and chemicals Farmers’ Associations 60% of farmers are members of an association which sometimes provides loans + lends tools ABEPAPA buying company Buys FFB from farmers, middlemen and farmers association Located in BOPP mill Opportunities for change Financial Management Supply of agricultural inputs and tools Connections between farmers -- Connect farmers and suppliers who can make good quality tools, equipment and PPE available to farmers -- Define framework between farmers and BOPP to allow farmers who buy quality seed from BOPP to obtain the right quantity at the right time -- Build capacity of farmers’ associations so they can support and provide services to farmers Develop communications tools and organise field visits so farmers are connected to each other and exchange ideas about tools, methods and innovations Labour forces HEALTH & SAFETY -- Support the organisation of savings groups to make qualified workers available to farmers -- Provide trainings on use of PPE and safety measures so that farmers work safely on their farms -- Support farmers to gather to buy agricultural inputs in bulk to reduce their costs -- Develop adapted recording tools to optimised costs related to oil palm production -- Connect farmers with banks and financial institutions to increase investment capacity Environment Technical Knowledge -- Map all farmers’ existing oil palm plots to ensure that they are located outside a forest reserve boundaries -- Support and advise farmers on the development of their farms to avoid land development in forest areas -- Organise individual training in farmers’ fields, develop training tools and organise field visits to improve knowledge and practices on oil palm production: fertilisation, maintenance, measures against erosion, etc. INCOME DIVERSIFICATION Logistics Self-sufficiency -- Develop business plans to diversify income-generating activities and provide adapted trainings to increase the number of farmers with livelihood activities other than oil palm -- Study the demand for road development and contact road construction firms to improve the accessibility of farmers’ plots -- Conduct technical trainings and promote food crops production to increase farmers’ self sufficiency -- Support the production of vegetables (tomatoes, garlic, onions etc.) that can be sold in local markets rurality.org