The phenomenal expansion in oil palm means there can be no doubt of its economic competitiveness as a land use under current global market conditions. But does this mean that oil palm is a more economic land use and livelihood option than alternatives for smallholders? Several scenarios emerging from the Land Settlement Schemes (LSS) somewhat test the viability of current extension methods employed by the Oil Palm Industry Corporation (OPIC) to lessen.
According to official reports by PNGOPRA socio-economic studies, the incidence of food insecurity, land shortages and poor standard of living among LSS oil palm smallholders of West New Britain (WNB) is rife, presenting serious extension challenges now and in the near future.
Compared with small-scale cocoa producers of neighbouring East New Britain, among whom living standards have been improving although thriving on a seasonal crop before CPB struck, incomes netted by oil palm smallholders has been increasing monthly since 2006 as world prices rose.
Such a comparison draws questionable competence of extension methods. But lack of remedial actions often stand on OPIC’s lack of financial and skills capacity.
