Contract Farming Resource Centre

Oil palm contract farming in Brazil: Labour constraints and inclusivity challenges

Organization World Agroforestry Center, L'Empresa Brasileira de Pesquisa Agropecuária (EMBRAPA), Center for International Forestry Research
Year 2021

[Brandão, F. and Schoneveld, G., 2021. Oil Palm contract farming in Brazil: Labour constraints and inclusivity challenges. The Journal of Development Studies, 57(8), pp.1428-1442. https://doi.org/10.1080/00220388.2021.1919629]

The Government of Brazil established their Sustainable Palm Oil Production Programme (SPOPP) in 2010, which sought to enhance the sustainability and inclusiveness of oil palm development in the Amazon. This paper evaluates how well oil palm contract farming promoted by SPOPP has delivered on its inclusive development objectives. Drawing on cross-section data collected in Northeast Pará, it analyses two recurrent SPOPP themes, namely (1) equitable participation and (2) labour allocation to plantation management. The analysis demonstrates that household availability of land and labour resources strongly shapes patterns of inclusion and exclusion. Moreover, findings reveal that labour time allocation is influenced by hiring of external labourers, which increases when households are labour and land poor. These results give reason to question the utility of labour-oriented contract farming eligibility criteria, revealing important inclusive business and value chain development dilemmas.