04/03/2011 (The News International) - Independent smallholder palm oil plantations in Indonesia could more than double production if given access to better farming techniques, and help combat deforestation, an environmental group said on Thursday.

Palm oil output in the world’s top producer Indonesia hit about 22 million tonnes last year, and is seen below 22 million this year because of heavy rains.

Smallholders account for around 20 percent of output, but produce only 2 tonnes of palm oil per hectare compared to 4 tonnes per hectare in corporate yields, Conservation International (CI) said.

“We’re really interested in looking at smallholders, and the important role they play,” Andrew Wilson, vice president of corporate relations at CI told Reuters. “A lot of the smallholders that large companies buy from, don’t have access to the top methodology (and) the best feeds, so they’re not maximising yields.”

In ideal conditions, palm oil yields can rise to 7 tonnes per hectare, said the group, whose vice-chairman is actor Harrison Ford.

“Figuring out how to help get them the technical assistance and input they need to improve yields, is a key next step in preventing deforestation,” said Wilson, ahead of his presentation at the annual Palm and Lauric Oils Conference & Exhibition Price Outlook 2011 next week.

“The yields are important, and figuring out how to grow more palm oil.using water, pesticides, fertilizer and land.” Independent smallholder plantations are not those schemed or created jointly with large corporate plantation companies.

Indonesia, Southeast Asia’s largest economy, is seen as a crucial player in the fight against climate change and is under intense international pressure to curb its deforestation rate.

Last year, palm oil giant SMART released an independent audit after Greenpeace alleged that the company bulldozed high conservation value forests and damaged carbon-rich peatlands.

Major palm oil consumers such as Unilever , Nestle and Burger King , stopped buying from SMART because of environmental concerns.

“Palm oil gets a bit of a bad rap internationally, because of its association with deforestation,” said Wilson.

“But palm oil is a very efficient edible oil.

“You can produce up to 10 times more per hectare than many other edible oils,” he added. “We see it as an important solution to some of the conservation stresses we’re seeing in areas that contain a lot of tropical rain forests.” CI work with companies to help with sustainability policies and land use planning.

Wilson praised the efforts by top palm oil buyer Unilever in its sustainability drive.

As well as taking an active role in the Roundtable on Sustainable Palm Oil RSPO, Unilever is targeting 50 percent sustainable palm oil supplies by the end of 2011, moving up to 100 percent by 2015.

“Unilever, as a leading corporation in the RSPO, has played an important role in helping to catalyse a market for sustainable palm oil,” said Wilson. “We’re very pleased at the progress of the RSPO and Unilever’s leadership in that.

“Now the challenge is figuring out how we’re going to be able to supply that ever-increasing demand.”

RSPO is an industry body of consumers, green groups and plantation companies, and aims to promote growth and use of sustainable oil palm products.