Hybrid production systems usually comprise of a core large plantation
surrounded by hundreds or thousands family farmers (Brüntrup et al. 2018) (Box
3.2). These farmers can be contractually linked to a single buyer that is usually the
core plantation (i.e. outgrowers), or sell to multiple buyers depending on markets
signals (i.e. independent producers) (von Maltitz et al. 2019). Hybrid systems are
more common for crops such as sugarcane and oil palm that are perishable and
whose production benefits from economies of scale (von Maltitz et al. 2019; Carrere
2013).
Box 3.2: Food Security Impact Mechanisms in Hybrid Industrial Crop
Production Systems
The Ghana Oil Palm Plantation Development Company (GOPDC) has
adopted a hybrid production system that combines large-scale oil palm production undertaken by GOPDC in a large plantation surrounded by individual
outgrowers and independent smallholders (Ahmed et al. 2019a). The core
plantation is located in the Kwae community and spans 8200 ha and is
surrounded by approximately 10,000 ha cultivated by outgrowers and independent smallholders. This hybrid production system has converted extensive
areas of natural vegetation and other agricultural land (mainly under food
crops and cocoa).
The GOPDC currently employs approximately 4500 staff members, over
70% of which are occupied in plantation-related activities such as harvesting,
fertilizer application and weeding. Workers are engaged in both permanent
and seasonal employment, with salaries and wages paid on a monthly basis.
The GOPDC also directly supports about 7200 outgrowers that have contractual relationships with the company, which in turn co-finances the establishment of small oil palm farms. The company serves as the direct market for
these outgrowers, as well as a possible market option for independent growers
willing to sell fresh palm fruits to GOPDC. Usually independent growers
decide whether to sell to the GOPDC mills or other independent processors
depending on local prices. Employment and access to this mature market
secure income flows to workers, outgrowers and independent growers,
improving the livelihoods of many types of households (Ahmed et al. 2019a).
The GOPDC also maintains a road network spanning approximately
500 km within the Kwaebibirem district that facilitates the transportation of
oil palm from outgrowers and independent growers to the GOPDC mills. The
company also assists local communities in the rehabilitation and construction
of community markets. Such infrastructure facilitates the transport and sale of
oil palm, as well as the distribution, sale and marketing of food crops within
the district.
In this respect many of the different mechanisms of food security impacts
intersect in the broader area, and especially A1 “Food crop area”; A2 “Wild
food area”; A4 “Labour/capital diversion”; A5 “Farming inputs”; B1 “Infrastructure”; B2 “Market linkages”; B4 “Income generation”; B5 “Job creation”;
C1 “Time diversion”; D7 “Environmental impacts.”
3 Linking Industrial Crop Production and Food Security in Sub-Saharan Africa:. . .
95
surrounded by hundreds or thousands family farmers (Brüntrup et al. 2018) (Box
3.2). These farmers can be contractually linked to a single buyer that is usually the
core plantation (i.e. outgrowers), or sell to multiple buyers depending on markets
signals (i.e. independent producers) (von Maltitz et al. 2019). Hybrid systems are
more common for crops such as sugarcane and oil palm that are perishable and
whose production benefits from economies of scale (von Maltitz et al. 2019; Carrere
2013).
Box 3.2: Food Security Impact Mechanisms in Hybrid Industrial Crop
Production Systems
The Ghana Oil Palm Plantation Development Company (GOPDC) has
adopted a hybrid production system that combines large-scale oil palm production undertaken by GOPDC in a large plantation surrounded by individual
outgrowers and independent smallholders (Ahmed et al. 2019a). The core
plantation is located in the Kwae community and spans 8200 ha and is
surrounded by approximately 10,000 ha cultivated by outgrowers and independent smallholders. This hybrid production system has converted extensive
areas of natural vegetation and other agricultural land (mainly under food
crops and cocoa).
The GOPDC currently employs approximately 4500 staff members, over
70% of which are occupied in plantation-related activities such as harvesting,
fertilizer application and weeding. Workers are engaged in both permanent
and seasonal employment, with salaries and wages paid on a monthly basis.
The GOPDC also directly supports about 7200 outgrowers that have contractual relationships with the company, which in turn co-finances the establishment of small oil palm farms. The company serves as the direct market for
these outgrowers, as well as a possible market option for independent growers
willing to sell fresh palm fruits to GOPDC. Usually independent growers
decide whether to sell to the GOPDC mills or other independent processors
depending on local prices. Employment and access to this mature market
secure income flows to workers, outgrowers and independent growers,
improving the livelihoods of many types of households (Ahmed et al. 2019a).
The GOPDC also maintains a road network spanning approximately
500 km within the Kwaebibirem district that facilitates the transportation of
oil palm from outgrowers and independent growers to the GOPDC mills. The
company also assists local communities in the rehabilitation and construction
of community markets. Such infrastructure facilitates the transport and sale of
oil palm, as well as the distribution, sale and marketing of food crops within
the district.
In this respect many of the different mechanisms of food security impacts
intersect in the broader area, and especially A1 “Food crop area”; A2 “Wild
food area”; A4 “Labour/capital diversion”; A5 “Farming inputs”; B1 “Infrastructure”; B2 “Market linkages”; B4 “Income generation”; B5 “Job creation”;
C1 “Time diversion”; D7 “Environmental impacts.”
3 Linking Industrial Crop Production and Food Security in Sub-Saharan Africa:. . .
95