Search results

11 – 20 of over 2000
Article
Publication date: 1 August 2019

Fabio Verneau, Francesco La Barbera, Mario Amato and Valeria Sodano

Palm oil is a versatile ingredient of many food and non-food products. Yet, over the last year it has rapidly become a controversial product due to its alleged harmful health and…

1117

Abstract

Purpose

Palm oil is a versatile ingredient of many food and non-food products. Yet, over the last year it has rapidly become a controversial product due to its alleged harmful health and environmental effects. Palm oil has rapidly become a controversial product. As a consequence, many food companies have introduced alternative fat sources into their products, in order to meet consumers’ concerns. The purpose of this paper is to: first, investigate consumer purchase intention by assessing whether the environmental, social and health concerns (HCs) act as drivers with regard to the choice of not consuming products containing palm oil; and second, estimate the direct effect of participants’ information seeking (IS) upon their intention, and whether IS mediates the effects of the attitudinal latent constructs on intention.

Design/methodology/approach

A quantitative survey of 608 respondents was performed. A structural equation modelling (SEM) procedure was implemented.

Findings

Results show that: first, HC is the main driver of participants’ intention to reduce palm oil consumption; second, consumers’ attitudes towards environment and social fairness exert significant direct effects upon intention; third, IS exerts a direct effect on intention; also, it partially mediates the effects of environmental and social concerns, whereas it totally mediates the HC effect.

Originality/value

This is the first study to address the issue of comparison between different drivers of sustainable consumer intentions using a formal test by SEM. Moreover, findings add insightful discussion points to some important issues concerning the role of consumers in the current food system organisational structure and strategies.

Details

British Food Journal, vol. 121 no. 9
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 29 November 2021

Andi Irawan, Saefudin Saefudin, Melli Suryanty and M. Zulkarnain Yuliarso

This study aimed to determine the impact of the COVID-19 pandemic on the oil palm smallholders' income, which includes both on-farm and off-farm resources.

Abstract

Purpose

This study aimed to determine the impact of the COVID-19 pandemic on the oil palm smallholders' income, which includes both on-farm and off-farm resources.

Design/methodology/approach

This study used a simultaneous equations system for arranging the oil palm household economic model.

Findings

The results showed that the negative effect of demand disruption (decreasing of household income) is more than supply disruption (production declining). Declining household income due to COVID-19 caused farmer households to have no access to both basic need and other goods.

Research limitations/implications

The samples for before-pandemic data differed from the situation during COVID-19 in both the location and the person due to technical constraints in research sites.

Originality/value

The main contribution of this study was providing an empirical understanding of how the COVID-19 pandemic influences the economic behavior of the most vulnerable entities in the Indonesian palm oil industry (oil palm smallholder farmers' households). This study would provide baseline information on the impact of the COVID-19 pandemic on the economy of oil palm smallholder's household income.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 12 no. 3
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 7 August 2017

Chiara Riganelli and Andrea Marchini

This research considers a current problem statement: mandatory indication of palm oil among the list of ingredients (Regulation No. 1169/2011). The purpose of this paper is to…

Abstract

Purpose

This research considers a current problem statement: mandatory indication of palm oil among the list of ingredients (Regulation No. 1169/2011). The purpose of this paper is to analyse the effects of company choices about palm oil on consumer demand and company performance.

Design/methodology/approach

The data collection covers two years, 2013 and 2014. Financial data from the AIDA database are matched with information on palm oil certification and replacement. A panel data analysis is conducted to evaluate the impacts of certification and replacement on consumer demand and company performance.

Findings

Considering consumer demand, positive significances have been found in terms of both palm oil certification and replacement. With regard to performance, there are positive significances only for palm oil replacement.

Research limitations/implications

The research is a first step in the study of palm oil phenomenon. Furthermore, the study takes into consideration only one specific industry that uses palm oil as an ingredient.

Practical implications

There is a consumer demand expression for these two kinds of disclosures, considered in terms of both environmental (certification) and health (replacement) issues. However, only palm oil replacement leads to improved performance.

Originality/value

This study considers the market effects of the labelling programme through a new empirical application related to the palm oil issue. Starting from palm oil concerns, a new way through which an increase in the provision of information to consumers is likely to impact the behaviour of companies is pointed out.

Details

British Food Journal, vol. 119 no. 8
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 4 April 2019

Almasdi Syahza

The purpose of this paper is to develop strategies for potential environmental impacts as a result of institutional arrangement and development of oil palm downstream industry…

1651

Abstract

Purpose

The purpose of this paper is to develop strategies for potential environmental impacts as a result of institutional arrangement and development of oil palm downstream industry both regionally and nationally.

Design/methodology/approach

The research location is in the areas potential for oil palm plantation development, either by plasma through BUMN and BUMS or self-supporting by the society. The research location will be divided into two parts, namely, the land area and the coastal area. The Riau land areas are Regency of Kampar, Rokan Hulu, and Kuantan Singingi, while Riau coastal areas are Regency of Pelalawan, Siak, Bengkalis, Indragiri Hilir, Indragiri Hulu and Rokan Hilir. Both research areas have different productivity due to the different soil fertility levels. The sustainability level of oil palm plantation from the socio-economic and environmental aspects is analyzed using the multi-dimensional scaling approach modified into Rapid Appraisal-Index Sustainability of Palm Oil Management.

Findings

In Riau Province, the development of oil palm is quite rapid. This is reasonable for several reasons which include the following supporting factors: the geographical condition of the Riau region is very supportive; the high demand for palm oil derivative products; the existence of market guarantee for oil palm farmers; the higher income oil palm generates than other plantation crops; and the relatively flat area. Most of the problems faced by oil palm farmers are the use of less good seeds, the length of the fruit laying at the location of the plantation, the inadequate production road, the relatively far distance to palm oil mill (POM) (National Agency of Drug and Food Control), the tendency of determining the unilateral revenue of the POM, the collectively measurement of revenue and the general revenue information. The development of oil palm plantations has created an entrepreneurial capability for farmers who are able to capture business opportunities in the agricultural sector, especially the plantation sub-sector.

Originality/value

The originality of this paper shows the comprehensively control strategy, potential of environmental impact and palm oil plantation. The method used for data collection was rapid rural appraisal method because accurate information is needed in a limited time as it relates to decisions related to village development that must be taken immediately. The study area was conducted in Riau Province because Riau Province is one of the biggest palm oil producers in Indonesia. The study sites will be divided into two, namely, the land area and the coastal area.

Details

Management of Environmental Quality: An International Journal, vol. 30 no. 5
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 12 February 2018

Md. Khaled Saifullah, Fatimah Binti Kari and Azmah Othman

The purpose of this paper is to study the socio-economic condition of indigenous households involved in the production of palm oil and natural rubber in Peninsular Malaysia.

1237

Abstract

Purpose

The purpose of this paper is to study the socio-economic condition of indigenous households involved in the production of palm oil and natural rubber in Peninsular Malaysia.

Design/methodology/approach

Discriminant analysis is used in this study.

Findings

This study finds that 49.70 percent of natural rubber plantation owners and 37.3 percent of the palm oil plantation owners live under the national poverty line. Discriminant analysis shows that natural rubber plantation size has a significant difference between income below the poverty line and above the poverty line. But palm oil plantation size is not significantly different between income below and above the poverty line, mainly because small-scale palm oil farms receive help from the government and other agencies. This study also finds that the majority of indigenous people do not have ownership rights to their land.

Practical implications

This study suggests that small-scale plantation holders should be provided with training to upgrade their skills to increase productivity. Furthermore, finding an appropriate land ownership model helps to understand the fundamental issue of poverty among the small-scale plantation holder of indigenous people in Peninsular Malaysia.

Originality/value

Primary data are used in this study. The results show different scenarios than the existing studies.

Details

International Journal of Social Economics, vol. 45 no. 2
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 13 January 2021

Emel Kasim, Johanna Stöhr and Christian Herzig

The study aims to enhance our understanding of strategizing sustainable palm oil at company level and to bridge the gap between strategy formulation and implementation. In this…

1128

Abstract

Purpose

The study aims to enhance our understanding of strategizing sustainable palm oil at company level and to bridge the gap between strategy formulation and implementation. In this case-based study, the way a food company is tackling the challenges faced during the promotion and incorporation of sustainable palm oil into core business strategy is explored. By taking a strategy-as-practice approach, this research sheds light on the microlevel activities and the role of formulated plans, implemented actions and engagement in activities.

Design/methodology/approach

An ethnographic case study was carried out using participant observation, semi-structured interviews, informal interviews and documentary review.

Findings

The findings demonstrate the complexity of implementing a sustainability strategy for a controversial commodity such as palm oil in supply chains. External pressure was one of the most important drivers for taking action regarding environmental and social sustainability issues. Moreover, formulating and implementing supply chain strategies for sustainable palm oil required effective communication and collaboration between different departments within the organization.

Research limitations/implications

Although important insights were obtained through this six-month long ethnographic case study, additional valuable information could have been obtained if the research had been carried out for longer.

Practical implications

The paper includes implications for strategizing sustainability at company level from a strategy-as-practice perspective.

Originality/value

Through this study, a better understanding of the challenges faced from the downstream perspective in sustaining food supply chains can be obtained.

Details

Qualitative Research in Organizations and Management: An International Journal, vol. 16 no. 3/4
Type: Research Article
ISSN: 1746-5648

Keywords

Case study
Publication date: 11 September 2017

Maria Jose Murcia and Joleen Timko

In 2014, PZ Wilmar announced a new oil palm business worth $650 million in Cross River State, which would aggressively expand Nigeria’s palm oil production. In July 2015, a year…

Abstract

Synopsis

In 2014, PZ Wilmar announced a new oil palm business worth $650 million in Cross River State, which would aggressively expand Nigeria’s palm oil production. In July 2015, a year after the plan was announced, a report jointly released by Friends of the Earth US and Environmental Rights Action Nigeria alleged that Wilmar was not complying with Nigerian laws, and accused them of human rights violations, environmental destruction, fraud, and land grabbing. The multifaceted nature of the “Cross River State crisis” permits “close-ups” from different vantage points to analyze the economic, environmental, social, and governance implications of palm oil expansion from a corporate sustainability perspective.

Research methodology

The case was researched utilizing secondary data, all materials are readily available to the public. There is no disguise of any actual person or entity and no relationship between the authors and the organizations or individuals mentioned in the case.

Relevant courses and levels

The case is best used at graduate level. It is very well suited for a MBA-level sustainability, business and society, or corporate social responsibility, or business ethics courses.

Theoretical bases

The case is grounded on the stakeholder theory, yet offering a fresh perspective, leveraging on the uniqueness of the Nigerian context. The authors argue that, while the assessment of the stakeholder salience of environmental groups operating in Nigeria might be different vis-à-vis other countries with sounder institutional environments, the normative question on whether the company should address these claims persists. The authors also draw from the social movements literature and bring forth the idea that the characteristics of the Nigerian context may jeopardize the prospects of success of adversarial tactics such as the issuing of lawsuits and extensive media exposure, which have been deemed effective elsewhere.

Details

The CASE Journal, vol. 13 no. 5
Type: Case Study
ISSN: 1544-9106

Keywords

Article
Publication date: 8 March 2019

Almasdi Syahza and Brilliant Asmit

The purpose of this paper is sixfold: first, to know the ability of area carrying capacity to the development of downstream oil palm industry; second, to know the potential for…

1038

Abstract

Purpose

The purpose of this paper is sixfold: first, to know the ability of area carrying capacity to the development of downstream oil palm industry; second, to know the potential for the development of downstream oil palm industry in efforts to improve the community through employment and business opportunities in the regions; third, to find eco-friendly institutional arrangement strategies of oil palm farming in order to spur economic growth and development; fourth, to formulate strategies for potential environmental impact as a result of institutional arrangement and development of downstream oil palm industry, both in regional and national scope; fifth, to predict the economic multiplier effect as impact of institutional arrangement and development of oil-palm-based downstream industry; and sixth, to include production centers and development areas of oil-palm-based downstream industry in potential areas.

Design/methodology/approach

Research location was in potential areas of oil palm plantation development, either in the form of plasma through state-owned enterprises (BUMN) and private-owned enterprises (BUMS), or in the form of self-supporting by community. The research locations were divided into two parts, namely the land area and the coastal area. The land area of Riau consisted of Kampar, Rokan Hulu and Kuantan Singingi Regency, while the coastal area of Riau consisted of Pelalawan, Siak, Bengkalis, Indragiri Hilir, Indragiri Hulu and Rokan Hilir Regency. Both research areas had different productivity which was caused by differences in soil fertility. The required data were primary and secondary data.

Findings

Plantation activities have increased the mobility of goods in the villages, causing plantation activities to also open business and employment opportunities for people who are able to accept these opportunities. Since post-1998 crisis, the growth of oil palm plantation area in Riau increased sharply, namely in 1998, the area of oil palm plantations was 901,276 ha, in 2012, 1,119,798 ha and increased to 2,103,175 ha at the end of 2017. Through economic activities that produce goods and services required during the plantation process and the development, downstream industries will have backward linkages. The development of oil palm plantations in Riau has had an impact on economic activities in rural areas. The result of the research in the field is that the average income of farmers in the plantation subsector (especially oil palm) is Rp4,576,696 per month or $5,781.09 per year. The impact on investment in the estate subsector has been felt by rural communities. This condition also affects the purchasing power of the people, resulting in the increase of mobility of goods and people. During the period 2009–2016, rural communities enjoyed a high level of prosperity. During this period, the price of fresh fruit bunch at the farm level was quite profitable. On the other hand, the production of the plantation area also increased compared to the previous period. The impact of rising prices and increasing production of farmers is that the farmers’ welfare index in the countryside had a positive value of 0.43. This index showed the increase of farmers’ welfare from the previous period by 43 percent.

Originality/value

There are few previous studies which have comprehensively and specifically reviewed the regional economic empowerment through institutional arrangement and development of oil-palm-based downstream industry. The development of oil palm plantations aims to eliminate poverty and underdevelopment, especially in rural areas. In addition, it also pays attention to equity. In broad sense, agricultural development which is based on plantations aims to improve the welfare of the community so that there is a change in the pattern of life of the surrounding community. On the other hand, the success of plantation development that is based on oil palm agribusiness is expected to reduce income inequality between community groups and between regions.

Details

Management of Environmental Quality: An International Journal, vol. 30 no. 6
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 24 July 2019

Grobert A. Guadalupe, María Jesús Lerma-García, Ana Fuentes, José Manuel Barat, María del Carmen Bas and Isabel Fernández-Segovia

The purpose of this paper is to determine the presence of palm oil in food products on sale, and to study and compare consumers’ opinions about this oil type in Spain (importing…

1080

Abstract

Purpose

The purpose of this paper is to determine the presence of palm oil in food products on sale, and to study and compare consumers’ opinions about this oil type in Spain (importing country) and Peru (producing country).

Design/methodology/approach

Recent news published in both countries, which could influence consumer perceptions, were analysed. A study on the labelling of foodstuffs in Spain was carried out, as was a survey with Spanish and Peruvian consumers.

Findings

Palm oil was found in a large number of products and in a wide range of foods, especially those from the bakery sector. The percentages of saturated fats varied substantially within the same product type. Spanish consumers showed much more interest in the labelling and information on nutritional properties, especially energy values, saturated fats and sugars, while Peruvians focused more on energy values, and protein, vitamin and mineral contents. In Spain, palm oil was considered the worst quality fat/oil and had a clearly negative effect on both health and the environment. In Peru, palm oil was neither perceived by the majority of respondents as low quality oil nor associated with negative health effects. However, they were aware of the environmental problems that could result from its production.

Originality/value

These results confirm that the food industry should make efforts to reduce or replace palm oil in foods, mainly in Spain, as most consumers believe that palm oil negatively affects their health and the environment.

Details

British Food Journal, vol. 121 no. 9
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 20 January 2020

Almasdi Syahza and Brilliant Asmit

This paper aims to present the development of palm oil sector and future challenge in Riau Province Indonesia, which includes sustainable plantation development.

654

Abstract

Purpose

This paper aims to present the development of palm oil sector and future challenge in Riau Province Indonesia, which includes sustainable plantation development.

Design/methodology/approach

This research was conducted through a survey with developmental research method. The research location is in the Province of Riau, which is the potential development of oil palm plantation. The land areas of Riau are Kampar, Rokan Hulu and Kuantan Singingi, while the coastal areas are Pelalawan, Siak, Bengkalis, Indragiri Hilir, Indragiri Hulu and Rokan Hilir. The socio-economic and environmental aspects of sustainability level of palm oil plantations were analyzed using a multi-dimensional scaling approach that was modified into a Rap-Insus-Pom.

Findings

Development of palmoil plantations results in land conversion, posing potential erosio. In anticipating environmental damage, the Government of Indonesia imposes the Indonesian Sustainable Palm Oil (ISPO) policy. The results of ISPO policy show that Indonesian crude palm oil products are environmentally friendly.

Originality/value

This research is one of few studies that investigate the development of palm oil sector and future challenge in Riau Province, Indonesia. Riau Province still needs 13 units of palm oil mills with capacity of 60 tons per hour. Find strategies to regulate palm oil farming institutions and derivative products to enhance growth and economic development in the region and find production centers and development areas for palm oil local industries in potential regions.

Details

Journal of Science and Technology Policy Management, vol. 11 no. 2
Type: Research Article
ISSN: 2053-4620

Keywords

11 – 20 of over 2000