Producer organizations, productivity and sustainable intensification practices in oil palm production

Oil palm production is expanding in traditional farming and forested areas, especially in West and Central Africa around the Congo Forest Basin and mostly characterized by declining yields and yield gaps. Due to typically non-binding land access, independent producers tend to prioritize extensification over intensification, which has negative environmental consequences. Sustainable intensification (SI) of smallholder production is a guiding paradigm that aims to increase yields while minimizing negative environmental impacts. In this study, we examine the relationship between producer organizations (POs), sustainable intensification practices (SIPs), namely mulching and intercropping, and oil palm yields in Cameroon. We estimate actual and counterfactual associations between POs, SIPs, production, and yields, drawing on farm- and household-level data collected through surveys and interviews with village chiefs and reference farmers. Empirically, we employ various regression techniques, including ordinary least squares, doubly robust estimators, instrumental variable estimators, recursive bivariate probit models, and switching regressions. Our findings reveal a positive association between POs and oil palm production and yields. The actual-counterfactual analysis demonstrates that POs not only benefit their members in terms of yield gains but also have the potential to benefit non-members if they were to join POs. Furthermore, POs are positively associated with the adoption of mulching and intercropping. Our results show distinct insights by gender when households are analyzed separately. We also find complementary evidence that PO membership is significantly associated with behavioral factors such as perceived self-efficacy, locus of control, hope and risk preference, suggesting that POs are a platform that shape behavioral conditions relevant for sustainable intensification and productivity. Overall, our study highlights the potential of POs as entry points for facilitating the adoption of SIPs and stimulating productivity increases in smallholder oil palm systems.