Indonesian smallholders hit hard by palm oil prices at 5-year low
Cash-strapped farmers forced to cut back on fertilisers, pesticides and replanting, which will reduce output in coming years
Jakarta
A PROLONGED fall in the price of palm oil is hitting Indonesia's legions of smallholder farmers, forcing cutbacks that will reduce output in coming years and raising the prospect of a bout of sell-outs to major producers.
Smallholder farmers account for about 40 per cent of output from Indonesia's vast plantations that cover an area the size of South Korea. A drop in smallholder output could shave total production by around 5 per cent from next year, said analysts.
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