The Influence of Good Agricultural Practice (GAP) on the Productivity and Well-Being of Malaysian Sustainable Palm Oil (MSPO)-Certified Independent Smallholders in Malaysia

Nurul Atiqah binti Mohd Suib, Norlida Hanim Mohd Salleh (), Md Shafiin Shukor, Norshamliza Chamhuri, Shahida Shahimi, Kamalrudin Mohamed Salleh and Khairuman Hashim
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Nurul Atiqah binti Mohd Suib: Center for Sustainable and Inclusive Development Studies, Faculty of Economics and Management, Universiti Kebangsaan Malaysia(UKM), Bangi 43600, Selangor, Malaysia
Norlida Hanim Mohd Salleh: Center for Sustainable and Inclusive Development Studies, Faculty of Economics and Management, Universiti Kebangsaan Malaysia(UKM), Bangi 43600, Selangor, Malaysia
Md Shafiin Shukor: Center for Sustainable and Inclusive Development Studies, Faculty of Economics and Management, Universiti Kebangsaan Malaysia(UKM), Bangi 43600, Selangor, Malaysia
Norshamliza Chamhuri: Center for Sustainable and Inclusive Development Studies, Faculty of Economics and Management, Universiti Kebangsaan Malaysia(UKM), Bangi 43600, Selangor, Malaysia
Shahida Shahimi: Center for Sustainable and Inclusive Development Studies, Faculty of Economics and Management, Universiti Kebangsaan Malaysia(UKM), Bangi 43600, Selangor, Malaysia
Kamalrudin Mohamed Salleh: Economics and Industry Development Division, Malaysian Palm Oil Board (MPOB), Bandar Baru Bangi, Kajang 43000, Selangor, Malaysia
Khairuman Hashim: Smallholder Development Research Division, Malaysian Palm Oil Board (MPOB), Bandar Baru Bangi, Kajang 43000, Selangor, Malaysia

Agriculture, 2023, vol. 13, issue 5, 1-19

Abstract: Good agricultural practice (GAP) helps increase productivity by producing fresh fruit bunches (FFBs), and selling FFBs will increase Independent Smallholders’ (ISH) income. However, although GAP promotes increased productivity, the effectiveness of GAP in delivering the well-being of the ISH in oil palm production areas remains to be determined. To that end, this study (i) measures the smallholder’s well-being index, (ii) compares the well-being index by states in Malaysia, and (iii) maps the relationship between GAP implementation, productivity, and well-being. The study selected respondents using purposive sampling (PS). PS identifies and selects individuals with Malaysian Sustainable Palm Oil (MSPO) certification and knowledge and experience of GAP. As a result, the research interviewed 564 ISHs with MSPO certification from 162 Sustainable Palm Oil Clusters (SPOC). The study used Principal Components Analysis (PCA) and the Structural Equation Model (SEM) framework to achieve the objectives. The study found that the average ISH well-being index was 0.62, and ISHs in Sabah had the highest well-being, with 0.73 compared to other states. The study also found that GAP influences productivity and is positively and significantly related to well-being. Therefore, it indicates to ISHs and the government the importance of GAP implementation to increase ISHs’ productivity and well-being.

Keywords: good agricultural practice; independent smallholder; Malaysian Sustainable Palm Oil; palm oil; well-being (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2023
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