The present study was carried out in four of the seven oil palm production basins generated during the Fonader-sponsored smallholder development scheme in the late Seventies and Eighties. The four basins include: Eseka, Dibombari, Muyuka, and Lobe. The objective of our study was to understand why oil palm smallholders prefer to mill their fresh fruit bunches (FFB) despite the low extraction rates of the artisanal mills and the remarkable presence of industrial mills where they could sell bunches. Our study included the submission of 200 semi-structured questionnaires to different categories of palm oil processors from 131 artisanal mills. Categories included both millers (mill owners and mill managers) and users (smallholders and intermediaries). Our results showed that the processing of FFB in artisanal mills was able to generate a better income to all categories of processors especially during the low production season. Smallholders in Dibombari and Muyuka were found to get the highest additional profit reaching 65.2 and 74%, respectively at low season, when compared to income generated by the selling of FFB at 48,000 FCFA and 50,000 FCFA /ton to Socapalm and CDC mills, respectively. The artisanal milling activity also provided temporary employment opportunities to young men, with an impact on juvenile delinquency and rural exodus. The present study also revealed that the cost of FFB processing the extraction rates of the mills and the demand for red palm oil were amongst the factors which greatly affected the decision making of oil palm processors.

The present article explores the origin and changes in partnership agreements established between agro-industries and oil palm smallholders in Cameroon. The different forms of partnership which have existed over the years in the oil palm sector until now are assessed, notably the FONADER-sponsored smallholder scheme (1978 to 1991) and more recently the Afriland First Bank sponsored project of Socapalm Eseka (2007/2008 to present). Special attention is given to the factors and conditions that have influenced the outcomes of these partnerships, specifically the failure of the FONADER-sponsored smallholder scheme. The authors conclude that with the current absence of steady support from the government to oil palm smallholders, especially after the implementation of the structural adjustment plans, private partnership schemes between agro-industries and oil palm smallholders could be highly profitable for both stakeholders. Such partnerships can foster social cohesion and limit further encroachment of agro-industries into the primary forest, provided such partnership agreements are carefully planned and adequately implemented.

The present study is an evaluation of the current strengths and weaknesses of the oil palm smallholder sector in Cameroon, or more precisely of the non-industrial sector, as some holdings owned by elites can reach hundreds of hectares. A randomized sample of oil palm producers was chosen after categorization into elites, migrants, natives and company workers (past and present) in four palm oil production basins in the Southern part of the country. 176 semi-structured questionnaires were administered. The production basins included: Eseka, Dibombari, Muyuka, and Lobe. Results from the study revealed that elites owned larger average areas (41.3 ha) than the other categories of oil palm producers. All categories recorded low average plantation yields, ranging from 7 to 8.4 t FFB/ha/year (with minimum yields of 3 t FFB/ha). Though the elites showed better bargaining power and higher income, all categories of producers faced similar problems such as the high cost of inputs with no governmental subsidies, the difficulty in accessing loans with low interest rates and the use of rudimentary working tools. Despite such weaknesses, the sector also demonstrates some strengths such as the ability to impose little threat to the primary forest when compared to agro-industrial plantations, the availability of a domestic and sub-regional market for red palm oil, the availability of artisanal mills with low extraction rates although able to generate more income for the producers. There is a need for governmental policies that will strengthen partnership between small and medium oil palm producers and agroindustries as it was the case during the Fonader period, in order to converge with the poverty reduction strategy initiated by the government of Cameroon.