Harvesting practices, labor productivity, and yield gap in Indonesian oil palm smallholdings: A PLS-SEM analysis with work experience as moderator

Abstract

To clarify how labor-side harvesting behavior is associated with smallholder yield performance, this study examined harvesting practices, labor productivity, and the yield gap among independent oil palm smallholders in Pelantaran Village, Central Kalimantan, and tested whether work experience moderates the harvesting practices–productivity link. Indonesian smallholders manage about 42% of the national oil palm area, yet their fresh fruit bunch (FFB) yields lag biological potential, with a national yield gap near 47%. A full census (n = 128) across five farmer groups was analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM) in WarpPLS 8.0. The mean yield gap was 16.81%, a shortfall of about 4.91 t FFB ha⁻¹ per year against an age-adjusted attainable benchmark near 29.20 t FFB ha⁻¹ per year. More rigorous harvesting practices were associated with lower volume-based labor productivity (β = −0.262). Higher volume-based productivity was associated with a larger yield gap (β = +0.278), whereas mediation through productivity was not significant. Work experience positively moderated the harvesting practices–productivity relationship (β = 0.183). Because the design was cross-sectional, these coefficients are interpreted as associations rather than proof of causal mechanisms. For farmer groups, extension agencies, and mill-linked buyers, the findings support evaluating quality-adjusted productivity metrics and incentive schemes that reward ripe-bunch selection and complete loose-fruit recovery. Keywords: labor productivity; oil palm smallholders; PLS-SEM; yield gap