Palm oil industry may be affected by exit of foreign workers

SANDAKAN: Indonesian workers in the palm oil industry are apparently returning home now because of the upswing in the palm oil industry in their home country, and this has raised concerns on the ability of the Malaysian palm oil industry to fill the void with local workers.

According to Malaysian Palm Oil Association executive secretary Genga G Pillai, rumours that Indonesian palm oil workers are returning home are true but how it will affect the local palm oil industry is still yet to be known.
“Locals do not normally want to work at something they consider as 3D (dirty, dangerous, demeaning) jobs. You can even see this in the construction sector. They would prefer office jobs and such. But as to how the return of these foreign workers to their homeland will affect the industry, we’ll have to wait and see,” said Pillai in a phone interview with The Borneo Post.

The Sun Daily has reported that Indonesia is currently the largest exporter of the commodity, with over 7.3 million hectares of land dedicated to palm oil in 2009, from only 274,000 hectares in the 1980s. The industry had also raised the country’s GDP above 6.0 per cent a year since 2005.
However, according to a report in Bloomberg.com, both countries would “tumble into a bear market next year” as their monthly output surges while demand from Europe and China declines.

Pillai said most oil palm mills in Sabah were refusing to accept fresh fruit bunches (FFB) because there was already a glut of FFB locally while the world market’s demand for crude palm oil (CPO) was diminishing.
According to a Bloomberg survey, Malaysia’s production of palm oil in November exceeded exports by over 2.5 million tons, compared to 2.51 million tons in October.

Global economic slowdown is said to be one of the main reasons for the decline in demand.


Read more: http://www.theborneopost.com/2012/12/16/palm-oil-industry-may-be-affected-by-exit-of-foreign-workers/#ixzz2FAcvU2zy

15 Fresh Fruits Bunch

The best so far. 15 fresh fruits bunch

Costs and Benefits Analysis of Aquilaria Species on Plantation for Agarwood Production in Malaysia

By
Mohd Farid Mamat
Forest Research Institute Malaysia 52109 Kepong Selangor paridms@frim.gov.my

Both options, whether planting Aquilaria spp. integration with banana (Musa spp.) or planting Aqualaria spp. as a single crop for agarwood production are viable.

An investment return for planting Aqualaria spp. integrated with banana (Musa spp.) is much higher with an IRR of 54.85% compared with 38.49% for a single crop plantation.

The NPVs of investment at 10% discount for a 1,000 hectares integrated planting are RM185.6 million while the option involving single crop plantation for agarwood production is RM153.6 million.

The better present value of return of the option involving integration planting is attributed to the added and earlier revenue contribution from agriculture crop. The good demand and encouraging banana price over the years would make this option the preferred choice.

However, the establishment of Aqualaria spp. plantation solely for agarwood production also has its attraction. The option is not labour intensive. This speaks well for a rapidly developing country like Malaysia, where labour is no more a luxury relative to neighboring countries.

The buffaloes in Sarawak plantations

By Mahbob Abdullah
The Buffalo in Jenderata Estate, United Plantations, Perak.


As usual when I am in Sarawak I look forward to seeing the egrets. My father called them ‘bangau’ and he had told me long ago what they stood for.
Recently on the road from Bintulu to Selangau I saw the white birds as they stalked for insects in the grass. Elegant and confident, they flew and circled, and then landed again to go on feeding. They were used to people.
But now I thought there was something missing.
I had to think hard and I was reminded of the advice of a plantations director, Ken Eales whom I had once worked for. He did not talk much, he kept his distance, but one day on a plane journey when people tended to be a bit more relaxed, I had the chance to ask him about his way of management.
“As a leader I am not close to anybody. I can look at issues so that my likes and dislikes cannot cloud my judgement.”
From his wallet he took out a piece of paper and he read out, “This is what I remind myself. Believe none of what you hear, and half of what you see.”
“There is one more way I look at management,” he went on. He turned the paper over and read again: “Do not see what is there, you must also see what is not there.”
I remembered those words, and realised what I could not see among the egrets. Buffaloes.
When I was working in Sabah on a plantation in the Labuk valley, many years back, I had seen many egrets, but they were among the buffaloes on the plantations. The Bajaus in Kota Belud brought them upriver and I would buy them on behalf of the workers.
The male buffaloes pulled the carts loaded with oil palm bunches. Previously the harvesters carried the bunches in baskets slung on a pole over their shoulders, and the heavy weight had made them stagger to the roadside.
Now the buffaloes did the hard work. They even looked forward to the start of the day. Some could step up and lift the yoke with their horns and put them on their shoulders ready to pull the cart on the word ‘Jalan’. The owners treated them like pets.
The female buffaloes formed a breeding herd. With one hundred and fifty females I would put five bulls, which were selected for their size and temperament. A veterinary officer Paddy Kehoe would come upriver by boat from Sandakan to check the herd.
The use of buffaloes to pull the carts of bunches had come about by chance. In the early days of Pamol Sabah, one of the Filipino workers had brought a buffalo to pull a cart full of bunches. His headman wanted to sack him. He should carry the oil palm bunches like everybody else. At that time the estate manager, Leslie Davidson arrived on the scene.
“He is lazy, sir,” the headman said. “I want to sack him.”
When Davidson saw the buffalo working, he promised the headman he would be sacked.
“The only way you can keep your job is if you can get all the other harvesters to use buffaloes. Like he does.”
To help the harvesters, he arranged to start a breeding herd. At two years old the male buffaloes were put to work.
But even as they worked, the egrets would come to them. The birds would hop on their backs, and look for ticks and flies even in their ears, or waited near their feet to peck at insects that were disturbed in the grass.
But along the road in Sarawak I saw only egrets and few buffaloes. In the plantations I saw workers move the bunches in wheel barrows. Sometimes they used mini-tractors which they called the mechanical buffaloes. The first models appeared thirty years ago, and since then the prices of these machines have gone up many times, as has the price of diesel.
So in Sarawak the buffaloes should come back. Buffaloes now cost much less than a tractor. They feed on grass and their waste becomes fertiliser. The harvesters earn more with higher output. Fewer workers will be needed. A small premium per month will get an insurance cover against losses and thefts. It worked very well when I was running an estate.
As plantations expand and come into harvesting more buffaloes will be needed, especially in the land where there is no peat. Even on slopes the buffaloes can go on the hills, follow the terraces, work downhill and then home for the day. Later they would get a bath and the owners would give them a scrub, and a feed of fresh-cut grass.
Some readers may see this is a chance to start a buffalo farm and a breeding herd. In Indonesia I have seen healthy beasts in Aceh and in Tanah Toraja, pulling ploughs in the padi-fields. In the Nile valley of Egypt they are also raised for milk, made into ghee as cooking fat.
I have looked after buffaloes in my village in Rembau, I knew their characters and temperament, some were leaders, many were not, while a few were rebels. Each day after school I would take them out to graze but let them free after the rice harvest.
They remained in the open fields until the next planting season. Then I would go out and call them, they responded, and it was no problem to lead them back. It was even better if the buffalo had dropped a calf and it followed its mother home with you.
It was not long after the Japanese war that my father had told me about the egrets when they returned to the village. They had landed in the padi-fields.
“That is a sign that peace is with us again.”
My mother could recite to me the nursery rhyme “Bangau oh bangau” and today I can recite it completely with the help of the internet.
It would be great to see more buffaloes in Sarawak. There is plenty of grass, ample space, and water is in abundance. The state is virtually disease-free. Their population can grow with the pace of development in oil palm.
The egrets can feed with the buffaloes. It is a scene I would love to see. It is as green as you can get but don’t talk to the workers about selling their pets.


Read more: http://www.theborneopost.com/2012/12/02/the-buffaloes-in-sarawak-plantations/#ixzz2DqjxHtua

Palm Oil Set for Bear Market on Record Output, Mistry Says

Palm oil will probably tumble into a bear market next year as monthly output in Malaysia and Indonesia surges to records, compounding the impact of the biggest ever stockpiles, according to Godrej International Ltd.

Prices will drop below 2,200 ringgit ($723) a metric ton in August or earlier after trading between 2,300 ringgit and 2,600 ringgit between now and February, Dorab Mistry, director at Godrej, told a conference, giving his first outlook for 2013.

The most-active contract closed at 2,370 ringgit on the Malaysia Derivatives Exchange today, after touching a three-year low of 2,220 ringgit on Nov. 12.

Palm oil, used in everything from biofuels to noodles, fell 25 percent this year, extending a loss from 2011, as slowdowns in China and the European Union cut demand and boosted stockpiles.

Mistry’s forecast raises the prospect that prices may drop for three straight years in what would be the worst run of losses since at least 1996, according to data compiled by Bloomberg.
“I expect vegetable oil prices to remain range-bound in the first half of the year and to begin a major bear market in the second half,” Mistry said in Bali, Indonesia. “How low they will go is very difficult to predict at this stage.”
Rabobank Forecast

The outlook from Godrej contrasts with a forecast this week from Rabobank International, the world’s biggest agricultural lender, that picked palm oil to be the best-performing agricultural commodity in 2013. Prices will rise as inventories decline from record levels and demand increases from importers including China and India, the Amsterdam-based bank said in a report on Nov. 28.

Falling prices may contribute to lower global food costs in 2013, while paring profits and revenues at producers including Sime Darby Bhd. (SIME) and Golden Agri-Resources Ltd. (GGR)

Palm oil may trade between 2,500 ringgit and 3,000 ringgit for the next six months, supported by lower production in the first quarter of the next year and higher demand, Sime Chief Executive Officer Mohd Bakke Salleh said Nov. 27.

Output in Indonesia and Malaysia, which account for 87 percent of global production, may reach monthly records between September to December next year if weather remains normal, said Mistry.

Malaysia may produce a record 19 million tons in 2013, while Indonesian output may reach as much as 30 million tons, an all-time high, he said. Production is forecast at 18.4 million tons and more than 27.5 million tons this year, he said.

Monthly Loss
Futures dropped 5 percent in November, a third monthly loss. Mistry didn’t define what he meant by a bear market. A bear market is typically defined as a decline of 20 percent or more from a closing high and is compared with a closing low.
Prices may have bottomed out as stockpiles are set to decline amid a pick-up in demand from buyers including India, Thomas Mielke, executive director of Oil World, told the conference.

Futures may rebound to 3,100 ringgit to 3,200 ringgit between March and May, he said.
“Prices will strengthen quite a bit more than 2,600 ringgit as we’re in this inventory downcycle, which follows production,” Alvin Tai, an analyst at OSK Investment Bank Bhd., said by phone in Kuala Lumpur. Inventory in Malaysia may fall to about 1.6 million tons by May, he said.

Global food use of vegetable oils may grow by about 3.5 million tons as lower prices stimulate consumption, while biodiesel usage will expand 500,000 tons in the year that began on Oct. 1, said Mistry, who’s worked in the industry for 35 years. The increase in demand of 4 million tons will exceed incremental supply of 3.15 million tons, he said.

‘Heaviest Stocks’
The new season is starting with the “heaviest stocks in history” and this overhang will cushion the impact of the lower production of vegetable oils in the first half, said Mistry. Malaysia’s reserves climbed to a record of 2.51 million tons in October, according to the nation’s palm oil board. Stockpiles in Indonesia may be more than 4 million tons, Mistry said.

India, the biggest buyer of palm oil, started its new oil year with record inventories of 1.65 million tons, said Mistry. Domestic cooking oil output should expand this year due to a bigger mustard crop, he said. That may prompt the government to impose a 10 percent duty on crude palm oil imports and more than double taxes on refined oils to 20 percent, he said.
“I am bearish on the soya complex post-May with a gradual erosion of risk premium from as early as February,” he said. “Old crop soya oil needs to control demand and will therefore remain at a big premium to palm'

Soybean Oil
Soybean oil futures in Chicago may trade in a range of 48 cents and 53 cents a pound, while the new soybean oil crop from May onwards should see prices between $900 and $1,020 a ton on a free-on-board basis in Argentina, he said. Soybean oil for delivery in January traded at 49.92 cents today. Soybeans are crushed to make an oil that competes with palm oil.

Global economic growth is expected to be better in 2013, compared with this year, with the U.S. avoiding or resolving the so-called fiscal cliff, leading to a stronger dollar and gains for equities in most markets, said Mistry.

“The end of the cyclical bull market in commodities leads me to believe that profitability in agriculture and in plantations will soon revert to more normal levels,” he said. “The days of super-normal profits in palm oil cultivation are coming to a close.”

To contact the reporters on this story: Ranjeetha Pakiam in Kuala Lumpur at rpakiam@bloomberg.net; Yoga Rusmana in Jakarta at yrusmana@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

Oil Palm 7 Months After Field Planting

Planted germinated seed in april 2011. Now on the 1 December, the oil palm grow very well.

1.21 million hectares of land had been planted with oil palm

KUCHING: The involvement of a community leader in stealing fresh fruit bunches (FFBs) from oil palm plantations in Sg Asap has saddened Minister of Land Development Tan Sri Dr James Masing as it could deter potential investors to Sarawak.

“I am very disappointed to know that a ‘ketua masyarakat’ (community leader) is involved in stealing FFBs. I hope all the relevant authorities would throw the book on those involved otherwise investors will be discouraged to invest in
plantations in Sarawak,” Masing told The Borneo Post on the sidelines of the State Legislative Assembly (DUN) sitting here yesterday.

He added that the police would deal with the individual concerned without fear or favour.
On a related issue, Masing revealed that as of June 30 this year, some 1.21 million hectares of land had been planted with oil palm, an increase of 18.6 per cent compared to a year ago, with about 80.2 per cent of the area developed by the private sector.

“This is in line with the government policy for the private sector to spearhead the development of the palm oil industry in the state,” Masing said in his winding-up speech at the DUN sitting yesterday.

He also reiterated that the industry was a private driven sector and as such the budget associated with plantation industry was not reflected in his ministry’s budget allocation.
“Nevertheless, my ministry is tasked to supervise the growth of the industry. The amount of fund involved in the plantation industry under my charge was clearly spelt out in my winding-up speech last year,” he said.

On NCR land, Masing revealed that as of June 30 this year, some 181,106 hectares had been planted with oil palm compared to 173,483 a year ago.
Thus, the current perimeter survey exercise undertaken by the state government would facilitate NCR land owners to develop their land free of encumbrances, he stressed.

Masing also disclosed that Salcra had a total planted area of 50,115 hectares under oil palm, out of which 1,074 hectares were due for replanting besides the new areas totalling 5,286 hectares which were in various stages of development.

“Despite the decline in the average price of crude palm oil (CPO) and palm kernel (PK) for the first nine months of this year, Salcra and oil palm estates registered operating surplus of RM3.6 million and RM115.74 respectively.
“Similarly, Salcra’s palm oil mills in Bau, Serian and Saratok also achieved good profits before tax. Milling efficiency, coupled with continuous prudent cost control accompanied by effective and good management, has enabled Salcra and its participating landowners to achieve these commendable results,” said Masing.
He also reported that Felda had planted some 60,000 hectares with oil palm in the state by end of 10th Malaysia Plan.

He said Felda was embarking on the development of NCR land with some 500 hectares for oil palm under Phase I at Pasai-Siong near Sibu.
Meanwhile, the senior minister expressed his worry that that some 80 per cent of 98,092 workers presently employed by oil palm plantations in the state were Indonesians.

“As the industry in Indonesia is expanding very rapidly, it has become increasingly more difficult to get additional workers from that country, thus the state government is considering other source countries for the recruitment of foreign workers to ease the shortage.”
However, he pointed out that it would be a short term solution.
“Therefore there is an urgent need to come up with long term measures to resolve the problem of shortage of workers,” he said.
To him, the best solution was for local people to be willing to work in oil palm plantations and acquire skills so that they could command better salaries. He also highlighted the urgent need for more research and development (R&D) to increase mechanisation in field operations.


Read more: http://www.theborneopost.com/2012/11/28/thieving-community-leader-disappoints-masing/#ixzz2DkkJwyIP

Oil Palm Smallholders in Mukah

SIBU: Oil palm smallholders in Mukah and surrounding areas have made an urgent appeal to the government and the Malaysia Palm Oil Board (MPOB) to build a specific mill that would offer a standard price for their fresh fruit bunches (FFB).

Many of them are caught in a dilemma as the seven mills in Mukah are offering differing prices for their FFB.
As such they have no choice but to sell their products to the Sarawak Plantation Agriculture Development (SPAD), which currently offers the best price.

Unfortunately, they are forced to join a long queue if they desire so, depriving them of time, and causing great stress and hardship in their bid to sell their product.

Three smallholders, Sim Yau Chen, Kahim Byaru and Garai Badin, visited the PKR Lanang office yesterday to express their dissatisfaction with the MPOB and the government for refusing to look into their predicament.

“We have been waiting for a long time but MPOB appears to turn a blind eye to our request. We really hope MPOB, together with the government would give us some resolution,” Garai said.
Garai claimed he had to wait for two days on one occasion just to sell 15 to 20 metric tons of oil palm.

“The long queue is taking a heavy toll on our livelihood. If we join in the queue to sell our FFB, then there would not be anybody to take care of our business,” he said.
Kahim said the government and the MPOB were doing a disservice to them.

“On the one hand, they encouraged us to go into the oil palm industry but on the other hand, they are putting extreme pressure on us by refusing to lend support,” he said.
Kahim said they might be forced to quit the business if the mills continued to manipulate FFB prices.

PKR Lanang division chairman George Chen said the government and the MPOB should immediately step in to resolve this longstanding problem.
He said it was a waste of time and resources when smallholders are forced to wait by the roadside in front of SPAD’s office to sell their FFB.
“Naturally, the smallholders will choose the mills that offer the highest price and as a result they have to join in these long queues,” he said.

Chen said the situation worsened when other mills began ascribing a lower grade to the FFB before buying them while others chose to reject the FFB outright, saying it was not up to standard.

In the past, Chen said the mills offered a standard price for the FFB.
Recently, they had come up with different prices for different FFB grades, thus putting smallholders in a dilemma.

“If they want to sell their FFB to SPAD which offers the highest price at the moment, it would mean them having to sacrifice their time to join in the long queue,” he said.

Chen said under the grading system, one metric tonne for Grade A oil palm fetched RM661, Grade B RM567 and Grade C RM441.

Before the grading system, Chen said the smallholders used to sell their FFB at RM661.
“Now, some mills ascribe these FFBs under Grade C, hence offering RM441 per metric tonne. This is akin to robbing the smallholders of their hard work,” Chen said.
Meanwhile, a spokesman from MPOB when contacted by The Borneo Post yesterday said they would send enforcement officers to look into the matter immediately.
“There are various issues to look into including the quality and source of the FFB,” the spokesman added.



Read more: http://www.theborneopost.com/2011/09/23/mukah-oil-palm-smallholders-in-a-dilemma/#ixzz2D3CiwLAM

FFB Price Drop To RM 380 Only

Hopefully when the price increase, my Oil Palm is ready for harvesting.

Malaysia palm oil has a proven track record

KUALA LUMPUR: The Malaysian Palm Oil Council (MPOC) has slammed a French senator's proposed "Nutella tax" - the imposition of a 300% tax increase on palm oil -- and urged the French government to reject the plan.

MPOC chief executive officer Tan Sri Dr Yusof Basiron, in his rebuttal on Monday, described French Senator Yves Daudigny's tax plan as part of an aggressive and unprovoked attack against palm oil.

Expressing deep concern, he pointed out: "The proposal is based on inaccurate claims that palm oil is bad for health and nutrition, and that Malaysia does not respect the environment.

"Palm oil is a healthy, natural and important product which 240,000 small farmers in Malaysia are proud to produce." The Nutella tax to be voted on this week will raise taxes on palm oil by 300% and it is viewed as a strategy to add to the French Government's coffers but it is also aimed to reduce widespread consumption in the country.

According to wire reports, palm oil is used as the primary ingredient in France's favourite chocolate hazelnut spread as well as other pastries and processed foods. The average French person consumes two kg of palm oil a year, or 126,000 tonnes collectively.

The wire report said the proposed tax would translate to a 6 euro cent hike per kilo of Nutella, or 30 euro cents on giant 5 kg pots of Nutella most commonly used in restaurants and creperies across France.

Yusof urged the French government to reject the proposed tax which was part of an "aggressive and unprovoked attack against palm oil".

"Instead, Senator Daudigny should focus his efforts on all saturated fats. This campaign has already been the focus of a complaint by small farmers in Africa and Malaysia.

"These actions will significantly undermine the competitiveness of the French food industry - domestically and globally," it said.

Below is the statement issued by MPOC Chief Executive Officer Tan Sri Dr Yusof Basiron on the proposed “Nutella Tax” offered by French Senator Yves Daudigny: Malaysia is deeply concerned with French Senator Yves Daudigny's proposed 300 per cent tax increase on palm oil. The proposal is based on inaccurate claims that palm oil is bad for health and nutrition, and that Malaysia does not respect the environment.

Palm oil is a healthy, natural and important product which 240,000 small farmers in Malaysia are proud to produce. Contrary to Senator Daudigny's comments, every nutritional and food expert concludes that palm oil is in fact free of dangerous trans fats, free of GMOs and contains valuable vitamins.

A study from Fonds Francais Alimentation et Sant finds that replacing palm oil is a bad option for French consumers, potentially leading to a rise in the level of trans fat consumption. It is important that allegations or claims made about palm oil as high in saturated fat are assessed in relation to the total fats consumption of the French population.

The majority of saturated fats consumed in France comes from animal sources - from meat, milk, cheese and butter - not from palm oil.

The Senator's proposal to deny palm oil its rightful place in food manufacturing will not only be an economic and functional opportunity loss to industry, but also for the French people if they involuntarily consume worse alternatives such as hydrogenated (high trans fat) sunflower or rapeseed oil.

The French consume about 101kgs of meat per person per year with an average of 15kgs of saturated fat content. Milk consumption per person is 92.2 liters containing 4kgs of milk fats which belong to the saturated fats category.

Cheese has 30% animal fat content and the French are well known to consume 24kgs of cheese per capita, which provides 8kgs of saturated animal fats. Butter consumption is 7.3kgs per capita which is 100% saturated animal fats.

If we were to add this up, the total animal saturated fats from milk, meat, cheese, and butter per person per year is 34.4kgs. In comparison palm oil consumption per capita in France is only 2kgs. "Malaysian palm oil has a proven track record on efficient land use and conservation. Malaysia has over 50 per cent of its land committed to forest cover, and has designated just over 24 per cent of total land area for agricultural purposes.

In contrast, forest area in France covers just 28 percent of total land area - but agricultural land covers over 50 per cent of total land area.

Palm oil yields 4.13 tonnes of vegetable oil per hectare, or 10, 7 and 5 times the yields of soybean, sunflower and rapeseed, respectively, and occupies less than 5 per cent of land under oilseed cultivation. The action taken by French Senator Daudigny, to propose onerous new burdens on palm oil producers, is irresponsible, badly-informed and ignores the primary source of saturated fats in the French diet.

Not only will the legislative proposal hurt local business communities in France, which have opted to use palm oil for its superior economic and functional attributes, but the attack comes after the start of talks by Malaysian palm oil representatives with French leaders, industry and civil society to work together to correct misperceptions about palm oil.

Over 240,000 small farmers across Malaysia depend on palm oil for their livelihood. In addition to this, many thousands of other jobs in Malaysia depend upon related industries.

Senator Daudigny's actions jeopardize the livelihood of these farmers. We call upon the French government to reject the proposal by Senator Daudigny. Senator Daudigny's proposed tax is part of an aggressive and unprovoked attack against palm oil. Instead, Senator Daudigny should focus his efforts on all saturated fats. This campaign has already been the focus of a complaint by small farmers in Africa and Malaysia. These actions will significantly undermine the competitiveness of the French food industry - domestically and globally.

Source : The Star

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Various incentives for oil palm smallholders to raise output

KOTA MARUDU: The government is always appreciative and recognises the contribution and role of oil palm smallholders in the country.

To this end, the government provides the oil palm smallholders with various opportunities and incentives which they can use to improve productivity and increase their income.

“The encouraging palm oil industry growth has contributed vastly to the country’s economic growth and in 2011, oil palm plantations in Malaysia made up to five million hectares which is 73.2 per cent of the total agricultural land in the country”, Plantation Industries and Commodities Minister Tan Sri Bernard Dompok said.

Speaking at a gathering with oil palm smallholders from the district yesterday, Dompok disclosed that of the five million hectares planted with oil palm in the country, 40 per cent belonged to smallholders making them a force to be reckoned with in the country’s palm oil industry.

He also disclosed that export revenue derived from palm oil products recorded a high last year at RM83.4 billion which was an increase of 34 per cent compared to RM62.2 billion in 2010.

“With anticipated revenue growth, the average annual income of oil palm smallholders is also expected to increase by 47 per cent from RM4,794 in 2010 to RM7,047 by 2020,” he said.
Dompok also said that under the Sustainable Palm Oil Cluster concept, the setting up of Sustainable Oil Palm Growers Cooperative by smallholders is in line with the country’s Commodities Policy.

Under this concept, smallholders will be guided on practices to increase productivity as well as using quality palm oil based products that is in accordance with the priciples as well as sustainable palm oil production.
To ensure that the sustainable palm oil production’s objective is achieved, the Malaysian Palm Oil Board is currently holding a campaign to certify smallholders as well as to provide them with awareness and exposure towards producing sustainable products.

“The government also encourages smallholders to cut down rubber trees aged 25 and above so that they can replant new trees. For this purpose the government has allocated RM1.02 billion for 2011 and 2013, The fund will be channelled through the Malaysian Palm Oil Board (MPOB) under the palm oil National Key Result Area (NKEA).
“Under this programme, smallholders will be given RM9,000 in quality seedlings for each hectare of their plantation. The financial assistance also covers input and management aid according to the Good Agriculture Practices to ensure high quality produce,” he said.

Smallholders with plantations less than 2.5 hectares will also be qualified for the management assistance fund of RM500 a month for two years, he said and urged smallholders who qualify to immediately contact MPOB to apply for the assistance.

In the context of mechanisation, MPOB is also offering a discount scheme for smallholders who wish to purchase the cantas, a mechanised harvesting tool. Dompok said that RM5.3 million had been allocated under the scheme where smallholders would be entitled to RM1,000 for the purchase of each cantas.

During the event, he also launched MPOB Kota Marudu’s branch, the Kota Marudu Persatuan Pekebun Kecil Sawit Bumiputera Kota Marudu and presented assistance to qualified smallholders.


Read more: http://www.theborneopost.com/2012/11/13/various-incentives-for-oil-palm-smallholders-to-raise-output/#ixzz2C7EVyn8D

Govt should provide more assistance to oil palm smallholders under Budget 2013

KUALA LUMPUR: The government has been asked to provide more assistance to smallholders under Budget 2013 in efforts to spur them to produce high quality oil palm fruits.

Malaysia Palm oil Board (MPOB) Chairman Tan Sri Shahrir Abdul Samad said assistance can be extended in the form of replanting incentives, adopting new methods and latest technologies to plant oil palm.

He said smallholders in Peninsular Malaysia are given RM7,500 per hectare under the replanting scheme and RM9,000 for a hectare for smallholders in Sabah and Sarawak.
“We want to see assistance being extended in the form of high-yield oil palm seedlings, using good quality fertilisers and adopting the best method to plant oil palm,” he told a media conference yesterday.

Currently, 13.8 per cent (excluding Felda) of the five million hectares of oil palm estates were under smallholders, he said.
“With such incentives from the government, we hope the smallholders can increase their oil palm output and become more productive, if
possible equally high and of the same quality from oil palm estates owned by big plantation companies,” he said.
Shahrir also said the MPOB has established a cooperative to help smallholders with their activities in oil palm estates. — Bernama


Read more: http://www.theborneopost.com/2012/09/13/govt-should-provide-more-assistance-to-oil-palm-smallholders-under-budget-2013-shahrir/#ixzz2C2vuF2gz

MPOB lancar MPOB F2 Super K

KOTA KINABALU 10 Sept. - Lembaga Minyak Sawit Malaysia (MPOB) hari ini melancarkan formulasi baja bio dikenali sebagai baja MPOB F2 Super K sempena Persidangan Kebangsaan Pekebun Kecil Sawit 2012 di sini.

Pengerusi MPOB, Tan Sri Shahrir Abdul Samad berkata, baja MPOB F2 Super K itu dapat membekalkan nutrien seimbang dan sesuai digunakan di kawasan tanah gambut sekali gus mampu meningkatkan hasil sawit dan pendapatan pengusaha sawit.

"Penggunaan baja jenis ini yang mengandungi bahan mineral bermutu tinggi akan membantu tumbesaran pokok sawit di samping meningkatkan kecekapan penyusupan air dan mengekalkan nutrien serta meningkatkan kualiti tanah untuk jangka panjang.

"Ia juga membolehkan pertumbuhan yang lebih baik selain meningkatkan kecekapan dan nilai baja," katanya pada Persidangan Kebangsaan Pekebun Kecil Sawit anjuran Lembaga Minyak Sawit Malaysia (MPOB), di sini hari ini.

Pelancaran baja baru itu disempurnakan Timbalan Menteri Perusahaan Perladangan dan Komoditi, Datuk Hamzah Zainuddin Hadir.

Pada majlis itu, MPOB turut menyerahkan mesin pemotong buah sawit bermotor dikenali sebagai Cantas kepada Koperasi Penanaman Sawit Mampan Daerah Tongod, Kunak, Kinabatangan, Tawau, Beluran dan Keningau.



Artikel Penuh: http://www.utusan.com.my/utusan/Korporat/20120911/ko_02/MPOB-lancar-MPOB-F2-Super-K#ixzz2BpajkgyO
© Utusan Melayu (M) Bhd

AAR Seedling 8 Months After Field Planting

The AAR oil palm can be harvested two years after planting. The production of fresh fruit bunches for the first two years is 30% higher than normal DxP according to study.

The seedling were planted in Mac 2012 and now is about 8 months after field planting.

Overripe Bunches

My four years old oil palm (planted 2008). Harvesting suppose to be every two week but no worker this month resulting late harvest.

Skim Tanam Baru Kelapa Sawit

Harap dapat skim ini dari kerajaan kerana kos input yang meningkat sekarang. Semakin ramai pekebun kecil di Sarawak yang mula merasa bebanannya terutamanya apabila harga satu tan buah tandan segar hanya RM400 sahaja.

Borang boleh dimuat turun dari laman web mpob.gov.my. Biasanya setiap pemohon akam mendapat 1 ha sahaja sebab tanah NCR di Darawak sukar untuk disahkan kerena tidak mempunyai gran tanah .

Had bantuan maksima bagi setiap pemohon adalah 5 hektar.

SKIM TANAM BARU SAWIT PEKEBUN KECIL

SERIAN: Kerajaan melalui Lembaga Minyak Sawit Malaysia (MPOB) akan membantu pekebun kecil sawit yang layak bagi menanam semula tanaman sawitnya dan juga bagi mereka yang baru ingin menanam.

Mereka yang layak akan menerima bantuan kewangan sebanyak RM7,000 bagi setiap hektar yang diusahakan di bawah Skim Tanam Semula Sawit Pekebun Kecil (TSSPK) dan Skim Tanam Baru Sawit Pekebun Kecil (TBSPK).

Had bantuan maksima bagi setiap pemohon adalah 5 hektar. Menteri Perusahaan Perladangan dan Komoditi, Tan Sri Bernard Dompok berkata demikian ketika berucap merasmikan program Pemimpin Bersama Pekebun Kecil Sawit di Dewan Rekreasi Ranchan, di sini baru baru ini.

“Kerajaan ingin membantu pekebun kecil sawit meningkatkan pendapatan dan taraf sosio-ekonominya melalui peningkatan penghasilan Buah Tandan Segar (BTS) tanaman sawitnya.”
“Kita membantu mereka menanam semula pokok sawit tua yang melebihi umur 25 tahun dengan anak benih berkualiti yang berupaya menghasilkan BTS yang tinggi.”
“Selain itu, Kerajaan juga memperuntukkan Bantuan Penyelenggaraan Kebun (BPK) sebanyak RM500 sebulan selama 24 bulan kepada mereka yang lulus bantuan Skim TSSPK.”
“Kita mensasarkan akan menyalurkan BPK kepada 1,200 pekebun kecil yang memiliki keluasan maksima 2.5 hektar tanaman sawit dan memenuhi syarat yang ditetapkan,” katanya.
Tan Sri Bernard Dompok berkata bantuan RM7,000.00 itu disalurkan kepada mereka yang layak untuk membiayai kos pembersihan, penyediaan kebun dan anak benih berkualiti akan dibekalkan oleh MPOB.
“Bantuan itu juga meliputi kos pembelian baja bagi anak pokok yang baru di tanam itu untuk tempoh dua tahun,” katanya.

Bantuan yang disediakan itu akan memberi manfaat kepada pekebun untuk tempoh jangka masa panjang dan menggesa mereka terlibat supaya mendapat bekalan anak benih berkualiti dari pengusaha tapak semaian.
Pekebun juga digalak mendapatkan khidmat nasihat MPOB dan melaksanakan Amalan Pertanian Baik bagi meningkat produktiviti selaras dengan visi untuk mencapai purata 26 tan sehektar setahun BTS menjelang 2020.”

Peningkatan produktiviti BTS dan minyak sawit adalah agenda utama Kerajaan bagi merealisasikan sasaran penjanaan pendapatan sektor sawit di bawah Bidang Ekonomi Utama Nasional (NKEA).
Beliau berkata, Negeri Sarawak mempunyai 10,417 pekebun kecil berdaftar dengan MPOB dengan keluasan 58,800 hektar.
Turut hadir pada majlis itu ialah Timbalan Menteri Luar Negeri, Datuk Richard Riot yang juga Ahli Parlimen Serian dan Pengarah Pelesenan dan Penguatkuasa, Adzmi Hassan mewakili Ketua Pengarah MPOB, Datuk Dr Choo Yuen May.


Read more: http://www.theborneopost.com/2011/04/15/pekebun-kecil-dibantu-tanam-sawit-di-bawah-skim-tsspk-dan-tbspk/#ixzz2AP2atp8G

AAR higher Production

MPOB is willing to sponsor the producers of clones and planters who planted them in order to encourage both parties to promote the production and planting of oil palm clones. Due to the high yield of oil palm clone and high value of fresh fruit bunches, the profit for planters is high.

According to the estimate of MPOB, the areas planted with clones in 2005 are about 29,000 hectares. According to the analysis of age of oil palm plantings in Malaysia, 22% or 880,000 ha have to be replanted and 120,000,000 oil palm seedlings are needed. To culture such a large amount of oil palm clones will be time consuming and the solution is to produce clonal seeds. This has been mentioned in Agroworld issue no. 199. Clonal seeds come from the selected parents which has been cloned. The first generation seeds from parent clonal palms are called bi-clonal F1 seeds. Besides United Plantations Berhad, a few plantation companies produce this type of seeds. The yield of these planting materials is approximately 7-8 t/ha/year.

The abnormality of oil palm clones is always there but the severity is lower if compared to the past. According to researcher from FELDA, the clones need to be checked carefully when they are in the tissue culture laboratory and nursery. Any abnormal clones need to be discarded immediately to reduce abnormality in the field to at most 4%.

Oil palm clones are precious. They should be planted in optimal area for oil palm growth. This includes good soil, sufficient rainfall, with legume cover crop for protecting the soil and providing nitrogen, weeding, manuring, pest and disease management. Sufficient and balanced fertilizer is very important. Research has shown that the fertilizers needed by oil palm clones and normal DxP palms are the same.

Smallholder Palm Oil Cluster: Sharing MPOB's Experience

According to Wahid Omar, Nazirah Che Jaafar and Nur Hanani Mansor Malaysian Palm Oil Board (MPOB)
Malaysian oil palm smallholders are makeup of organized and independent smallholders. The organized smallholders are managed by government agencies such as Federal Land Development Authority (FELDA), Federal Land Consolidation and Rehabilitation Authority (FELCRA), Rubber Industry Smallholders Development Authority (RISDA) etc.

The independent smallholders are managing their own oil palm farms and getting some assistance from the government. In 2007, MPOB had established Integration Research and Extension Division to organize the independent smallholders and improve their living status by increasing their income.

Currently there are about 180,000 independent smallholders which owned 13.6% of the total oil palm area in Malaysia. These smallholders are facing problems such as small land holding, low oil palm productivity, lack of oil palm technologies and unorganized.

To assist these smallholders, MPOB had stationed extension workers (TUNAS) all over the country especially in area with high concentration of independent smallholders. The tasks of TUNAS are to group and organize the smallholders by establishing Sustainable Palm Oil Cluster (SPOC). They are also carried out trainings and gathering of smallholder’s information to increase their oil palm technical knowledge and disseminate government assistance respectively. The Malaysian government is encouraging the smallholders to undergo sustainable certification. Currently they are voluntarily been certified under Good Agriculture Practices (GAP) and MPOB Codes of Practice (CoP) certification.

The CoP certified SPOC will be further certified for Roundtable on Sustainable Palm Oil (RSPO). The government had allocated several funds (RSPO and NKEA) to assist the smallholder certification. Beside environmental friendly, the certification will help in increasing the smallholder oil palm production.

The cooperative was established within the SPOC to administer the group and carry out business of buying and selling of fresh fruit bunches and agriculture inputs to benefit the SPOC’s members. It is the MPOB plans that SPOC will be a catalyst for the independent smallholders to improve themselves independently in future.

MORE LUCRATIVE: Former pepper smallholder now earns more money through the government’s oil palm initiative

SIBU: SALIMAH Kanawang changed for the better when she was given the opportunity to participate as a smallholder in a new oil palm planting scheme.

The scheme, managed by the Malaysian Palm Oil Board (MPOB), allows Salimah to earn an average of RM3,000 monthly, more than what she used to earn previously by planting pepper and taking other odd jobs on the side.

"Our small pepper farm gave us a stable yield and some income for the family, but it was just not enough. The pepper plants were quite sensitive to weather conditions. If the weather was bad, we would get a poor harvest," she said.

Since getting involved in MPOB's scheme, Salimah has harvested a total of 40.33 tonnes of fresh fruit bunches from 2.8ha of her land between January and August 2011.
In addition, MPOB provides support like fertilisers for the first two years, and soft and hard skills training.
They also advise her on how to better manage her smallholding.
"I work on the smallholding with members of my family.
"This means that all the earnings from the land are for my family.
"We are happier and can live more comfortably than before," said Salimah, who uses the MPOB-invented Cantas motorised cutter, which cuts her daily harvesting time by half.

With the stable monthly income, a labour-saving harvesting process, increased knowledge on plantation management and a support system, Salimah is able to continuously improve her business.

Recently, her dedication towards her family's smallholding earned Salimah the title of best performing female palm oil smallholder in Sarawak by MPOB.
Plantation Industries and Commodities Minister Tan Sri Bernard Dompok said he was glad to note that encouraging results were displayed in the sector, stemming from the efforts of Entry Point Projects which accelerate replanting and new planting of oil palm trees.
"Impacts were apparent in the replanting initiatives, where the industry maintained the hectarage of land replanted with regard to previous year's records, despite high process of crude palm oil."
Dompok said the industry also managed to reverse the annual downward trend for Malaysia's oil extraction rates, contributing signifcant Gross National Income (GNI) to the economy.

Palm oil, the most important commodity, has a planted area of 4.9 million hectares with a production of 17 million tonnes of palm oil in 2010. Malaysia is the largest exporter of palm oil and exports it to more than 100 countries with export earnings of RM62 billion.

Being a National Key Economic Area under the Economic Transformation Programme, the industry is targeted to achieve a GNI of RM178 billion by 2020.


Read more: Woman's switch to higher income - General - New Straits Times http://www.nst.com.my/nation/general/woman-s-switch-to-higher-income-1.64658#ixzz2A5vWNdj9

Malaysian Palm Oil Board (Licensing)

Malaysian Palm Oil Board (Licensing) Regulations 2005 that was put into effect on 1st January 2006, require that all those involved in the palm oil business obtain appropriate licenses from MPOB. This includes the production, sale, purchase, movement, storage, commence construction of oil palm mill, milling, commence construction of bulking facilities, survey, test, export and import of oil palm products. Regulation 5(1) states that no persons shall involve in those activities unless he is a holder of an appropriate license issued under these Regulations

The main objectives of these Regulations are to regulate and coordinate all activities related to the palm oil industry, to check malpractices that are detrimental to the industry, and to conduct quality control of palm oil products produced and traded.

Regulation 5(3) of the Malaysian Palm Oil Board (Licensing) Regulations 2005 states that :

"Any person who contravenes Regulation 5(1) commits an offence and shall be liable on conviction to a fine not exceeding two hundred thousand ringgit or to a term of imprisonment not exceeding three years or to both "

Schemes To Produces 2,000 Millionaires

Assistant minister says success of new concept of NCR land devt shows govt sincere in helping rural land owner. There should not be any more doubts about the government’s new concept of native customary rights (NCR) land development as it has turned more than 2,000 participants of its schemes with 50 acres of land into millionaires.
Assistant Minister in the Chief Minister’s Office (Bumiputera Entrepreneur Development) Datuk Mohd Naroden Majais said yesterday the new concept NCR land development with joint-venture (JV) companies was to help rural Bumiputera communities reap returns from their land.
“Through our NCR land development and new concept through JV, about 2,000 landowners who have 50 acres and above now are holding an asset worth a million ringgit. Therefore, we can say that the scheme has created not less than 2,000 rural Bumiputera millionaires,” he said.

Explaining further, Naroden added, “In the current market, assuming one acre of matured palm oil can yield about RM20,000, then 50 acres would easily make RM1,000,000. Although you do not make one million immediately, but at any one time if you needed money, you can sell the land to investors. Fifty acres could easily get you RM1 million.”

The assistant minister was speaking to reporters after officiating at the launching of Kuching Polytechnic ‘C U@Poliku’ programme at the campus here yesterday.
Higher Education Ministry’s Polytechnic Education director-general honorary Major Mohd Nor Yusof, Polytechnic Kuching director Clara Ong Guat Leng, deputy director for Academic Shamsuria Mohd Ariffin and deputy director for Academic Support Jemain Ental were also present.
Naroden added that through the NCR land development schemes, those who owned land in the rural areas could develop their asset without incurring any cost.

“No matter how much land one owns, that person will not receive anything if their land is not developed. Once you developed it, it will yield results. Their land will become an important asset,” he pointed out.
He highlighted that the land development concept had also produced business opportunities in labour supply, fertiliser supplies, logistic and many more, contributing to higher income for the people involved.
Naroden urged people who had their lands surveyed to participate and develop their land through the new NCR land development JV concept.
He stressed that the government was honest in developing the NCR land and there was never any hidden agenda in the scheme.
“The state just wants the people to benefit and make profit through their land. Allegations that the government is stealing land should not arise anymore,” he continued.
Meanwhile, Kuching Polytechnic ‘C U@Poliku’ programme from Oct 12 until 20 was held to bring the public closer to the institute especially in exposing its engineering, information technology and business courses. Polytechnic Kuching also held the programme to encourage innovation and entrepreneurship among the students.
Among the activities held during the nine-day programme were campus open day, career talk in the oil and gas industry, exhibition, various competitions and entrepreneurship programmes.
Selected students from nearby secondary schools were invited for a night’s stay at the campus to gain experience and familiarisation on higher learning culture.
“A business centre activity is very important to expose students and gaining experience to become a successful entrepreneur. Entrepreneurship skills is a very important element in the soft skills domain that should be given attention to,” said Naroden in his officiating speech earlier.
Ong who also spoke at the ceremony, defined the ‘C U@Poliku’ as a high impact programme to ensure the campus meet its aspiration to become a catalyst in technical studies and vocational training.


Read more: http://www.theborneopost.com/2012/10/18/scheme-produces-2000-millionaires/#ixzz29bLnhQZS

More Funding For Oil Palm Replanting

The agriculture sector received a huge allocation of RM5.8bil under Budget 2013 given its high priority status to boost national income and also, for food security.

In addition, RM30mil will be allocated for agricultural development including high-technology applications in fruit and vegetable production, increasing the supply of high-quality seedlings, price stabilisation through direct selling from farms, establishment of fish markets as well as improving agricultural training institutions.


Boon: ‘I believe this replanting allocation is meant for smallholders.’
The Government will also allocate RM75mil to boost the output of food and health products.

For the plantation sub-sector, the Government will allocate RM432mil under the National Key Economic Areas (NKEA) for oil palm replanting, increasing the annual oil palm yield to 26.2 tonnes per ha in 2020 from 21 tonnes currently.

Industry players contacted said the move to encourage oil palm replanting was good especially to address the current high palm oil stocks above two millon tonnes in the country.

This can also help to stabilise palm oil price which is trading at the RM2,500 per tonne range, down by about 18% so far this year, they added.

Malaysian Estate Owners Association president (MEOA) Boon Weng Siew said: “I believe this replanting allocation is meant for smallholders to help them manage the high cost of replanting and not for private plantations.”

Previously, a smallholder received about RM7,000 per ha for replanting purposes, he added.


Sabri says FGVH has been undertaking aggressive replanting.
Therefore, smallholders including Felda settlers would likely be major beneficiaries. Via replanting, smallholders yield is expected to increase hence increasing their income.

The Government has forecast the income of an oil palm smallholder to grow by 47%, from RM4,794 per ha in 2010 to RM7,047 by 2020.

Felda Global Group president Datuk Sabri Ahmad told StarBiz recently that the group has been undertaking aggressive replanting to counter its high old age palm tree profile of above 18 years.

“We are replanting about 15,000ha per year and hopefully with the next three to five years, Felda Global Group palm tree profile will be restored,” he noted.

Similarly, plantation group United Malacca Bhd has also undertaken aggressive replanting over the past few years, said its chief executive officer Dr Leong Tat Thim.

He said the weighted average of the group’s palm tree above 25 years olds was only about 2%.

Leong concurred that the high replanting allocation by the Government under Budget 2013 would encourage smallholders which have been reluctant to undertake replanting due the the high CPO price over the past three to four years.


Leong says the allocation will encourage smallholders.
On the allocation of RM127mil for development of high value oleo derivatives to transform the downstream sector towards higher production of derivatives, Leong said: “This is a good move to encourage oil palm refiners to consider venturing into more high-end finished downstream products.”

On the RM1.5bil allocation to stabilise the cooking oil price in the country, Boon said: “This allocation actually will come from the cess and the windfall profit tax (WPT) collected from local plantation companies.”

For peninsula-based oil palm plantation players, a 15% WPT will be imposed when the CPO price threshold reach RM2,500 per tonne and above.

For Sabah and Sarawak oil palm planters, a 7.5% WPT will be imposed when the CPO price hit RM3,000 per tonne and above.

To ensure food security, four new padi granaries will be developed and expanded in Kota Belud, Batang Lupar, Rompin and Pekan.

Currently, 389,000ha of cultivated padi granaries are able to produce up to 1.8 million tonnes.

With an expenditure of RM140mil, the four new paddy granaries with acreage of 19,000ha and involving 12,237 farmers are expected to produce 104 tonnes.

The Government will continue to provide subsidies and incentives amounting to RM2.4bil to assist farmers.

Small Scale Oil Palm Grower

There is growing number of small scale oil palm grower in Serian. Most of them seen the vast potential of it generating income.

Oil Palm at Hilly Land

It is difficult to manage oil palm at an hilly area but you have little choice if you don't have any other land beside this.

4 Months After Field Planting

AAR Seedling after 4 months of field planting. Hope this special seedling will produce bountiful fruits.

Formula untuk Berjaya

Secara amnya, pokok matang kelapa sawit (7-10 tahun) mampu menghasilkan 10-12 buah tandan segar setahun. Sekiranya berat setandan 20kg setiap bulan, dimana kepadatan sehektar 148 pokok, maka 35.5 tan/ha/tahun bakal diperolehi.

Sepokok kelapa sawit mampu menjana RM0.50 x 20 x 12 = RM120 setahun

Bountiful Harvest

Oil Palm being send to Seminkeng Oil Palm Mill, Mongkos for processing.

4th Year Oil Palm

4th year (2008) after field planting

Oil Palm Mile

5 tonnes truck is sufficient for smallholder

Planting AAR Seedling

Opening new area with new planting material.