Monday May 31, 2010

Shortage of oil palm seedlings

By JACK WONG
jackwong@thestar.com.my

Demand set to rise as Sarawak steps up development of oil palm plantations

KUCHING: Sarawak, which is facing a shortage of oil palm seedlings, is expected to see rising demand as the state has yet to develop a quarter of its target of one million hectares of oil palm plantations, said State Assistant Minister in the Chief Minister’s Department Naroden Majais.

He told an oil palm seedling entrepreneurship course here recently that Sarawak needed 16.4 million seedlings last year but the supply only amounted to 10 million.

Juara Beetuah Sdn Bhd managing director Michael James attributed the shortage in Sarawak, especially over the past two years, mainly to exports of oil palm seedlings to Kalimantan, Indonesia.

He said such sales had however abated as the Indonesian plantations, most of which were owned by Malaysian firms, had started their own nurseries.

Juara Beetuah, a major seedling producer and the only company in Sarawak awarded the competency certificate by Malaysian Palm Oil Board (MPOB), owns nurseries in Lundu (Kuching Division), Bintulu and Lawas in northern Sarawak.

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James said his company produced up to 100,000 seedlings a year, which were mainly supplied to MPOB. The latter then distributes them to smallholders

Juara Beetuah’s other customers are government agencies like Sarawak Land Consolidation and Rehabilitation Authority and Felda, which are involved in plantation projects.

“We produce based on advance contracts. On top of that, we produce another 10% for the market,” he told StarBiz.

Juara Beetuah uses high-yield clones that are able to produce between 28 and 33 tonnes of fresh fruit bunches per hectare a year.

However, James said the output would depend on several factors such as soil conditions and plantation management methods.

The company sells seedlings for RM8 to RM12 each, depending on transportation costs.