Oil Palm Industry Economic Journal Vol. 18 (2) September 2018 p. 1-9

Contributions of Agricultural Cooperatives Towards Oil Palm Smallholder Communities

Sarmila M S*; Zaimah R*; Novel Lyndon*; Rosniza Aznie Che Rose*’; Sivapalan Selvadurai*; Rusyda Ramly*; Nur Hanani Mansor**; Aki@ Zaki Aman**; Nazirah Jaafar**; Khairul Anwar Isnin** and Mohammad Arfan Johari**
Received:    Accepted:    Available Online:


A cooperative is an alternative model for community development which is able to meet the needs of the local community in enhancing their economic activities. This study aimed to evaluate the contributions of cooperative organisations to the agricultural community, focusing on the oil palm smallholders’ (OPS) communities in Malaysia. Questionnaires were distributed as an instrument for data collection in the study. A total number of 40 members of the Sustainable Oil Palm Cultivation Cooperative (SPOCC) from Temerloh district agreed to be the respondents of this study. A descriptive analysis was conducted including an analysis of the mean, frequency, percentage and standard deviation. The study found that SPOCC had contributed to the increase in income and standard of living of the smallholders. The study also found that the cooperative assisted in marketing their agricultural produce, provided access to farming inputs, enhanced their agricultural skills, monitored the communities’ agricultural activities, provided employment opportunities, strengthened the relationship among smallholders, and managed agricultural activities and facilities. However, several elements need to be given attention to improve the current contribution, such as providing farming technology, loans, and capital assistance, increasing community participation, and assisting in crop infrastructure. The study’s results show the potential of cooperatives in efforts to assist in the development of oil palm smallholders’ communities.

Keywords: oil palm smallholder, sustainable oil palm cultivation cooperative (SPOCC), agriculture

About Post Author


* Pusat Pengajian Sosial Pembangunan
dan Persekitaran,
Fakulti Sains Sosial dan Kemanusiaan,
Universiti Kebangsaan Malaysia,
43600 Bangi Selangor,

E-mail: sarmila.mdsum@ukm.edu.my

** Malaysian Palm Oil Board,
6 Persiaran Institusi,
Bandar Baru Bangi,
43000 Kajang Selangor,