Oil Palm Industry Economic Journal Vol. 8 (1) March 2008 p. 24-30

Malaysian Palm Oil Supply Chain: The Role of the Oil Palm Nursery Operators

Ayat K Ab Rahman, Ramli Abdullah, Faizah Mohd Shariff and Mohd Arif Simeh
Received:    Accepted:    Available Online:


The function of the oil palm nursery sector is to produce high quality oil palm planting materials to the growers. Therefore, to ensure the smooth operation of the whole supply chain of the Malaysian palm oil industry, this subsector should operate efficiently. Ineffective management at this point will affect directly the efficiency of the oil palm producers and indirectly the other subsectors in the oil palm chain. Hence, when some of the oil palm nursery operators are inefficient, the producers and other subsectors will be negatively affected. A study found that there is room for improvement to enable these nursery operators to become efficient. Among others, they can become efficient if they are subjected to mandatory oil palm nursery certificates of competency (OPNCC). Sufficient knowledge on how to operate their nurseries well should be provided, especially to the new operators. Elements of inefficiency among some of them could thus be solved through MPOB to ensure that they are able to produce seedlings of a high quality.

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