Oil Palm Industry Economic Journal Vol. 3 (1) March 2003 p. 1-7

The Production Cost of Oil Palm Fresh Fruit Bunches: the Case of Independent Smallholders in Johor

Azman Ismail; Mohd Arif Simeh and M Mohd Noor
Received:    Accepted:    Available Online:


Like in other perennial crops, the Malaysian oil palm smallholding sector can be broadly categorized into organized and independent smallholders. Despite the overall decline in oil palm smallholdings recently, there has been an expansion of the independent smallholdersí land from 287 000 ha in 1999 to 320 000 ha in 2000. However, due to the unorganized nature of the latter, updated data and information pertaining to the performance of such smallholdings are limited. This paper attempts to overview the economic performance of these smallholders based on a survey in Johor, which has the largest number of independent smallholders (45%) and the largest independent smallholdings (40%) in the country. The paper also discusses the production cost structures of the independent smallholders compared to their counterparts in the organized smallholder sector as well as with estates.

About Post Author