Vol. 19 (1) March 2019 – OPIEJ

Impact of Economic Stimulus Package II Incentive Scheme (PRE2) on Yield and Income of Oil Palm Smallholders in Peninsular Malaysia

mpob_admin — Thu, 21 Mar 2019 00:52:15 +0000

Oil palms more than 25 years old are no longer productive and high cost to harvest, thus affecting the income of the smallholders. These old palms need to be replanted using high quality planting materials obtained from nursery operators who meet the Code of Practice for Nursery (CoPN). Since smallholders in Peninsular Malaysia have limited land holding and capital, government has introduced the Stimulus Economic Package II Incentive Scheme (PRE2) to help smallholders to replant their old palm between 2009 and 2010. This replanting scheme provides a grant amounted to RM 6000 per hectare for covering the cost of land clearing, purchasing of oil palm seedlings, fertilisers, pesticides and herbicides. The early impact of the replanting program, especially on the first year of fresh fruits bunches (FFB) yield and the gross income among the PRE2 participants was assessed. The influence of participant background, particularly age, level of education and status of smallholders on FFB yield was also determined. Research method involved face-to-face interview assisted by pre-prepared questionnaires and field observations to a total of 248 samples of smallholders. Descriptive statistics were used to analyse FFB yield and income for the first year. Cross tabulation and correlation analysis were used to evaluate the relationship between respondents background and their FFB yield. The study found that the participants of the PRE2 incentive scheme produced 9.28 t/ha/yr of FFB in the first year of harvest, with a total estimated income of RM 4344/ha/ yr. The study also found that there was no significant relationship between FFB yield and the background of PRE2 incentive scheme participants. Other factors that may affect the FFB yield among the participants could be the adoption of good agriculture practices.

Keywords: oil palm replanting, FFB yield, independent smallholder, assistance scheme

Relationships between Job Satisfaction and Job Factors among Extension Agents in the Malaysia’s Oil Palm Industry

mpob_admin — Thu, 21 Mar 2019 00:48:53 +0000

This study was conducted to determine the level of job satisfaction and its relationships with job factors among extension agents involved in Malaysia’s oil palm industry. Data were collected by a census method using self-administered questionnaires from a total of 254 respondents. The Minnesota Satisfaction Questionnaire (MSQ) was used to measure job satisfaction of the respondents. Data were analysed using SPSS version 21.0. The results indicated that the job satisfaction level amongst the extension agents was high. This study also found that there was a significant positive relationship between job satisfaction and job factors, namely salary, promotion opportunities, supervision, co-workers, work environment and the work itself. To ensure continuous job satisfaction amongst extension agents, contributing factors towards job satisfaction should be given attention and maintained by the organisation.

Keywords: job satisfaction, extension agent, job factors, oil palm industry

The Cost Components of Occupational Accident in Oil Palm Plantations in Malaysia

mpob_admin — Thu, 21 Mar 2019 00:44:40 +0000

The cost of accident has a major impact on the company’s financial performance. This article concerns on the cost of occupational accidents incurred planters during an accident in a plantation. It proposes a method to identify the accident cost based on harvest delays by using timeline penalty. The research objective is to develop a method for identifying the accident cost by using empirical data based on case studies. The results showed that the output loss was the highest contributor to the accident cost calculation. However, the cost may vary due to the situation and condition of the injured workers, such as temporary disability (TD), permanent disability (PD) and death (D). These cost components can be useful parameters for cost benefit analysis of accident prevention plan. This research aims to help companies improve their awareness of accident prevention, develop cost of accident analysis skills, implement a future plan in managing safety risk and actively participate in global safety and health issues. This study offers to bridge the significant gaps between research knowledge in current policy and practice, the collaboration of trade unions and employer’s representative, demand for public health services and other welfare agencies and increase the safety awareness of employers.

Keywords: accident cost, agriculture, palm oil plantation, timelines penalty

The Impact of Social Network Towards Oil Palm Independent Smallholders

mpob_admin — Thu, 21 Mar 2019 00:37:12 +0000

The important indicator in measuring the effectiveness of oil palm plantation was based on the production of fresh fruit bunches (FFB) and crude palm oil (CPO) per hectare. The social network can be defined as a system of social linkages with other members of the community on whom one can rely (family, neighbours, members of same organisations). Social networks can thus be considered as a powerful mean to foster the diffusion of information and knowledge as well as to reduce the uncertainty and transaction costs. Access to information and influence through social networks also confers private benefits for individuals. In some cases, it can be used by individuals or groups to exclude others and reinforce the dominance or privilege of social network for independent smallholders in the study areas. Two study areas with different FFB production achievement were selected, namely Pontian and Simpang Renggam in Johor. This study was undertaken to investigate how social network plays an important role in increasing the FFB production. Qualitative approached was conducted on three categories of informants, including oil palm smallholders, extension agent and a person who is assigned as a leader at the area or authorised person through face-toface interviews. The convenient sampling technique was used according to preselected criteria associated with particular research questions. The positive social networks among the informants of this study suggests that good FFB production is a feature that facilities the decision making of problem solving and information distribution platform.

Keywords: social network, oil palm, FFB production, independent
smallholders

Sunflower Oil Industry in Russia and its Impact on Import of Malaysian Palm Oil

mpob_admin — Wed, 20 Mar 2019 23:57:02 +0000

Russia is the second largest producer of sunflower seed and sunflower oil in the world after Ukraine. According to the Oil World, a total of 10.90 million tonnes of sunflower seed was produced in 2017/2018 season and in 2018/2019, the country is expected to produce 11.40 million tonnes due to better returns and higher demand from the domestic processing sector. Trade in sunflower seed is small due to higher domestic demand and the imposition of export tax. In 2017, a total of 4.66 million tonnes of sunflower oil was produced which about 50% was exported and the rest was consumed domestically. Since 2012, Russia is a net exporter of oils and fats, with export of sunflower oil increasing to more than one million tonnes and gradually becoming an important player in the sunflower oil trade. In terms of imports, palm oil is the main vegetable oil imported by Russia with the major suppliers from Indonesia and Malaysia. This study aims to determine the factors influencing demand for palm oil in Russia using Autoregressive Distributed Lag (ARDL) models over the period Q1:2000 to Q4:2017. This study shows demand for palm oil is significantly correlated with Russian palm oil consumption, sunflower seed crushing, Russian palm oil import from Indonesia, palm oil prices and sunflower oil prices. The information in this article was collected primarily from various secondary sources. It is hoped that this article will assist the Malaysian oil palm industry players to better understand the development of the Russian vegetable oil industry.

Keywords: sunflower oil, Russia, palm oil, ARDL