Vol. 1 September 2001 – OPIEJ

Improving Productivity:The Replanting Imperative

mpob_admin — Mon, 27 Aug 2018 07:53:47 +0000

The replanting of old and uneconomic palms is one of the more practical strategies to improve oil palm productivity. High productivity will ensure that the oil palm industry continues to remain competitive even during times of low palm oil prices. In order to maintain a good productivity level, the percentage of tall and ageing palms should be small and preferably less than 10%. Changing the age profile by reducing the tall and ageing palms from the current 21.6% should improve the national fresh fruit bunches(FFB) yield. This could be done through replanting as seen from the analysis of the age profile which showed that by end of 2000, about 264 074 ha(7.8%) were in dire need of replanting. A hypothetical cash flow exercise at different FFB prices comparing immediate replanting against delayed replanting for 25-year old palms was done. Immediate replanting is referred to as replanting palms at the age of 25 years and delayed replanting is referred to as replanting of palms at the age of 30 years. At the end of the 10th year, the price sensitivity analysis showed that immediate replanting was viable when the price of FFB was at least RM 135/t. At this price, the accumulated Incremental Net Revenue (INR) is RM 5601/ha. At a 10% discount rate, the incremental Net Present Value (NPV) and Internal Rate of Return (IRR) were RM 34 and 10.1% respectively. The break-even price would be lower if the increase in the cost of replanting in the next five years had been taken into consideration. It is concluded that immediate replanting is economically viable when the long-term FFB price is at least RM 135 t-1.

MPOB Daily FFB Reference Price:Towards a More Transparent Market

mpob_admin — Mon, 27 Aug 2018 07:41:36 +0000

The objective of this paper is to give a detailed explanation regarding the dissemination of the MPOB Daily Fresh Fruit Bunches (FFB) Reference Price. The paper will highlight the price formula used and the computation of the Reference Price according to the various regions. The Reference Price is meant as a guide to assist the smallholders in determining their FFB price in relation to crude palm oil (CPO) and palm kernel (PK) prices. The single reference price will create a transparent market in FFB trading, which will help towards ensuring a more harmonious relationship amongst smallholders, FFB traders and millers.

Strategic Thrust in Addressing Current Challenges :The Plantation Perspective

mpob_admin — Mon, 27 Aug 2018 01:06:16 +0000

The paper briefly analyses the problems currently faced by the plantation companies and explains why the price of crude palm oil (CPO) has fallen month by month through 2000, with sharper falls since January 2001 and why the price has not recovered. Some fundamental strategies to help the palm oil industry sustain through these difficult times and to strengthen and transform it overtime are suggested, covering stock reduction and management, marketing and sales, shipping, port improvements, improving storage capacities in mills and refineries, replanting and revamping the organization structure of estate management. The intention is to trigger further thinking and discussion which hopefully will lead to positive actions.

Global Oils and Fats Business :Challenges in the New Millennium

mpob_admin — Mon, 27 Aug 2018 00:40:52 +0000

This paper outlines the world oils and fats supply and demand situation focusing on production and disappearance, which is forecast to grow by 2.3% per annum respectively by the year 2020. Amidst this scenario of continued growth, the oils and fats industry is expected to encounter various challenges, namely resource constraints, lower productivity (yield), rising cost of production, impediments to market access arising from agricultural and export subsidies. In addition, in the effort to maintain continued market growth and increased market share, the oils and fats industry would have to intensify new product development and venture vigorously into more value-added products. Apart from this, the growing health concerns of consumers and how they have dictated food legislation/regulations will also be elucidated. Issues of concern in this category include the formation of trans-fatty acids arising from hydrogenation. Increasing pressure exerted by non-governmental organizations (third sector) will also be highlighted with respect to food standard formulations and environmental protection based on ecological balance. Finally, the paper advocates the need for closer co-operation amongst both producers and exporters of oils and fats so that benefits are mutually reaped