Vol. 18 (2) September 2018 – OPIEJ https://opiej.mpob.gov.my Oil Palm Industry Economic Journal Wed, 20 Mar 2019 13:46:13 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 Labour Requirement in The Oil Palm Independent Smallholder Sector in Sabah and Sarawak, Malaysia https://opiej.mpob.gov.my/labour-requirement-in-the-oil-palm-independent-smallholder-sector-in-sabah-and-sarawak-malaysia/ Thu, 25 Oct 2018 08:00:04 +0000 https://opiej.mpob.gov.my/?p=441 Read more]]> Labour requirement in the smallholder sector, especially independent smallholders, is different from those in the estate sector because of the different total area and management level. The study aims to estimate the labour requirement for harvesting and fresh fruit bunch (FFB) collection activity in the oil palm independent smallholder sector in Sabah and Sarawak in 2016. The study focuses on the harvesting and FFB collection activity due to the fact that the activity is very important and it determines the income earned by independent smallholders. For data collection, face-to-face interviews were conducted using close-ended questionnaires involving 397 and 392 independent smallholders in Sabah and Sarawak, respectively, and were randomly selected. The study found that the average age of the respondents in Sabah and Sarawak were 52 and 54, respectively, and at this age level, they needed to hire workers to do heavy work such as FFB harvesting and collection. Total labour requirements in the oil palm independent smallholder sector in Sabah and Sarawak were estimated at 7837 and 4807 workers, respectively. Altogether, total labour requirement for harvesting and FFB collection in both states was 12 644 workers.

Keyword(s): Labour, Oil Palm, Independent Smallholders, Sabah, Sarawak

]]> Vegetable and Lauric Oils Market Trends in EU-28 Countries https://opiej.mpob.gov.my/vegetable-and-lauric-oils-market-trends-in-eu-28-countries/ Thu, 25 Oct 2018 07:57:34 +0000 https://opiej.mpob.gov.my/?p=439 Read more]]> The market trend and consumption of vegetable oils have changed in the past decades. Focusing on the consumption trend of palm oil moving from food to non-food consumption and in recent years, the debate on the health and environmental impact on the oil revised users’ perception. The aim of this paper is to provide a general overview on vegetable oil consumption and trends, which focus on palm oil and debate, in the European Union (EU) and Italy (the second largest importer in Europe after the Netherlands). This study was conducted by collecting and analysing data, organic views of market trends can be obtained from a number of recognised sources, statistics and databases around the world before 2017. Europe is the core palm oil consumer, the second largest market for imports. The different oil mix consumption and their end use destination have been investigated as well as price comparisons between palm and palm kernel versus coconut oil, showing that palm oil has been affected in recent years, with a bearish trend with respect to the increase in the price of coconut oil. The debate on the effects of palm oil on health and the environment is also addressed and how as some companies that use palm oil have reacted to the debate, by introducing on the products’ packaging the “palm oil free” claim or adopting more and more in their oil mix sustainable palm oil. The findings of the analysis are that the consumption of palm oil in the EU is more oriented towards the biodiesel production than food. The approach to the debate in Italy (in the EU) led some companies to adopt the “Palm Oil Free” claim on their packages but, where used, the companies bought more and more Certified Sustainable Palm Oil (CSPO). Such behaviour suggests getting more CSPO.

Keywords: Palm Oil Debate, Palm oil free, EU Oil consumption, Italy oil Consumption, EU Oil Mix

]]> Competitiveness of Malaysian and Indonesian Palm Oil Export in the Balkans: A Constant Market Share Analysis https://opiej.mpob.gov.my/competitiveness-of-malaysian-and-indonesian-palm-oil-export-in-the-balkans-a-constant-market-share-analysis/ Thu, 25 Oct 2018 07:53:33 +0000 https://opiej.mpob.gov.my/?p=437 Read more]]> Indonesia and Malaysia are the two largest palm oil exporters in the world. Collectively, they cover on average more than 80% of total palm oil exports. Although Malaysia is ranked second after Indonesia in palm oil exports, their export competitiveness varies between markets. Therefore, the objective of this study is to examine the export competitiveness of Malaysian and Indonesian palm oil in the Balkans market using constant market share analysis (CMS). CMS approach has often been used in examining export performance and indicating the direction of competitiveness. This study shows that Malaysia has demonstrated better market effect and distribution effect performance compared to Indonesia in the Balkans as evidenced in the CMS results of the period under review

Keywords: Palm oil export, constant market share, Balkans, Malaysia, Indonesia

]]> Market Potential for Malaysian Palm Oil Exports to Africa https://opiej.mpob.gov.my/market-potential-for-malaysian-palm-oil-exports-to-africa/ Thu, 25 Oct 2018 07:51:30 +0000 https://opiej.mpob.gov.my/?p=435 Read more]]> This study aims to identify the market potential for the Malaysian palm oil exports to Africa based on the Extremely Most and Less Attractive countries. From the list of 49 African countries, the analysis revealed a logical regional ranking of African destination countries in terms of the competitiveness of Malaysian exports of palm oil to every market destination, and the priority that should be given to each market. The Extremely Most Attractive countries are able to increase the intake of Malaysian palm oil and the Malaysian exporters are recommended to focus on these countries by increasing their marketing activities there.

Keywords: Africa, Market potential, Extremely Most Attractive Countries, Less Attractive Countries, Logical Regional Ranking

]]> Contributions of Agricultural Cooperatives Towards Oil Palm Smallholder Communities https://opiej.mpob.gov.my/contributions-of-agricultural-cooperatives-towards-oil-palm-smallholder-communities/ Thu, 25 Oct 2018 07:48:49 +0000 https://opiej.mpob.gov.my/?p=433 Read more]]> 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

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