https://opiej.mpob.gov.my Oil Palm Industry Economic Journal Thu, 04 Apr 2024 05:38:46 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 https://opiej.mpob.gov.my/the-impact-of-asymmetric-relationship-between-crude-oil-and-palm-oil-prices-on-the-palm-oil-industry/ Wed, 27 Mar 2024 06:49:31 +0000 https://opiej.mpob.gov.my/?p=2275 Read more]]> The implementation of the palm biodiesel blend mandate in Malaysia has created new demand for palm oil, thus making the prices of both crude oil and palm oil move in tandem. Generally, the increase in demand for biodiesel products has resulted in a reduced supply of palm oil, which in turn has increased the price of crude palm oil (CPO) in the world market. However, the unpredictability of price movement which is highly influenced by the market situation and sentiment sometimes makes the relationship between both prices loosen. The motivation of this study is to analyse the relationship between Brent crude oil (BCO) and CPO using a non-linear autoregressive model (NARDL) for the period 2010-2019. By applying the Brock Dechert and Scheinkman (BDS), this study indicated the presence of the non-linearity relationship between BCO and CPO price. The bound tests with NARDL specification confirmed the asymmetric association between CPO price movements and their relation to positive and negative changes in BCO price. The estimated NARDL model confirmed the existence of an asymmetric relationship in the changes in CPO prices. This study found that in the long run, there is a significant relationship between the increase in BCO prices and CPO prices while no significant relationship between the decrease in BCO prices to CPO prices in the long run. In the short run, only the changes in BCO prices positively affect palm oil price inflation. The findings of this study are imperative to the industry players especially to the biofuel producers and exporters since changes in CPO price will directly affect their profitability and cost of production.

]]> https://opiej.mpob.gov.my/research-trends-in-palm-oil-mill-effluent-pome-wastewater-treatment-using-bacteria-in-malaysia-a-systematic-review/ Tue, 26 Mar 2024 08:39:41 +0000 https://opiej.mpob.gov.my/?p=2270 Read more]]> The development of POME wastewater treatment using the appropriate bacteria and biological treatment will result in a certain level of management and laboratory abilities that can affect the treatment’s overall effectiveness. POME wastewater treatment requires effective microbes to adapt to shifting possibilities and demands. However, little is known about how is the treatment defined, workings, and its biological approaches with POME wastewater treatment, both on a pilot and larger scale. Not to add, an explanation of wastewater treatment from an economic standpoint as well. This study aims to review POME treatment trends and the relationship between bacteria and treatment, as well as how the biological influences treatment. A descriptive content analysis approach was used to go through 2054 reviews, conceptual, empirical, and commentary pieces that were published in journals from Scopus and Web of Science. Every pertinent piece of information was taken out of each article and examined. Excel software was used to analyse the data that was taken from the publications. Economic view also included. Results revealed that, after removing extraneous material from 2054 articles, only three publications specifically addressed bacterium species and Malaysian scholars. Parabacteroides, Bellilinea, Levilinea, Smithella, Prolixibacter, and numerous other bacteria are among those mentioned in the publications. Some improvements have been observed before and after treatment, and the presence of bacteria did have a significant influence on the chemical reaction, which is evidence of POME treatment. To sum up, the paper will contribute to the global knowledge base and recent efforts to improve the current situation (too long HRT), particularly for new research with perspective approaches (biological treatment) to the field.

]]> https://opiej.mpob.gov.my/evaluation-of-replanting-program-for-indonesian-oil-palm-smallholders-case-study-of-west-aceh-regency-indonesia/ Tue, 06 Feb 2024 02:04:12 +0000 https://opiej.mpob.gov.my/?p=2266 Read more]]> Our comprehensive study assessed the People’s Palm Oil Replanting Program (PSR), also known as Program Peremajaan Sawit Rakyat, in West Aceh Regency, Indonesia. Employing qualitative research methods, this study conducted an in-depth interviews with various stakeholders, including smallholders, representatives from the Agricultural Department of West Aceh Regency, and members of cooperative palm oil plantation committees. In complementing the primary data, this study incorporated secondary information from authoritative sources such as Statistics Indonesia, The Indonesia Oil Palm Plantations Fund Management Agency (BPDPKS), and relevant publications. Evaluation of this study was framed within the analytical framework that Donald Van Metter and Carl Van Horn developed in 1975. This framework encompassed vital dimensions, including standards and objectives formulation, resource allocation, inter-organizational communication strategies, enforcement mechanisms, implementing agency characteristics, contextual economic, social, and political factors, and program administrators’ disposition. Our findings revealed significant implementation challenges, including ineffective inter-organisational communication, a perceived lack of commitment among implementers, and a lack of transparency in resource allocation. These issues raised concerns about the program’s overall effectiveness. However, this study also highlighted a positive impact: The PSR contributed to reducing poverty rates in West Aceh Regency, showcasing its potential to enhance local socio-economic conditions.

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