Azman Ismail – OPIEJ

Labour Requirement in The Oil Palm Independent Smallholder Sector in Sabah and Sarawak, Malaysia

mpob_admin — Thu, 25 Oct 2018 08:00:04 +0000

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

Labour Requirements in the Independent Oil Palm Smallholder Sector in Peninsular Malaysia

mpob_admin — Wed, 29 Aug 2018 00:40:58 +0000

The Malaysian oil palm industry is labour-intensive, especially in the plantations. Activities such as harvesting and fresh fruit bunch (FFB) collection require more labour than the other activities. Currently, estate owners including independent smallholders report that they are facing labour shortages for those afore mentioned activities in particular. This study aims to estimate the labour requirements and shortage in the independent oil palm smallholder sector in Peninsular Malaysia, and to formulate a solution for reducing the labour shortage problem. For data collection, face-to-face interviews using close-ended questionnaires were employed, involving a total of 385 independent smallholders throughout Peninsular Malaysia who were randomly selected. The study found that, on average, the age of the respondents was 58 years and 92% of the respondents hired workers for harvesting and FFB collection. The majority of the workers (65%) were foreigners, mostly from Indonesia. Total labour and labour shortage for harvesting and FFB collection operations in the independent oil palm smallholders sector in Peninsular Malaysia are estimated at 25 014 and 3715 respectively. In order to reduce the dependency on foreign workers and labour shortage problem, graduates from ‘Kursus Operasi Mekanisasi Ladang’ organised by MPOB should be encouraged to be contractors, so that they can manage the independent smallholders, especially for harvesting and FFB collection. For that, the government can provide incentives in the form of soft loans or discounts to enable them to purchase harvesting tools and evacuation machines at a lower price.

Keywords: independent smallholders, labour requirement, labour shortage, foreign workers

Labour Productivity in the Malaysian Oil Palm Plantation Sector

mpob_admin — Wed, 29 Aug 2018 00:08:43 +0000

This study attempts to measure oil palm labour productivity based on land-labour ratio by job category, region and estate size; and based on output-labour ratio by job category and region. It culminates by suggesting action plans for improving labour productivity and reducing labour requirement. Primary data collected through an online survey were used in the study, while the calculation of labour productivity was done using Microsoft Office Excel and SPSS. From the study, it was found that the ideal land-labour ratio for oil palm plantations in Malaysia is 10:1. Currently, the ratio set by the government for oil palm estates hiring foreign workers is 8:1 (i.e. 8 ha to one worker). To reduce the number of foreign workers in oil palm plantations, the current ratio needs to be increased from 8:1 to 10:1. To increase labour productivity, it is suggested that estate owners practise mechanisation, especially for harvesting (when palm height is less than 8 m) and in-field collection of fresh fruit bunches (FFB). By using a motorised cutter for harvesting, productivity per worker can be increased from 0.99 t per day to 2.24 t per day. For in-field collection, a mechanised FFB transport system (MFTS) can reduce the required number of workers and lower the cost of transportation as well as cost of production.

Keywords: labour, productivity, land-labour ration, output-labour ratio, mechanisation

The Effects of Establishing Sustainable Oil Palm Growers’ Cooperatives on the Incomes of Oil Palm Smallholders

mpob_admin — Tue, 28 Aug 2018 14:57:59 +0000

This article attempts to study the impact of establishing Sustainable Oil Palm Growers Cooperatives (KPSM) on the incomes of oil palm smallholders in Malaysia. In the study, data on income were collected from members as well as non-members of KPSM in Saratok, Sarawak. The study found that the nett average fresh fruit bunch (FFB) price (after deducting transportation cost) obtained by KPSM Saratok members was higher than for non-members. For example, in July 2012, the average nett price obtained by KPSM members was RM 524.80/t compared with RM 414.60/t obtained by non-members. The price difference was RM 110.20. During this period, from July 2012 until April 2014, the average nett price obtained by members of KPSM Saratok was RM 410.80/t while non-members received a price of RM 345.50/t. The average price difference in that period was RM 65.30/t. Greater efforts have to be made to attract more independent smallholders to join the cooperatives as the cooperative is an institution that can help increase productivity and income of smallholders.

Keywords: cooperatives, oil palm smallholders, income, quality

Workforce in the Malaysian Oil Palm Nursery

mpob_admin — Tue, 28 Aug 2018 14:48:34 +0000

This article attempts to estimate workforce, labour shortage as well as land to labour ratio by job category in oil palm nursery sector in Malaysia since labour is a major concerns in the oil palm industry especially in oil palm nursery and plantation. Survey technique was used for data collection. Questionnaires were designed and distributed to 739 oil palm nurseries in Malaysia which registered with MPOB. Total labour requirement and shortage according to job categories namely manager, assistant manager, clerk, supervisor, operator and general worker were identified. Operator with the job scopes of planting seedlings in polybags, spraying insecticide, fertilising and watering the plant was the highest labour required by oil palm nursery. The second highest number of workers required falls under the general worker such as driver, co-driver and others. In Peninsular Malaysia and Sabah, operators and general worker were dominated by foreign workers, meanwhile in Sarawak only job category as operator is dominated by foreign workers. As in oil palm plantation sector, oil palm nursery also faces labour shortage problem especially for job category such as operator and general worker

Keywords: oil palm nursery, labour, shortage, land-labour ratio

The Impact of Palm Oil Mills’ Capacity on Technical Efficiency of Palm Oil Millers in Malaysia

mpob_admin — Tue, 28 Aug 2018 14:45:46 +0000

The general purpose of this study is to evaluate technical efficiency of palm oil mills in Malaysia. Specifically, the study attempts to examine if large mills are more efficient than small mills as well as to compare technical efficiency between integrated and non-integrated mills. In order to fulfill the objectives, econometric approach was used whereby crude palm oil production function was estimated by using OLS least squared technique. The Cobb-Douglas production model was used and the model is satisfactory in terms of goodness of fit. This is shown by the values of R2 (0.89) as well as F statistic (358.03). From the study, it was found that palm oil mills in Malaysia are technically efficient. In terms of processing capacity, large mills which have processing capacity more than 20 t/hr are more efficient than small mills. Integrated mills are also technically efficient as compare to non-integrated mills.

Keywords: palm oil, technical efficiency, FFB, processing, capacity

The Effect of Labour Shortage in the Supply and Demand of Palm Oil in Malaysia

mpob_admin — Tue, 28 Aug 2018 14:32:28 +0000

The Malaysian palm oil industry plays an important role in the agricultural development of the country and contributes significantly to the country’s Gross Domestic Product (GDP), foreign exchange and creation of employment opportunities. On average, the industry contributes 5% to 7% of GDP and for the last five years the industry has contributed on average about RM 65.3 billion per year to export revenue. The Malaysian palm oil industry, especially the oil palm plantation sector offers various job opportunities as the sector is highly dependent on manual labour. However, a minimal involvement of the locals (due to the 3D perception – dangerous, dirty and difficult) has provided avenues for foreign workers to work in the plantation sector. In 2012, it was estimated that there were 505 972 employees in the oil palm plantation sector. Out of the total, 386 913 or 76.5% were foreigners. Foreign workers were employed mainly in high labour demand operations such as harvesting, field work and other general work. These days, the main issue in oil palm plantation sector is labour shortage problem especially for fresh fruit bunch (FFB) harvesting and collection. The difficulty of employing local as well as foreign workers especially from Indonesia has caused the oil palm plantation sector to face a labour shortage particularly for FFB harvesting and collection. This situation has affected the supply of palm oil in the domestic as well as world markets.