https://opiej.mpob.gov.my Oil Palm Industry Economic Journal Wed, 31 Mar 2021 08:08:28 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 https://opiej.mpob.gov.my/factors-influencing-the-certification-process-of-malaysian-sustainable-palm-oil-mspo-during-the-preparation-phase-for-independent-smallholders-in-malaysia/ Wed, 31 Mar 2021 08:08:28 +0000 https://opiej.mpob.gov.my/?p=1548 Read more]]> The Malaysian Sustainable Palm Oil (MSPO) certification scheme serves as one of the platforms to address the concerns over issues related to environmental, social and economic impacts of the palm oil industry in Malaysia. Hence, MSPO certification has been mandatory for all palm oil operators, including smallholders, since 1 January 2020. In Malaysia, there are two types of smallholders, namely organised and independent. This study focussed on the independent smallholders. The purpose of the study is to investigate factors influencing the MSPO certification process during the preparation phase (MSPO pre-audit activities) for independent smallholders in Malaysia. The long duration of the MSPO certification process for independent smallholders caused difficulty for them to supply their fresh fruit bunches (FFB) to the palm oil mills. The results show several factors that influenced the certification process during the MSPO pre-audit activities, such as incomplete information and technical errors during application for MSPO certification, illiteracy rate and level of education of the smallholder, accessibility of the holding, and the lack of competent attending officers. The results obtained also show that the Good Agricultural Practices (GAP) advisory visit required a long time and was only completed within 37 days (29%), while issuance of the internal audit report took a much shorter time and could be completed within 4 days (3%). Based on this study, there appears to be a need to revise the existing guidelines in order to speed up the MSPO certification process for independent smallholders in Malaysia, and to support our commitment towards sustainability of the palm oil industry.

]]> https://opiej.mpob.gov.my/the-malaysian-palm-oil-supply-chain-the-role-of-the-independent-smallholders/ Tue, 28 Aug 2018 06:30:28 +0000 https://opiej.mpob.gov.my/?p=245 Read more]]> The Malaysian palm oil industry is made up of interrelated sectors that produce various palm products for their end-users. To ensure an efficient supply chain, all sectors should operate efficiently; this includes the independent smallholders. An efficient production system by the smallholders is deemed necessary in producing quality fresh fruit bunches (FFB) which can then produce quality palm oil for meeting the rising global demand. Inefficiencies can affect the whole supply chain. This article investigates the efficiency level of this sector and the structural changes that it has undergone. It was found that there is plenty of room for improvement among independent smallholders to increase their FFB yield and income so that their future can be sustained.

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