OIL PALM-Cultivation – OPIEJ

Chemical Weed Control in the Oil Palm Sector with Particular Reference to Smallholders and Nursery Operators

mpob_admin — Tue, 28 Aug 2018 06:31:41 +0000

This article attempts to assess the impact to the oil palm smallholders and the nursery operators when there is a change from using paraquat to other kinds of weed killers in the oil palm and nursery areas. Surveys via face-to-face interviews with independent smallholders and 56 nursery operators were conducted. The study found that the impact of paraquat was insignificant among the smallholders, with only 0.65%, 1.30% and 0.32% having problems related to skin, nose bleeds and nails, respectively. The cost comparison of spraying herbicides in the smallholders’ areas revealed that RM 221/ha/yr was incurred when using paraquat while RM 365/ha/yr was spent with the use of Round-up. At the nursery, annual spraying using paraquat and Basta incurred costs of RM 492.74/ha and RM 763.44/ha, respectively. The study revealed significantly that both the smallholders and the nursery operators were knowledgeable about the danger and handling of herbicides. Paraquat was the most preferred herbicide because it neither reduced the productivity of the oil palms nor affected the growth of the oil palm seedlings. It was also claimed that the use of paraquat helped to improve the texture of the soil. This indirectly led to efficient uptake of fertilizers and hence increased productivity of the oil palms.

Zero Burning Techniques in Oil Palm Cultivation: an Economic Perspective

mpob_admin — Mon, 27 Aug 2018 08:40:36 +0000

Land clearing for oil palm cultivation used to be undertaken by the clean clearing method, which included burning and re-burning of biomass. The method pollutes the air and is costly to the society. The government of Malaysia had imposed a ban on open burning in 1998. A financial and economic analysis of various zero burning techniques of land clearing for oil palm cultivation indicated that the techniques bring higher return compared to the clean burn method. The benefits of the zero burning techniques, in addition to cost saving from pollution related problems, include faster returns, and savings in fertilizer input from nutrient recycling and soil preservation. Hence, in addition to abiding with the law, zero burning technique of land clearing earns additional financial and economic benefits.

A Financial Study of Cattle Integration in Oil Palm Plantations

mpob_admin — Mon, 27 Aug 2018 08:12:52 +0000

In the context of government efforts at reducing beef imports, integrated cattle rearing in oil palm plantations is a useful method for producing cattle locally. FELDA and ESPEK and some other organizations are recent participants of the cattle-under-oil-palm programme. Oil palm plantations with trees of seven years or older can produce 500 kg per hectare per year of dry matter, which is sufficient to justify grazing by cattle. One animal requires about 2.5% to 3% of its body weight in grass uptake and an animal which is one to two years old, requires about 3 ha of oil palm area for grazing. This animal is controlled from straying about by electric fencing. Each enclosure of about 4 to 6 ha requires two workers to manage.
This study shows that, in the cases of three estates that were studied, cattle rearing under oil palm can be pursued successfully. The average weight gain of cattle aged between one to two years old was 250 g to 300g per head per day. The calving percentage was more than 50%, while the mortality rate was below 5%t. The average cost of maintenance was low. An average price of RM 5.50 per kg live weight was obtained during normal times but increased to RM 6.50 per kg during festive seasons.
Prices of RM 4.00/kg, RM 4.50/kg and RM 5.00/kg live weight were used to account for the final stock value, depending on the age and sex of the animal. The IRRs obtained from integrated cattle rearing in oil palm plantations, ranged from 25% to more than 50% and the reduction in the cost of weeding ranged from 17% to 38%. That was an additional benefit from the production system adopted.

The Optimal Age of Oil Palm Replanting

mpob_admin — Mon, 27 Aug 2018 08:06:05 +0000

Malaysia is expected to only contribute 45.6% of the world palm oil output in 2005, a decrease of 4.5% compared to production in the year 2001. The declining contribution to world palm oil output is in part attributed to the lower production due to the increase in the aged oil palm trees.It is important that old palms, which are less economic to maintain be replanted, hence ensuring a continuous productive Malaysian oil palm industry. The question arises as to what age is oil palm economically suitable for replanting? The objective of this paper is to determine the optimum age for oil palm replanting. Following Faris (1960) the optimum age of replanting is when the marginal net revenue in year n of the present stand is equal to or exceeds the amortised value of net revenue in year n of the second stand.It is concluded from this analysis that the optimum replanting age depends on the price of fresh fruits bunches (FFB), cost to establish and maintain new palms, technology that changes the yield profile, and the discount rates adopted. In Malaysia, it is found that the optimal replanting age lies between 25 and 26 years if the FFB price is RM 200 per tonne. The replacement age declines to between 24 – 25 years if the FFB price rises to RM 220 per tonne.

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.