oil palm fruit dealers – OPIEJ

DIGITAL MONITORING AND REPORTING SYSTEM OF OIL PALM FRESH FRUIT BUNCH (FFB) TRANSACTIONS: A CASE STUDY AMONG SUSTAINABLE OIL PALM GROWER COOPERATIVE IN PENINSULAR MALAYSIA

mpob_admin — Wed, 22 Mar 2023 07:43:40 +0000

Currently, there is a gap in Fresh Fruit Bunches (FFB) traceability among smallholders until it reached the oil palm mill via dealers. ICT-based intervention at the FFB dealers to record their daily transactions is able to address these issues. The need for this system arises due to the current limitation on getting more accurate and systematic data on the FFB transactions among smallholders. This article presents the development of an information technology (IT) system known as Kebolehjejakan Informasi Pekebun Kecil Sawit (KIPS) phase 2 to address the current gap in collecting data on FFB transactions among smallholders by linking dealer fruit (DF) via technology. Other than that, a case study and survey methodology among 14 Sustainable Oil Palm Grower Cooperative (KPSM) in Peninsular Malaysia was carried out to assess the adoption, challenges and effectiveness of the system as well as the understanding of their current record-keeping practices. KIPS portal system was developed with three user modules of admin, dealer fruit and smallholder. KPSM found KIPS is generally easy to use. However, the limiting factors were the time, performance and productivity in using KIPS which might hinder their attitude and behavioural intention to use KIPS. Lack of time and resources emerges as the main problem in using the KIPS system. Overall, most of the KPSM were able to submit their report through KIPS within the stipulated period. The findings of this study can serve as a basic framework for the development of a traceability system for various related industries.

Operating Model for Partnership between Smallholders and Mills: A Study in Perak and Johor, Malaysia

mpob_admin — Fri, 30 Sep 2022 07:58:20 +0000

There is an important need to sustainably increase food production across the supply chain amid the expected population growth in the future. However, most related researches in the past dealt mostly on the agricultural production aspect rather than the structure of the existing agricultural business models. In the context of oil palm, smallholders often do not have a direct relationship with mills resulting in low bargaining power and limited access to other benefits. The purpose of this study is to assess the willingness of smallholders to establish a partnership with oil palm mills. The assessment was made on smallholders located at two sites in Perak and Johor by means of questionnaire survey and interviews. Besides that, this study also looked at possible operating models for partnership. In addition, desk research and interviews were carried out among stakeholders along the supply chain. Majority of respondents indicated their interests to establish a partnership with oil palm mills with most of them favoured services related to land management. Based on the study, four potential operating models were proposed for a partnership establishment between smallholders and mills such as the extension services model, modular services, plantation management (fee model) and plantation management (lease model). The value proposition on each operating model was discussed as well as the strategy to increase the scale of the operating model. This study is likely to be in the interest of investors, company and policymakers who are seeking an alternative approach in connecting smallholders within the supply chain especially in the developing countries.