https://opiej.mpob.gov.my Oil Palm Industry Economic Journal Tue, 28 Aug 2018 08:41:39 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 https://opiej.mpob.gov.my/accelerated-oil-palm-replanting-the-way-forward-for-a-sustainable-and-competitive-industry/ Tue, 28 Aug 2018 08:41:39 +0000 https://opiej.mpob.gov.my/?p=289 Read more]]> Accelerated replanting of old and unproductive oil palm is part of the government’s National Key Economic Area (NKEA) Transformation Programme. It will enable changes to be made within the oil palm supply chain, as the driver of the national high income strategy. Despite its vast potentials, the industry, however, is burgeoned by the issue of stagnating fresh fruit bunches (FFB) yield. Increasing prevalence of old palms resulted from low rate of replanting at only 1.18% per annum was attributed mainly to the economic reason of higher FFB prices. If this trend continues, there would be a likely situation of ‘the rush to replant’, which could affect the overall supply chain, starting from the demand for seeds/seedlings, and subsequently affecting the milling and refining sectors, culminating in the export sector. This article, in highlighting the significance of replanting, has elucidated that the country requires continued accelerated replanting at the rate of at least 155 000 ha/yr.

]]> https://opiej.mpob.gov.my/zero-burning-techniques-in-oil-palm-cultivation-an-economic-perspective/ Mon, 27 Aug 2018 08:40:36 +0000 http://palmoilis.mpob.gov.my/prototype/opiej/?p=119 Read more]]> 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.

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