02/11/2012 (Fox Business) - IOI Corp. Bhd. (1961.KU) will boost replanting efforts and improve agricultural practices to raise crop yields in the face of increasingly scarce land that is suitable for palm cultivation, Hidde van Kersen, the sustainability director at IOI Loders Croklaan, said Thursday.

"IOI is strong on yields, and the company will [continue] to focus on productivity increases over landbank acquisitions" to boost its production of crude palm oil, Mr. van Kersen said on the sidelines of an industry conference.

IOI Corp. is Malaysia's second-largest palm oil producer by acreage after Sime Darby Bhd. (4197.KU). It produces more than 660,000 tons of CPO per year, about 3.7% of the country's total. The company's oil yield stands around six tons per hectare, significantly higher than the national average of 4 tons per hectare, according to the company's 2012 annual report.

Mr. van Kersen also said the company is stepping up production of certified palm oil in Malaysia. "We have in total 12 palm oil mills, of which eight have been certified by the RSPO," he said.

The RSPO is a group of conservationists, planters, buyers and other stakeholders formed in 2004 mainly to promote environment-friendly practices at oil palm plantations. Mr. van Kersen is on the RSPO board.

"By the end of 2013, all mills [in Malaysia] will be RSPO-certified," Mr. van Kersen said.