06/03/2010 (The Star Online) - SETTLERS, the backbone of the Felda group’s dynamic success, are now looking at sharpening their entrepreneurial skills based on their long partnership with Felda group in developing oil palm and rubber plantations under the various land schemes nationwide.

Of late, second and third generation Felda settlers have been vocal about their intentions to actively participate in all aspects of Felda’s development activities.

National Smallholders Association (NASH) president Datuk Aliasak Ambia says some 30% to 35% of Felda settlers, particularly those with land titles, believe they are now able to market their crops with minimal supervision from Felda group.

This group of settlers with high yield estates have been seeking a licence to sell their palm and rubber crops from the Malaysian Palm Oil Board and Malaysian Rubber Board.

“But many times, their requests were turned down by these authorities with no proper explanation given,” he laments when asked to comment on the Felda settlers plight. Of the total 170,000 NASH members, some 68,000 or 40%, are Felda settlers.

Aliasak adds that many are unhappy with Felda’s captive-market style operation because it monopolises the entire estate function including the marketing channel.

The settlers want Felda to liberalise the marketing channel for the settlers’ crops, thereby creating a win-win situation between the group and settlers.

“The captive-market approach adopted by Felda is no longer applicable. It is a willing-seller, willing-buyer market. Should Felda mills offer competitive prices, settlers will definitely sell to them.”

Settlers also claim that other private mills are buying their fresh fruit bunches (FFB) at a higher price compared with Felda mills.

At the same time, Felda group should be concerned with the growing number of settlers that are keen to undertake their own replanting and management of their estates. Some (with land titles) have expressed their intentions to be out of Felda’s management.

“There must be some grounds as to why settlers are reacting this way. Some settlers even made serious allegations on Felda for not being transparent on the settlers accounts i.e. replanting fund, estate insurance fund and land assessment fund,” says Aliasak.

Another suggestion is for the Felda group to provide entrepreneurial training courses to the second and third generation settlers who are keen to venture into new businesses including downstream activities.

According to Aliasak, Koperasi Permodalan Felda (Felda Investment Cooperative (FIC)), which has a 51% stake in Felda Holdings Bhd, has been successful in the corporate development sector including investments in equity, property and joint-ventures overseas.

“Why not re-activate Felda’s existing over 300 settlers’ cooperatives by injecting new businesses for them to manage,” he suggests.

Felda can help empower these dormant cooperatives via technology transfer, professional management and entrepreneurial training. “If FIC can perform well both in the domestic and international level, Felda should also assist other cooperatives to be equally competitive,” he says.

Many Felda settlers are also questioning the creation of Synergy Perdana, a consortium represented by Felda, the Rubber Industry Smallholder Development Authority (Risda) and Felcra Bhd for the purpose of exploring businesses in the region and globally.

Among the collaborations between the three national agriculture bodies include transportation, training, research and development, cross-using facilities and joint development of choice seedlings.

It was reported that the initial project under the collaboration would be in the fertiliser business. Currently the three agencies consume about RM1bil worth of fertilisers annually and fertiliser accounts for about 30% of total cost of production.

Felda for example, is one of the country’s largest planting materials supplier through oil palm breeding, tissue culture and biotechnology, and also has three compost plants.

“Settlers believe that Felda can actually inject the choice seedling or compost business into any one of the group’s dormant cooperatives instead of setting up a new company to manage it,” says Aliasak. Synergy Perdana has a paid-up capital of RM300mil.