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About RM1 Bln Lost Annually Due To Uncollected Oil Palm FFBs
calendar14-07-2012 | linkBorneo Post | Share This Post:

14/07/2012 (Borneo Post) - Shortage of workers in the oil palm plantations has caused a loss of some RM1 billion annually due to the failure to collect all oil palm fresh fruit bunches (FFB).

“About 10 per cent of our FFB worth about RM1 billion are left uncollected annually.

“Locals are not keen to work in the industry because of the regimented nature of work which is not in our culture,” said Land Development Minister Tan Sri Dr James Masing.

With the price of FFB at RM500 per metric tonne, he said the loss was not only felt by the oil palm plantations but also the government.

This, he added, had a concern for the state government and some efforts had been made to entice the local people into the industry.

Apart from shortage, he said the lack of palm oil mills in the state was another problem which needed to be addressed.

“FFB is perishable and have to be transported to the mills for processing within 24 hours. A delay in sending the fruits to the mills will result in the deterioration of the quality of the fruits, which could result in cheaper price.

“This will affect the income of the small holders who are now very substantial in number,” Masing said.

Poor transportation system is another challenge. It has failed to keep up with the rapid growth of the (oil palm) industry.

“Our road system needs to be upgraded to at least dual carriage way to accommodate every road users,” said Masing.

The Baleh assemblyman said that oil palm was the state’s biggest revenue earner from among agriculture commodities. It had the potential to become the second largest earner after oil and gas in years to come, especially in the state’s central and northern regions.

“Bintulu, with its huge hinterland and deep sea port, has the potential to become an important oil palm town, apart from being an oil and gas centre,” said Masing.

He said that the southern region had an earlier experience with oil palm plantation due to government-link companies such as Sarawak Land Consolidation & Rehabilitation Authority (Salcra).

However, the private sector and smallholders have been fast in catching up and the trend showed that the oil palm industry has been moving up to the central and northern regions with Bintulu being the most promising due to its deep port facilities.