MARKET DEVELOPMENT
Oil Extraction Rate To Improve 25 Per Cent By 2020, Says Uggah
Oil Extraction Rate To Improve 25 Per Cent By 2020, Says Uggah
08/06/2015 (Bernama) - The Ministry of Plantation Industries and Commodities (MPIC) expects the national average oil extraction rate (OER) at palm oil mills to improve to 25 per cent by 2020 from 20 per cent currently.
Its Minister Datuk Amar Douglas Uggah Embas said measures had been implemented to strengthen enforcement to ensure that the quality and ripe fresh fruit bunches (FFB) were delivered to the palm oil mills.
"This will help improve the OER at the mills," he said at the 8th International Planters Conference here today.
Uggah said the growth in OER and FFB would translate into higher national oil yield to six tonnes per hectare (ha) in five years from four tonnes per ha.
Based on the planted area of 5.23 million ha, this means the country would be able to produce an additional 10 million tonnes of palm oil annually valued at over RM20 billion without the need for land expansion.
"Hence, to enhance palm oil production, efforts must be focused on expanding yield and productivity," said Uggah.
He said among the initiatives to enhance productivity included replanting old and unproductive trees with high yielding planting materials.
These would allow the industry to increase the national average FFB or yield to 26 tonnes per hectare by 2020 from 20 tonnes per ha per year, he said.
Uggah said the manpower in the oil palm industry for the upstream sector was still dependent on foreign labour.
To overcome this challenge, the industry must strive for greater mechanisation by adopting innovations and new technologies in the entire supply chain, said Uggah.
"In addition to that, Malaysian Palm Oil Board is organising the second International Competition on Oil Palm Mechanisation this year, seeking to address the concerns of key operations in oil palm operations," he said.
Some of the concerns were harvesting, loose fruits collection, FFB evacuation and crop care, he said.
Its Minister Datuk Amar Douglas Uggah Embas said measures had been implemented to strengthen enforcement to ensure that the quality and ripe fresh fruit bunches (FFB) were delivered to the palm oil mills.
"This will help improve the OER at the mills," he said at the 8th International Planters Conference here today.
Uggah said the growth in OER and FFB would translate into higher national oil yield to six tonnes per hectare (ha) in five years from four tonnes per ha.
Based on the planted area of 5.23 million ha, this means the country would be able to produce an additional 10 million tonnes of palm oil annually valued at over RM20 billion without the need for land expansion.
"Hence, to enhance palm oil production, efforts must be focused on expanding yield and productivity," said Uggah.
He said among the initiatives to enhance productivity included replanting old and unproductive trees with high yielding planting materials.
These would allow the industry to increase the national average FFB or yield to 26 tonnes per hectare by 2020 from 20 tonnes per ha per year, he said.
Uggah said the manpower in the oil palm industry for the upstream sector was still dependent on foreign labour.
To overcome this challenge, the industry must strive for greater mechanisation by adopting innovations and new technologies in the entire supply chain, said Uggah.
"In addition to that, Malaysian Palm Oil Board is organising the second International Competition on Oil Palm Mechanisation this year, seeking to address the concerns of key operations in oil palm operations," he said.
Some of the concerns were harvesting, loose fruits collection, FFB evacuation and crop care, he said.