February 19 2004 - MALAYSIA’S more than 100,000 oil palm smallholders haveseen their income increase following strong crude palm oil (CPO) prices oflate.

National Association of Smallholders Malaysia president Datuk MazlanJamaluddin said most smallholders earn a monthly income of between RM1,000and RM1,500 compared with less than RM1,000 in 2001.

Not only that, rubber smallholders are also earning good income due to thegood and stable prices of latex in the international market, Mazlan toldBusiness Times in a phone interview in Kuala Lumpur yesterday.

CPO prices have been on an uptrend recently and Primary IndustriesMinister Datuk Seri Dr Lim Keng Yaik, industry captains and traders havesaid that it (CPO) is expected to hit the RM2,000 a tonne mark any timesoon from RM1,900 currently.

A settler can harvest up to 5 tonnes of oil palm a month depending on thesize of his smallholding at between 1ha and 5ha as well as the yield ofthe oil palm.

In 2001, a settler was paid about RM180 for every tonne of fresh fruitbunches (FFB) harvested which works out to RM900 if the settler canharvest 5 tonnes of FFB in a month.

As at December last year, if a settler could harvest the same amount, hestood to earn RM1,500 a month because a tonne of FFB is now priced atRM300, said an industry source.

Prices for the FFB per tonne vary depending on a monthly or daily basis asthey are based on the oil extraction rate of every FFB as well as theprices of the international palm oil market determined by the MalaysianPalm Oil Board (MPOB).

MPOB rates can be as low as RM87 a tonne for every FFB and as high asRM300 based on international market conditions.

Bear in mind, some smallholders can harvest up to 8 tonnes of FFB a monthwhich will bring him an income of up to RM2,400 a month, and the CPO priceis still rising, said the source.

He said smallholders’ income have doubled since 2001 when CPO price wastraded at an average of RM891 a tonne compared with the current price ofRM1,900 a tonne.

At its lowest, an FFB was priced at RM70 a tonne when CPO price averagedat RM895 in 2001.

Malaysia has about 160,000 smallholders nationwide, of which 60,000 areinvolved in planting rubber. They both cover a landbase of about 1.2million hectares nationwide.

The smallholders come under government-run agencies such as the FederalLand Development Authority, Federal Land Consolidation and RehabilitationAuthority and the Rubber Industry Smallholders Development Authority,state agencies as well as private individuals.