FGV to combat climate change with innovation, ensure palm oil yields unaffected, says chairman
26/09/2024 (The Star) - SIK: FGV Holdings Bhd plans to implement innovative farm management techniques to address the challenges of climate change, which are causing a decrease in palm oil yields.
Its chairman, Tan Sri Rastam Mohd Isa said the company has undertaken research and development to find ways to ensure that farm yields can meet market demands.
"The palm oil industry faces various challenges, one of which is climate change, causing yields to differ from previous years. For example, the prolonged drought in the past has also impacted farm output.
"To ensure that yields continue to increase, we need innovation and renewal in how we manage our farms,” he told reporters after launching the "Program FGV Seikhlas Hati”, in collaboration with Felda and the Kedah State Zakat Board (LZNK) at Felda Teloi Timur, here today.
Also present were Felda deputy director-general (Community Development) Datuk Mohd Banuri Aris and LZNK chief executive officer Datuk Syeikh Zakaria Othman.
Rastam mentioned that another challenge for the palm oil industry is the efforts by entities in Europe and the United States, which appear to be aiming to restrict palm oil development or production.
"They have issued regulations such as the European Union Deforestation Regulation (EUDR), which prohibits not only Malaysia and Indonesia but also other countries, including Guatemala (Central America) and countries in Africa, from clearing forests (after 2020) if they wish to produce palm oil.
"This means that smallholders, especially in countries like Africa, Central America, and Latin America, may not be able to cultivate palm oil in the future,” he said.
Rastam also said that companies like FGV now need to rely on the yields produced on the land currently available.
"We have implemented efforts to replant trees, ensuring that the trees are not too old, and so on... If there are such restrictions, all industry players in Malaysia will start looking for other markets, such as Russia, China, and India.
"China, India, and Pakistan, for instance, are among the larger importing countries, so their demand is high, and the regulations are not as stringent as in European countries,” he said.
Rastam added that in FGV’s efforts to face challenges in the palm oil industry, the company is also implementing sustainable business to ensure that the environment is not polluted.
In the same development, he mentioned that FGV is considering collaboration with other institutions, such as state zakat boards and Felda, to expand palm oil cultivation in the country.
"FGV does not have many idle land areas, but we will strive to maximise the use of existing land, for example, in Perlis and Sarawak.
"I have been informed that LZNK is also interested in collaborating with FGV to develop the available land in Kedah. Likewise, Felda has areas where we can have oil palm plantations. This is also one of the efforts to increase yields,” Rastam said. - Bernama