14/08/2008 (Bernama), Kuala Lumpur - The palm oil industry will be able to reduce the cost of importing chemical and mineral fertilizers if it can produce and apply biofertilizers from the biomass and waste of oil palm, says Minister of Plantation Industries and Commodities Datuk Peter Chin Fah Kui.

Last year, Malaysia imported about 3.4 million tonnes of chemical and mineral fertilizers worth RM2.6 billion.

The figure is expected to reach RM5 billion due to the increase in price of petroleum and other commodities as well as the general increase in demand for fertilizers for agriculture, he said at the opening of the 2008 National Seminar on Biofertiliser, Biogas and Effluent Treatment in the Oil Palm Industry here Thursday.

Chin said that finding cheaper and alternative source of fertilizer was important for the industry as they made up 50-60 percent of the cost of fresh fruit bunch (FFB) production.

He said the cheapest and the most common available organic materials in a palm oil mill were the empty fruit bunches (EFB) and palm oil mill effluent (POME) which can be good resources of nutrients for recycling in the plantation.

"We are well aware that fertilizer is one of the main components in plantation management costs, and thus, the efficient application of fertilizer can contribute towards saving of fertilizer inputs and achieve high yield and optimum return," he added.

Meanwhile, chairman of Malaysian Palm Oil Board (MPOB) Datuk Sabri Ahmad said the industry must undertake projects which will turn problems into opportunities and create wealth from waste.

He said the ancillary business of biomass waste management must be exploited and carried out now while the industry is in a favourable position making good money from high palm oil prices.