The Malaysian Palm Oil Board (MPOB) will continue its focus of helping planters boost productivity, address environmental concerns and produce more value-added products. This is infact a good news to small holders like us.
Malaysia is the world's second largest palm oil production after Indonesia and is expected to churn out 18 million tonnes in 2009. However, Malaysia is still the world's largest palm oil exporter, selling RM65 billion worth of crude palm oil to over 340 countries. (Source New Straits Times 3 Feb 2009).
The target is for the industry to produce 35 tonnes of fresh fruit bunches a year by 2020, from the current national average of 20 tonnes. The average price now at mill gate is slightly above RM 360 (US 100) only.
Productivity is a major issue as land is limited in Malaysia with some big planters already expanding abroad. In the case of Sarawak, which is the biggest state in Malaysia, land is still a major obstacle because most of the land is under Native Customery Right without land title. No bank is willing to give loan for small holder to develope the land. Most bank require title land as colateral.
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