Tuesday, April 20, 2010

Rubber has equal importance to M'sia as palm oil

Rubber has equal importance to M'sia as palm oil
The StarBizOnline, Tuesday April 20, 2010

RUBBER has equal strategic importance as palm oil to Malaysia. Its cultivation is no longer for latex alone but other purposes, leading to the establishment of a multi-billion ringgit integrated rubber industry.

The growing versatility of the crop – from latex for tyre and glove manufacturing to rubberwood for furniture making – has driven Malaysia to activate its replanting programmes and allocate more funds to beef up existing rubber growing zones in Peninsular Malaysia. It has also lead to the opening of new and larger planting hectarage in Sabah and Sarawak, totalling 30,000ha under the Ninth Malaysia Plan. Sarawak has about 1.5 million ha and Sabah about 400,000ha available for rubber cultivation.

In fact, Sabah and Sarawak are seen as vital new rubber growing zones to boost Malaysia’s dwindling natural rubber output which had dipped to 1.13 million tonnes in 2008 from 1.2 million tonnes in 2007. Both states were targeted to add another 35,000 tonnes a year to the current total production of 101,000 tonnes. Having said that, some quarters feel that active replanting and opening up of new hectarage for rubber are not the only answers to address the dwindling natural rubber production issue.

To ensure resilience in the sector, rubber planters including smallholders will need to be exposed to new varieties and clones; infrastructure in the remote planting areas should be improved; and changes made in the agriculture management practices and policies. The current climate change, for example, has a big impact on the growth of rubber trees. This development warrants reviewing some of the existing rubber zones in the peninsula. One suggestion could be for all “traditional” rubber zones with lacklustre yields to be remodelled via adaptive management using suitable species and clones.

Throughout the years, the Malaysian Rubber Board (MRB) via the Rubber Research Institute has been diligently producing high quality timber latex clones such as the RRIM 900 series, RRIM 2000 series and the latest RRIM 3000 series, that have resulted in high-yielding latex and bigger girth trunks for timber production. Another important factor is to seriously consider advanced research in soil conservation, water storage and management. This will help promote low tillage and maintenance of permanent soil cover that increases the soil organic matter and reduces the impact from drought, flooding, erosion or heavy rain.

In addition, there should be an efficient fertiliser programme, particularly among smallholders, which contribute about 94% of the country’s total rubber production. Smallholders are often perceived as inefficient given their low crop yield due to the lack of good agriculture practices as well as improper management skills.

On average, rubber smallholders produce about 1,100kg of latex per hectare a year compared with a potential production of about 2,500kg. The current average crude palm oil production among smallholders is about 10 to 15 tonnes per hectare a year versus a potential yield of 20 to 30 tonnes.

Thursday, April 15, 2010

Planters asked to increase Indonesian salaries to address labour shortage

Planters asked to increase Indonesian salaries to address labour shortage
TheStarOnline, Thursday April 15, 2010

KUCHING: Oil palm plantations and timber processing mills in Sarawak have been asked to raise the basic salaries of Indonesian workers by at least 20 percent. Indonesian authorities made the request during a meeting in Bali last week to discuss ways to meet the demand for Indonesian workers by Malaysian companies.

Indonesian Consul in Sarawak Rafail Walangitan said Sarawak plantation companies were asked to increase the daily wages of Indonesian plantation workers to between RM19 and RM22 from RM14 and RM18 presently. “We have also asked timber mills to raise the daily pay of Indonesian workers to RM12 from the present RM10 as the wages have remained unchanged for the past 10 to 20 years,” he told The Star yesterday. Rafail said Indonesian workers were no longer keen to work in Sarawak for low wages due to the rising cost of living.

“Some Indonesians prefer to work in Sabah and peninsular Malaysia as employers there pay more.” Sabah plantation companies are reportedly hiring Indonesian workers for between RM22 and RM25 a day while their peninsula counterparts are employing them for bet­ween RM24 and RM25 a day. Some plantations pay their foreign workers based on productivity. About 30 out of the 75 Malaysian companies attending the three-day meeting in Bali were from Sarawak.

It was organised by the National Board for the Placement and Pro­tection of Indonesian Overseas Workers and Indonesian Consulate General in Kuching. Rafail said most of the Sarawak companies at the meeting responded positively to the request for salary revision although some of them said they needed time to adjust their wages. “While we try to lend a helping hand to resolve the severe labour shortage of Sarawak companies, we need to help Indonesians earn decent salaries for a decent living.”

According to Rafail, about 60% of the more than 200,000 Indonesian workers in Sarawak were employed by oil palm estates, 25% by timber processing mills and 15% by the construction and other sectors. There are some 400,000 and 600,000 Indonesian workers in these sectors in Sabah and the peninsula. Rafail said the Indonesian authorities preferred Sarawak companies to deal directly with Indonesian employment agencies instead of using third parties as it would save them money.

Wednesday, April 7, 2010

DLT plans jatropha mills

DLT plans jatropha mills
The StarBiz, Wednesday April 7, 2010

KUCHING: DLT Institute plans to set up processing facilities in Sarawak’s major towns to extract oil from jatropha seeds collected from farmers. Founding director and principal consultant Dr Elli Luhat said a press mill would be built in Kuching, Sibu and Miri each.

“We now collect between 5 million and 10 million tonnes of seeds a month from farmers and we pay them RM500 a tonne. Dr Elli Luhat showing jatropha superbulk seeds at the launch of the foundation in Kuching yesterday. “Singapore buyers are paying S$700 per tonne for the seeds,’’ he told reporters at the launch of DLT Institute Seed Foundation at Taman Satria Jaya here yesterday. The foundation acts as a seed bank with initial stocks of 10 million jatropha seeds and 50,000 gaharu (agarwood) seeds, which will be supplied to farmers.

The Institute’s investment arm, DLT Plantations Sdn Bhd, is involved in the cultivation of jatropha, also known as a biofuel plant as its oil is the main feedstock for the production of bio-diesel. The jatropha superbulk seed is a variety developed by Luhat after several years of research on the premium crop. Initially, he sourced the jatropha seeds from Nicaragua.

Luhat, a PhD holder in forestry, said three companies from Japan and South Korea were keen to import jatropha seeds from his company but it was unable to deliver the volume they required. He said crude jatropha oil (CJO) fetched between US$650 and US$800 in the international market, which was higher than the prices of crude palm oil (CPO).

“We are supplying free jatropha superbulk seeds to farmers for planting but they must sell back to us the fruits (seeds) they produce. “There are now some 3,000 farmers registered with the DLT Institute and using superbulk seeds for their plantings. We provide them training. Our jatropha trees start to bear fruit 3½ months after planting. The trees will be at the most productive after reaching three years,’’ he added.

Luhat said an acre planted with 1,000 jatropha trees could produce about 3.6 tonnes of dry seeds a year. From the results of recent researches, growers have been recommended to plant up to 4,000 trees an acre to increase productivity and yields.

With an oil contents of betweeen 38% and 42%, 3 kg of jatropha seeds are required to produce 1 litre of oil. “My dream is to make Sarawak a big producer in jatropha,’’ said Luhat, who presented a paper during the World Summit on Jatropha in Kuala Lumpur two years ago.

The former forester with the state forest department is promoting the development of smart-farming industry based on the cultivation of jatropha and gaharu trees and the breeding of the empurau, Sarawak’s most expensive fish.

Tuesday, April 6, 2010

Land For Sale

Interested Funder Cum Investor Wanted for JV owning a piece of land 110acres in Kuala Ketil Kedah.

1. Targeted area located in Binjul Dalam, Mukim Tawar which are eastern of Kuala Ketil Town and about 12km.

2. There are 3 lots of 30 acres and 4 lots of 5 acres, which very fertile and suitable for oil palm cultivation.

3. As refer attached map A,B,C are 30 acres lot and D,E,F,G are 5 acres lot.

4. As bumiputera lot it only open for malays.

5. Land status is currently under 'permintaan' where the buyer will proceeds to Land Office to settle all the premium, surveys etc. so that land title could be granted.

6. Opening price is rm6000.00 per acres, and still negotiable. I believe the right price is rm4000.00/acre and rm1500.00/acre for land premiums.

7. One 30acres already got buyer... the rest is open as per today.

Any interested individu, shall contact me 013-3311321 personally for more details.

Thursday, April 1, 2010

Palm oil sector can meet major NEM goals

Palm oil sector can meet major NEM goals
The StarBizOnline Thursday April 1, 2010 By HANIM ADNAN

PETALING JAYA: The palm oil sector will be able to match the New Economic Model’s (NEM) major goals of high income, sustainability and inclusiveness, industry players said.

Therefore, it was no big surprise when the Government inserted an appendix in its newly released NEM report on how the development of the industry can help achieve the NEM’s sustainability goal. Last year, Malaysia’s palm oil production stood at 17.7 million tonnes, with a total of about 4.69 million ha.

Palm oil contributed about 3.2% to the country’s real gross domestic product (GDP) in 2008. Exports in 2009 rose to RM38.5bil, capturing about 7% of total exports. In comparing the palm oil sector to the electrical and electronics (E&E) sector, the National Economic Action Council (NEAC) has estimated that unless the E&E sector is dramatically upgraded, the palm oil sector could become a larger component than E&E in GDP contribution, rising in nominal terms to 12.2% of GDP by 2020.

In terms of high income, industry calculations suggest that the sector’s share of real GDP can grow to 7.6% by 2020 if the value-added gains from efficiency and innovation can be realised. Palm oil exports could also grow by 7% per annum to RM84bil by 2020, and probably more if new oil palm products and services can be successfully marketed.

The sector employs 590,000 direct workers versus 316,956 in the E&E sector.

Read more >> link here