More costly to plant oil palm in Sarawak

More costly to plant oil palm in Sarawak
The StarBiz Monday March 22, 2010

PETALING JAYA: Sarawak oil palm plantation companies are currently battling increasing cost of production (COP), which is about 1.5 to two times higher than what their counterparts in Peninsular Malaysia face, industry players said.

The average COP among efficient oil palm plantation players in the peninsula is RM1,100 to RM1,200 per tonne, while that of new and smaller planters could be above RM1,900 a tonne. The COP covers upkeep or cultivation expenses, fertiliser application, harvesting, transportation, other estate charges and labour costs.

Sarawak planters, as new entrants to oil palm cultivation, have the most challenging task because many are planting on peat land unlike their peninsula and Sabah counterparts, which plant on mineral soil.
Based on Malaysia Palm Oil Board’s (MPOB) data, the total area planted with oil palm in Sarawak is 750,000ha, of which more than 50%, or about 400,000ha, is peat land.

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