PUTRAJAYA: Palm oil players must prioritise the cultivation of high-quality oil palm seedlings to ensure the long-term sustainability of the industry, according to Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
He said the use of high-quality planting materials recognised by the Malaysian Palm Oil Board (MPOB) has the potential to produce more palm fruit bunches with a higher oil extraction rate, as well as shorter trees, which will ease harvesting.
"Therefore, it is crucial for nursery operators to supply quality seedlings. We also encourage plantation operators and smallholders to purchase genuine palm seedlings from licensed nurseries that hold a Code of Good Nursery Practice for Oil Palm Nurseries (CoPN) certificate," he said at the Malaysia Palm Oil Industry Awards 2023/2024 here today.
Johari said it is also important for all stakeholders to focus on increasing production and enhancing competitiveness, in line with the direction outlined in the National Commodity Policy 2021-2030.
He cited the latest MPOB data (as of June 2024), which indicated that 100 per cent of the oil palm plantation area, involving about 560,000 hectares, had exceeded 25 years of age.
This is also reflected in the declining performance of crude palm oil (CPO) production compared to the last five years, where CPO production nearly reached 20 million tonnes (2023: 18.6 million tonnes).
"Therefore, I would like to emphasise the importance of replanting according to schedule at a rate of four per cent per year to enhance the sustainable production of palm oil in the country," he noted.
"As an export-oriented industry, where 80 per cent of palm oil production is exported abroad, we must enhance our competitiveness to protect our industry.
"To ensure that Malaysian products are competitive compared to our rivals, we should focus on product safety quality and sustainability features," he added.
Johari said palm oil and its products are subject to compliance with sustainability practices, which involves elements such as traceability, zero deforestation, legal land ownership, and good labour practices.
He emphasised the importance of seriously addressing issues that could impact the marketability of palm oil, such as food safety concerns related to MOSH, MOAH, 3-MCPD, and GE, in order to maintain high product quality.
Meanwhile, Johari said in the first half of 2024 (1H24), the palm oil industry continued to record excellent performance, particularly in terms of production and exports.
From January to June 2024, crude palm oil (CPO) production increased by 9.8 per cent to 8.9 million tonnes compared to 8.1 million tonnes during the same period last year.
During the same period, exports of palm oil and palm-based products also rose by 32 per cent from 12.2 million tonnes to 16.1 million tonnes.
Johari said the ministry, together with MPOB, continues to be attentive to issues affecting the industry as a whole.
For example, issues such as a shortage of harvesters, low replanting rates and the implementation of good agricultural practices can impact production yields, productivity, and competitiveness levels.
"These issues must be consistently addressed so that national palm oil policies can align with global palm oil market trends," he noted.
A total of 31 oil palm industry players, from upstream to downstream sectors, were named winners in nine categories of the Malaysia Palm Oil Industry Awards 2023/2024 today.
MPOB, the regulatory body for the oil palm industry under the Plantation and Commodities Ministry, will be celebrating its 25th anniversary on May 1 next year.
According to its chairman Datuk Mohamad Helmy Othman Basha, over the past 25 years, MPOB had played a pivotal role in driving innovation, developing technologies, and implementing various sustainability initiatives that have helped strengthen the nation's oil palm oil industry.
He said the 25th anniversary celebration in 2025 will serve as a platform to showcase achievements while reinforcing a commitment to a more sustainable and progressive future for the industry.