.jpg "A worker collects palm oil fruit after being harvested at a plantation in Kampung Bukit Hijau, Kuala Selangor March 14, 2018. u00e2u20acu201d Picture by Mukhriz Hazim")
KUALA LUMPUR, Feb 21 — The fundamentals of the palm oil industry will continue to be strong in 2019 as structural issues such as inventories, pricing and government policies, particularly the biodiesel mandate, are resolved, says Sime Darby Plantation Bhd.
Strategy, innovation and renewables head Dr Shariman Alwani said the government’s biodiesel policy would help reduce inventory levels.
Commenting on palm oil yield, he said Malaysia and Indonesia had recorded negative yield growth over the past 10 years due to weather conditions.
“Looking from a positive standpoint, the industry is now undertaking innovative action to improve the yields.
“We focus on mechanisation, automation and digital innovation to improve productivity, be it the big players or smallholders,” he told reporters after his presentation on the plantation sector at “The Old and New Economies – Challenges and Repositioning of the Plantations and E&E Sectors” seminar here today.
The one-day seminar was organised by Bursa Malaysia Bhd and AmInvestment Bank.
Shariman said collaborations between large corporations and smallholders, particularly in the adoption of new technology, could potentially increase smallholders’ yield around 20 per cent to 30 per cent.
Meanwhile, he refuted allegations that oil palm plantations were destroying rainforests.
“The yield of oil palm was higher than other crops. Replacing palm oil with other crops will result in greater deforestation,” he added. — Bernama
