Malaysian Palm Oil Industry Research Articles

Circular bioeconomy in palm oil industry: Current practices and future perspectives

Malaysia is presently ranked as the second top producer of crude palm oil in the world after Indonesia. The industry is serving as the economic backbone of the country. However, massive criticism and challenges are faced by the palm oil industry with the claims that the industry is causing environmental degradation and negative social impacts. Tremendous efforts have been taken to enhance the sustainability of the palm oil industry in environmental, social, and economic aspects including bioenergy, compost, animal feed production, and replanting of palm oil waste residues. Greener approach on circular bioeconomy is, at present, aimed to be transitioned to the palm oil industry. The concept emphasises on resource-efficient and waste minimisation, aiming to attain a lower production cost, to mitigate the negative environmental impacts, and to conserve the resources. This present review discusses the palm oil supply chain from plantation up to milling operations, current practices of palm oil industry in biomass waste reuse and recycling, and by-products productions including bioenergy generation. The potential and future prospects of full range of biowaste management and its refineries are highlighted comprehensively, including waste-to-energy, waste treatment, and waste valorisation for by-products productions. Challenges and potential technological applications are also discussed. To our best knowledge, much is lacking on the circular bioeconomy approach specifically dealt with Malaysian palm oil industry. Therefore, this review serves as a reference for the industrial stakeholders, engineers, environmentalists, researchers, and the government in decision making, policy making, future investment, and innovation advancement.

The synthesization of activated carbon from electrocoagulated palm oil mill effluent sludge for wastewater treatment

The oil palm industry in Malaysia is certainly the one of economic and agricultural drives for the country. Nevertheless, despite the obvious benefits that it possesses, oil palm mill also significantly contributes to environmental degradation. It generates massive amounts of solid waste, wastewater, and air pollution from its production and processing processes. Activated carbon (AC) as an adsorbent has been used widely to remove pollutants in wastewater. Many attempts have been made to produce economically accessible AC. This paper explores the idea of producing an AC, a value-added product, sludge produced from the electrocoagulation process of palm oil mill effluents (POME) through chemical activation. AC has different applications after its discovery as a solid and reliable adsorbent. Its microporous structure, high surface reactivity, and surface area make it versatile and viable for removing pollutants from aqueous solutions. The electrocoagulated sludge-based AC is characterized by its surface characteristics, elemental compositions, surface morphology, and available functional group. To validate the adsorption capacity of electrocoagulated sludge-based AC, textile dye wastewater treatment was carried out to test the efficiency of AC. Results indicate that TSS in textile dye wastewater decreased as the adsorbent dosage increased. The values of TSS removal by AC from H3PO4 activation decreased steadily compared to KOH activation. Meanwhile, the color removal percentage decreased when the dye concentration increased. AC from H3PO4 activation has higher color removal percentage. This shows that AC from H3PO4 activation has better adsorption due to its more extensive surface area. From BET analysis, AC by H3PO4 activation offers a higher surface area, 36.1017 m2/g, compared than KOH activation, 8.9460 m2/g. Extensive surface area has a higher tendency to adsorb contaminations. The findings of this work confirmed the potential use of electrocoagulated sludge-based AC as an alternative and economically adsorbent for effective dye pollution removal in wastewater.

Systematic Literature Review on the Social and Economic Impacts of Palm Oil Certification on Smallholders

Enhancing smallholder compliance to palm oil certification standards helps in achieving the global sustainability agenda. Oil palm smallholders are one of the vital parts of the global certified sustainable palm oil (CSPO) supply chain. However, little is known about on the importance of palm oil certification for the social and economic development of smallholders. This present study aims to systematically review the social and economic benefits received by smallholders in implementing palm oil certification. The review was conducted in accordance with the published standard, namely the PRISMA statement (Preferred Reporting Items for Systematic reviews and Meta-Analyses). The articles of this study were chosen from two major databases, namely Scopus and Web of Science (WoS). The results show that smallholders gained both immediate and long-term social (livelihood, social network and agricultural practices) and economic (financial management, income, price and production) benefits through palm oil certification. If these benefits can be extended to all smallholders, it will help to boost the participation of smallholders in certification. The current progress, impacts and challenges faced by oil palm smallholders in palm oil certification implementation were discussed comprehensively. Future research and suggestions on the contributions of oil palm smallholders in successful certification were summarised. This eventually leading to achieving Sustainable Development Goals (SDGs) for benefits of the whole supply chain of Malaysian palm oil industry.

Multiple Biogenic Waste Valorization via Pyrolysis Technologies in Palm Oil Industry: Economic and Environmental Multi-objective Optimization for Sustainable Energy System

Agricultural biomass is one of the major wastes in the world. Most of these wastes end up in landfills and incineration, causing significant environmental problems that are detrimental to human health and other species on the Earth. Thermochemical conversion can solve this issue by utilizing the energy embedded inside the biomass, mainly organic matter, into high-grade fuels and chemicals. Fast pyrolysis is one of the technologies that can convert biomass waste to a high yield of bio-oil, which can then be used as biofuels in vehicles. In this study, palm oil biomass wastes are valorized to generate bio-oil sustainably via several pyrolysis technologies such as conventional pyrolysis, microwave pyrolysis, and thermo-catalytic pyrolysis in a multi-objective optimization framework. The formulated multi-objective mixed-integer linear programming problems are solved using the ɛ-constraint method. The Pareto-optimal solutions have illustrated a clear trade-off between two conflicting objectives: total annualized profit and the global warming potential. The most profitable solution economically has an annualized profit of $237 per ton of biomass with an emission of 628 kg CO2 equivalent per ton of biomass. On the other hand, the most environmentally sustainable solution, while still generating positive income, has an annualized profit of $122 per ton of biomass with an emission of 132 kg CO2 equivalent per ton of biomass. A second scenario with a case study presented on the palm oil industry in Malaysia has also demonstrated the selection of biomass during feedstock blending when a constraint on biomass feedstock availability is pre-defined. The proposed model is robust for planning bioenergy complex, especially those involving multiple biomass feedstocks. In fact, this study has addressed the research gap in comparison of multiple distinctive pyrolysis processes with respect to multiple palm biomass feedstocks.

Oil Palm Fresh Fruit Bunch Ripeness Detection Methods: A Systematic Review

The increasing severity of the labour shortage problem in the Malaysian palm oil industry has created a need to explore other avenues for harvesting oil palm fresh fruit bunches (FFBs) such as through autonomous robots’ deployment. However, the first step in using an autonomous system to harvest FFBs is to identify which FFBs have become ripe and are ready to be harvested. In this work, we reviewed previous and current methods of identifying the maturity of fresh fruit bunches as found in the literature. The different methods were then compared in terms of the types of sample data used, sensor modalities, and types of classifiers used with a particular focus on the feasibility of each method for on-field application. From the 51 papers reviewed, which include a total of 11 unique approaches, it was found that the most feasible method for detecting ripe FFBs in the field is a combination of computer vision and deep learning. This system has the advantages of being a noncontact approach that is low cost while also being able to operate in real time with high accuracy.

Conversion of Oil Palm By-Products into Value-Added Products through Oyster Mushroom (Pleurotus ostreatus) Cultivation

The oyster mushroom (Pleurotus species) is a popular and widely cultivated edible mushroom that can be found worldwide, including in Malaysia. However, its local production is unable to fulfil the market demand, partly due to the limited availability of rubber wood sawdust (RWS) as the conventional cultivation substrate. Furthermore, the palm oil industry in Malaysia generates large volumes of organic by-products that have caused environmental concerns. Therefore, the potential utilisation of oil palm waste-based substrates in order to develop a substitute RWS for Pleurotus ostreatus mushroom production is evaluated in this study, based on their agronomic performance and nutritional properties. Empty fruit bunches (EFBs), oil palm fronds (OPFs), and oil palm trunks (OPTs) were used to formulate the substrates. The control used was 100% RWS. Generally, 100% EFB showed a better agronomic performance, and mushroom growth was 1.9 times faster compared to the control, with a comparable mushroom yield. The crude protein and beta glucan content of mushrooms grown on oil palm by-product-formulated substrates were significantly higher than those grown using the control. Additionally, the number of fruiting bodies, crude protein, and beta glucan content of the mushrooms were positively correlated with potassium in the substrate. Therefore, 100% EFB could be used as a potential substitute for RWS for the cultivation and production of P. ostreatus.

On the duration of trade competitiveness: the case of the Malaysian palm-based oleochemical industry

The Covid-19 pandemic has led to a surge in demand for oleochemicals, due to the increased demand for cleaning and disinfectants products. Since Malaysia is one of the world's largest palm oil producers, the demand for oleochemicals will be a key driver supporting the Malaysian palm oil industry. Palm oil is used in millions of products, from foods to soaps, personal care products cosmetics, and biodiesel feedstock. Currently, palm oil related exports are still highly dependent on the upstream segments such as crude palm oil (CPO), with a total contribution to the overall industry of 81.4%. In comparison, that downstream contribution is still low at about 18.6%. It is thus important to expand the production and export of high-value-added palm oil downstream products, including oleochemicals products. Therefore, this study aims to assess Malaysia's relative competitiveness in oleochemical products as compared to the main oil and fat producing countries - namely Indonesia, China, the European Union (EU) member states, the United States and Argentina. We examine the trade competitiveness by using the Revealed Trade Advantage (RTA) developed by Vollrath (1991) and utilizing yearly data spanning from 1999 until 2019. We also analyze the duration of comparative advantage using Kaplan-Meier Analysis. The results indicate that Malaysia has higher and more stable trade advantages relative to other main producers of oleochemical products.

Sustainable Palm Oil: What Drives it and Why Aren’t We There Yet?

Manuscript type: Research paper Research aims: This study explores the institutional pressure and motivation that drives Malaysian palm oil companies to embark on sustainability practices, and uncovers the impediments of substantive change in producing truly sustainable palm oil. Design/Methodology/Approach: A case study methodology was employed, gathering primary and secondary data through semistructured interviews with the company’s personnel and external stakeholders, through informal conversations and group discussions with company workers, document analyses, and observations. The neo-institutional and legitimacy theory were used as the primary lens to explain the study findings. Research findings: The results indicate that both external pressures and internal issues have forced the company to engage in sustainability practices – primarily through certification. Unlike the independent stakeholder pressure found in previous studies, a chain reaction of pressures was found from NGOs and competitors to multinational buyers, whom in turn put pressure on the case company, thus jeopardising their financial bottom lines. Regulatory pressures, conforming to the industry norms, wooing host country’s government, investors, and financiers add to the external motivation. Reputational problems and labour shortages, business case for sustainability, and the philanthropic nature of family-owned firms are the internal elements behind the endeavour. The barrier to change towards sustainability was mainly caused by cost concern, technical difficulties, mindset of workers, unsupportive business environment and impracticalities of safety equipment design. Originality/value: The findings shed light on the inner motive and barriers of change towards producing sustainable palm oil, the understanding of which is vital in driving further substantive changes in the palm oil industry towards sustainable development. Research limitation/Implication: The study was restricted to a single case company in the Malaysian palm oil industry and hence, generalisation of the study findings onto another context should be done in a cautious manner. Keywords: Organisational change, Neo-institutional theory, Legitimacy theory, Palm oil, Sustainability reporting and practice JEL Classification: Q56

Export Demand of Palm Oil in Malaysia: Analysis using ARDL Approach

The growth of the palm oil industry in Malaysia has established a demand for exports among trading partners worldwide. As a result, Malaysia has gained a reputation as the world's largest producer and exporter of palm oil. Crude palm oil production in 1980 was 2.50 million tonnes; however, by 2019 it had increased to 19.86 million tonnes due to the high export demand for oil palm products. This study studies the export demand for palm oil in Malaysia from 1991 to 2019 by adopting autoregressive distributed lag (ARDL) for cointegration to analyze the export demand determinant, weighted average trading partner income, Malaysian export price, competitor export price, world export price of palm oil, world export price of soybean oil, and real effective exchange rate. The main findings reveal that the factors that determine Malaysian export demands for palm oil are palm oil price changes and trading partner income. In addition, the study also finds that European restrictions on unsustainable palm oil consumption hurt Malaysia’s export demand for palm oil.

Awareness and Sustainability among Palm Oil Independent Smallholders: Adoption Decision of MSPO Certification

In 2017, the Malaysian government through Malaysian Palm Oil Board (MPOB) has stipulated that all oil palm growers in Malaysia must obtain Malaysian Sustainable Palm Oil (MSPO) certification to ensure the sustainability of the palm oil industry in Malaysia. To help oil palm growers, especially independent smallholders, the government offers various incentives such as financial support and advisory services to them to ensure that they obtain MSPO certification. If this certification is not met, they will not be able to sell palm oil to the mills. Malaysia's Prime Minister declared mandatory MSPO certification implementation, and all oil palm grower were granted a grace period until 31 December 2019. However, according to the most recent data, only 31 percent of independent smallholders were certified as of December 2020. The impact of not having MSPO certification is significant, resulting in poor quality of life and remaining below the poverty line among independent smallholders. Based on the facts stated above, it is crucial to identify the factors that contribute to independent smallholders' low degree of certified ownership. Previous research has mostly focused on the factors that influence MSPO certification ownership among organized smallholders (See Shahida et al.(2018) and Begum et al. (2018)) and there is still a scarcity of research on independent smallholders. Ni et.al. (2016) revealed that awareness of MSPO is weak among independent smallholders where 97.5% of the survey respondent do not know about sustainable palm oil and 86.7% do not know about MSPO certification. This study further notes that the most important factors reported for the implementation of MSPO are the perceived advantages of the certification and policy support for the implementation of MSPO certification. Therefore, this study focuses on the independent smallholders and will look at how awareness, sustainability practices, and socio-demographic characteristics influence certification or non-certification among independent smallholders. Keywords: MSPO certification, Independent smallholders, Sustainability, Palm oil industry

A multi-layer perceptron-based approach for early detection of BSR disease in oil palm trees using hyperspectral images

Basal Stem Rot (BSR) disease caused by Ganoderma boninense is identified as the biggest threat in oil palm industry in Malaysia, resulting in significant yield losses. Effective BSR disease detection is important for plantation management to ensure stable palm oil production. Existing method is done by experience personnel, via visual inspection it is very time consuming. Rapid development of unmanned aerial vehicle (UAV) and machine learning has the potential to address this issue with higher efficiency. This paper proposed a new framework to automate BSR disease detection with UAV images to improve time efficiency and automate detection process. The proposed method has two steps, first hyperspectral image (HSI) pre-processing, followed by artificial neural network disease detection. Multilayer-Perceptron model is introduced to learn spectral features from different infection stages. The model is trained with ground truth collected by trained surveyors. The HSI sample size consists of 2 healthy trees, 5 Stage A (mild infection), 5 Stage B (moderate infection), and 3 Stage C (severe infection). Performance is examined with support vector machine (SVM), 1 dimensional convolutional network (1D CNN), and several vegetation indices, namely Normalized Difference Vegetation Index (NDVI), Normalized Difference Red Edge (NDRE), Optimised Soil-Adjusted Vegetation Index (OSAVI), and Merris Terrestrial Chlorophyll Index (MTCI). All machine learning algorithms can segregate infection stages, MLP modal had a highest overall accuracy 86.67%, compared to SVM and 1D CNN at 66.67% and 73.33%. Whereas for vegetation index, it can only detect Stage C tree, and not able to differentiate between Healthy, Stage A and Stage B tree. In term of computational cost, MLP modal had balance performance with moderate training time, but faster inference time. It demonstrates effectiveness on BSR disease detection, even at early infection stage.

The Malaysian Palm Issue in the European Union Press Report

This article explores how the European media reports on the Malaysian palm oil to consumers in the European Union countries. The European newspapers allegedly mentioned that palm oil brings extensive damage and affects the environment, cutting down of forests, animal extinction and child labour. The consistent role and influence of the European media in reporting and giving a bad sentiment regarding the disadvantages of Malaysian palm oil to the European consumers have successfully launched an anti-palm oil campaign among the consumers. This matter has also caused a decrease in the export of palm oil into the European Union and indirectly affected the fate of 600,000 palm oil producers in Malaysia. This article uses the literature review approach on the resources such as the European Union newspapers which have a high number of readers in their respected countries such as the Guardian and BBC (United Kingdom), Gazeta Wyborcza and Super Express (Poland), The Brussel Times, Metro and Gazet Van Antwerpen (Belgium) to analyse the role of media in this matter. The results found that the issue of palm oil in the news reports propagated by the European media on the drawbacks of Malaysian palm oil did not happen as reported. In truth, the actual purpose behind their act was to ‘protect’ their real agenda, which is to replace palm oil with their soybean crops. The issues that were touted by the newspapers have given a bad image to the Malaysian palm oil industry. Keywords: European Union, Malaysian palm oil, MPOB, MPOC, biofuel.

Company Values of Malaysian Listed Companies' Sustainability for Palm Oil Industry: Financial Panel Data Model Approach

Objective - "Sustainability" meanings are many different things, e.g. food security, food safety, and economic growth short-tern survival of the production which included social, environmental, economic, based on the institutional objectives. This study aimed to conduct the sustainability of the palm oil industry in Malaysia using the financial panel data model approach. Methodology/Technique - The sampling data were obtained from 2014 to 2018 for 30 listed companies with a total of 150 observations. The research findings are helpful for palm oil production companies and also the major export products in Malaysia. Findings - In recent times, there have been many accusations about the palm oil industry in Malaysia due to the environmentally unfriendly product mentioned by the European Parliament and thus, they decided to ban palm oil biofuel by 2020. This would have a negative impact on the palm oil production companies and it is reflected in the company's share price (company value) of the companies. The paper highlights the level of environmental accounting (EA), environmental performance (EP), and information disclosure (ID), how to affect the company value (CV) for the sustainability of palm oil production companies. Novelty - The novelty of this paper is reflected that as one of the national priority areas (NPAs) of the county and create decent work and economic growth (goal 8), increase industry, innovation, and infrastructure (goal 9), and influence responsible consumption and production (goal 12) for sustainable development goals in Malaysia, respectively. Type of Paper - Empirical. Keywords: Company value; Sustainability; Palm oil production; Forecasting; Panel data model; Listed companies in Malaysia JEL Classification: C330, D2, G, Q1.

Effects of Liming on Soil Properties and Its Roles in Increasing the Productivity and Profitability of the Oil Palm Industry in Malaysia

As global demand for edible oil increases, palm oil-producing countries in Southeast Asia are experiencing a rapid expansion of agricultural land for industrial oil palm cultivation by converting existing agricultural lands and some tropical rainforests; however, soil acidity and nutrient depletion are two major constraints in oil palm cultivation in the tropics. Several factors may cause soil acidification, including natural processes, industrial pollutants and extensive agricultural production. Soil acidity increases the leaching of many essential plant nutrient elements and the availability of toxic elements by modifying various geochemical and biological reactions in the soil. Even though acidic soil is less fertile, the productivity of tropical soil is among the highest in the world once the chemical constraints are removed by applying a sufficient quantity of lime and fertilizers. Lime is a widely used alkali to improve soil fertility by retaining nutrients, increasing soil biota, decreasing heavy-metal availability and potentially achieving resistance against Ganoderma disease at oil palm estates. Liming materials are not simple compounds with consistent chemical properties; thus, selecting the appropriate lime must be based on soil type and price compared to the products neutralizing value, composition, and fineness. Since the primary aim of liming is to improve soil pH, numerous reviews have been reported on the impacts of soil acidification, nutrient deficiencies and heavy-metal toxicity; however, no extensive review has been published that discusses the effects of liming on oil palm growth and yield. It is not enough to emphasize just soil impacts alone, and a thorough assessment must also be given on crops (oil palm) and soil biodiversity. This review synthesizes current understanding and introduces a holistic approach to provide insights into the far-reaching effects liming has on the biogeochemical properties of tropical soil and oil palm crops.

Malaysian Palm Oil Industry Performance During Epidemic Covid 19

Malaysian Palm Oil Industry Performance During Epidemic Covid 19

Analysis of Biogas Production from Biomass Residue of Palm Oil Mills using an Anaerobic Batch Test

The Malaysian palm oil industry has grown rapidly due to Malaysia’s tropical weather and suitable terrain. Palm oil production is now categorized as the most significant agriculture-based industry in the country. Along with strong economic returns, the palm oil industry also generates an abundance of waste products, including empty fruit bunches (EFB) (23%), mesocarp fibre (12%), shells (5%) and palm oil mill effluent (POME) (60%) for every batch of fresh fruit bunches (FFB) processed in the mills. This study is meant to fill the gap from previous studies in terms of biogas productions from the POME or the combination of POME and EFB which normally been conducted under the thermophilic conditions. The appropriate mixture ratios between POME and EFB in anaerobic digestion will reduce time of treatment and space if been conducted in the low temperature (mesophilic conditions). Thus, this paper is focuses on the analysis of batch test design which consist of low temperature (mesophilic, 20-40 °C) conditions for evaluating the performance of biogas production from the combination of POME and EFB in anaerobic digestion. The aim was to determine the amount of biogas production based on different ratios of POME and EFB mixtures. Biogas 1, containing 160 mL of fresh POME mixed with 40 g of EFB, was shredded and blended with 1800 mL seed sludge. Biogas 2, containing 120 mL of fresh POME mixed with 80 g of EFB, was shredded and blended with 1800 mL seed sludge. Based on the analysis of the results, the total production of Biogas 1 was greater than that of Biogas 2. The findings also show that the ratio of POME and 20% EFB (Biogas 1) was more efficient in producing the biogas compared to the ratio POME and 40% EFB (Biogas 2) under the mesophilic conditions. Thus, the mesophilic conditions required energy saving and low-cost process, compared to the previous studies which used the high temperature (thermophilic, 41-122 °C) that definitely was costly and require more energy consumption. This study will serve as preliminary results for enhancing the treatment methods use in Malaysia and form the early basis for the development of a new technology incorporating a combination of POME and EFB.

External and Internal Shocks and the Movement of Palm Oil Price: SVAR Evidence from Malaysia

Movements in palm oil price give important signals to various stakeholders of the palm oil industry in Malaysia. Thus, understanding external and internal factors that may affect the palm oil price is vital to the industry players for sustainability of their activities. This study investigates relative importance of external and internal shocks on the movement of palm oil price in Malaysia. Employing a structural vector autoregressive (SVAR) model on quarterly data from 1990 to 2019, the findings reveal that external shocks are more dominant in affecting the palm oil price. Shocks to the crude oil price, the prices of substitution goods (soybeans oil, rapeseed oil, and sunflower oil), the world palm oil price, and foreign income significantly affect the palm oil price in the short and medium run. The results also indicate that a shock to soybean oil price has a more profound effect on the palm oil price than a shock to rapeseed oil or sunflower oil prices, respectively. Likewise, shocks to incomes from India as well as from Netherlands create greater impacts on the palm oil price than a shock to income from the other trading partners, respectively. The study has shown the importance of external factors in affecting the palm oil industry.

Performance evaluation of waste palm oil fiber reinforced stone matrix asphalt mixtures using traditional and sequential mixing processes

Asphalt pavement in tropical countries like Malaysia faces severe distresses. Thus, the use of more resistant and stable asphalt mixtures on the surface layer like stone matrix asphalt concrete (SMAC) is encouraged. The performance-related properties of asphaltic concrete are highly influenced by the mixing process and the asphalt mixtures homogeneity and segregation are pivotal issues affecting asphaltic concrete production. Malaysian palm oil industry generates a large amount of waste palm fiber (WPOF) which are largely discarded. This study investigates the feasibility of utilizing WPOF as a stabilizer in SMAC and evaluates the influence of two different mixing processes (traditional and sequential) on its properties The SMAC mixtures were reinforced with various content of WPOF, 0–0.6% by weight of the total mix and evaluated for volumetric and mechanical properties. Several standard laboratory test methods were used to examine the mixtures: Marshall properties, drain down test, Cantabro, stiffness modulus, moisture damage test. The study revealed sequential mixing as a more viable mixing alternative for SMAC, as it shows lower drain down, air void, and optimum bitumen content with higher Marshall stability and voids in mineral aggregate values. While for the mechanical properties the sequential mixing shows higher moisture resistances, stiffness modulus, and less Cantabro loss for all mixture’s types compared to the convention blends. It was observed that the optimum WPOF dosage is 0.3% for both mixing processes, Though, the sequential mixing shows improved mechanical properties. These improved properties are probably due to improving coating and proper dispersion of mixing materials during the mixing process. In conclusion, utilizing WPOF as stabilizers improve SMAC mixtures properties whereas, the sequential process produces better properties even at marginally lower OBC and mixing time.

The potential of biomass waste in Malaysian palm oil industry: A case study of Boustead Plantation Berhad

The oil palm industry is known as the primary producer of biomass in Malaysia. The massive production of oil palm biomass has resulted in a significant waste disposal problem. This study aims to assess the potential of waste derived from oil palm plantations and processing mills to be transformed into value-added products for various applications. The study was conducted on three oil palm estates managed by Boustead Rimba Nilai Berhad using data on the generation rates of fresh fruit bunches (FFB), crude palm oil (CPO), and oil palm biomass waste from 2018 to 2020. The availability of FFB, CPO, empty fruit bunches (EFB) and excess fibers, and palm oil mill effluents (POME) in 2030 was predicted using a forecasting approach, with trend analysis as the tool of choice. From 2018 to 2020, the output of FFB, EFB and excess fibers, as well as POME grew by 16%, 14%, 23%, and 14% respectively. Based on trend analysis, the projection of FFB, CPO, EFB and excess fibers, and POME outputs in 2030 is expected to be 80%, 56%, 92%, and 56% respectively, which are greater than the figures recorded in 2020. The state of the palm oil industry in Malaysia was described in this study and also highlighted the potential of oil palm biomass in various industries and as a source of green energy. Oil palm biomass can be commercialized in a wide range of value-added products.

Impact of El Niño on Oil Palm Yield in Malaysia

Oil palm crop yield is sensitive to heat and drought. Therefore, El Niño events affect oil palm production, resulting in price fluctuations of crude palm oil due to global supply shortage. This study developed a new Fresh Fruit Bunch Index (FFBI) model based on the monthly oil palm fresh fruit bunch (FFB) yield data, which correlates directly with the Oceanic Niño Index (ONI) to model the impact of past El Niño events in Malaysia in terms of production and economic losses. FFBI is derived from Malaysian monthly FFB yields from January 1986 to July 2021 in the same way ONI is derived from monthly sea surface temperatures (SST). With FFBI model, the Malaysian oil palm yields are better correlated with ONI and have higher predictive ability. The descriptive and inferential statistical assessments show that the newly proposed FFBI time series model (adjusted R-squared = 0.9312 and residual median = 0.0051) has a better monthly oil palm yield predictive ability than the FFB model (adjusted R-squared = 0.8274 and residual median = 0.0077). The FFBI model also revealed an oil palm under yield concern of the Malaysian oil palm industry in the next thirty-month forecasted period from July 2021 to December 2023.