FGV: 22pc oil ex­trac­tion rate by 2020 will help raise set­tlers’ in­comes

New Straits Times - - Business -

JEMPOL: Felda Global Ven­tures Hold­ings Bhd (FGV) tar­gets to achieve an oil ex­trac­tion rate (OER) of up to 22 per cent by 2020, com­pared with the 20.73 per cent av­er­age rate last year.

Chair­man Tan Sri Mohd Isa Ab­dul Samad said this would raise the in­comes of set­tlers and small­hold­ers.

“In or­der to achieve this tar­get, we have to in­crease the qual­ity of the fresh fruit bunches (FFB) sup­plied to the mills for pro­cess­ing.

“This is why we are con­duct­ing a na­tion­wide cam­paign to ed­u­cate plan­ta­tion man­age­ment, set­tlers and small­hold­ers on the as­pects of plant­ing and (choos­ing) seeds,” he said.

He said this after of­fi­ci­at­ing at the FFB Qual­ity Im­prove­ment Cam­paign 2017 in Felda Sert­ing Hilir, here, yes­ter­day.

Also present was FGV pres­i­dent/group chief ex­ec­u­tive of­fi­cer Datuk Zakaria Arshad.

Mohd Isa said the cam­paign also aimed to teach the set­tlers and small­hold­ers not to send in un­ripe fruit bunches, as it would cause a loss to FGV, the mills as well as the set­tlers them­selves.

“We want to avoid un­ripe fruit bunches as the Malaysian Palm Oil Board (MPOB) does not al­low for it to be pro­cessed, and even if they were pro­cessed, there wouldn’t be much oil,” he said.

He said FGV suf­fered RM80 mil­lion in losses last year due to set­tlers send­ing in un­ripe fruit bunches, which could not be pro­cessed.

Zakaria said in­for­ma­tion on the qual­ity of FFB was im­por­tant, as pre­vi­ously there had been con­fu­sion on grad­ing meth­ods and prices.

“There are sev­eral fac­tors which af­fect the qual­ity of FFB, which in­cludes un­ripe and rot­ten fruits.”

The na­tion­wide cam­paign, themed “Qual­ity FFB Brings Higher Re­turns”, aims to en­cour­age FFB sup­pli­ers to strive for the spec­i­fied qual­ity, which is 100 per cent fresh ripe fruits in ac­cor­dance with MPOB’s Oil Palm Fruit Grad­ing Man­ual.

FFB sup­pli­ers were also briefed on the grad­ing sys­tem, fac­tors of penal­ties as well as the role of the Qual­ity Im­prove­ment Con­sul­ta­tive Com­mit­tee in de­ter­min­ing the qual­ity of the FFBs. Ber­nama

Tan Sri Mohd Isa Ab­dul Samad

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