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