MPOB sets up 11 Sustainable Palm Oil Cooperatives in Sabah
KENINGAU: The Malaysia Palm Oil Board (MPOB) has set up 41 Sustainable Palm Oil Cooperatives (KPSM) nationwide, including 11 in Sabah.
Minister in the Prime Minister's Department, Tan Sri Joseph Kurup, said this to encourage the participation of smallholders in the cooperative movement.
The establishment of KPSM is to consolidate smallholders in carrying out economic activities through good farming practices and selling of palm fruit directly to factories, he said.
“I was told by KPSM that direct sales of fresh fruit bunches (FFB) to the factory had recorded a sales increase by smallholders compared to sales through palm oil traders,” he said in his speech when officiating at the Hello Sawit Pensiangan program and KPSM weighing centre at Kampung Delayan Lama Sook near here yesterday.
Kurup said that under the 11th Malaysia Plan, the Federal government had allocated RM200,000 funded through MPOB for the construction of a FFB centre operated by KPSM. He said MPOB also worked with Agro Bank to provide overdraft facility to KPSM for round capital financing.
Apart from MPOB, he said the Malaysian Cooperative Commission (SKM) also provided working capital loan, a support base and mentoring-coaching to cooperatives engaged in farming as an injection of capital to grow the business.
“To improve knowledge management and governance of cooperatives, the Cooperative College of Malaysia (MKM) has been providing training courses free of charge to members of the board, management and members of cooperatives, for example, courses on farm management, strategic workshop co-operatives, and workshop governance.
“This shows that the government is very concerned about the cooperative movement and wants to see the cooperatives go ahead and become an effective contributor to national development. Establishment of KPSM is to bring together smallholders in carrying out economic activities through good agricultural practices and sales of palm fruit in clusters directly to the factory,” he said.
Hence, he said various benefits can be enjoyed by smallholders who become members of KPSM, among others, is the sale of palm oil at high and transparent prices; after-sales discount (rebate); yearend dividend; MSPO certification scheme; free technical advice (one stop centre) as well as reduced operating costs through group sales.
Kurup asked members of the cooperative present today to provide solid support for the business and management of the cooperative. He said the unity that exists in the cooperative should be maintained so that the spirit of belonging and cooperation among members will be the driving force for the success of the cooperative.
Present at the event was MPOB director of Integration and Development Research Division, Dr Ramle Moslim, Malaysian Cooperative Commission (SKM) executive vice chairman Haji Zazali Haron, KPSM Keningau Berhad chairman Datuk Justin Guka, KPSM board of directors and members, MPOB officials and palm oil smallholders.