Empty Fruit (Ravi)

TECHNOLOGICAL DEVELOPMENT AND NEW GROWTH AREAS OF THE OIL PALM INDUSTRY Technological Development and New Growth Areas of the Oil Palm Industry Mohd Basri Wahid*; Lim, W S* and Mohd ABSTRACT Arif, S* Technological development has transformed the Malaysian palm oil industry into a strategic and well planned industry that responds to global challenges. In particular, genetic knowledge since as early as 1912 first led the phenomenal growth of the industry through the planting of tenera instead of dura palms. This was complemented by the government allocating land to the poor and landless to plant more oil palm, in great part causing the area to increase from 54 000 ha in 1960 to 1.02 million hectares in 1980 and 2.03 million hectares in 1990. By 2006, there were 4.16 million hectares of oil palm, constituting nearly two-thirds of the national agricultural area (Table 1). Malaysia continues to be the world’s largest palm oil producer with a production of 15.90 million tonnes in 2006. The success of the crop is largely market driven with good long- term price prospects for palm oil making oil palm more attractive than most other crops. Palm oil contributes more than one-third of the national agricultural GDP, generating RM 31.81 billion in export earnings in 2006, making it one of the pillars of Malaysia’s economy. At present, the industry employs more than 1.5 million people in the core and related sectors. This paper provides an overview of the technological developments which have propelled the industry into a strategic and important sector and which will shape the future of the oil palm agro industry. ADVANCES IN PLANTING in area under new planting and MATERIALS replanting. Despite the availability of better planting materials, the The continued expansion in oil Malaysian national yield has palm cultivation in Malaysia has stagnated at below 20 t FFB /ha/yr been accompanied by continuing for the last 20 years (Figure 1 and introduction of ever better planting Table 2). The current yield materials. At present, there are 18 represents a gap of about 60% as certified seed producing centres the present planting materials have that conform to stringent the potential of producing 8.8 t/ha/yr technological standards with 12 of of palm oil (Jalani et al., 2002). As them solely producing seeds. In indicated in Table 3, the low 1995, 56 million seeds were Malaysian fresh fruit bunch (FFB) * Malaysian Palm Oil Board, produced, increasing to 81 million yield is mainly dragged down by P. O. Box 10620, in 2005. The demand for seeds has public agencies. Up to 35% or even 50720 Kuala Lumpur, grown in tandem with the increase higher yield can be expected with Malaysia. 1 OIL PALM INDUSTRY ECONOMICJOURNAL INDUSTRY PALM OIL 2 Sources: DepartmentofStatistics,Malaysia:1960–1985;MPOB:19852006. Source: MPOB(variousissues). 20062005 23342472004 22986082003 1239497 22016062002 1209368 22021662001 591471 1165412 21870102000 543398 1135100 4165215 20968561995 508309 1068973 4051374 20455001990 464774 1027328 3875327 19031711985 414260 1000777 3802040 16984981980 374828 3670243 518133 12923991975 330387 3499012 2761711960 906590 3376664 783 118 161500Y 568561 54795 2540087 93967 28500 2029464 59139 na 1482399 22749 14091 1023306 na 641791 na 54000 National averagePublic agencies: Private estatesCategory 18.93 18.88 20.13FFB yiel 20.30 d 1995 (t/ha) 2005 ear Malaysia P. Sabah Sarawak Total 15.00 16.00 17.00 18.00 19.00 20.00 21.00 22.00 23.00 24.00 25.00 T ABLE 3. FRESH FRUIT BUNCHES (FFB) YIELD BY AGENCIES YIELD BY ABLE 3.FRESHFRUITBUNCHES(FFB) 4. Stateschemes/govtagencies3. RISDA2. FELCRA1. FELDA 17.18 16.57 16.67 16.72 17.88 12.09 16.73 16.11 T Figure 1. Fresh fruitbunch(FFB)yield(t/ha/yr)1985-2005. 1.Fresh Figure 1985 AREA: 1960-2006(ha) PLANTED PALM ABLE 1.OIL 1986 1987 1988 1989 (t/ha) 1995 AND 2005 (t/ha) 1995 1990 1991 1992 1993 (VOL. 7(1)/2007) 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Source: Oil World (variousissues). Source: OilWorld for liquid culture, whichismore for liquidculture, ( palms) forclonalpropagation (mother ortets highly productive MPOBhasidentified breeding. conventional planted from yield thantheseedlingsnow uniformandhigher more produce yields istoplantcloneswhich strategytoimprove One important especially bythepublicagencies. quality plantingmaterials, withgood systematic replanting This willbeachievedthrough yield of35t/ha/yrand25%OER). a long-termgoalof35:25(FFB the oilextractionrate(OER)with theFFByieldandimprove increase campaignsgoingonto currently are the plantingofclones.There PERFORMANCE (MPOBtrials) T No. Clone Oilto Oil 7.6. P2035. P200 30.84. P149 29.1 8.01 3. P194 30.8 7.74 2. P135 29.09 7.25 1. P162 28.39 7.75 P164 29.31 7.56 30.6 7.80 8.71 W Guinea Papua New4.02 4.09 Colombia 3.31 3.88 NigeriaIndonesia 1.80 2.16 3.58 3.54 Malaysia 3.60 4.20 T able 4 ABLE 2. PALM OIL YIELD BY OIL ABLE 2.PALM orld 3.20 3.60 BIOTECHNOLOGY T COUNTRY (t/ha/yr) COUNTRY ) anddevelopedprotocols ABLE 4.CLONAL bunch yield (%) (t/ha/yr) 1995 2005 TECHNOLOGICAL DEVELOPMENT AND NEW GROWTH AREAS OF THE OIL PALM INDUSTRY efficient with minimal clonal GMOs have become more human health, oil palm estates abnormalities produced. MPOB acceptable to all. must adhere to adopting integrated has also developed molecular pest management. This includes markers for detecting tissue culture OPTIMIZING LAND USE the use of biological control. The abnormality and a tracking system barn owl, Ty to alba javanica, for for quality control and Commercial oil palm planting is example is being encouraged to identification of clones. It is now mainly monoculture with little control rats (Smal, 1989) and working on a bioreactor for mass livestock and crop integration Metarhizium anisopliae (a fungus) tissue culture. (LCI) for fear of damaging the to control rhinoceros beetle, MPOB ventured into bio- palms and causing a loss in yield. Oryctes rhinoceros (Ramle et al., technology to give the oil palm Yet, technological advances have 2006). Against bagworms, MPOB industry a competitive edge. Today, shown that integrated farming is has developed a biopesticide based MPOB has the most com- possible with livestock rearing and on Bacillus thuringiensis (Bt) (Siti prehensive biotechnology pro- inter-cropping. There are already Ramlah et al., 2005a, b). This Bt gramme on oil palm in the world. successful LCI programmes in product is toxic only to the target Besides tissue culture, MPOB has various plantations in Malaysia. insects but harmless to humans also ventured into genetic While oil palm remains the anchor and non-target insects. engineering. However, no crop, LCI will allow the industry Parasitioids play a role in genetically modified oil palm has to diversify and optimize its land suppressing the bagworm yet been produced commercially use. population (Basri et al., 1995). and Malaysian palm oil is still LCI requires the oil palm to be Several flowering plants common GMO-free. MPOB has developed planted at wider spacing, as for in plantations provide nectar for tools and techniques for genetic example, in double avenues, which the parasitoids. Field studies engineering of oil palm. The tools have been shown to have no showed that these parasitoids are and techniques include iden- adverse effects on yield. In- highly attracted to the plant, Cassia tification of enzymes in the between, cash crops can be cobanensis (Basri et al., 2001). This pathway, isolation of relevant planted, even when the palms are is particularly so for the parasitoids genes, isolation of promoters to at matured stage, and/or livestock associated with the bagworm, ensure that the manipulated gene reared (Yusof and Suboh, 1998), Metisa plana. Planting more Cassia is targeted to the mesocarp and not generating extra income cobanensis will encourage more of other parts of the palm and the throughout the life of the palms. these natural enemies to control development of techniques for Crops such as hill paddy, sweet the bagworm (Basri and Norman, introducing the manipulated gene corn, yam, yellow sugar cane, 2002). Technological deve- into the oil palm. MPOB is the first pineapple, melon, banana and even lopments in integrated pest and only organization in the world soyabean have been shown to management will, in the long-run, to have high oleate and high produce reasonable returns to contribute towards sustainability of stearate transgenic oil palm investment. Under-grazing mature the oil palm industry. plantlets in the nursery (under oil palm with cattle has also been strictly controlled conditions). In shown by MPOB to be MILLING TECHNOLOGY AND the area of genomics, MPOB has economically and technically EXTRACTION OF BIOACTIVES developed and presented to the viable prompting 78 estates to FROM POME industry for adoption, techniques venture into cattle rearing (Rosli, on DNA fingerprinting and 1998). Apart from the extra Malaysia has the largest palm oil chromosome painting. revenue from selling the cattle, milling industry in the world. As far as biotechnology for oil weeding cost can be reduced by Palm oil production has increased palm is concerned, the short- to grazing. from a mere 431 069 t in 1970 to medium-term potential lies in 15.90 million tonnes in 2006, and effective propagation of high BIOLOGICAL CONTROL OF is forecast to increase further to performance clones through tissue PESTS 16.6 million tonnes in 2010 and culture. In the long-run, 20.5 million tonnes in 2020. The genetically engineered oil palm To maintain productivity, expected increases are envisaged to with identified traits such as high pesticides are used to control pests. come from higher productivity oleic acid disease resistance and However, with increasing through replanting of old palms other selected characteristics will environmental concern and with higher yielding materials, be desirable, especially when adverse effects of pesticides on better plantation management and 3 OIL PALM INDUSTRY ECONOMIC JOURNAL (VOL.

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