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Confidential CONFIDENTIAL i RSPO MAIN ASSESSMENT REPORT ASSESSMENT DATE: 27TH – 29TH DECEMBER 2011 FELDA PALM INDUSTRIES SDN BHD KILANG SAWIT BUKIT KEPAYANG 28300 TRIANG PAHANG DARUL MAKMUR MALAYSIA SIRIM QAS INTERNATIONAL SDN. BHD. Building 4, SIRIM Complex, No. 1 ,Persiaran Dato‟ Menteri, Section 2, P.O. Box 7035, 40911 Shah Alam, Selangor, Malaysia. Tel: 603 5544 6448 Fax: 603 5544 6763 Website : www.sirim-qas.com.my SIRIM QAS INTERNATIONAL SDN. BHD. Building 4, SIRIM Complex, No. 1 ,Persiaran Dato‟ File Reference Menteri, Section 2, P.O. Box 7035, 40911 Shah Alam, Selangor, Malaysia. EF00730003 RSPO P& C MAIN ASSESSMENT REPORT CLIENT: FELDA AGRICULTURAL SERVICES SDN BHD ADDRESS : Tingkat 7, Balai FELDA, Jalan Gurney 1, 54000 Kuala Lumpur, Malaysia PALM OIL MILL: FELDA PALM INDUSTRIES SDN BHD Bukit Kepayang Palm Oil Mill SUPPLY BASE: 1. Felda Plantation Terapai 3, D/A Felda Mayam, 28300 Triang, Pahang 2. Felda Bukit Kepayang, Pejabat Felda Bukit Kepayang, 28200 Bera, Pahang 3. Felda Mayam, Pejabat Felda Mayam, 28200 Triang, Pahang 4. Felda Purun, Pejabat Felda Purun, 28300 Triang, Pahang ADDRESS OF SITE: FELDA, Bukit Kepayang Palm Oil Mill Complex Certification Unit Kilang Sawit Bukit Kepayang 28300 Triang, Pahang Darul Makmur, Malaysia ASSESSMENT DATE: STAGE 2 : 27TH - 29TH DECEMBER 2011 DURATION : 13 AUDITOR DAYS STANDARD: ROUNDTABLE ON SUSTAINABLE PALM OIL (RSPO) INCLUDING SMALLHOLDER MALAYSIA NATIONAL INTERPRETATION WORKING GROUP (MY-NIWG) : NOV 2010 SCOPE OF CERTIFICATION ASSESSMENT: BUKIT KEPAYANG PALM OIL MILL AND ITS SUPPLY BASES TABLE OF CONTENT Page no 1.0 INTRODUCTION 1 1.1 Description of the Certification Unit 1 1.2 Description of FELDA and its Settlers Scheme 1 1.3 Organisation structure in a scheme 2 1.3.1 Settler‟s Institution 4 1.3.2 Human Capital at FELDA Bukit Kepayang Palm Oil Mill Complex Certification 4 Unit (FBKCU) 1.3.3 Facilities provided in a scheme 5 1.4 Workforce composition 5 1.5 Time Bound Plan for Other Management Units 6 1.6 Location of Mill and Supply Base 6 1.7 Description of the Supply Base 7 1.8 Other Management System Certification Held 9 1.9 Organizational Information/Contact Person 9 1.10 Approximate FFB Tonnages Offered for Certification 9 2.0 ASSESSMENT PROCESS 10 2.1 Assessment Methodology (Program, Site Visits) 10 2.2 Date of Next Surveillance Visit 10 2.3 Assessment Team 11 2.4 Stakeholder Consultations 14 3.0 ASSESSMENT FINDINGS 14 4.0 COMMENTS FROM STAKEHOLDERS 80 5.0 ASSESSMENT RECOMMENDATION 80 6.0 CERTIFIED ORGANIZATION‟S ACKNOWLEDGEMENT OF INTERNAL 81 RESPONSIBILITY AND FORMAL SIGN-OFF OF ASSESSMENT FINDINGS List of Tables Table 1 Total and Composition of Workers in the Certification Unit 5 Table 2 Coordinate of Bukit Kepayang CU 6 Table 3 Average Annual FFB Contribution by Each Schemes 7 Table 4 Year of Establishment of Schemes and Area Planted with Oil Palm 8 Table 5a Felda Plantation Terapai 3 8 Table 5b Ladang Bukit Kepayang 8 Table 5c Ladang Purun 8 Table 5d Ladang Mayam 9 Table 6 Approximate FFB Tonnages Claim for certification 9 List of Attachments Attachment 1a Felda Scheme in Peninsular Malaysia 82 Attachment 1b Location map for Felda Bukit Kepayang Certification Unit 83 Attachment 1c Ladang Felda Terapai 3 84 Attachment 1d Felda Purun 85 Attachment 1e Felda Mayam 86 Attachment 1f Ladang Felda Bukit Kepayang 87 Attachment 2 Assessment programme 88 Attachment 3 List and Comment from Stakeholders 98 Attachment 4 Non-Conformity Report 104 Abbreviations: BOD Biochemical Oxygen Demand B.Sc. Bachelor of Science CHRA Chemical Health Risk Assessment CoC Consolidated Annual Charges COD Chemical Oxygen Demand CPO Crude Palm Oil CU Certification Unit DID Drainage and Irrigation Department, Malaysia DOE Department of Environment DOSH Department of Occupational Safety and Health EARA Environmental Auditors Registration Association EB Executive Board EFB Empty Fruit Bunch EMP Environmental Management Plan EPF Employees Provident Fund EQA Environmental Quality Act ERT Endangered, Rare and Threatened Species FIC FELDA Investment Cooperative FFB Fresh Fruit Bunch GAP Good Agricultural Practice GPS Global Positioning System GPW Gabungan Pembangunan Wanita (Women Development Association) GSA Group Settlement Act Ha Hectares HCV High Conservation Value HIRARC Hazard Identification, Risk Assessment and Risk Control IEMA Institute for Environmental Management and Assessment IPM Integrated Pest Management ISP Incorporated Society of Planters IRCA International Register of Certificated Auditors JCC Joint Consultative Committee JKKR Jawatankuasa Kemajuan Rancangan (Scheme Development Committee) M.E Master of Engineering MSDS Material Safety Data Sheet MNS Malaysian Nature Society MOA Memorandum of Alliance or Agreement MPOA Malaysian Palm Oil Association MPOB Malaysia Palm Oil Board MYNI Malaysia National Interpretation MYNI – WG Malaysia National Interpretation – Working Group NCR Non-Conformity Report NGO Non Governmental Organisation OER Oil Extraction Rate OFI Opportunity for Improvement OHD Occupational Health Doctor OSH Occupational Safety and Health OHSAS Occupational Health and Safety Assessment Series PERKESO Social Security Organization PDRM Polis Di-Raja Malaysia Ph.D. Doctor of Philosophy POM Palm Oil Mill POME Palm Oil Mill Effluent PPE Personal Protective Equipment RSPO Roundtable on Sustainable Palm Oil SIA Social Impact Assessment SS Suspended Solid SOP Standard Operating Procedure USA United States of America USECHH Use and Standards of Exposure of Chemicals Hazardous to Health WTP Water Treatment Plant WWF World Wide Fund for Nature RSPO STAGE 2 ASSESSMENT REPORT 1.0 INTRODUCTION 1.1 Description of the Certification Unit The certification unit (CU) of FELDA Agricultural Services Sdn Bhd, Bukit Kepayang Palm Oil Mill Complex (FBKCU) was one of the seventy one complexes of FELDA schemes being assessed for certification against the RSPO Principles and Criteria for Sustainable Palm Oil Production, including smallholder, Malaysia National Interpretation Working Group (RSPO MYNIWG: November 2010). The FBKCU is located within the state of Pahang. The assessed CU comprised of the following palm oil mill and oil palm supply bases: 1. FELDA Palm Industries, Bukit Kepayang Palm Oil Mill 2. FELDA Plantation Terapai 3, d/a FELDA Mayam, 28300 Triang, Pahang 3. FELDA Bukit Kepayang, Pejabat FELDA Bukit Kepayang, 28200 Bera, Pahang 4. FELDA Mayam, Pejabat FELDA Mayam, 28200 Triang, Pahang 5. FELDA Purun, Pejabat FELDA Purun, 28300 Triang, Pahang FELDA Bukit Kepayang POM commenced its operations in 1975 with a processing capacity of 45mt Fresh Fruit Bunches (FFB) per hour. Although Bukit Kepayang POM received and processed third party FFB this assessment did not include the third party FFB suppliers. The smallholder schemes three at this CU began development in phases from 1967-1972. They are FELDA Bukit Kepayang, FELDA Purun and FELDA Mayam and are land owned by settlers in accordance with the Group Settlement Act (GSA) 1960, and, throughout Malaysia they are being managed by the Federal Land Authority, in short FELDA, a government of Malaysia owned agency. In addition, at this CU there is one plantation like estate, that is, FELDA Terapai 3 developed on 1987 and is managed by FELDA Plantation Sdn Bhd (FPSB), a subsidiary of FELDA Holdings. FPSB is a service company formed to manage areas (that was not given to settlers) in a commercial manner belonging to FELDA Holdings. One Manager manages one smallholder‟s scheme. He is primarily tasked to oversee the socio- economic aspect and welfare of the settlers whereas on the field operational support he is assisted by FELDA Technoplant Sdn. Bhd (hereafter referred to as FTP). .FTP is a subsidiary of FELDA Holdings which is responsible for managing smallholder plantation areas from replanting to production of FFB as well as the maintenance of these planted areas. Unlike the smallholder schemes the estate is solely managed by a Plantation Manager of FPSB 1.2 Description of FELDA and its Settlers Scheme FELDA is a government agency established under the Land Development Ordinance on 1st July 1956. Its objectives are: to provide land for the landless. to uplift socio-economic status of rural communities; and to encourage the development of a progressive, productive and disciplined settlers community. MSC/RSPO/DOC/06-02 Issue 1 Rev. 0 Page 1 of 110 In the following year FELDA initiated the first land development by planting rubber trees at Lurah Bilut, Pahang. In 1958, five similar schemes were opened. Subsequently, via Group Settlement Act 1960 FELDA developed more areas. Currently, totalling 853,313 hectares (as of March 2012) of land have been opened for cultivation, infrastructure, settlers‟ settlement housing and public facilities for 112,635 settlers. From that, 811,140 hectares are agricultural area of which 722,946 hectares or 84.7 % are planted with oil palm plantation. The remaining area is planted with rubber, sugar cane, timber, and fruit trees and plot for research and development. FELDA settlers‟ settlement area (village) accounts for 42,173 hectares or 4.9 % of land developed. The incorporation of FELDA allows it to provide integrated services with economies of scale related to the provision of economic opportunities for the settler‟s community to ensure stable income for the settlers. Managed as an estate style (1700 – 2500 ha.), a typical settlers‟ settlement includes between 400-600 settlers per scheme and each settler is given a house and a plot of land to farm. At FBKCU each settler is assigned to a particular settlement, and is given 10 acres (4.0 ha.) of land to cultivate oil palms. All settlers here and the FELDA Terapai 3 plantation started their plot by planting with oil palm trees as their first crop and continue to do so for replanting. .All settlers must reside at the settlement itself, and are allotted an additional 0.25 acres (0.10 ha.) in a planned village, where their home - already built by FELDA - is located. About 20 houses made up a block and each block chose its own representatives who voice their concerns to their Scheme Development Committee (JKKR) and FELDA Management.
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