Developing an Economic Model for Socio-Economic Improvement in Oil Palm Plantation among Independent Small Holders in Johore.
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Abstract
Malaysia, the second-largest producer of palm oil in the world after Indonesia, depends heavily on
its production for economic development. While the second of the United Nations' 17 Sustainable Development Goals (SDGs) for the year 2030 is to end hunger, achieve food security, improve nutrition, and promote sustainable agriculture. Palm oil plantation has a chance to support the goals of sustainability and food security. For instance, as oil palm tree are the world's most productive oil-bearing crop uses only 0.6% of the world's agricultural area to produce about 35.5% of the vegetable oil. Thus, it is clearly more environmentally friendly and secure the land uses compared to vegetable oil plantation. 40 percent of the oil palm produced in Malaysia is produced by smallholders, whether they are independent or organized. Organized smallholders have technical, manpower and market support from government agencies such as FELDA, FELCRA or RISDA, while many independent smallholders have no access to the above and suffer low yields. Most of the independent smallholders has lower income than those in the other agriculture subsectors and majority of them are in the B40 category with average income around RM 1600, which is much less than the RM 2,208 new national poverty level (Rahman, 2020). Due to financial limitations, 13.6% of Malaysia's independent smallholders are family-run businesses with below-average social and environmental standards. In Johore state, it is the major oil palm plantation in Malaysia. However, they are experiencing low yields and unsustainable income (Ismail, 2003).
Project Leader
