BELURAN: Smallholder suppliers of palm oil fresh fruit bunch (FFB) in Kampung Contoh Kuala Sapi will now have the benefit of harvesting and supplying better quality FFB.
This comes following an agreement entered upon by 20 smallholders with Wilmar International Reka Halus Palm Oil Mill through a fertilizer credit scheme for small oil palm planters.
In this scheme, the mill would supply the smallholders’ fertilizers on credit and in turn, when they supply the FFB to the mill, the mill would deduct a sum from their sales for three consecutive months.
According to the person in charge of the mill, Chong Yih Sien, the fertilizer credit scheme in Kampung Contoh Kuala Sapi is the first of its kind among all palm oil mills of Wilmar International.
“This is still a small program, but we hope that it will receive more response in the future and we can gradually increase the number of fertilizers we supply to smallholders in the future,” Chong said in his speech during the presentation ceremony of the fertilizers in the Reka Halus Palm Oil Mill last Friday.
He added that the scheme is necessary as the villagers, who own small oil palm plantations, have been working alongside Wilmar International since the company started its operations in Kuala Sapi.
“We are very grateful because the villagers supply us with FFB, alongside our own harvest of FFB. However, the quality of the villagers FFB often fluctuates and it would not be beneficial to accept FFB which are of low quality.
“After conducting research, we discovered that the reason contributing to the low quality is the lack of use of fertilizers, which the villagers could not afford,” he said, adding that this is the reason that prompted them to engage the villagers with a fertilizer credit scheme.
“We give them the fertilizer, they will have better FFB to be supplied to us and we still pay for their sales and the amount we deduct from their sales is very reasonable.
“It does not burden the villagers and it will still keep them earning a considerably good income monthly,” he added.
Also present during the ceremony was advisor to the association of small palm oil plantation owners, Datuk Tan Yong Gee, whom Chong thanked for his efforts in initiating the scheme which will be beneficial for both Wilmar International and the villagers.
However, Tan, in his speech, also reminded Chong and his team at the mill that the villagers who supply the FFB to the mill should not be sidelined and not be kept waiting for a few hours every time they go there to supply their FFB.
“Imagine if the villagers are kept waiting for four to five hours, the villagers would find it easier to sell their FFB to an oil palm collection centre.
“The villagers will earn quick money but will this be beneficial in the long run? It would be better if the villagers supply to the mill where they will be paid according to the rates set by the Malaysian Palm Oil Board (MPOB), and not at the market price, which is the practice in collection centres.
“By being able to sell at the mills, the villagers and the mill will reap the benefits, especially now that the villagers supplying the FFB are using fertilizers supplied by the mill,” said Tan, who is also ex-Labuk assemblyman and former member of the board of directors of MPOB.
Some 20 villagers will benefit from the credit scheme, under which they can buy a 50kg sack of fertilizer at a rate of RM57.15.
The fertilizers will be kept at a store in the palm oil mill and the plantation owners would have to pick the fertilizers themselves.
Since it is the rainy season, the mill has allowed the planters to collect the fertilizers any time they want as long as it is before the middle of January. They will then repay the mill through a tri-monthly deduction from their sales proceeds.