KUALA LUMPUR (Nov 6): Collaboration between plantation companies and oil palm smallholders to increase both parties’ yields and income will be raised at the Cabinet meeting next week, said Prime Minister Datuk Seri Anwar Ibrahim. 

He said specific proposals need to be drawn up to enable plantation companies to help smallholders increase productivity and produce quality, thereby obtaining better returns. 

“The plantation sector is a major contributor to the national economy, but the gap between successful plantation companies and low-income smallholders still needs to be addressed,” he said. 

He said this while moderating the 14th Series of the Ilmuwan Malaysia Madani Forum, themed National resilience in food security to face global uncertainty here on Friday. 

The forum, organised by the Ministry of Higher Education together with SD Guthrie, also featured Agriculture and Food Security Minister Datuk Seri Mohamad Sabu and PNB Research Institute chief executive officer Dr Sarena Che Omar as panel members. 

Anwar also said he had previously suggested that plantation companies collaborate with smallholders during a meeting with sector representatives in Taiping, Perak, about two to three years ago. 

“I also discussed the issue of lack of capital, low productivity and the weakness of the marketing system, which has been affecting small farmers and fishermen for a long time,” he said. 

Meanwhile, SD Guthrie Bhd group president and chief executive officer Mohd Haris Mohd Arshad said the palm oil yield of independent smallholders stood around two tonnes per hectare, compared to the four tonnes per hectare recorded by the company. 

“Ageing trees and lack of support for fertilisation and replanting are among the factors contributing to the productivity gap. 

"One approach that can be emulated is cooperation (model) in Indonesia, with the plantation company bearing the cost of replanting and the smallholder in turn selling the palm oil to the company,” he said.  

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