Knowledge

Malaysia Self Sufficiency Ratio

What Is Self Sufficiency Ratio (SSR)?

The self-sufficiency ratio (SSR) is calculates the percentage of food consumed and produced domestically. It defines whether the production of agricultural commodities for a country is sufficient to meet domestic needs. The higher the ratio, the greater the self-sufficiency.

SSR aims at improving safety through enhancing the effectiveness and accountability of security institutions controlled by civilians and operating according to human rights and the rule of law.

SSR Graft

Malaysia SSR 2020

Supply of eight fruits in 2020 was sufficient to fulfil the local demands with SSR of more than 100.0 per cent. Papaya recorded the highest SSR at 156.0 per cent (2019: 153.1%) followed by watermelon, 139.4 per cent (2019: 161.3%) and starfruit, 117.3 per cent (2019: 132.8%).

Seven types of selected vegetables have adequate supply for domestic needs namely tomato with 123.7 per cent (2019: 131.2%), lettuce ,114.0 per cent (2019: 112.5%), brinjal, 112.3 per cent (2019: 119.3%) and cucumber, 112.1 per cent (2019: 110.8%).

SSR for chicken/ duck eggs is the only item in livestock category that exceed 100.0 per cent at 113.5 per cent (2019: 117.8%). Meanwhile, for fisheries,  tuna’s SSR stood at 108.1 per cent (2019: 101.3%) and shrimp, 101.7 per cent (2019: 103.0%).

SSR 2020

Malaysia Import & Export Agri Product

Among the reasons that may hinder the performance of Agriculture sector is higher cost in raw materials especially for the commodities related to food products. For the last ten years, the index of  foodstuff and feed stocks increased 24.4 per cent. Most feeding stuff for animal was imported mainly from Argentina, while for fertilisers, were from Canada and China. Imports of feeding stuff for animals amounted at RM4.6 billion in 2020, while fertiliser at RM3.2 billion.

Import dependency ratio (IDR) is to determine the percentage of a country’s dependency on imports of agricultural commodities to meet domestic needs. The higher import dependency ratio means the more supply of agricultural commodities to be imported.

Malaysia’s dependency on imports for agricultural commodities increased to 13.7 per cent from  7.3 per cent over 28 years (1987-2015). In 2020, Malaysia imported RM55.5 billion food products as compared to RM33.8 billion of exports. The fastest increase in imports compared to exports has led to an increase in the trade deficit of food products amounted to RM21.7 billion in 2020, increased 24.9 per cent as compared to the previous year. It is also observed that imports of food accumulated to RM482.8 billion for the last 10 years, while exports amounted to RM296 billion.

In addition, Malaysia is also highly dependent on imports of mutton (RM879.4 million), mango (RM87.9 million), coconut (RM266.1 million) and beef (RM2.2 billion) to meet domestic demand. More than 70.0 per cent of imported mutton was  from Australia while mango, coconut and beef were mainly imported from Thailand, Indonesia and India respectively.

IDR 2020

Reference:

Do you know the difference between SSR & Idr? 27 Advisory. (n.d.). Retrieved June 9, 2022, from https://27.group/do-you-know-the-difference-between-ssr-idr/#:~:text=The%20self%2Dsufficiency%20ratio%20(SSR,the%20greater%20the%20self%2Dsufficiency.

Supply and utilization accounts selected agricultural commodities, Malaysia 2016-2020 .favourite { position : Absolute; width : 24px; height : 24px; background : URL(IMAGES/ICON/FAV-PUB-GRAY.PNG) no-repeat; top : 0px; right : 0; } .added { background : Url(images/icon/fav-pub-yellow.png) no-repeat; }. Department of Statistics Malaysia Official Portal. (n.d.). Retrieved June 9, 2022, from https://www.dosm.gov.my/v1/index.php?r=column%2FcthemeByCat&cat=164&bul_id=cHgwanhNdU4vWXRvc3pnZU9xSjZTUT09&menu_id=Z0VTZGU1UHBUT1VJMFlpaXRRR0xpdz09

Bioenergy from Palm Oil Mill Effluent (POME)

Palm oil mill effluent (POME) is a waste produced from oil palm processing. In Malaysia, more than 85% of palm oil mills have adopted ponding system for treating POME, while the rest have opted for open digesting tank. These methods are regarded as conventional POME treatment method, whereby longer retention time and large treatment areas are required. The effluent that comes out from palm oil mill is hazardous to the ecosystem due to its high-volume composition and nutrient. The discharge can lead to land and aquatic pollution if it is left untreated

POME contains high biological oxygen demand (BOD) and chemical oxygen demand (COD). Untreated pome release methane, which has 25 times greenhouse gases (GHG) potential more than carbon dioxide (CO2). However, trapped POME through anaerobic digestion produced biogas contained 40% to 70% methane.

General characteristics of raw POME
POME Capture Plant

It was found that a palm oil mill in Malaysia is capable of producing 1000 – 4200 tons of bio-methane per year and capable of fuelling 1,309, 2,129 and 3,240 cars per year from small, medium and large size palm oil mill.

It also can become an energy source when its biogas byproduct is harnessed for electricity production. POME can be utilized not only as animal feedstocks or fertilizers, but also in electricity generation by convert them into bio-methane to biogas. Biogas power plants that use POME as energy feedstock may give economic benefits for palm oil producers, not only used in the internal process but also by selling the electrical potential to the electricity company. Malaysia Policy FiT is a scheme that lets to sell electricity to the grid company.

Statistic Vegetable Oil & Palm Oil Information

Global Vegetable Oil 2018-2021 (Million Tons)
Global Vegetable Oil 2021 (Million Tons)
Production Vegetable Oil by Country 2018-2021 (Million Tons)
Production Vegetable Oil by Country 2021 (Million Tons)
Global Palm Oil Production 2018-2021 (thousand Tons)
Global Palm Oil Production 2021 (Thousand Tons)
Global Oil Palm Plantation Size 2018-2021 ( (Thousand Ha)
Global Oil Palm Plantation Size 2021 ( (Thousand Ha)

Oil Palm Male and Female Inflorescence’s

Palm Oil Tree produces functionally unisexual male and female inflorescences in an alternating cycle on the same plant. Some of palm oil tree have single-sex male and female plants exist (abnormal).

A mature palm will alternate between male and female inflorescence production during its lifetime; however, the proportion of time spent in each phase will vary considerably depending on both environmental and genetic factors.

The sex ratio is normally defined as the ratio of female to total inflorescences in a given group of palms. In regions with high and regular rainfall (e.g. Malaysia and Indonesia), oil palm sex ratios tend to consistent throughout the year, in contrast to areas experiencing a marked dry season such as in West Africa, where the sex ratio undergoes extensive fluctuations.

The period of lowest sex ratio (high male inflorescence production) occurs during the rainy season and speculated that this character is an adaptation against the reduction in airborne pollen density caused by high atmospheric humidity.

Female inflorescences – Credit to MPOB
Male Inflorescence’s – Credit to MPOB
Pollination Process

Oil Palm Tree Pollination

Oil palms are both wind and insect pollinated. Numerous species are involved in the pollination of oil palms, but the main pollinating agents are from weevils/beetle (Elaeidobius kamerunicus).

The oil palm industry is still early stage; these weevils were imported from Cameroon and introduced in the local plantation sector starting in 1981.

These weevils play an important role in the process of pollination of oil palm trees which previously had to be done by human labour. Weevils is introduce due to its robustness in long rainy seasons, host-specificity to oil palm, and high pollen-carrying capacity

Weevils are attracted by the strong fennel-like fragrance released by the male inflorescence at anthesis. Female inflorescences have the same aniseed scent as males, but weevils apparently visit them only by accident in the search for male inflorescences

In Africa, Elaeidobius spp. account for 99% of oil palm pollination, with Elaeidobius kamerunicus and E. plagiatus being the most efficient species.

The introduction of these weevils has stimulated the country’s oil palm production while saving costs. From 1982 to 2015, the savings were estimated at around USD 10 billion dollars.

Reference:

1) Helene Adam: Environmental regulation of sex determination in oil palm: Current knowledge and insights from other species

2) https://www.astroawani.com/berita-malaysia/serangga-ini-telah-membantu-malaysia-jimat-sehingga-lebih-rm40-bilion-95644

3) Ntsomboh-Ntsefong Godswill, Youmbi Emmanuel, in Breeding Oilseed Crops for Sustainable Production, 2016

Palm oil vs Canola Oil vs Vegetable Oil

Palm Oil

Palm oil is, at its broadest definition, is vegetable oil, and more specifically a fruit oil. As such, like all vegetable oils, it has no cholesterol. (This is present only in oils from animal origin.) Moreover, palm oil has a rather unique chemical profile in that it possesses a near-equal balance of saturated and unsaturated fatty acids. Unlike other tropical oils, whose saturated fatty acids can comprise over 90% of the oil, palm oil has only 50% saturated fatty acids, and this level is balanced with 50% unsaturated fatty acids. Owing to this composition, clinical studies have shown that palm oil tends to be “net neutral” in terms of the effect on a person’s cholesterol levels.

Palm oil is a rich source of natural vitamin E, both tocopherols and tocotrienols, having very potent antioxidant properties. In fact, among the commercially available refined vegetable oils, palm oil has the highest content of natural Vitamin E tocotrienols. People start aware of the dangers of trans-fatty acids (TFAs) – palm oil is TFA-free. With palm oil’s unique natural semi-solid composition, fractionation during processing results in a liquid component (palm olein) and a more solid component (palm stearin). With some other oils, TFAs are formed during hydrogenation, a process that basically converts naturally liquid oil into a solid state.

Canola Oil

Canola oil is derived from rapeseed, a flowering plant, and contains a good amount of monounsaturated fats and a decent amount of polyunsaturated fats. Rapeseed is naturally high in potentially toxic compounds like erucic acid, which made it unsafe to consume until recently. In the 1970s, scientists in Canada crossbred a version of the crop to have lower amounts of erucic acid. This strain was dubbed canola—a portmanteau of Canada, oil, and low acid.

Of all vegetable oils, canola oil tends to have the least amount of saturated fats. It has a high smoke point, which means it can be helpful for high-heat cooking. Canola oil tends to be highly processed, which means fewer nutrients overall. “Cold-pressed” or unprocessed canola oil is available, but it can be difficult to find. Canola oil contains Trans-fat that 1.8 g per 100g.

Vegetable Oil

The term “vegetable oil” is used to refer to any oil that comes from plant sources, and the healthfulness of a vegetable oil depends on its source and what it’s used for. Most vegetable oils on the market are a blend of canola, corn, soybean, safflower, palm and sunflower oils. Vegetable oils are refined and processed, which means they not only lack flavor, but also nutrients.  It’s called ‘vegetable’ so that the manufacturers can substitute whatever commodity oil they want—soy, corn, cottonseed, canola—without having to print a new label.

Reference:

Debczak, M. (2022, April 21). Canola oil vs. vegetable oil: What’s the difference? Mental Floss. Retrieved May 10, 2022, from https://www.mentalfloss.com/posts/canola-vs-vegetable-oil-what-is-difference

Palm Oil: The world’s Best edible oil? Malaysian Palm Oil Council. (2012, May 30). Retrieved May 10, 2022, from https://mpoc.org.my/palm-oil-the-worlds-best-edible-oil/

Wetland as Global Carbon Sink

What is wetland?

Wetlands are areas where water covers the land or is present either at or near the surface of the land all year or for varying periods of time during the year, including during the growing season.

Wetlands exist in every country in the world and in every climatic zone, from the polar regions to the tropics, and from high altitudes to dry regions.

Wetlands are usually overlooked as a solution to climate change. Healthy wetlands store huge amounts of carbon and water, but when destroyed it produces carbon three times faster than forests.

List of wetlands:

  • Peatlands
  • Rivers and deltas
  • Mangrove forests
  • Wetlands in dry regions
  • High altitude wetlands
  • Arctic wetlands
Photo by Maxwell Ridgeway on Unsplash

As One of Global Warming Solution

Wetlands are important natural assets, capable of taking atmosphere carbon and limiting subsequent carbon loss to facilitate long-term storage. They can be deliberately managed to provide a natural solution to mitigate climate change, as well as to help offset direct losses of wetlands from various land-use changes and natural drivers.

Like all plants, wetland plants take up carbon from the air in the form of carbon dioxide and store that carbon in plant biomass. Storage of carbon in tree biomass can occur for many years but is often restricted to annual cycles for non-woody (herbaceous) plants. However, much of the woody and herbaceous plant carbon is also stored belowground within complex and dense roots.

Very similar to leaves or herbaceous plant biomass, roots are produced, die, and are replaced by new roots over short periods of time. In non-wetland ecosystems, roots that die often decompose quickly, because they are exposed to readily available oxygen, and during that process, much of the carbon is released back into the air as carbon dioxide.

However, because wetland soils are wet, oxygen is not readily available to facilitate decomposition. Roots that die decompose slowly while new roots continue to be produced, which leads to the accumulation of organic matter in the soil. Carbon makes up approximately 50 percent of this organic matter.

Photo by JD Doyle on Unsplash

Threats to Wetlands

Despite the importance of wetlands, the last century has witnessed their continued loss and degradation. Wetland areas have been reduced through reclamation, drainage and conversion or loss to other land uses. Significant portions have been seriously degraded or are at imminent risk. The loss and degradation of wetlands continues unabated.

  • Main Treats to wetland:
  • Conversion to Agriculture use
  • Industry and Urbanization
  • Pollution
  • Changes to wetland hydrology.

Source:

Ken W. Krauss, Z. Z. and C. L. S. (2022, February 23). Managing wetlands to improve carbon sequestration. Eos. Retrieved April 25, 2022, from https://eos.org/editors-vox/managing-wetlands-to-improve-carbon-sequestration

Guardian News and Media. (2015, July 20). Swamp Power: How the world’s wetlands can help stop climate change. The Guardian. Retrieved April 25, 2022, from https://www.theguardian.com/environment/2015/jul/20/swamp-power-how-the-worlds-wetlands-can-help-stop-climate-change

Factors affecting Palm Oil Prices

Palm oil is considered as one of the most highly produced and commercialized product in Malaysia. Malaysia is the second most palm oil producing country in Southeast Asia with a production of 21,000,000 metric tons of crude oil. This accounts just second to Indonesia that produces 36,000,000 metric tons of palm oil.

 

 

Palm oil has a very high demand due to the high output per hectare in comparison with other vegetable oil. Palm oil has many uses including food products, cosmetics, toiletries and biodiesel. The versatility of palm oil is just one of the many reasons that contribute to the high demand of crude palm oil. The palm oil industry is currently soaring high with high prices offered for the crude palm oil.

 

 

The supply and demand of palm oil plays an important role in affecting the prices of this product. Since oil palm trees are mostly found in the Southeast Asia, in the countries of Indonesia and Malaysia, the changing weathers in these countries affect the prices. During the dry seasons, there is relatively low production of oil palm seeds, leading to low production of palm oil. Therefore, the prices of palm oil increases during this period. Other than that, China and India are the main importers of palm oil. The increasing population growth in these countries contribute to the high demands of palm oil, and therefore, resulting in higher prices.

Optimal Conditions for Oil Palm Growth

Temperature

Oil palm trees basically thrive in humid conditions. Temperature ranges from 22°C to 24°C (minimum) and 20°C to 33°C (maximum) are the best for the optimal growth of oil palm trees. These trees require at least 5 to 6 hours of bright sunshine daily with 2500 to 4000 mm of rainfall per year. Therefore, Southeast Asia is the most suitable places for the growth of oil palm as long hours of sunlight and adequate rainfall is available throughout the year.

 

 

Soil Conditions

Oil palm trees can grow on wide varieties of soil types. However, the best type of soil for the growth of oil palm trees is alluvial soils which are rich in organic matter. Highly saline, alkaline, sandy and water stagnation soils should be avoided in order for the healthy growth of oil palm trees.

 

 

Seeds Propagation

Oil palm trees grow from the seeds. Seeds used for cultivation are picked from fruits using a depericarper. The seeds are then heated for 75 days at 40°C and then soaked in running water for 4 to 5 days to allow them to cool down. The seeds then start germinating within 10 to 12 days and are transferred to polybags filled with top soil, sand and well rotten manure. Regular watering and mulching is needed for the proper growth of the seeds. NPK fertilizer is used on the seeds before being transferred to the field. The seeds are then planted with space. The space should be left empty with regular weeding and cleaning for at least 3 years. Once the trees grow in the 3 years period, shade loving plants such as flowers, vegetables, chillies, ginger and pineapples can be planted around the trees.

CPO Mill information

The Malaysia palm oil mill sector has developed successfully in parallel with development of the oil palm plantation sector. In 1990, there were only 261 mill is operation with total 42.8 Million tonnes fresh fruit bunches (FFB). The number increased by 73.18% to 452 mill with a FFB 115.56 Million tonnes in 2020.  The increase in oil palm area is one of the factors that contributed to the increase in palm oil mill. With that period the oil palm planted area increase 2.03 Million Hectares (Ha) in 1990 to 5.86 million Ha in 2020.


MalaysiaMillProcess FFB Capacity
Peninsular Malaysia23957,377,680
Sarawak8324,006,000
Sabah13034,074,070
Total452115,457,750

 

 

Grading FFB

FFB will send to CPO will grading: FFB Grading 90% of OER achievement depend on FFB quality

Quality FFB: Ripe bunches with yellowish and reddish outer layer and its mesocarp are yellow coloured. This bunch has at least ten (10) loose sockets and more than fifty percent (50%) fruits were still attached to the bunch during inspection. Fruit bunches and loose fruits should be sent to the mill within 24 hours after harvest.

Product: OIL & KERNEL

  • OER – 20%
  • KER – 6.25%

 

 

Palm oil mill main stations:

NoMain sectionMain machine
1Fresh palm fruit bunch reception sectionLoading ramp
2Sterilization sectionSterilization tank
3Threshing sectionThreshing Machine Platform
4Digesting & PressingsectionDigester & Screw presser
5Oilclarification sectionClarificationTank
6Fiber separation sectionPolishing drun
7Palm kernel recovery section(1)Palm nut storage tank (2)Polishing drum (3)Nut grading screen (4) Palm nut Ripple mill (5)Separating column system (6)hydro cyclone equipment (7)Palm kernel drying bunker (8)Dry Palm kernel final storage warehouse
8NutshellerNutsheller
9Engine roomDiesel generator
10Boiler houseBoiler
11Water treatment 
12Effluent Treatment Plant 

 

 

Process Flow:

  1. Raw material reception: as for the first step of palm oil mill process, collecting the FFB and convey by trucks, then pour the fluster into the discharge door after weighed.
  2. Sterilization: FFB is air-tight sterilized in sterilizer of palm oil mill process,  the purpose is to prevent enzymes broken down, avoiding FFA content in oil further increase.
  3. Threshing: the purpose of threshing in the palm oil mill process is to separate the palm fruit from the FFB. The drum-type thresher is the usual machine to separate the fruit.
  4. Digesting and pressing:  the purpose of digesting in the palm oil mill process is to separate the pulp and nut and crush the palm pulp.  Then it is sent to continuous screw press. After pressing of palm oil mill process, oil palm fruit is divided into two parts: the mixture of oil, water, and solid impurities, and the press cake (fiber and nut).
  5. Oil clarification:  as for the oil clarification of the palm oil mill process, oil is clarified by the vibrate screen.
  6. Kernel recovery: as for the last step of palm oil mill process, The separated fiber material is sent to the boiler room as fuel; the separated kernel is transported to kernel warehouse by pneumatic conveying system for temporary storage.

 

 

 

 

 

 

Source :

https://www.palmoilextractionmachine.com/FAQ/palm_oil_mill_process_flow_diagram_742.html

http://pdas.mpob.gov.my/pdf/PPQSPPKP.pdf

https://www.asianagri.com/images/articles/bisnis-kami/crude-palm-oil-milling-process-01.jpg

https://bepi.mpob.gov.my/index.php/en/production/production-2020/production-of-crude-oil-palm-2020

https://bepi.mpob.gov.my/index.php/en/sectoral-status/sectoral-status-2021/number-a-capacities-of-palm-oil-
sectors-2021

http://palmoilis.mpob.gov.my/publications/OPIEJ/opiejv14n1-azman.pdf

https://www.mjmpom.com/ffb-grading-guideline/

 

 

The History of Oil Palm in Malaysia

The oil palm trees, which are a very common sight nowadays, were only introduced in Malaysia, then Malaya, in the early 1870’s by the British. Originating from West Africa, this tree was first planted as an ornamental plant. It wasn’t until the year 1917 when the official commercial planting took place. In 1917, oil palm trees were planted for commercial use at the Tennamaran Estate in Selangor. This was the very first step to the plantation that we now see very abundantly.

 

 

During the early 1960s, the government of Malaysia introduced to reduce the economic dependence on rubber and tin under the agricultural diversification programme. This programme urged the producers to diversity their products and produce more of other products apart from tin and rubber. During this period, the plantation for oil palm increased drastically under the government’s programme. In the later 1960s, there were many farmers and smallholders who wanted to plant oil palm but were landless. The government then introduced land settlement schemes for these farmers and smallholders in order to encourage the plantation of oil palm while helping to eradicate poverty for the farmers and smallholders.

 

 

The plantations soon began to expand to what we could see today, making palm oil one of the biggest export products of Malaysia. Today, 4.49 million hectares of Malaysian land is used for palm oil cultivation. Malaysia produces approximately 17.73 million tonnes of palm oil and 2.13 tonnes of palm kernel oil. Being one of the largest industries in Malaysia, the oil palm plantation, cultivation and palm oil as well as palm kernel oil accounts for the employment of an estimated of one million people around our country.