scholarly journals A Probe into the Status of the Oil Palm Sector in the Malaysian Value Chain

Economies ◽  
2021 ◽  
Vol 9 (3) ◽  
pp. 106
Author(s):  
Fathin Faizah Said ◽  
Sharifah Nur Ainn Syed Roslan ◽  
Mohd Azlan Shah Zaidi ◽  
Mohd Ridzwan Yaakub

A ban on palm oil imports by the European Union has become a problematic issue, especially for palm oil producers’ countries. Oil palm has been widely used in many sub-sectors, and any changes in the production side may affect many sectors that use oil palm as an input factor in their productions. This study explores the chain of the oil palm sector on the other sub-sectors in Malaysia by using a value-added multiplier method and network modeling. The study focuses on the specific oil palm sub-sector and oils and fats sub-sector in the Malaysian economic structure based on the Malaysian Input-Output 2015 Table. Network visualization and all the analyses involving network methods were developed and performed using UCINET and GEPHI software. The value-added multiplier results explained that the net value between output multiplier and import multiplier is vital to depict the real impact of net resources used as an input factor in the oils and fats and oil palm sub-sectors. The high-density value level shows that the Malaysian oil palm sector has high connectivity in the economic system. From the network visualization analysis, the oils and fats sub-sector has a high level of integration with other sectors within the network. Meanwhile, the oil palm sub-sector categorized in the periphery structure group has a low level of integration in the input-output network. This is due to the high value-added demand for oil palm in the oils and fats sub-sector in the manufacturing sector. Overall, most of the sub-sectors in Malaysia are highly interconnected due to the high clustering ratio. Therefore, ensuring sufficient oil palm production is vital for sustainable production of other sub-sectors.

2013 ◽  
Vol 13 (1) ◽  
Author(s):  
Subiyanto Subiyanto

Palm oil industry in Indonesia has been growing rapidly. But, unfortunately the growth is only effective on upstream industry with low value products, such that potential downstream value added are not explored proportionally. The government is therefore in the process of developing an appropriate policy to strengthen the national palm oil downstream industry. This paper proposes that an approriate policy for developing palm oil downstream industry could be derived from the maps of value chain and existing technology capability of the industry. The result recommends that government policy should emphasize on the supply of raw materials, infrastructure and utilities, as well as developing the missing value chain industry, especially ethoxylation and sulfonation.


2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Ikuo Kuroiwa

AbstractExtending the technique of unit structure analysis, which was originally developed by Ozaki (J Econ 73(5):720–748, 1980), this study introduces a method of value chain mapping that uses international input–output data and reveals both the upstream and downstream transactions of goods and services, as well as primary input (value added) and final output (final demand) transactions, which emerge along the entire value chain. This method is then applied to the agricultural value chain of three Greater Mekong Subregion countries: Thailand, Vietnam, and Cambodia. The results show that the agricultural value chain has been increasingly internationalized, although there is still room to benefit from participating in global value chains, especially in a country such as Cambodia. Although there are some constraints regarding the methodology and data, the method proves useful in tracing the entire value chain.


2019 ◽  
Vol 3 (1) ◽  
Author(s):  
Andi Matupalesa ◽  
Yudhi Dharma Nauly ◽  
Ivan Fanani

This study aims to provide an overview of the potential downstream of the palm oil industry in North Sumatra, by conducting a series of visits to companies that act as an anchors in the palm oil industry, particularly those located in KEK Sei Mangkei, Kuala Tanjung and KIM. The writing of this study was conducted by using descriptive-explorative analysis method which relies on primary data from companies considered to have a key role in palm industry in North Sumatra. The research method used in the form of identification of value chain, hub-and-spoke and assess the value added of the downstream stages of palm oil. In the end, the downstream of palm oil industry also needs to prioritize the role of anchor companies as locomotives for palm oil industry development in the future.


2021 ◽  
pp. 2150289
Author(s):  
Lizhi Xing ◽  
Yu Han ◽  
Dawei Wang

Under the dual background of trade disputes between China and the United States and the epidemic of 2019 novel coronavirus, the existing Global Value Chain (GVC) division and trading system are facing unprecedented impact. This paper reinforces the present studies on international trade by analyzing the fragments of GVC, which are made of numerous Inter-Country Input–Output (ICIO) relations. We first redefine the inter-country and inter-sector propagating process of intermediate goods, coming up with the concept of Strongest Relevance Path Length (SRPL) based on Revised Floyd–Warshall Algorithm (RFWA). Second, enlightened by betweenness centrality, we introduce Weighted Betweenness Centrality of Edge based on RFWA to measure the Value-Added Pivotability of Input–Output Relations, which brings forth pivotability at domestic, international, and global levels. The results show how much a given country can influence the world economic pattern by linking worldwide upstream and downstream industrial sectors, be it at home or abroad. Also, we can try to explain what is the cause of the phenomenon that the economic influence of nations is trading off and taking turns with all sorts of local or even global evens happening.


Entropy ◽  
2020 ◽  
Vol 22 (10) ◽  
pp. 1068 ◽  
Author(s):  
Georgios Angelidis ◽  
Evangelos Ioannidis ◽  
Georgios Makris ◽  
Ioannis Antoniou ◽  
Nikos Varsakelis

We investigated competitive conditions in global value chains (GVCs) for a period of fifteen years (2000–2014), focusing on sector structure, countries’ dominance and diversification. For this purpose, we used data from the World Input–Output Database (WIOD) and examined GVCs as weighted directed networks, where countries are the nodes and value added flows are the edges. We compared the in-and out-weighted degree centralization of the sectoral GVC networks in order to detect the most centralized, on the import or export side, respectively (oligopsonies and oligopolies). Moreover, we examined the in- and out-weighted degree centrality and the in- and out-weight entropy in order to determine whether dominant countries are also diversified. The empirical results reveal that diversification (entropy) and dominance (degree) are not correlated. Dominant countries (rich) become more dominant (richer). Diversification is not conditioned by competitiveness.


2016 ◽  
Vol 82 (2) ◽  
Author(s):  
. ALHIDAYATULLAH ◽  
Lisdar I SUDIRMAN1 ◽  
Okky Setyawati DHARMAPUTRA

Abstract  Oil palm empty fruit bunches (OPEFB) are the ligno-cellulosic wastes from palm oil processing. They can be used to produce raw materials for value-added products. The purpose of this study was to determine the degradation capacity of JPA wood rot fungi and Trichoderma sp. S2-2 on OPEFB. The 500 g of substrates consisted of 81% of OPEFB, 15% bran, 1.5% lime and 1.5% gypsum were used for growing. The substrates were inoculated with five treatments i.e without isolate (K); with JPA isolate (JPA); with Trichoderma sp. S2-2 (T); with the two isolates (JPA + T); and with JPA isolate and after four weeks of incubation inoculated with Trichoderma sp. S2-2 [(JPA)+T]. All treatments were incubated for eight weeks. The results showed that JPA+T was the best treatment which the two isolates must be inoculated simultaneously for degradation of OPEFB. Lignin and cellulose content on JPA+T treatment respectively were 20.83% and 33.77%. C/N ratio of OPEFB degraded with JPA+T was lower than the C/N ratio of TKKS degraded with Trichoderma harzianum and TKKS degraded with EM4 in previous study. AbstrakTandan kosong kelapa sawit (TKKS) merupakan limbah lignoselulosa dari pengolahan minyak kelapa sawit. TKKS dapat dimanfaatkan untuk memperoleh bahan baku untuk produk bernilai tambah. Tujuan penelitian ini adalah untuk mengetahui kemampuan degradasi jamur pelapuk kayu isolat JPA dan Trichoderma sp. S2-2 pada TKKS. Sebanyak 500 g substrat terdiri dari 81% TKKS, 15% dedak, 1,5% kapur, dan 1,5% gypsum digunakan untuk per-tumbuhan. Substrat diinokulasi dengan lima perlakuan yaitu tanpa isolat (K); dengan isolat JPA (JPA); dengan Trichoderma sp. S2-2 (T); dengan isolat JPA dan setelah empat minggu inkubasi, diinokulasi dengan Trichoderma sp. S2-2 [(JPA+T)]. Semua perlakuan diinkubasi selama delapan minggu. Hasil percobaan menunjukkan bahwa perlakuan JPA+T adalah perlakuan terbaik yaitu kedua isolat tesebut harus diinokulasi secara bersamaan untuk mendegradasi TKKS. Kandungan lignin dan selulosa TKKS dengan  perlakuan  JPA+T   masing-masing  adalah  20,83% dan 33,77%. Rasio C/N TKKS hasil degradasi dengan JPA+T lebih  rendah  daripada  rasio C/N pada TKKS yang didegradasi dengan Trichoderma harzianum dan TKKS yang didegradasi dengan EM4 pada penelitian sebelumnya.


2012 ◽  
Vol 13 (2) ◽  
pp. 113-133
Author(s):  
Woo Jun

By using a new conceptual model of ‘Smile Curve’, this research strives to examine how Cheil Industries Inc. (CI) has been transforming its value chain to create its competitive advantage. According to the results, CI’s value-added structure in the past (conventional industrialization economy) was heavily reliant on the manufacturing sector, and therefore, the profit graph shaped an ‘Upside-down Shape of U’ indicating that production and manufacturing are the most value-added fields. However, CI’s current (knowledge-based economy) graph shows a ‘U with Fluent Curve’ indicating that R&D, human resources, corporate culture, firm infrastructure, manufacturing, logistics and marketing are simultaneously creating value-added for the company. This implies that CI’s value-added source is more diversified to fit with knowledge-based economy.


2018 ◽  
Vol 4 (1) ◽  
pp. 49-70
Author(s):  
Rizki Putri Nurdiati ◽  
Rina Oktaviani ◽  
Sahara Sahara

Globalization has transformed the structure of industry into global integration of socalled global value chains (GVCs). Some literatures suggest that electronic industry is known as a successful industry in establishing global value chain. Electronic industry is one of leading cluster in driving economic growth in Indonesia. This study aimed to analyze the role of Indonesia in electronic global value chain according to its share towards global electronic industry, linkages, and value added distribution. An input output analysis by using the Asian International Input Output Table 2005 was employed to analyze the share of each country in electronic global value chain, inter-sector linkages, value added, also output and income multiplier. The result showed that Indonesia had low participation in electronic global value chain. Indonesia’s output share was the lowest among all countries which resulted in low valueadded acquisition. Indonesia played the role as the input user from the various sectors. It is suggested that Indonesia electronic manufacture sector should be integrated with the input supplier sectors. Electronic computing equipment sector can be the main priority in enhancing Indonesia electronic manufacture sector since it has the biggest effect to economic growth. Keywords: electronic, global value chain, Indonesia, input output analysis


2018 ◽  
Vol 3 (1) ◽  
Author(s):  
Kristiana Kristiana ◽  
Zulfika Satria Kusharsanto ◽  
Ramos Hutapea

<p>As a region with the largest oil palm plantations in Indonesia, Pelalawan Regency is highly potential to develop a program of oil palm-cattle integration. Pelalawan has implemented the program legitimated by Regent Decree Number KPTS./524/Disnak/2012/472 regarding Zoning Regulation on the development of Oil Palm-Cattle Integration. The program of oil palm-cattle integration itself has been the basis for the Decree of the Minister of Agriculture Number 105 Year 2014 regarding the Integration of Oil Palm Plantation and Beef Cattle Farming. Moreover, the integration system of oil palm-cattle gives a lot of benefit to farmers, for example the utilization of manure as organic fertilizers could reduce farmer’s expenses for chemical fertilizers and the cattle can be an asset for them. Products made from the integrated program are solid manure, liquid organic fertilizer, fodder, biogas, and beef. To improve the competitiveness of those activities, we can analyze the value chain which includes product design, inbound logistics, operations, outbound logistics, marketing, sales, services and supporting activities. By using a value chain analysis, this study aims to provide recommendations for strengthening programs which could be implemented to improve the value-added of the products.</p><p> </p><p>Keywords: oil palm-cattle integration, value chain, value-added, industrial cluster</p>


The transition to a new technological structure, the intensification of economic processes and globalization have become the reason for the growth of competitive pressure. It requires mobility, modernity, and instant response to market challenges by improving existing products and creating a new one. The article summarizes the arguments and counterarguments in the framework of a scientific discussion on the development of a strategy for the output of the enterprise to the markets of the European Union in order to increase their competitiveness and ensure their entry into the global value added chains. The main objective of the study is to develop theoretical and methodological provisions on the sequence of actions in the output of the company to the markets of the European Union and the disclosure of key aspects of this process. Analyzing, systematizing and summarizing the work of many scholars on the subject of research in the article, the essence of marketing policy of the enterprise is disclosed. PE «Autostenterprise» was selected as the object of the study, for which a list of priority strategic measures for the company has been formed at the stage of entering the European markets. As a result of the study, the argumentation of needs was made and the peculiarities of the conditions of the exit of PE «Autostenterprise» to the European market were determined. The estimation of the strategic position of PE «Autostenterprise» in the market of charging devices for electric cars is shown, which testifies to the high level of its competitiveness; an estimation of activity of the main competitor of PE «Autostenterprise» on the European market – the Dutch company ABB – is carried out. The reasons and difficulties of the PE «Autostenterprise» on the European market are outlined. The main problems, which do not allow to fully realize export potential of the company, are generalized. A set of measures for the enterprise was developed at the exit to the external market in the conditions of European integration. Directions of further researches on the given problem are development of the marketing strategy of the enterprise in order to promote its products to foreign markets.


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