scholarly journals THE CHALLENGES FACING PALM OIL INDUSTRY IN NIGERIA

2021 ◽  
Vol 4 (1) ◽  
pp. 26-33
Author(s):  
Sani Shehu ◽  
Mohd Afandi Salleh ◽  
Edy Fitriawan Syahadat

The oil palm plantation can be found throughout West Africa and palm oil has contributed significantly towards the Nigerian exports. However, the palm oil industry in Nigeria was declining to 36.4% in 1969 and 13.2% in 1974 in spite of being the largest global exporting country at the beginning of 20th Century. Since then, domestic consumption has increased, slow growth in palm oil production and low output was delivered. The equipment of production is considered obsolete, the plantations are aging, the technology access is very little, and financing is insufficient. This indicated a threat and inefficiency of Nigerian palm oil industries to cater for the needs of people regardless of the increase in oil demand locally as the  palm kernel oil is becoming important food and raw materials. Due to this problem, Nigeria remained to receive palm oil from Malaysia even though the seedlings was originated from Nigeria. Other large importers include from Benin, Ghana, Ivory Coast and Togo. This issue has caused Palm oil production in Nigeria to be more expensive and not competitive if compared to other countries like Malaysia and Indonesia. Hence, the objective of this paper explores the challenges facing palm oil industry in Nigeria using qualitative data through document and thematic analysis. The semi-structured interview was analysed by utilizing Atlas ti 8 software. The findings of the paper shows that there are challenges facing palm oil industry in Nigeria such as lack of good planting materials, poor funding, improper milling and lack of technology. From this, it is confirmed that there are numerous challenges facing palm oil industry in Nigeria which requires aids from the government from allocation of huge amount of its budget to agriculture and establish better policies for the palm oil industry that will attract more public and private investment. Keywords: Oil Palm, Palm Oil, Palm Oil industry in Nigeria, Challenges  

Author(s):  
Tria Mutiari Meilan ◽  
Sapta Raharja ◽  
Muhammad Syamsun

Palm oil (Elaeis guineensis Jacq.) is one of the main commodities in Indonesia . The production of Crude Palm Oil (CPO) and Palm Kernel Oil (PKO) in Indonesia has increased significantly in recent years. The palm oil industry is often accused of causing environmental degradation because some of the cultivation and processing practices are suspected to cause greenhouse gas emissions. The Government has implemented the obligations of certification of Indonesia Sustainable Palm Oil (ISPO) in accordance with the Government of Indonesia's commitment to improve the sustainability of the Indonesian palm oil industry. The objectives of this research are (1) To identify and analyze the impact of risk on environment, social and governance (ESG Risk) at each stage of oil palm cultivation and processing. (2) To identify and analyze the level of readiness to fulfill ISPO requirements (3). Determine the recommendations of risk control in the cultivation and processing of oil palm. The method used in this research is descriptive and analytic method which is a case study. Results of analysis at PT. London Sumatra (Lonsum) especially at Arta Kencana Estate, Lahat, South Sumatera which was not ISPO Certified yet, shows that there are 16 ESG risks and the highest is related to the preparation stage of the land area.  Risk control recommended is Risk Avoidance. Arta Kencana Estate in general have fulfilled almost all of the requirements for compliance with required principles with an average index of 8.86.  Arta Kencana Estate are need to complete and perform administrative improvements and requirements documents to be able to meet the gap. In this study found that the ESG risk on palm oil can be mitigated through the fulfillment of ISPO principles.


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.


2017 ◽  
Vol 54 (6) ◽  
pp. 915-930
Author(s):  
SIRILUK SOMNUEK ◽  
MAJA SLINGERLAND

SUMMARYThe government of Thailand aims for sustainability of palm oil production in the Northeast for bioenergy and farmers’ income. This study investigated whether producers in Northeast Thailand managed their oil palm according to good agricultural practices (GAP) and if not, what effects this has on yield. A survey was conducted amongst 108 randomly selected farmers. For 25 selected plots, management and yields were monitored twice a month for two full years. Compliance to GAP was high for weeding, harvesting, pruning and pest and disease control but not for irrigation (40%) and fertiliser application (20–40%). GAP adoption scores per households positively correlated with income from other crops, tree age and degree of training. We showed that rainfall was insufficient for good oil palm growth between October and April. In the monitored group, use of irrigation and amounts of N, P, K and Mg applied were strongly correlated. The yield was significantly greater with irrigation and fertiliser, reaching similar levels as in the South of Thailand (up to 25–30 Mg Fresh Fruit Bunches: FFB ha−1), but did not differ with soil texture. This allows us to conclude that better application of GAP, especially including a combination of irrigation and fertilisers overcame the unsuitable soil and rainfall conditions in the Northeast of Thailand. However, the costs of fertilisers compared to the price of FFB affected the profitability of FFB production, which may affect farmers’ motivation to apply GAP, especially on unsuitable soils. When the government aims for sustainable palm oil production in the Northeast it needs to invest in frequent technical support, irrigation infrastructure and affordable fertilisers. Otherwise, farmers may not apply GAP because of low returns on investments and yields will remain very modest.


Author(s):  
Muhammad Arief Dirgantoro ◽  
Robiatul Adawiyah

Abstrak            Tulisan ini bertujuan untuk menguraikan nilai ekonomi dengan pemanfaatan limbah kelapa sawit menuju Zero Waste Production.  Satu hektar kelapa sawit, setiap tahunnya menghasilkan 25 ton tandan buah segar (TBS) padahal yang menjadi minyak dan inti sawit hanya sekitar 25%, dengan demikian 19 ton dari TBS akan menjadi limbah. Dengan semakin gencarnya isu lingkungan maka diperlukan pemanfaatan dan pengendalian limbah industri kelapa sawit yang ramah lingkungan agar dapat memberikan nilai tambah dan mengurangi biaya yang pada akhirnya memberikan keuntungan bagi berbagai pihak, baik pihak perkebunan, pabrik, masyarakat dan lingkungan. Konsep 3R (Reuse, Recyle dan Recovery) akan mendorong setiap penghasil limbah untuk menjadikan limbahnya memiliki nilai ekonomis dan menguragi biaya. Pemanfaatan limbah kelapa sawit dapat mengurangi biaya produksi listrik, briket arang, bahan baku pulp, pakan ternak, dan menghemat biaya pupuk. Kata kunci : nilai ekonomi, pemanfaatan, limbah, isu lingkungan, konsep 3R                      (Reuse, Recyle  dan Recovery)  Abstract             This paper aims to outline the economic value of the use of palm oil waste towards Zero Waste Production. One hectare of oil palm, annually produce 25 tonnes of fresh fruit bunches (FFB), whereas the oil and palm kernel only about 25%, so 19 tonnes of FFB would be a waste. With the developed environmental issues will require the use and control of industrial waste environmentally friendly palm oil in order to provide added value and reduce costs, which in turn provide benefits to various parties, both the plantations, factories, communities and the environment. The concept of 3R (Reuse, Recycle and Recovery) will encourage each waste generator to make the waste has economic value and reduces costs. Utilization of oil palm waste can reduce the production cost of electricity, charcoal, pulp raw materials, animal feed, and saves the cost of fertilizer. Keywords: economic value, utilization, waste, environmental issues, the concept                  of 3R (Reuse, Recycle and Recovery)


2021 ◽  
Vol 5 ◽  
Author(s):  
Badrul Azhar ◽  
Kamil Azmi Tohiran ◽  
Frisco Nobilly ◽  
Raja Zulkifli ◽  
Muhammad Izzuddin Syakir ◽  
...  

To date, the idea of using livestock animals as biological tools to manage weeds, sequester carbon, and boost food security in oil palm plantations has not been seriously considered by industry stakeholders of major producing countries (e.g., Indonesia, Malaysia, Thailand, Colombia, and Nigeria). We revisit the integration of oil palm cultivation with livestock farming as a silvopastoral agroforestry practice in the wake of Sustainable Development Goals (SDGs). Oil palm-livestock integration has the potential to promote sustainable palm oil production because it can provide multiple environmental and socio-economic benefits, including carbon sequestration, restoring top soil, improving ecosystem biodiversity, reducing pesticide and fertilizer inputs, and boosting national food security. In contrast to monocultural outputs of most conventional plantations, an oil palm silvopastoral system is an ideal way to address the global food insecurity challenge as it produces bioenergy, vegetable oil/fat and animal-based protein sources (e.g., red meat). In addition, the potential of contract targeted grazing could be considered as a new type of business and income diversification for rural people. Oil palm-livestock integration is a strategy by the palm oil industry to achieve multiple SDGs. Out of the 17 SDGs, oil palm-livestock integration is likely to deliver nine SDGs. Palm oil certification bodies should recognize oil palm-livestock integration as a biological control method in weed management practices. We recommend that oil palm-livestock integration should be promoted to revitalize sustainable palm oil production and strategic biodiversity conservation policy. Policy makers should encourage major players in the palm oil industry to practice oil palm-livestock integration.


2020 ◽  
Vol 2 (2) ◽  
pp. 156-166
Author(s):  
Yuda Pratama Atmaja ◽  
Erwin Nyak Akoeb ◽  
M. Akbar Siregar

Palm oil was first introduced in Indonesia by the Dutch government in 1848, at that time there were 4 oil palm seedlings planted at Bogor Botanical Garden (Botanical Garden) in Bogor, two from Bourbon (Mauritius) and two from the Hortus Botanicus, Amsterdam ( Netherlands). Currently the development of oil palm cultivation is increasing with an area of 2017 covering 11.5 million hectares and the production of palm oil (CPO) has reached ± 30 million tons in 2018. The main objective of this research is to find out the influence of the increase of capacity achievement, availability of raw materials and the achievement of oil and palm kernel oil to the performance of oil palm factory, especially the cost of processing so that it can give added value to the company. Based on the result of the research, it is known that the capacity of X1 is negative but not significant. This is in accordance with the hypothesis, the availability of raw material (X2) is negative but not significant and the yield of rendement (X3) is negative but not significant this is in accordance with the hypothesis and capacity though, the availability of raw materials and yields of yields together have a significant effect on the cost of processing. On the basis of this, then the management should increase attention to the capacity of the process, the availability of raw materials and the achievement of rendemen to minimize the basic price.


2021 ◽  
Vol 2 (2) ◽  
pp. 46-57
Author(s):  
Eka Jaya Soebirin ◽  
Maswadi ◽  
Anita Suharyani

Based on data from the Directorate General of Plantations in 2018, the tendency of expanding the acreage of self-contained oil palm plantations is continuing. It is feared that the continued expansion of land by both companies and smallholder plantations could cause natural damage and gas emissions that lead to the loss of biodiversity. This has led to a lot of criticism from various parties stating that the palm oil industry is responsible for all the risks that occur. To overcome this, the government implements a governance system (certification) for the entire palm oil industry. Indonesian Sustainable Palm Oil (ISPO) is a certification system issued by Indonesian government to reduce the negative impacts of land expansion and to achieve sustainable palm oil. In its implementation in the field, the implementation of ISPO encounters several obstacles, particularly independent plantations such as difficult and complex legality issues, lack of knowledge that causes a lot of land clearing by burning and continuous land expansion. This research needs to be conducted to see the readiness of independent oil palm smallholders in implementing ISPO with descriptive methods and gap analysis. This research was conducted in Engkersik Village, Sekadau Hilir District, Sekadau Regency, the method of determining the sample was using slovin, amounting to 31 farmers. ISPO consist of 4 principles, criteria and indicators are used as variables in this study. The analysis results of all the principle show that farmers are ready with a readiness percentage of 60.9%, where each principle’s percentage of The Legality of Self-Manage Plantation is 75%, The Organization of Farmers and Management of Self-Manage Plantation is 62%, Environmental Management and Monitoring is 43%, and Continuious Business Improvement is 58%, although there are still gaps in its application. For this reason, it is necessary to carry out more effective socialization and training to farmers to minimize the gap.


2021 ◽  
Vol 29 (1) ◽  
pp. 16-26
Author(s):  
Prischa Listiningrum ◽  
Rizqi Bachtiar ◽  
Dararida Fandra Mahira ◽  
Rumi Suwardiyati

The development of the palm oil industry (CPO) in Indonesia is often confronted by challenges coming from the international community, one of which is the rejection of Indonesian CPO exports declared by the European Union on the grounds of deforestation and land clearing, specifically forest burning, that are aimed to convert the forest areas to oil palm estates. In an attempt to clean such a bad name in palm oil industries in the world and to avert the label ‘unsustainable’ given by European Union, President Joko Widodo issued Presidential Instruction Number 8/2018. However, the implementation of the Presidential Instruction is not without hurdles like the absence of specific guidelines to help to implement the policy at the regional level and the lack of opportunities to involve civilians to guard this policy. Juridical analysis of the policy aimed to improve palm oil management and to hamper deforestation is, thus, required. With the normative-juridical method, this research is aimed to recommend the government to grow the potential of CPO-based biofuel in Indonesia and the application of a one-map policy over the potential of oil palm estates to allow the implementation of transparency principle in the structure of good governance. All these recommendations are mainly aimed to give more opportunities to the members of the public to have meaningful participation as well as sustainable and enviro-friendly in improving the management of palm oil cultivation.


2020 ◽  
Vol 11 (3) ◽  
pp. 10148-10160

Oil palm (Elaeis guineensis Jacq) is a part of the family of Arecaceae, which originated from West Africa. Oil palm can be grown in the tropics of Asia, Africa, and Central and South America. Palm oil produces two types of oil: Crude Palm Oil (CPO) and Palm Kernel Oil (PKO). Indonesia’s CPO production reaches 49 million tonnes in 2020. This production produces around 35-40% of waste. Fresh Fruit Bunch (FFB) is extracted into Crude Palm Oil (CPO) and Palm Kernel Oil (PKO), which produce waste such as Palm Oil Mill Effluent (POME), Empty Fruit Bunch (EFB), Mesocarp Fiber (MF), Palm Kernel Shell (PKS) and Palm Kernel Meal (PKM). Palm oil production increases every year, which causes the waste from the industry to increase too. Palm oil waste still has chemical content that is good enough to be utilized. The study was conducted online at Google Scholar and PubMed by reviewing literature from domestic and international journals and research reports. The results showed that each waste contains different content, including carbohydrates, protein, fat, lignin, cellulose, mannose, and others. This waste has also been used in various fields. This waste has also been used for livestock, fuel, and raw materials.


2019 ◽  
Vol 1 (02) ◽  
pp. 68-75 ◽  
Author(s):  
Heny Purwanti ◽  
Titik Penta Artiningsih

Coarse aggregates commonly used in concrete are coarse natural aggregates, which are broken stones or gravel. Continuous rock exploration can cause environmental damage or even more severe ecosystem damage. Therefore it is necessary to substitute an alternative aggregate. Indonesia has the second largest oil palm plantation (Elaeis guineensis Jacq) in the world after Malaysia. Plantations are renewable resources, so palm oil is also potential to be used as an alternative to diesel fuel. Palm kernel shells are palm oil industry wastes which are generally underutilized. Palm kernel shells can be used as an alternative to coarse aggregate, because oil palm shells have the advantage of being hard, tough and good durability due to the high content of lignin and silica dioxide (SiO2), such as hard wood, but low cellulose content so it is not easy rot. The strength of the palm oil shell is quite good. In addition, the aggregate gradation also fulfills the requirements without a breakdown process, which has a thickness of 2-4 mm and a maximum width of 15 mm. The volume of oil palm shells is + 600 kg/m3, so it will produce significant light weight concrete. The concrete studied was concrete with a coarse aggregate of tenera palm kernel shells, with fine aggregates of natural sand, and a Portland Composite Cement (PCC), but the PCC content was reduced and replaced by FA which varied from 0%, 5%, 10 %, 15%, 20 and 25%. Concrete also added superplasticizer (SP). SP is used to reduce water use, because the shell absorbs water. SP levels also vary, namely 0%, 1%, and 1.2%. The weight of the volume of concrete with various levels of fly ash and SP is 1700-1800 kg/m3, so it can be classified as lightweight concrete. Increased FA levels will increase compressive strength, but only up to 10%, after which the strength decreases. Compressive strength of specimens with SP 0% and FA 10% is 17.92 MPa, for SP levels of 1% and FA 10% is 22.15 MPa, while for SP levels of 1.2% and FA 10% is 19.35 MPa . So that it can be concluded that the palm shell as bio-material (renewable resources) can be used as a substitute for natural coarse aggregates. The optimum fly ash level is 10%, and to reduce water use SP 1%. The use of oil palm shells as a substitute for gravel means reducing the waste of the palm oil industry, while reducing rock exposures. In addition, in Indonesia there are many areas where there are no rock sources while oil palm plantations are quite extensive.


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