National Palm Oil Seed Industries WHERE TO GO?

21 July 2014 , 12:18 WIB | Read : 965 | By : Atep Yulianto Irawan

In last two years, crude palm oil (CPO) are stable in the cheaper price. The unpredictable climate change effects the productions.

It also happened for the limited areas, the increasing salaries of the workers, the incereasing demand for sustainable products and others. These  will be faced by plantation businessmen, ecpecially the planters in Indonesia.

The problems should be known and anticipated as soon as possible so the success of national palm oil industries will not decrease the competitiveness in the future, like some other food and horticulture commodities face in Indonesia

If it is compared to the food and horticulture, as a seasonal plants having short age, palm oil is less risky as the seasonal plant having tens years of age. For example, if it is wrong to plant the seeds, the production will be a bet for one cycle planting. Palm oil plantations become uneconomical area for the production are 15 tons fruit/year. But if the areas are planted with superior seeds, the productivity could be 30 ton fruit/hectare/year.

For almost one last decade, the palm  oil seed productions increase fast for there are more national palm oil seed producer. In 2004 there were three only but in 2008, there were eight palm oil producers but now there are ten superior palm oil seed producers.

It is a pride to have increasing superior palm oil production in this country for all needs will be provided in domestic. This could stop the import of palm oil seeds and this will save the foreign exchange and support our domestic palm oil seed industries.

After the fast development of palm oil seeds producers to fulfill the needs nationally, what to do to these industies?

On the other hand, national palm oil plantation industries are difficult to enlarge the area because of tight government’s regulation. To answer the challenge in seeds industries in general, and palm oil seeds in special, InfoSAWIT recently discussed it with one senior researcher and palm oil businessman, Tony Liwang in the international seminar which was held on June 2014 in Bali.

Here are the discussions

For such a long time, superior palm oil seeds which are sold in Indonesia are expensive enough for the small farmers to buy and this makes them buy fake seeds. What do you think about that?

Palm oil is one input factor in a palm oil company. I think, we would better see the seeds productivity than seeing the price. Domestic superior palm oil seed could be Rp 10.000 per seed. Let say the fake seeds about Rp 5.000. It is about Rp 5.000 in difference. To overcome the different range of the price, it will need 1 ton fruit per hectare per year. But using fake seeds will take about 5 years to produce 10 tons fruit for next 25 years.

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