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ETP ANNUAL REPORT 2011
Entry Point Projects
This EPP will accelerate the replanting of approximately 370,000
hectares of low yielding oil palm areas by plantation companies
and smallholders. Implementation of this EPP using new
planting materials will boost the stability of crop supply with
higher average yield level of 26.2 tonnes per hectare per year by
2020, up from the estimated yield of 21 tonnes per hectare per
year currently.
This EPP is primarily private sector-driven, with plantations
and organised smallholders already conducting the replanting
exercise as part of their business model. The government will
focus on independent smallholders, granting RM7,000 per
hectare plus subsistence allowance of RM500 per month over 2
years to accelerate the replanting of their oil palm areas. Taking
into consideration the land availability in East Malaysia which is
suitable for the planting of palm oil the Palm Oil NKEA Steering
Committee has also extended the project scope to include
developing of new oil palm areas by smallholder.
Achievements
As at December 2011, 102,969 hectares of oil palm plantation
backlog have been replanted, out of which the total area of
backlog cleared by plantations and organised smallholders
has reached 83,200 hectares with an estimated investment of
RM582.4 million. In addition, the total area of oil palm replanting
Exhibit 5.3
90
EPP 1
Accelerating the Replanting
and New Planting of Oil Palm
Areas Replanted with Oil Palm
140,000.00
120,000.00
100,000.00
80,000.00
60,000.00
40,000.00
20,000.00
92,557.62 ha
RM2240
116,840.16 ha
Hectares CPO average prices (RM)
RM2747
and new planting implemented by independent smallholders
was about 19,800 hectares. An estimated amount of RM169
million has been allocated by the Government in 2011 as grants
to assist independent smallholders.
Exhibit 5.2
Private Sector Driven Hectare
Area of backlog cleared by plantations and organised smallholders 83,200
area of replanting and new planting
by independent smallholders
Hectare
Application received 37,423.64
Applications verified and approved 29,995.09
Area felled and planted 19,768.54
Moving Forward
Replicating the successes of the initiatives implemented this year,
in 2012 MPOB is targeting a total area of replanting and new
planting by independent smallholders at 40,000 hectares and total
area of backlog cleared by plantation companies and organised
smallholders at 100,000 hectares. The total investment from both
the private and public sector is expected to top RM980 million in
the year 2012 for the 140,000 hectares under this EPP.
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2009 2010 2011
102,969 ha
RM3278
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