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<strong>ETP</strong> ANNUAL REPORT 2011<br />

In recent years the oil extraction rate (OER) has hit a plateau due to<br />

inconsistent quality of fresh fruit bunches delivered to mills. This<br />

EPP aims to improve mill performance by filtering poor quality<br />

crop before processing. MPOB has recruited and deployed a total<br />

of 186 enforcement officers to specific low performing mills to<br />

provide advisory and enforcement services on quality of crops.<br />

Achievements<br />

The Malaysian Palm Oil Board has grouped all the mills in<br />

Malaysia into four categories based on crop intake and OER<br />

performance. The four categories are:<br />

A: OER < 20 per cent and using >50 per cent outside crops of<br />

their total intake<br />

B1: FELDA mills<br />

B2: OER > 20 per cent, or, using < 50 per cent outside crops of<br />

their total intake<br />

C: Palm oil mills that receive/process their own crops only<br />

Exhibit 5.9<br />

94<br />

EPP 4<br />

Oil Extraction Rate Performance – 2011<br />

OER (%)<br />

21.5<br />

21<br />

20.5<br />

20<br />

19.5<br />

19<br />

18.5<br />

Jan: 19.7<br />

Increasing the Oil Extraction Rate (OER)<br />

MPOB has also clustered mills by region and placed them under<br />

the responsibility of enforcement teams which are ranked<br />

competitively to ensure high OER performance by the mills.<br />

Overall in 2011, the OER has increased from a three year low<br />

of 19.70 per cent in January, to end with an average of 20.35<br />

per cent. This EPP has seen a significant improvement in the<br />

OER with successful reversal of downward trends traditionally<br />

observed in two periods – February-March and June-August.<br />

Moving Forward<br />

In 2012, the focus will be on improving the national oil extraction<br />

rate to 21.05 per cent. An additional 55 enforcement officers will<br />

be hired and deployed to FELDA-owned mills to monitor the FFB<br />

acceptance process by mills and displacement of FFB to ensure<br />

only good quality crops are processed.<br />

Dec: 20.26<br />

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec<br />

2008<br />

2009<br />

2010<br />

2011<br />

2011 average<br />

(20.35%)<br />

2011 target<br />

(20.75%)

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