Smallholders urged to join sustainable oil palm growers cooperatives

MEMBAKUT: Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin has urged smallholders to be part of the Sustainable Oil Palm Growers Cooperatives (KPSM) to enable the Malaysian Palm Oil Board (MPOB) to monitor and resolve their problems better.

She said KPSM is responsible for coordinating and monitoring management of sales to ensure a more organised process and act as a middleman for smallholders and the MPOB or the ministry.

"KPSM was established as a strategic government measure under my ministry to ensure the involvement of smallholders in the new economic model that focuses on the operation of cooperatives as well as small and medium industries.

"KPSM conducts business that directly impacts the increase in members' income, including group fresh fruit bunch (FFB) sales and bulk input purchases, in addition to being involved in other businesses to strengthen the financial status of the cooperative, which can then be distributed as dividends to members," she told reporters after officiating the KPSM Kimanis Berhad weighing centre here today.

Zuraida also encouraged the establishment of more cooperatives to enable the government to provide assistance and incentives to cooperative members.

"Until July 2022, 69 KPSMs were established nationwide, 24 in the Peninsular, 27 in Sabah and 18 in Sarawak. A total of 66 KPSM weighing centres have been built and is implementing group FFB sales direct to factories totalling 149,241 tons.

"In Sabah, 25 KPSMs have conducted FFB transactions of 222,389.32 tons, benefiting 2,415 smallholders who are members," she added.

On KPSM Kimanis Berhad, Zuraida said it was established on July 15, 2020 with a membership of 56 people as of July 2022.

-- BERNAMA