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Here Are Important Components to Calculate K Index in Smallholders’ FFB Decision

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Here Are Important Components to Calculate K Index in Smallholders’ FFB Decision

InfoSAWIT, ACEH – Crude palm oil (CPO) industry is one economic pillar of many palm oil producer countries in the world. In this industry index P (performance index) is the major factor to successful assessment of a company. P index consists of some significant components that would reflect vital aspects in palm oil production and distribution.

Management Advisor of Palm Oil Mill, Prof. Ponten Marulitua Naibaho said in the 4th Andalas Forum in Banda Aceh, at least, there are six aspects to calculate main components to get P index, in calculating smallholders’ fresh fruit bunch (FFB). The first, marketing cost (Rp/kg CPO, Rp/kg kernel); the components would be calculated and handled in the port, tanks costs in port, ship survey cost, and certification cost.

The second, transportation cost from mill to shore tank that covers land transportation, and management in tank location. The third, cultivation cost that covers the process from FFB acceptance until the process to produce CPO, including the tool and workers’ costs.

The fourth, depreciation cost that covers tools depreciation and mill’s facilities which are the significant aspects to maintain production infrastructures. The fifth, indirect operational cost that covers indirect spent which has something to do with daily production, such as administration and management costs.

The sixth, yield. Prof. Naibaho told that yield in mill is the ration between numbers of palm oil produced and FFB numbers that have been processed. The higher yield is the more efficient would be in the production. (T2)