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To Calculate The Economics of Seeds



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To Calculate The Economics of Seeds

InfoSAWIT, JAKARTA – The public may know that palm oil has become the material for many industries both food, drink, cosmetic, medicine, machines, and land transportation. Palm oil is now becoming part of aviation industries because palm oil could be processed to be aviation turbine.

To cultivate palm oil plantation, of course, there are valuable things. If the valuable things are ignored, one thing for sure, the plantation would not achieve the success or have high profits.

One thing is about palm oil seed management which in fact, if it is well running, seeds will have much profits

Though seed is one smallest unit of production in palm oil plantation, if it is ignored, there would be losses for the companies.

Every harvester, one thing for sure, would produce seeds because they determine the criteria of mature FFB to cut off. The mature FFB is collective seeds naturally per kilogram.

To minimize the losses of seeds, an assistant, head of assistant, manager need to tightly monitor the left seeds in the areas done by foreman to 5 harvesters by checking it in generous manner every single day.

This is about to force the harvesters to pick up every seed. It needs to give fine to harvesters (Rp 200/seed) so that they are forced to pick it up to avoid fine.

The fine in harvesting process has strong basic things, such as, the first, if seeds are not picked up, the average bunch weight would be decreasing and the harvesters would not get increasing income. For the work wholesale is based on the average bunch weight, and if the average bunch weight is not increasing, it means that the seeds are not picked up in a whole from such spots.

The second, OER would also be decreasing because seeds contain of high OER about 40 to 50%. The third, if seeds are not picked up in a whole, it would be weeds in the plantations (bad small seeds). If they are not cut off or cleaned, this would cause competition to get nutrients in the soil that could decrease the production for the main palm oil trees. This would multiply the nursery costs too.

The fourth, these would make big losses too. If one seed is not picked up/tree, the potential loss could be: 1 seed x 136 trees/ha x 4 rotation x 12months x 750 ha/overlay/70 seeds/kg x 40% = 27.977 kg CPO.

The loss if one seed is not picked up for one year within overlay covering 750 ha would be 27.977 kg of CPO x Rp 8.000/kg = Rp 211.032.000

If the plantations are about 3.000 ha, and the seeds unpicked per tree in every harvest for a year, it would be 3.000 ha/750 ha x Rp 211.032.000 equals Rp 844.128.000

By knowing these things, the plantation manager should manage the assets to avoid big losses. The company could minimize it to be zero loss. It is hoped to increase the economy in the company, the welfare of workers, and give additional income and tax to the country. (Writer: Ahmad Hulaimi/ oil palm plantation practitioners)

Source: InfoSAWIT, March 2021