RSPO Annual Communication of Progress FELDA

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1 RSPO Annual Communication of Progress FELDA 1. Profile Name of organization : FELDA Membership type (Ordinary/Affiliate) Report prepared by S Palaniappan : s.palani@felda.net.my Report submitted by : S Palaniappan s.palani@felda.net.my Reporting Period : January 2005 _ to December 2005 Date of Report : June Details of Progress A. Current efforts and progress in producing, procuring and/or utilizing sustainable palm oil FELDA is directly involved with RSPO and holds a seat in the EB. FELDA is a member of the Environment Working Committee in MPOA (Malaysian Palm Oil Association). No forests were opened for oil palm planting during the reporting period. Zero burning (to control air pollution) and early establishment of Leguminous Creeping Covers (to control soil erosion) are the standard practice in all replanting projects. Suitable Good Agricultural Practices (GAP) are adopted in projects to improve soil fertility, better utilization of natural resources that results in minimum impact to nature and environment. Amongst those in practice are maintaining good soft covers, widened frond heap, silt pits, terrace bunds and side diversion drains Integrated Pest Management (IPM) strategy is adopted wherever possible for the effective control of major pests (such as Rats, Rhinoceros beetles and leaf eating caterpillars) Soil and foliar analysis are conducted annually to monitor palm/soil nutrient status and maintain them within healthy levels with appropriate fertilizer inputs (organic and inorganic). Buffer/riparian reserves are maintained to reduce contamination of streams/waterways. Wastes and byproducts from plantations/mills are recycled/used in the plantations as much as possible/feasible. 1

2 B. Implementation and/or sponsorship of projects/initiatives that promote sustainable palm oil FELDA has established Yayasan FELDA or FELDA Foundation to undertake and coordinate activities in education, health, social, economy, culture and national heritage for the benefit of all Malaysians in line with its corporate social responsibility. Since its formation in 1999, RM36 million has been spent for these purposes. 1. Social All schemes have social development officers who directly look into the social wellbeing of settlers in FELDA and their dependants. a. Education School adoption programme. RM594,000 has been spent in 2005 to benefit 20,729 students in 32 schools (18 of these are new schools added to the list in 2005 Scholarship/grant to students of higher education. A total of 245 students benefited under this programme that cost RM 371,000 in Research grants (amounting to RM 1.17 million) were offered to higher education centres in Urban hostels for students from rural areas. Four hostels (one each in the states of Perak, Selangor, Kuala Lumpur and Johor) provide accommodation and ferries settler dependants to schools. The hostels enrolled 568 students in 2005 and to-date 9170 students had enjoyed this facility since formation in Training centers and community colleges. Pusat Latihan Trolak (in Sungkai,Perak) and Institut Teknologi Utama (in Kelana Jaya, Selangor) are fully operated by FELDA and provides skill trainings on IT, electrical, automotif and sewing for school leavers. The Kolej Komuniti Perdana (Prime Community College), Institute Teknologi Utama (ITU) was set up with the cooperation of the Ministry of Education to increase the pool of educated and skilled work-force amongst FELDA communities. All these colleges has benefited 937 students/participants in 2005 with a disbursement of RM 1.8 million b. Welfare 20 machines are providing Hemodialisys services with a minimal charge to patients. 5 machines were donated to the government hospitals in 2005 bringing to a total of 23 machines donated to date. 66 senior citizens received free medical treatments and 17 chronic patients were assisted in 2005 Special relief was provided to settlers above the age of 60 years, families with disabled children and single mothers with income less than RM500/mth. A new programme was launched in 2005 to aid 56 students from poor families to be equipped with corrective lenses. RM 100,000 was donated to national disaster fund (for tsunami aid) and another RM 144,050 was spent to fulfill the needs of 1640 school going children s there. RM 29,100 was given to 329 peoples in orphanage centres A health awareness seminar was conducted in Kuala Lumpur for the staff, with the cooperation of PUSRAWI (a private hospital). 2

3 2. Economic Various means are taken to boost non-farm activities among the settlers community and to transform the settlers from mere farming into entrepreneurial community. To date 34,029 entrepreneurs have participated with RM mil payout. The involvement has provided additional revenues varying from RM /month per settler. Koperasi Permodalan Felda (Felda Investment Cooperative) Established in 1980, it was set-up to encourage savings amongst the settlers. By holding equity in subsidiary companies under the FELDA group, Settlers were rewarded handsomely through annual dividends with an average of 13.8 % p.a Entrepreneurship encouragement SAWARI (one region one product) and IKS-TANI identifies promising cottage industries to commercialize and efforts are made to assist them in producing quality products. FELDA also assists in the marketing and promotion of the products with standard trade names F BEST COLLECTION (Textile based products) F BEST FOOD (processed foods) and F BEST CRAFT (craftsmanship). To date 341 entrepreneurs have participated in these projects. Financial assistance is given in the form of cash advancement for the activities below:- Skim Insentif Usahawan FELDA (SIUF). Set up in 2003 to attract settlers to engage in various activities that includes animal husbandry, agriculture, aquaculture and small business. A total of RM 50.5 million has been utilized (to date) for this purpose to 3301 entrepreneurs. Loan for higher education is provided to settlers dependants whom were not able to secure loan from other resources to study in private/government institutions. The amount utilized to date is RM 5.27 million that has benefited 951 students. Scheme Co-operatives The many scheme co-operatives (numbering 287) established with the participation of settlers, undertakes small to medium sized contract works in FELDA schemes. Contractors Many settlers are involved directly as agricultural contractors in FELDA 3. Environmental Sponsor the restoration, beautification and maintenance places of historic, cultural and environmental interest (such as the Kota Gellanggi caves, in Pahang) to value national heritage near FELDA projects. A bio-pesticide (Biometar containing Metarhizium anisopliae fungus to control Rhinoceros beetle) has been produced with the cooperation with Malaysian palm Oil Board (MPOB). Its effectiveness has been tested in field and will be made available to the industry soon. A composting plant has been commissioned in Johor (Pen. Malaysia). This plant uses all the waste POME (palm oil mill effluent) produced from the mill to mix with EFB (empty fruit bunches) and converts them to compost for use in oil palm field..under normal operation, the POME has to be treated prior to discharge to streams/field. FELDA in collaboration with IMOPHOS (a phosphorus fertilizer producer s organization), UPM (Universiti Putera Malaysia) and other plantation agencies is studying the performance of some phosphate rocks fertilizers. The study involves enhancement of phosphorus uptake through greater activity of organic matter. The phosphorus loss to the environment is also given attention. 4. FELDA is amongst the few companies volunteered itself to test the implementation of RSPO s P&C in its projects. 3

4 C. Significant economic, social or environmental problems encountered in production, procurement and/or use of sustainable palm oil and efforts made to mitigate or resolve them D. Outlook of planned activities to promote sustainable palm oil production, promotion and/or use in the next reporting period Of the 72 FFB processing mills, 56 has obtained ISO 9001, 70 has been awarded ISO and 72 received the ISO by end The one EFB compost plant planed in Johor was successfully commissioned. FELDA intend to commission another 5 EFB composting plants in 2006 in its endeavor to fully utilize oil palm residues in the field. Briefing on the GAP and awareness on environment conservation was conducted in some regions. A road-show on this covering all FELDA areas has been planned for in More small and medium-sized industries (SMIs) production centres to be built in FELDA regions to complement One Region One Product (SAWARI) project. FELDA is currently building three growth centres equipped with good infrastructure for the settlers to participate in business and commercial activities which will supplement the income from oil palm cultivation. E. Recent publications of environmental / social / sustainability reports or annual reports relating to the objectives and tasks of RSPO A booklet on Good Agricultural Practices in FELDA s group of estates was launched in Mid 2005 for better understanding and awareness amongst the project managers in sustainable palm oil production. Other related developments/findings in agriculture or managing oil palm in the industry are disseminated through four in-house bulletins namely Kemajuan Penyelidikan (on GAP and technical aspects of oil palm cultivation) and Majalah PENGURUS (targeting managerial level staff covering topics on management, social, economy, health, religion and personal development ), Tuai and ICT JELAS (targeting settlers covering agriculture, social development, youth, entrepreneurship, opportunities in skill development to uplift the socio-economic status of settlers and their dependants). FELDA has allocated a special chapter on environmental control in its annual reports. This disclosure proves the commitment shared by FELDA in sustainable palm oil. Various campaigns have been conducted both for the staff and settlers in highlighting the importance of environmental control and preservation. 4

5 F. Recognition and awards for excellence in promoting sustainable palm oil All the 72 FFB processing mills have at least one ISO certification. Most of has three (ISO 9001, and 18001). FELDA s Oil palm nursery in Johor has the MPOB (Malaysian Palm Oil Board) certified OPNCC certification. Apart from this other subsidiary companies in FELDA have also received the MS ISO 9001 recognition namely Delima Oil Products Sdn Bhd, Felda Vegetables Oil Products Sdn Bhd and Felda Oil Products Sdn Bhd. Felda Marketing Services Sdn Bhd, Felda Engineering Services Sdn Bhd, Felda Properties Sdn Bhd and Felda Bulkers Sdn Bhd. Felda Transport Services Sdn Bhd. G. Suggestions on how the RSPO can play an active role in enhancing your organization s sustainability performance, particularly in relation to promoting sustainable palm oil H. Other activities 1. The schemes/projects were provided with basic amenities either by the Public Works Department, Tenaga Nasional Berhad (TNB) or commercial arms of FELDA, which includes village road, water and electricity supply, shops, places of worships, and community halls 2. A Scheme Development Committee or Jawatankuasa Kemajuan Rancangan (JKKR) is established in each scheme to act as the principal body to spearhead settler development activities. Four bureaus have been established under the JKKR to handle the Education, Economic, Social and Agricultural aspects of settler development. Representation is also made at the regional (Gabungan Jawatankuasa Kemajuan Rancangan) and national levels (Jawatankuasa Perunding Peneroka) where issues relating to their interests are discussed and formulated as actions plans. 3. Several committees are formed/associated with social organizations to help in social activities such as Majlis Belia Felda Malaysia (Youth Club), Parent-teacher Associations, Women Associations, Anti-Drug Rehabilitation centres (PEMADAM) etc. 5

RSPO Annual Communication of Progress FELDA

RSPO Annual Communication of Progress FELDA 1. Profile Name of organization : FELDA Membership type (Ordinary) Report prepared by Email : S Palaniappan : s.palani@felda.net.my Report submitted by Email