IPNI. Out of the Box Ideas for Plantation Management. Southeast Asia Program. T. Oberthür & C.R. Donough, with contribution by M.

Transcription

1 IPNI Southeast Asia Program T. Oberthür & C.R. Donough, with contribution by M. Hoffmann Out of the Box Ideas for Plantation Management Malaysian Estate Owners Association (MEOA) Raise Seminar MPOB Bactrics Hall, Bangi 11 August 2015

2 Malaysian Estate Owners Association RAISE Seminar Explanatory Footnotes 1. Co-authors 2. Commercial data 3. In house information 4. Variable performance 5. Solutions often simple, not trivial 6. Concepts transferable

3 What is IPNI

4 International Plant Nutrition Institute Engagement Pathway Formed in 2007 from the Potash & Phosphate Institute, the International Plant Nutrition Institute is supported by leading fertilizer manufacturers. Its mission is to promote scientific information on responsible management of plant nutrition.

5 International Plant Nutrition Institute Engagement Pathway

6 International Plant Nutrition Institute Engagement Pathway Closing Yield Gaps The difference between Realized Productivity and Achievable Best, with current genetic material, available technologies and management. Sustainable Intensification Producing More Food from the Same Area of Land while Reducing Impacts on the Environment. Godfray HCJ et al. Science 327, (2010) Garnett T. Science 341, (2013)

7 International Plant Nutrition Institute Engagement Pathway Oil Palm Various Cocoa Cassava 14% 15% 44% 27%

8 Out of the Box Thinking

9 Out of the Box MPLITUDE is the maximum displacement of points on a wave: the Adegree or intensity of change, measured from the equilibrium position. Adopted from the Bandrowski-Strategic-Innovation-Process" by James F. Bandrowski

10 Out of the Box MPLITUDE is the maximum displacement of points on a wave: the Adegree or intensity of change, measured from the equilibrium position. The Plantation Box Adopted from the Bandrowski-Strategic-Innovation-Process" by James F. Bandrowski

11 Out of the Box MPLITUDE is the maximum displacement of points on a wave: the Adegree or intensity of change, measured from the equilibrium position. The Plantation Box Plan Execute Adopted from the Bandrowski-Strategic-Innovation-Process" by James F. Bandrowski

12 Out of the Box ITHIN a Plantation Environment, the Amplitude Represents the Day to W Day Responses to Tactical Management Demands Within the Box Thinking is Critical Plan Execute Adopted from the Bandrowski-Strategic-Innovation-Process" by James F. Bandrowski

13 Out of the Box UT OF THE BOX ideas for plantation management are those that lead to Olarger than incremental performance changes Positive Amplitude Plan Execute Negative Amplitude Adopted from the Bandrowski-Strategic-Innovation-Process" by James F. Bandrowski

14 Out of the Box UT OF THE BOX ideas for plantation management are those that lead to Olarger than incremental performance changes Identify Core Competency Take Creative Leaps Apply Best Practices Plan Positive Amplitude Build Breakthrough Concepts Select Strategies Execute Identify Pains & Causes Negative Amplitude Crystallize Breakthrough Opportunity Areas (BOAs) Identify Risks Adopted from the Bandrowski-Strategic-Innovation-Process" by James F. Bandrowski

15 Out of the Box UT OF THE BOX ideas for plantation management are those that lead to Olarger than incremental performance changes Identify Core Competency Take Creative Leaps Apply Best Practices Plan Positive Amplitude Build Breakthrough Concepts Select Strategies Identify Pains & Causes Negative Amplitude Crystallize Breakthrough Opportunity Areas (BOAs) Identify Risks Breakdown Adopted from the Bandrowski-Strategic-Innovation-Process" by James F. Bandrowski

16 Out of the Box UT OF THE BOX ideas for plantation management are those that lead to Olarger than incremental performance changes Breakthrough Identify Core Competency Take Creative Leaps Apply Best Practices Plan Positive Amplitude Build Breakthrough Concepts Select Strategies Identify Pains & Causes Negative Amplitude Crystallize Breakthrough Opportunity Areas (BOAs) Identify Risks Adopted from the Bandrowski-Strategic-Innovation-Process" by James F. Bandrowski

17 Out of the Box Experts: technical, procedural, and intellectual knowledge. Actionable Solutions Innovators: imaginatively approach problems. Work Environment: Intrinsic & extrinsic motivation to solve problems at hand. Amabile, How to Kill Creativity. In Harvard Business Review on Breakthrough Thinking

18 Framing the Challenge

19 IPNI SEAPs Vision for the Industry ISSUE Breeders raise yield ceiling while managers keep it at the floor So I have been told by a breeder

20 IPNI SEAPs Vision for the Industry EXPLANATION R&D Breeder R&D

21 IPNI SEAPs Vision for the Industry HYPOTHESIS More potential can be realized by adopting innovative management Both authors agree

22 IPNI SEAPs Vision for the Industry VISION REDUCING UNREALIZED POTENTIAL

23 IPNI SEAPs Vision for the Industry VISION REDUCING UNREALIZED POTENTIAL

24 Business Opportunity: Yield Gap

25 Business Opportunity Fertilizer plots > 80% of average simulated potential yield; unfertilized control plots 47.5% Potential Yield FFB (Mg ha-1 year-1) <10 <20 <30 <40 <48 PALMSIM Model: Hoffmann et al., 2014 The Planter, Kuala Lumpur, 91 (1067): (2015)

26 Business Opportunity FFB (t/ha) Yield Age Profile Map Chart TREEAGE

27 Business Opportunity FFB (t/ha) Yield Age Profile Map Chart TREEAGE

28 Business Opportunity FFB (t/ha) Yield Age Profile Map Chart TREEAGE

29 Business Opportunity FFB (t/ha) Yield Age Profile Map Chart TREEAGE

30 Actionable Solutions

31 Actionable Solutions

32 Actionable Solutions Organize existing performance data for VISUALIZATION Quantify performance change for management DECISIONS Generate performance indicators and metrics for ANALYSES Devise specific performance intervention options for EVALUATION

33 Actionable Solutions Engage senior management Engaging senior management is essential to ensure commitment throughout the organization. PI is a long-term exercise that requires on-going commitment. Acquire data Plantation operators have internal accounting or control systems that capture this. Data include inputs and outputs for each block. Clean and assemble data Use data that is routinely available, not special experiment data. Anticipate some effort for this step. Organize data Set up a common database structure. This may require several cycles before a final structure is established. First analysis Show management the results of first analysis to seek feedback on future analyses. Follow-up analysis Expand data sets to include new partners and data from their new and old plantations. Anticipate large variations. Discuss with field managers Review results and ideas with field managers with the goal to interpret data for actionable recommendations. Review and repeat To keep the PI exercise relevant, an annual review is recommended. Ideally, it should become part of regular board meetings where management can be briefed on the insights gained and decide on the best activities to be introduced in the next production cycle.

34 Actionable Solutions FFB (t/ha) Yield Age Profile Map Chart TREEAGE

35 Actionable Solutions y = (-0.07*x) 25 FFB (t/ ha) Planted Area

36 Actionable Solutions UNDERSTANDING NPK RESPONSE TO FERTILIZER $ $ $

37 Actionable Solutions FFB (t/ha) NPKMg added over this year and previous 2 yrs (kg/ha, weighted 25:50:25)

38 Actionable Solutions BREAK EVEN 8~10 kg kg point fresh fruit bunches per kg fertilizer

39 Actionable Solutions 35 Soil Type Effects b=0.010 b=0.007 FFB (t/ha) b= NPKMg added over this year and previous 2 yrs (kg/ha, weighted 25:50:25)

40 Actionable Solutions Soil-Climate Interactions A Yield Performance Max Average B Min C D

41 Actionable Solutions Fresh Fruit Bunch Yield in t per ha Labor Yield Interactions Harvest Man days

42 Actionable Solutions Fresh Fruit Bunch Yield in t per ha Labor Yield Interactions Expected yield level Harvest Man days

43 Actionable Solutions Fresh Fruit Bunch Yield in t per ha Fruit is grown but not harvested Labor Yield Interactions Only with enough labor, all fruit is harvested Expected yield level Harvest Man days

44 Actionable Solutions Further Applications 1 Full Gross Marginal Return from Blocks 2 Net Present Value (NPV) for Investment Evaluation 3 Systematic Sourcing of Fertilizers

45 Actionable Solutions Actionable Interventions 1 No intervention for further action identified 2 Possible management interventions identified

46 Implementing Solutions

47 Implementing Solutions INTERVENTION: trial at block scale trial at estate scale

48 Implementing Solutions

49 Implementing Solutions Conduct a preliminary yield gap analysis Adopt BMP as standard practice. Optional: launch as Estate-Scale Experimentation if greater certainty is needed Assign BMP and REF blocks throughout estate BMP step-by-step Determine which BMPs are suitable for implementation at the whole plantation, if any 5 3 Implement BMPs and collect data 4 Study data together with plantation managers and conduct a follow-up yield gap analysis

50 Implementing Solutions A sample estate with three soil types with one pair of BMP/REF blocks per 1,000 hectares. Regular production block BMP block REF block Soil A Soil B Soil c

51 Implementing Solutions 3.0 Fresh fruit bunch yields among prime-age and old palms 2.5 Yield at BMP blocks (t/ha/month) Pre-BMP Prime-age palms Pre-BMP Old palms 1 Prime-age palms 1 Old palms 2 Prime-age palms 2 Old palms 3 Prime-age palms 3 Old palms 4 Prime-age palms 4 Old palms Yield at REF blocks (t/ha/month) Oberthür et al. International Oil Palm Conference 2012.

52 Implementing Solutions

53 Implementing Solutions Fertilizer treatment layout TREATMENT none DIVISION Division 1 Division 2 Division 3

54 Summary & Proposition

55 Summary & Proposition Plan PalmSim Simulations BMP trials to test breakthrough concepts Estate Scale Experiments to build breakthrough concepts Monitor BMPs Breakthrough Execute Plantation Intell to identify causes Plantation Intell to crystallize breakthrough opportunities) Breakdown

56 Summary & Proposition Business Opportunity PALMSIM Model Measure Performance Plantation Intelligence Continuous Improvement Best Management Practices

57 Summary & Proposition Business Opportunity PALMSIM Model Measure Performance Plantation Intelligence Continuous Improvement Best Management Practices

58 Summary & Proposition THE MISSING LINK Share, Analyze, Learn, Change, Gain production ha by palm age, total monthly FFB & bunch number, monthly nutrient amounts, monthly rainfall & rain days Estate Networking The Benchmark Club Malaysian Estate Owners Association International Plant Nutrition Institute???

59 Summary & Proposition Business Opportunity PALMSIM Model Measure Performance Plantation Intelligence Estate Networking The Benchmark Club Continuous Improvement Best Management Practices

60 IPNI Southeast Asia Program Malaysian Estate Owners Association Raise Seminar August 11, 2015