IPNI s Vision of Sustainable Oil Palm Intensification in 2020 and Beyond

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1 IPNI s Vision of Sustainable Oil Palm Intensification in 2020 and Beyond Chua, C.K., Oberthür, T., Cook, S., Lim, C.H., Donough, C.R., Cock, J., Sugianto, H. and Lim, Y.L. MOSTA Oil Palm Best Practices Workshop 2015 Best Practices to Realize The Yield Potential of Oil Palm Planting Dates : August 2015 Venue : Imperial Hotel, Miri?

2 1 Oil Palm: Sinner or Saint?

3 Oil Palm: Sinner or Saint? Criticized because Supported because The land expansion, threat to biodiversity Peat soils are drained, start to release carbon dioxide, a GHG. Degrade local water quality. High oil production crop, 30% of world s edible vegetable oil supply with < 20 million ha. Improve socio rural development in the tropics Create more job opportunities

4 Oil Palm: Sinner or Saint? The demand for world vegetable oil is expected to double from present worldwide consumption of 120 million tons to 240 million tons by (Corley, 2009) 1. Land expansion With the same yield production maintained at 4 t/ha, estimated additional land area required at 28 million ha. (Corley, 2009) 2. Yield intensification

5 Oil Palm: Sinner or Saint? Cost of Driving 25 Miles $4 Regular Car $2 Hybrid Car 150 More 250 Original Habit 400 New Habit # of Miles Driven (Miles / Week) WS Jevons. The Coal Question: An Inquiry concerning the Progress of the Nation, and the Probable Exhaustion of our Coalmines. Macmillan and Co. (1866).

6 Oil Palm: Sinner or Saint? Change in agricultural area (%) Ghana Indonesia Brazil India Crop production index

7 2 Intensification Opportunity

8 Intensification Opportunity The current national FFB yield in Indonesia was at 16.7 tons/ha. (FAO, 2013) Wide range of yield potential from below 15 tons/ha to above 40 tons/ha. FFB ton/ha < 15 < 25 < 30 < 35 < 40 > Kilometers PALMSIM Model: Hoffmann et al., 2014

9 Intensification Opportunity 8.1% of the suitable land has a potential productivity of more than 40 tons/ha 35.6% of the suitable land falls into the category between tons/ha 20% are for tons/ha FFB ton/ha < 25 < 30 < 35 < 40 > 40 PALMSIM Model: Hoffmann et al., 2014

10 Intensification Opportunity CPO t ha t/ha % +9% +8% t/ha +92% Nutri +Breed +Agron +Mill Davidson L. PIPOC Conference Proceedings (1991)

11 Intensification Opportunity FFB Yield (t ha -1 ) Soil type Control Maximum Response Inceptisol % Ultisol Oxisol % % Source: Tarmizi et al (1992)

12 Intensification Opportunity Source Rate Time Place

13 Intensification Opportunity ENVIRONMENTAL Source Rate Time Place ECONOMIC SOCIAL

14 3 Plantation Performance Assessment

15 Plantation Performance Assessment

16 Plantation Performance Assessment Soil Type? Climate? Fertilizer? Planting Material? Management Control?

17 Plantation Performance Assessment BREAK EVEN 8~10 kg kg point fresh fruit bunches per kg fertilizer

18 Plantation Performance Assessment 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

19 Plantation Performance Assessment Soil Type? Climate? Fertilizer? Planting Material? Management Control?

20 Engagement Plantation Performance Pathway Assessment Soil Type? Climate? Fertilizer? Planting Material? Management Control? A B Yield Performance Max Average Min C D

21 Plantation Performance Improvement 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

22 Continuous Performance Improvement Fresh fruit bunch yields among prime-age and old palms 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.

23 Continuous Performance Improvement Increased yields both at optimal & suboptimal growing conditions, ranged from 4.6% %, with max oil yield at 6.6 t/ha. (Oberthür et al., 2012) Estimated additional 12 million ha to achieve year 2050 world vegetable oil demand with 5.2 t/ha of oil yield (Corley, 2009) If the estimated yield in year 2050 at 6.6 t/ha, additional land area required would reduce to 5.5 million ha by 2050 Oberthür et al. International Oil Palm Conference 2012.

24 IPNI Vision of Sustainable Intensification Business Opportunity PALMSIM Model Measure Performance Plantation Intelligence Regional Benchmarking Yield Exchange Continuous Improvement Best Management Practices

25 IPNI thanks MOSTA organizer Data and results were generated with Indonesian plantation partner, Wilmar International Ltd with support by IPNI Member Company, Canpotex International contact us at