Agrisoft Systems places a high value on close cooperation with research institutes and leading experts on oil palm agronomy. Below is a selection of publications which have been produced as part of this collaboration.
A Company Guide to Oil Yield Intensification in Oil Palm
T. Fairhurst and R. Moss (Tropical Crop Consultants Limited), J. McGill and J. Fry (LMC International), M. Kerstan (Agrisoft Systems)
Summary
Of four options identified for increasing profits in oil palm companies: business diversification, area expansion, and investment in downstream processing and oil yield intensification (OYI) on existing land. Of these, OYI on existing land has the greatest potential. Area expansion was the driving factor for increasing oil output from 1980-2010, but this phase of investment is over because it is now difficult to acquire suitable new land for expansion. Many companies have invested in downstream processing of their own oil but margins from plantations are now higher than from refining and other downstream businesses.
OYI goes beyond increasing fruit bunch yields to improving harvesting and milling efficiency. In most companies there are large gaps between actual and achievable oil yields because of lack of focus on primary production. Analysis of listed companies shows that gross profit per hectare is correlated with oil yield. OYI involves improving efficiency with marginal increases in field costs.
Despite increases in genetic oil yield potential (1% per year), oil yields in Indonesia and Malaysia have stagnated over the past ten years. Our calculations suggest that on plantations located on good soils and with favourable climatic conditions in Indonesia, oil yields could be increased from 4.8 to >6.2 t/ha, resulting in an increase in net profits of USD 790–890/ha.
Five reasons for low yields are identified: under-estimation of yield potential, complacency, misconceptions about the difficulty of OYI, lack of focused leadership, and poor performance reporting. OYI involves improving bunch yields, bunch oil content and oil extraction rates. Genetic improvement also has a role in determining yield as well as pest and disease resistance.
It is possible to split the overall yield gap into five separate yield gaps caused by different factors, each of which must be addressed in OYI. The response due to improving crop recovery and mill efficiency is rapid, but it takes 40 months to realise the full impact of OYI because of the time lag between floral initiation and bunch harvest. Poor plantation establishment can only be addressed fully at replanting.
The OYI process has six phases: identifying the opportunity, strategic analysis, detailed planning, motivating the company, establishing a BMP pilot project, and scaling up. All company departments must be involved in the process from the outset. A best management practice (BMP) pilot project involves setting up test blocks to identify and quantify the opportunity for OYI, requires a review of fertilizer and pest and disease management, milling practices and ex-ante and ex-post financial analysis. Scaling up is complex, and involves updating Standard Operating Procedures (SOPs) and making BMPs routine throughout the plantation. An agronomic information management system (AIMS) database is required for monitoring and evaluation.
OYI needs to be led by top management. The field and the mill are the key areas where production is improved, but support from other departments including procurement, HR, IT, logistics, finance, and technical services is required. There needs to be rigorous performance monitoring and financial incentives for those responsible for OYI. Training is required and managers and supervisors should be tested on their knowledge of company SOPs.
OYI will proceed more smoothly if the Board of Directors (BOD) is involved from the outset, from identifying OYI as an opportunity to motivating managers, monitoring progress, and bringing in external expertise. Cases of successful BMP implementation projects in Central America, Africa and Southeast Asia are cited. OYI has a positive impact on sustainability by providing more oil without area expansion (thereby avoiding further deforestation). OYI is an essential part of meeting future growth in global demand for vegetable oil with minimal area expansion as well as increased company profitability.
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Use of OMP for accurate crop forecasts
M. Kerstan (Agrisoft Systems) and T. Fairhurst (Tropical Crop Consultants Limited)
Abstract
A short-term crop forecast for the next four months based on black bunch counts (BBC) provides the means to plan field operations, check for crop losses and possible theft, and estimate oil available for future sales. The OMP suite includes two add-in tools (OMP Field Survey and OMP-BBC) that provide the means for verifiable BBC data collection and data processing. Crop forecasts can be easily prepared based on historical bunch weights and customizable calculation settings, while retrospective analysis allows the user to monitor and assess the accuracy of past forecasts. In this way, a disciplined approach to crop forecasting can be implemented that provides accuracy of ±10% with low labour requirements for field work.
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Use of a ‘glass-box’ computerized decision support tool (CDST) for the preparation of fertilizer recommendations in oil palm plantations
T. Fairhurst (Tropical Crop Consultants Limited), M. Kerstan and N. Memenga (both Agrisoft Systems)
Abstract
Fertilizer is the largest variable cost of production in oil palm cultivation. The preparation of fertilizer recommendations is a complex task that should make use of all agronomic data accumulated by a plantation company. The OMPTM agronomic database, now widely used in the oil palm industry, provides the means to store and analyze agronomic data for large-scale plantations. In this paper, we describe a computerized decision support tool (CDST) that provides agronomists with the means to interrogate all agronomic data (leaf and soil analysis, production, field conditions) stored in OMPTM using customized queries for the purpose of estimating nutrient requirements. The user can set up the CDST to determine the least costly source of mineral fertilizers and a fully-costed fertilizer program for each block within a plantation. The CDST provides transparency in terms of methodology, opportunities for peer review by company management and external consultants whilst securing the company’s agronomic intellectual property.
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Concept and Implementation of Best Management Practice for Maximum Economic Yield in Oil Palm Plantations
C. R. Donough, C. Witt (both Potash & Phosphate Institute), T. Fairhurst (CTP Holdings), W.Griffiths (PT Asiatic Persada) and A. Gfroerer-Kerstan (Agrisoft Systems)
Abstract
There are substantial opportunities to increase yield and profitability on existing land through the implementation of Best Management Practice (BMP) in oil palm estates. However, plantations are challenged with the identification and implementation of suitable BMPs that would promise greatest financial return with existing human and capital resources. This paper summarizes results from several years of development and field testing of a generic BMP concept that has been introduced at larger scale in several estates in Indonesia and Papua New Guinea. Major emphasis is given to portraying the process from the evaluation of most promising BMP practices in representative blocks to the introduction of practices at commercial scale. The evidence-based BMP concept is now promoted through a new set of collaborative projects in Southeast Asia providing assistance in training, agronomic and economic data analysis, and planning for wider scale implementation of BMP at a commercial scale. The BMP concept is part of a larger framework for the ecological and sustainable intensification of oil palm production with integrated solutions for the management of agronomic information.
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A Conceptual Framework for Precision Agriculture in Oil Palm Plantations
T. Fairhurst (Potash & Phosphate Institute), I. Rankine, A. Gfroerer-Kerstan (both Agrisoft Systems), V. McAleer, C. Taylor and W. Griffiths (all Pacific Rim Palm Oil Ltd.)
Summary
In this paper an overriding framework for precision agriculture in oil palm plantations is discussed. Particular focus is placed on how modern computer and GIS technology can be used to support implementation of precision agriculture.
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Identification and elimination of yield gaps in oil
palm using OMP7 and GIS
W. Griffiths, T. Fairhurst, I. Rankine, A. Gfroerer-Kerstan and C. Taylor
Abstract
The increasing competitiveness of other vegetable oil crops, declining commodity prices, scarcity and cost of labor, and reduced availability of land for further expansion are some of the reasons driving a requirement for increased productivity in oil palm plantations in Southeast Asia (Foong and Lee, 2000; Fry, 2000; Goh, 2000; Gurmit Singh, 1999; Kuruvilla, 2000; Paramananthan, 2000; Stringfellow, 2000; Teo, 2001). At the same time it is clear that yields lag behind the potential in many oil palm plantations. Furthermore, more stringent controls on environmental impact are a consequence of the market’s demand for certified sources of ‘clean’ crude palm oil produced in sustainable production systems (Kuruvilla et al., 2002). In all oil palm plantations, it is essential to identify the potential yield for each soil type and planting material, establish realistic yield targets, by implementing Best Management Practices (BMPs) on representative soil types, and then identify and eliminate yield gaps by site specific field management. We are presently implementing a program of BMPs in selected blocks in the Pacific Rim Plantations Group (PACRIM) so that the potential yield, limited only by soil type, planting material and climate, is fully expressed. We use OMP7, a computer database system, to store and analyze all historical information on yield, nutrient use, leaf and soil analysis, tree stand and selected environmental parameters for each block. Agronomic information is portrayed in block history reports, using OMP7, and maps, using GIS software with OMP7 as the data source.
Blocks that have performed poorly are identified by calculating the gap between site-specific potential yield and actual yield. Lists and maps that include information on agronomic constraints for each poorly performing block are produced from OMP7 to provide a quantitative basis for field inspections. An action plan is then drawn up including a program of activities that will eliminate those agronomic constraints amenable to management control.
This approach constitutes a change from the use of routine field upkeep programs to site specific management of the factors that constrain yield on a block-by-block basis. We are presently implementing this approach as part of the PACRIM group’s strategy to achieve yields in excess of 8 t/ha palm products.
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