Labour shortages in the oil palm industry
The harvest is plentiful, but the labourers are few.
This seems to fit the state of play in the oil palm plantation industry.
The oil palm industry is a crucial player in the global agricultural sector, providing a significant portion of the world’s edible oil. However, one of the persistent challenges faced by this industry is the shortage of workers for harvesting fresh fruit bunches (FFB). This shortage can result from various factors, such as demographic changes, migration patterns, and economic conditions. To tackle this issue effectively, a comprehensive approach is needed, combining technological advancements and policy interventions.
There is a shortage of some 40,000 foreign workers in the Malaysian palm oil sector. This has significantly impacted yields, leading to an estimated loss of RM7.9 billion in export value. for Malaysia, according to Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani.
The Minister then did some number crunching and went on to say that, when translated into economic terms, assuming each harvester can cut one metric tonne of palm fruit per day over 260 days per year, we potentially face a staggering loss in export value of RM7.9 billion.
That is a lot of money. It is a sin to allow ourselves to waste what the bounty of nature has provided through the careful and diligent nurture of mankind.
“One of the dilemmas we are currently facing is that foreign workers arriving in Malaysia are primarily for the manufacturing and service sectors, and they are not inclined to work in the plantation sector. Nevertheless, we are making efforts to persuade them to consider employment in the plantation sector,” Johari added.
There are two approaches to addressing the issue of foreign workers not being inclined to work in the plantation sector. Firstly, the sources of foreign labour should be expanded. There should be more countries from which foreign labour could be sourced. Obviously, labour from our traditional sources is spoiled for choice and has become picky. Labour from a new source will be keener. Secondly, if the price is right, workers will be keener. Work in the plantation is harder without the comforts of an air-conditioned working environment, and it is only right that workers be compensated more for harder work.
Malaysia was number one in the world many years ago when it came to oil palm production.
Currently, we occupy an enviable number two position, having been dislodged by Indonesia.
Indonesia produces more than double what Malaysia produces. Surely, the working conditions on Malaysian plantations are not that inferior compared to those on Indonesian plantations.
So, given the right compensation and government policy, we should be able to lure workers, both experienced and inexperienced, from Indonesia. After all, both nations share many things in common culturally.
Technological Innovations: Implementing technology in agriculture can significantly alleviate the impact of labour shortages. Mechanized harvesting equipment, such as fruit harvesters and automated picking machines, can enhance efficiency and reduce dependency on manual labour. Investing in research and development to create cost-effective and sustainable machinery suitable for the oil palm environment is essential. These technologies not only increase productivity but also reduce the physical strain on workers.
Training and Skill Development: Enhancing the skills of existing workers and providing training programs for new recruits can contribute to overcoming the labour shortage. Training initiatives can focus on efficient harvesting techniques, equipment operation, and safety measures. Collaboration between industry stakeholders, government bodies, and educational institutions can help design comprehensive training programs tailored to the specific needs of the oil palm sector.
Policy Support: Governments play a vital role in addressing labour shortages. Implementing supportive policies, such as incentives for labour-intensive industries, can attract more workers to the oil palm sector. Streamlining visa processes for migrant workers and offering financial incentives for companies investing in mechanization can create a more conducive environment for labour recruitment. Additionally, policies promoting fair wages, decent working conditions, and workers’ rights can enhance the industry’s appeal to potential employees.
Community Engagement: Building strong relationships with local communities is essential for sustainable growth in the oil palm industry. Engaging with communities to understand their needs, concerns, and aspirations can help create a positive image for the industry.
Initiatives like community outreach programs, educational campaigns, and collaborative projects can foster a sense of ownership and pride among local residents, encouraging them to consider employment opportunities within the sector.
Investment in Research and Development: Continuous investment in research and development is crucial for finding innovative solutions to labour shortages. This includes developing new varieties of oil palm that are more suitable for mechanized harvesting, improving the efficiency of existing machinery, and exploring advanced technologies such as artificial intelligence for precision agriculture.
Addressing labour shortages in the oil palm industry requires a multifaceted approach that combines technological advancements, policy support, community engagement, and sustainable practices. By embracing innovation, fostering collaboration, and considering the broader socio-economic context, the industry can not only overcome immediate challenges but also build a foundation for long-term growth and sustainability.
The oil palm industry is a crucial player in the global agricultural sector, providing a significant portion of the world’s edible oil. However, one of the persistent challenges faced by this industry is the shortage of workers for harvesting fresh fruit bunches (FFB). This shortage can result from various factors such as demographic changes, migration patterns, and economic conditions. To tackle this issue effectively, a comprehensive approach is needed, combining technological advancements, policy interventions, and community engagement.
The oil palm industry is a crucial player in the global agricultural sector, providing a significant portion of the world’s edible oil. However, one of the persistent challenges faced by this industry is the shortage of workers for harvesting fresh fruit bunches (FFB). This shortage can result from various factors such as demographic changes, migration patterns, and economic conditions. To tackle this issue effectively, a comprehensive approach is needed, combining technological advancements, policy interventions, and community engagement.
An estimated loss of RM7.9 billion in export value for Malaysia is a staggering leakage we can do without.
*The writer is a former chief executive officer of Minority Shareholders Watch Group and has over two decades of experience in the Malaysian capital market
Source Link: https://www.nst.com.my/business/insight/2024/03/1022244/labour-shortages-oil-palm-industry
Recommended for you
