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The increasing global demand for palm oil is as a result of palm oil being relatively cheaper than other vegetable oils as well as its versatile advantage in application as both edible and non-edible products.This has lead to the increasing dominance of palm oil in the global fats and oil market.

While FELDA and MPOB have managed to raise smallholder yields from 16 to 18 tonnes per hectare (from 2007 to 2008), a majority of smallholder’s productivity is still well below commercial plantation average yield levels of nearly 25 tonnes per hectare.In recent times, oil palm estates can be seen around most of the tropical countries around the world and its first introduction in Malaysia is believed to be in 1987.Its commercialization in the Malaya peninsular was first done in Tennamaran Estate, Selangor in 1917 by Henri Fauconnier (Teoh, 2002, Sime Darby, 2009) Notwithstanding the threats of the 1960 Emergency in Malaysia, oil palm industry flourished rapidly as its potential has been rightly recognized by the Government of Malaysia as a complementary crop to the then dominant rubber industry in their poverty eradication strategy programme.As of 2009, Malaysian companies own about 25 percent of total palm oil plantations in Indonesia.Although Indonesia remains the natural choice for the expansion of Malaysian plantations, some companies have recently shown interest in other parts of Asia as well as Africa and South America.Evidence collected from high performing plantation companies suggest that best practices are in place and can be shared to bridge the gaps resulting in higher yields and OER across the nation.

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