Input–output optimisation model for sustainable oil palm plantation development

Foong, Steve Z. Y.; Goh, Kar Mun; Supramaniam, Christina Vimala; Ng, Denny K. S.

doi:10.1016/j.spc.2018.08.010

Cited by 54 publications

(32 citation statements)

References 26 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Increasing global demand for CPO and its products has also been met by a rapid expansion of oil palm plantations in other countries, especially in Malaysia and Indonesia [ 5 ] at the expense of forest areas creating environmental concerns [ 6 ]. Continuous production of fresh fruit bunches (FFBs) in oil palm plantations and milling them to produce CPO has been essential to meet growing demand for palm oil [ 7 ]. Governments of developing and emerging countries in all tropical regions increasingly promote oil palm cultivation as a major contributor to poverty alleviation, as well as food and energy independence [ 8 ].…”

Section: Introductionmentioning

confidence: 99%

Does investment in palm oil trade alleviate smallholders from poverty in Africa? Investigating profitability from a biodiversity hotspot, Cameroon

et al. 2021

View full text Add to dashboard Cite

In this study we investigate whether the increasing investment in smallholder oil palm plantations that contributes to deforestation is motivated by financial gains or other factors. We evaluate the financial viability of smallholder farmers selling fresh fruit bunches (FFBs) to intermediaries or agro-industrial companies with mills, or processing the FFBs in artisanal mills to produce palm oil. We use data collected in four oil palm production basins in Cameroon and carried out a life cycle assessment of oil palm cultivation and CPO production to understand financial gains. We use payback period (PBP), internal rate of return (IRR), benefit cost ratio (BCR) and net present value (NPV) for 1 ha of oil palm plantation over 28 years at a base discount rate of 8% to asses viability. Our results show that smallholders make more money processing their FFBs in artisanal mills to produce CPO than selling FFBs to intermediaries or agro-industrial companies with mills. The sensitivity analysis show that land ownership is the single most important parameter in the profitability of investment in palm oil cultivation and trade. In addition to land cost, smallholders suffer from borrowing at high interest rates, high field management costs, while recording low on-farm FFB/processing yields. To improve the financial viability of smallholders investing in oil palm cultivation, measures are needed to encourage them to access land, get loans at reduced interest rates, reduce the cost of field management, adopt good agricultural practices to improve on-farm FFB/processing yields, as well as to generate additional revenue from the sale of other products.

show abstract

Section: Introductionmentioning

confidence: 99%

Does investment in palm oil trade alleviate smallholders from poverty in Africa? Investigating profitability from a biodiversity hotspot, Cameroon

et al. 2021

View full text Add to dashboard Cite

show abstract

“…One of the solutions is proposed by Jamaludin et al [22] to use recycling water to reduce GHG emissions. Foong et al [23] also reported that optimising the operation in palm oil palm operation using an input-output model was found to significantly enhance the sustainability and reduce the plantation area by nearly a quarter with a substantial decrease in journal.ump.edu.my/ijame ◄ GHG emissions. It is important to remember that despite recent technical advances in biodiesel production, the application of the above approaches requires an efficient technology.…”

Section: Challenges With Indonesian and Malaysian Palm Oil-biodiesel Industrymentioning

confidence: 99%

Effect of COVID-19 on Biodiesel Industry: A Case Study in Indonesia and Malaysia

Veza

Muhammad

Oktavian

et al. 2021

IJAME

View full text Add to dashboard Cite

Indonesia and Malaysia are currently holding prominent roles in the global palm oil market. Both countries are the top two palm oil producers in the world and have ambitious targets to increase the palm oil-based biodiesel mandate. In Indonesia, the current programme of blending 20 per cent palm oil into 80 per cent diesel (B20) increases to B30 in 2020. Likewise, Malaysia plans to increase its biodiesel mandate from B10 to B20 in 2020. However, the outbreak of COVID-19 has infected millions and brought the global economy to a near-deadlock. The effect is particularly severe in the fuel industry owing to movement restrictions and the historic drop in oil prices. Evaluating the impact of the COVID-19 on the biodiesel industry is crucial for policymakers but challenging as the pandemic has evolved with intense speed. This article aims to discuss the impact of COVID-19 on the Indonesian and Malaysian biodiesel industry. In addition to that, a number of possible solutions to overcome the challenges were addressed and proposed. Despite severely affected by COVID-19, both Indonesia and Malaysia can use this momentum to improve and strengthen their biodiesel sector. Given its fiscal deficit, Indonesia should postpone its biodiesel blending mandate as the subsidy to support the programme can worsen the country’s financial stability. In Malaysia, where labour shortage is prevalent, modernising plantations with automated equipment, for instance, could potentially remove the dirty and dangerous stereotypes associated with plantation works, thus attracting more locals to work in the palm oil plantation and solving the labour shortage. This paper also briefly addresses the adoption of Industry 4.0 and Circular Economy for the palm oil biodiesel industry.

show abstract

“…Kasivisvanathan et al [36] also used the input-output model with robust optimization for process synthesis and design of multi-functional energy systems with uncertainties. Most recently, Foong et al [37] extended the use of the input-output model for sustainable oil palm plantation development. A detailed description on the procedure to develop an input-output model is presented with an example in Andiappan et al [38].…”

Section: Problem Statementmentioning

confidence: 99%

A Hybrid Multi-Objective Optimization Framework for Preliminary Process Design Based on Health, Safety and Environmental Impact

et al. 2019

View full text Add to dashboard Cite

Due to increasingly stringent legal requirements and escalating environmental control costs, chemical industries have paid close attention to sustainable development without compromising their economic performance. Thus, chemical industries are in need of systematic tools to conduct sustainability assessments of their process/plant design. In order to avoid making costly retrofits at later stages, assessments during the preliminary design stage should be performed. In this paper, a systematic framework is presented for chemical processes at the preliminary design stage. Gross profit, Health Quotient Index (HQI), Inherent Safety Index (ISI) and the Waste Reduction (WAR) algorithm are used to assess the economic performance, health, safety and environmental impact of the process, respectively. The fuzzy optimization approach is used to analyse the trade-off among the four aspects simultaneously, as they often conflict with each other. Deviation between the solution obtained from mathematical optimization model and process simulator is determined to ensure the validity of the model. To demonstrate the proposed framework, a case study on 1, 4-butanediol production is presented.

show abstract

Input–output optimisation model for sustainable oil palm plantation development

Cited by 54 publications

References 26 publications

Does investment in palm oil trade alleviate smallholders from poverty in Africa? Investigating profitability from a biodiversity hotspot, Cameroon

Does investment in palm oil trade alleviate smallholders from poverty in Africa? Investigating profitability from a biodiversity hotspot, Cameroon

Effect of COVID-19 on Biodiesel Industry: A Case Study in Indonesia and Malaysia

A Hybrid Multi-Objective Optimization Framework for Preliminary Process Design Based on Health, Safety and Environmental Impact

Contact Info

Product

Resources

About