Issues and Challenges of Oil Palm Cooperatives towards Greater Sustainability: A Proposal of Conceptual Framework

Zakaria, Zaifalaila; Rahim, Abdul Rahman Abdul; Aman, Zaki

doi:10.6007/ijarbss/v10-i1/6806

Cited by 4 publications

(5 citation statements)

References 12 publications

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“…As a highly contested oilseed crop, CPO dominates discussions on sustainability compared to other vegetables in the oil and fat sector (Naidu and Moorthy, 2021). The formulation of policies underlying the sustainable development of the palm oil industry needs to strike a balance between environmental, social, and economic attitudes (Zakaria et al, 2020). Based on Figure 6, it is known that Indonesia's biodiesel policy has been implemented since 2016.…”

Section: Results Of Industrial Concentration Calculation Using Gini C...mentioning

confidence: 99%

Competitiveness, Market Structure, and Energy Policies: A Case Study of the World’s Largest Crude Palm Oil Exporter

Hidayat

Robiani

Marwa

et al. 2023

IJEEP

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Crude Palm Oil (CPO) is the mainstay of Indonesian agricultural products which is the largest CPO producing country in the world. The high market share of Indonesian CPO exports reflects the high competitiveness of Indonesian CPO in the global market. The purpose of this study is to determine the competitiveness of Indonesian CPO, the concentration of the Indonesian CPO industry, and analyze the factors that are suspected to affect the competitiveness of the CPO industry in Indonesia. The data used in this study are secondary data with a five-digit ISIC (10432) using time series data for 2001-2020 and the analytical techniques used in this study include Revealed Competitive Advantage (RCA), Gini Coefficient, and Error Correction Model (ECM). The results showed that Indonesian CPO has high competitiveness in the international market, the Indonesian CPO industry is not concentrated, in the short term the variables that affect competitiveness are CPO prices, subsidized solar prices policy, and industrial concentrations, while in the long term the influential variables are biodiesel policy, subsidized diesel oil policy and industrial concentration

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Section: Results Of Industrial Concentration Calculation Using Gini C...mentioning

confidence: 99%

Competitiveness, Market Structure, and Energy Policies: A Case Study of the World’s Largest Crude Palm Oil Exporter

Hidayat

Robiani

Marwa

et al. 2023

IJEEP

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“…To mitigate the allegation that negatively affect the palm oil industrial players, including the oil palm cooperatives, more concerted and different SOP approaches are urgently needed. This provides an opportunity to narrow the sustainability research gap in oil palm cooperative while strengthening Malaysia's position as the sustainable palm oil producer globally (Nambiappan et al, 2018;Zakaria et al, 2020). Thus, this study's practical contributions will help policymakers to formulate the palatable implementation of SOP as a basis for policy framework.…”

Section: Introductionmentioning

confidence: 92%

Investigating Sustainability-oriented Practices in Malaysian Oil Palm Cooperatives: A Construct Validation Method Using Confirmatory Composite Analysis

Zakaria¹,

Rahim²,

Aman³

2021

IJARBSS

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Sustainability-oriented Practices (SOP) is a novel theme in the developing countries, particularly in the context of oil palm cooperatives. However, limited knowledge is observed about the achievements of sustainability agenda in oil palm cooperatives. Oil palm cooperatives are democratically controlled and voluntarily member-owned business to assist smallholders in managing their oil palm farms. This study concentrates on oil palm cooperatives because of the numerous sustainability conundrums, such as deforestation, and biodiversity endangerment, associated with this sector, and the dearth of the holistic SOP that applies to the smallholders to mitigate these issues. Consequently, the hierarchical component model of SOP is not properly proven, and this warrants the crucial need for a comprehensive method and homogenous classification of measures. This study aims to estimate and validate the SOP of oil palm cooperatives by confirming SOP as a higher-order component in the context of the Malaysian palm oil sector. Data was obtained from 185 board members of the oil palm cooperatives. Consequently, this data was analysed using confirmatory composite analysis (CCA) following a visible trend in applying partial least squares structural equation modelling (PLS-SEM). Substantial results were drawn from the CCA, therefore justifying the higher-order component of SOP. The first and second level reliability and validity assessment revealed that oil palm cooperatives implemented SOP, with varying levels of consideration to social, economic, and environmental dimensions. Environmental dimension emerged as the least critical, while the social dimension is the most prioritised. This study contributes to the sustainability, cooperative, and palm oil sector literature by presenting the earliest studies of its kind that focus on sustainability of oil palm cooperatives using a hierarchical component model. This study shed new light on the phenomena of sustainability orientation that portrays SOP as pertinent to enhance the resilience of the oil palm cooperatives.

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“…The palm oil industry is important in Malaysia because it creates jobs and improves people's well-being and living standards, particularly in rural areas. According to the Ministry of Primary Industries (MPI), as of December 2018, nearly 670,000 smallholders, accounting for nearly 40% or 2,280,805 ha of total oil palm planted areas, relied on the oil palm plantation for a living, while the remaining 60% or 3,568,525 ha were owned by private estates (Zakaria et al, 2020). In Malaysia, there are three main players that dominate palm oil industry including private companies, organised smallholders, and independent smallholders (Zakaria et al, 2020).…”

Section: Perception and Influence Factors Of Independent Smallholders...mentioning

confidence: 99%

“…According to the Ministry of Primary Industries (MPI), as of December 2018, nearly 670,000 smallholders, accounting for nearly 40% or 2,280,805 ha of total oil palm planted areas, relied on the oil palm plantation for a living, while the remaining 60% or 3,568,525 ha were owned by private estates (Zakaria et al, 2020). In Malaysia, there are three main players that dominate palm oil industry including private companies, organised smallholders, and independent smallholders (Zakaria et al, 2020). As of December 2019, independent smallholders accounted for less than 17% of total planted oil palm and 260,353 farmers (Arshad et al, 2020), with most of the independent smallholders reside in Johor, Sarawak, and Sabah (Rahman, 2020).…”

Section: Perception and Influence Factors Of Independent Smallholders...mentioning

confidence: 99%

Independent Smallholders' Perceptions towards MSPO Certification in Sabah, Malaysia

Abdullah¹,

Shahimi²,

Arifin³

2022

jtfm

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In a wake of concern towards sustainable palm oil products, the Malaysian government had continuously formulated various guidelines for palm oil industries in fulfilling the international sustainability requirement. In 2013, Malaysia has launched Malaysian sustainable palm oil (MSPO), which eventually become mandatory requirement in January 2020, including the independent smallholders. However, the numbers of independent smallholders that acquired MSPO was relatively low, stood at 30.66%. Therefore, this study aims to analyse the perceptions of independent smallholders towards MSPO in Malaysia. A structured questionnaire was used for data collection instrument that been distributed among 350 independent smallholders, with a response rate of 74.5%. Results from descriptive analysis showed that independent smallholders have a good perception towards MSPO certification. Furthermore, multiple regression analysis revealed that all three factors were significant to influence the perceptions, where the risk perception became the most important contributor. This study enhances the awareness of sustainability practices among independent smallholders and contributes to the implementation of MSPO certification. Since risk perception has emerged as the primary contributor, regulators or governing bodies must seriously consider risk mitigation concerning independent smallholders about risk exposure such as continuous monitoring to comply environment impact assessment requirement, improve the availability and accessibility of information and aggressive awareness campaign on MSPO.

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Issues and Challenges of Oil Palm Cooperatives towards Greater Sustainability: A Proposal of Conceptual Framework

Cited by 4 publications

References 12 publications

Competitiveness, Market Structure, and Energy Policies: A Case Study of the World’s Largest Crude Palm Oil Exporter

Competitiveness, Market Structure, and Energy Policies: A Case Study of the World’s Largest Crude Palm Oil Exporter

Investigating Sustainability-oriented Practices in Malaysian Oil Palm Cooperatives: A Construct Validation Method Using Confirmatory Composite Analysis

Independent Smallholders' Perceptions towards MSPO Certification in Sabah, Malaysia

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