The Effectiveness of Oil Palm Integration Practices in Increasing The Oil Palm Smallholders’ Income
In Malaysia, oil palm plantation by the smallholders represent 40 per cent of the total oil palm plantation areas. Therefore, each oil palm smallholder is expected to increase their productivity. In fact, the Government has also set a target to increase the oil palm smallholders’ income to at least RM4,000 per month by the year 2020. To this end, the oil palm integration programme was introduced by the Malaysian Palm Oil Board (MPOB) in the Ninth Malaysia Plan as a catalyst in targeting the increase of the smallholders' income. The oil palm integration programme is a practice of integrating oil palm with economic activities such as crops or livestock, or both. The question is, how best and how effective is the oil palm integration practice in increasing the oil palm smallholders’ income. Therefore, the main objective of the discussions is to analyze on how best is the oil palm integration practices able to increase the oil palm smallholders' income. A total of 140 smallholders cultivating the oil palm integration were analyzed in this discussion. Descriptive statistics and Pearson Chisquare test were used to answer the discussion's objective. The study results showed that a significant number of oil palm smallholders do practice the integration of crops against the integration of livestock. Majority of the farmers agree and strongly agreed that the oil palm integration is able to increase their income. However, there were some smallholders who disagree that oil palm integration is able to increase their income. These findings need to be given attention and examined indepth to identify the causes of the oil palm integration failure in increasing the income of some of the oil palm smallholders studied.
Keywords— Integration of Oil Palm, Oil Palm Smallholders, Crops Integration, Livestock Integration, Monthly Income.