Labor Shortage to Reduce Palm Oil Yield in Malaysia

The labor shortage issue inherent in the domestic plantation industry is expected to reduce productivity and harvesting even further during the peak cycle season at the end of the year, reported The Malaysian Reserve this week. Malaysian Palm Oil Association said local planters have already lost up to about 25% of potential yield throughout the series of Movement Control Orders (MCOs) right to the current Recovery MCO (RMCO), without the services of some 37,000 foreign workers who had been sent home during the peak of the Covid-19 pandemic. 

The MCO, which began in March, saw Malaysia closing off the borders, an exercise that will continue till December 31 following the extension of the RMCO. The industry expects to face a shortage of 62,000 workers as many countries are still imposing travel restrictions, while many international entryways remain closed. According to Malayan Agricultural Producers Association (MAPA), the severe shortage is estimated to cost planters about RM16 billion annually.

 Industry expert MR Chandran said the reduced number of fruit collectors will not only compromise the volume of the fruits harvested, but the quality of the oil extracted due to the longer harvesting intervals. He said some estates have gone up to 20 days without harvesting, compared to the optimum interval of 10 to 12 days or about three rounds of harvesting monthly, which in turn, affected the selling price of the edible oil. Chandran said sufficient labor is important to maintain at least 12 to 15 days’ intervals to deter the crop from being overripe, which will affect the quality of the harvest.