FELDA LAUNCHES DAMAR BERKAT COLLECTION CENTRE TO PLUG LEAKAGES, BOOST PALM OIL VALUE CHAIN

KUANTAN, April 17 (Bernama) -- The Federal Land Development Authority (FELDA) today launched the Damar Berkat oil palm collection centre, an initiative designed to curb revenue leakages and enhance transparency, efficiency and sustainability across the palm oil value chain.

It said the Damar Berkat collection centre, formerly known as Lestari FELDA Bukit Damar, will appoint the Koperasi Permodalan FELDA (KPF) as the ‘super dealer’ responsible for purchasing, collecting and transporting settlers’ palm produce directly to mills.

“This will establish a more efficient, transparent and centralised system for managing produce, ultimately ensuring quality, increasing settlers’ net income, and providing additional returns through KPF dividends.

"Currently, the management of settlers' plantations is divided into two methods — those managed by FELDA or FELDA Plantation Management Sdn Bhd, and independently by the settlers themselves. However, the sale of produce to middlemen has resulted in leakages estimated at up to RM200 million annually," it said in a statement.

In line with Malaysia’s commitment to achieving net-zero carbon emissions by 2030, the Damar Berkat centre will be the first oil palm collection centre to use electric vehicles (EVs) for transporting produce, paving the way for FELDA to explore future carbon business opportunities.

“With the country’s palm oil production reaching 18 million metric tonnes and exports amounting to 15 million metric tonnes — of which FGV Holdings Berhad alone contributes 2.8 million metric tonnes — this reform initiative is seen as having the potential to make a significant impact on the national palm oil industry as a whole,” the statement added.

Meanwhile, FELDA chairman Datuk Seri Ahmad Shabery Cheek said the centre could create a transparent and efficient system to resolve settlers’ past issues and ease their lives going forward.

-- BERNAMA