MPOB to Launch Traceability Application Connecting 500 Thousand Smallholders in Malaysia

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Doc. Sawit Fest 2021 / Haris Fajar Pratama

PALMOILMAGAZINE, KUALA LUMPUR – The Malaysian Palm Oil Board (MPOB) is set to launch a novel traceability platform that is expected to link nearly 500,000 smallholders in Malaysia. This platform will meticulously track every transaction, aiding in the compliance with sustainability certification criteria and conditions.

The primary objective is to consolidate and record data, providing a detailed transaction history within the palm oil trade sector. This initiative is also a proactive step toward meeting the regulations set forth by the European Union.

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According to Datuk Ahmad Parveez Ghulam Kadir, the Director-General of MPOB, the platform is in the final stages of development, designed to enhance traceability and streamline operations within the palm oil industry. The platform will involve various licenses tailored to key stakeholders, including mills and traders, who will be tasked with delivering comprehensive reports.

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When smallholders get interaction with trade and during the transaction, dealer would use the special application in the platform system. The innovative approach would confirm that every trade from smallholders to dealer would be monitored by the application.

“For instance, information ‘I purchased palm oil from the batch from smallholder (A). it should be completed by the permit number’. This would be carefully noted into the application system,” he said, as quoted from Business Time.

It is the same when fresh fruit bunch or palm oil has been delivered into a mill. Every mill should document the sources of distributors.

Knowing that a trader could get oil from many smallholders, let us say 10 or 20, it is important to keep the notes to confirm everything runs smooth in the system.

Every group of actors, such as, mill to dealer, should play their own roles and be responsible to enable every transaction and activity traced in palm oil supply chain.

MPOB would help to display every information about company in the supply chain, from FFB to exporters.

“That is why we would develop the system to facilitate data taking of FFB accurately. Every dealer should be completed by each device to note every information, confirm every accurate detail and should be right when dealing with every phase in the supply chain,” Ahmad Parveez. (T2)

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