Premier: Smallholders can raise livestock on oil palm farms for extra income

Abang Johari speaks during the SALCRA's Kernel Crushing Plant opening ceremony at Lubok Antu Palm Oil Mill on May 24, 2025. Photo credit: Sarawak Public Communication Unit (UKAS)
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By Shikin Louis

KUCHING, May 24: Smallholders in Sarawak can boost their income by integrating livestock farming into their oil palm plantations, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He explained that this integrated model allows farmers to generate two income streams from the same land—through the production of palm oil and livestock such as goats, cattle, or chickens.

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“If we plant oil palm on one hectare of land according to the proper planting structure, there’s space between the trees.

“Why not raise animals in between? Chickens, goats or cattle,” he said when launching the Sarawak Land Consolidation and Rehabilitation Authority’s (SALCRA) Kernel Crushing Plant at the Lubok Antu Palm Oil Mill today.

Abang Johari said the by-products from palm kernel crushing can be processed into animal feed, enabling farmers to feed their livestock at minimal cost using palm-based waste.

He pointed out that cattle prices have soared, with a single cow selling for up to RM12,000 during Hari Raya Aidiladha.

By turning palm waste into feed, rural farmers can rear livestock more affordably and profitably. From just one hectare of oil palm land, they can produce palm oil, raise animals, and feed their livestock at no additional cost.

“If we can produce more goats and cattle, we can export them overseas. That means more income. This is what we call waste-to-energy,” he added.

Abang Johari also highlighted that palm oil waste can be turned into sustainable aviation fuel (SAF), reducing reliance on fossil fuels to power aircraft.

“In Singapore, companies like Neste collect used cooking oil from restaurants and turn it into SAF. But in Sarawak, we are doing it using plantation waste, and the value goes back to the farmers,” he said.

He noted that the RM30 million allocated by the Sarawak government to SALCRA served as seed capital to establish the Kernel Crushing Plant in Lubok Antu, designed as a model to demonstrate how downstream activities can benefit smallholders.

“Oil palm smallholders are no longer just oil palm farmers. They can become livestock entrepreneurs too. And with two income streams, the village’s overall earnings will increase,” he said.

While the focus now is on livestock feed and SAF, Abang Johari revealed that kernel processing can also produce hydrogen gas—a clean energy source Sarawak aims to tap in future public transport systems like the Autonomous Rapid Transit (ART).

He also suggested automating waste handling in mills with conveyor belts to reduce labour and improve cleanliness.

Sarawak is the largest oil palm producer in Malaysia based on planted area.

In 2023, the Department of Statistics Malaysia (DOSM) reported that palm oil exports from Sarawak had a value of RM14.3 billion. – DayakDaily

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