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Redefining success to include sustainable levels of consumption to ensure a prosperous future for the coming generations.

Malaysia began its commercial palm oil industry in 1917, which has fostered rapid economic growth, create job opportunities as well as boost the country’s exports trade. Kulim continues to strive to become a leading palm oil producer that integrates sustainable practices to ensure supply chain traceability. We achieve this by obtaining RSPO certification and recently, incorporating elements of the UN SDGs to our business practices to showcase our commitment to sustainable development both nationally and internationally.

Industries and businesses alike began to pledge their commitment towards protecting the environment and uplifting the local community in which they operate in as they strive to achieve sustainable economic success. As the global community becomes more conscious of the products they purchase, the ability for an organisation to disclose a sustainable supply chain would likely lead to an improvement in the business performance and productivity.



DELIVERING YEAR-ON-YEAR PROFIT
In the past, profitability was considered the only important factor in a company’s bottom-line.However, we are now in an era of accountability where more and more corporations are realising that making money as if it is unrelated to its economic and social impacts is not only shortsighted but also counterproductive.

AGRICULTURAL PRODUCTIVITY
As we continue to improve our business practices with regard to maintaining sustainable crude palm oil production, we endeavour to achieve continuous agricultural productivity by maintaining a high percentage OF OER and KER from the high quality FFB we have harvested. We set our target of OER, to exceed the extraction rates of 20.90%.

Palm Oil Product  

FY 2018

FY 2017

FY 2016

FY 2015

FY 2014

FFB (MT)

1,433,210

1,467,696

1,339,658

1,410,658

1,252,825

EFB (MT)

282,552

296,771

261,350

243,210

246,170

PK (MT)

77,742

79,071

70,029

78,290

69,681

Crude Palm Oil (CPO), MT

301,354

299,981

273,354

294,255

257,881

Raw Effluent/POME Produced (MT)

1,080,638

1,129,218

1,085,216

943,442

878,789

OER (%)

21.00

20.44

20.40

20.86

20.58

KER (%)

5.41

5.39

5.23

5.55

5.56


PRODUCT QUALITY
The marketability of our palm oil products greatly rests on the quality of palm oil we grow and produce. The Group recognises the importance of high quality products that would ensure customer satisfaction and protect their safety and health, therefore adding value to our business presence.

To support our commitment to ensuring product quality, we implemented the Quality Policy back in 2008. The policy outlines the Group’s expectations on our estates and mills to ensure that we meet the standards and expectations set by regulators and our customers. 

Quality Policy

Estates

Mills
Produce ripe FFB to achieve maximum extraction rate Remain in compliance to ISO 9001:2008
Reduce dependence on human resources and prioritise mechanised harvesting methods instead Implement a continuous improvement programme
Continuously train estate workers to achieve maximum working potential To communicate this policy to all employees
Promote a healthy and safe working condition Evaluate and assess the effectiveness of the Quality Policy
Recycling mill by-product to reduce environmental pollution Fulfill customer requirement

Increase the effectiveness of the Group’s Quality Management System

STANDARDS AND CERTIFICATIONS

Environmental Management Systems ("EMS") and Quality Management Systems ("QMS") are voluntary international standards that we comply with as we believe it enables an organisation to examine its values, priorities, policies, strategies, objectives, methods for allocating resources for delivering performance and also learning. The different standards that we are certified for are EMS 14001:2004, QMS 9001:2008, MS 1500:20091 and ISO/IEC 17025:2005 . While ISO 14001:2004, ISO 9001:2008 and ISO/IEC 17025:20052 recertification is required annually, the recertification for MS 1500:2009 is required every two (2) years. Pursuant to the adoption of ISO EMS 14001:2015,three (3) operating units namely, Sindora Estate, Sedenak Estate and Sindora POM have also earned the certification. Meanwhile, five (5) ofGroup’s operating units namely, Tereh Selatan Estate, Palong Cocoa POM, Tereh POM, Sindora POM and Sedenak POM have successfully earned the accreditation for ISO 9001:2015.

PRODUCTS GRADING METHOD

We maintain a strict product grading method to improve the quality of our CSPO production and the efficiency of our palm oil extraction and palm kernel oil extraction rates. Starting from the R&D part of our operations, we pay special attention to the species of palms we cultivate, ensuring quality from the very early stages of the planting phase. This is followed by our FFB grading method once the FFB has been harvested for processing into CPO. Kulim has outlined a grading criteria covering the FFB ripeness standards to our estates, mills and corporate office via email distribution and regular briefings. The standards also list the methods to distinguish the ripeness of the FFB by assessing the colour, size, stalk length and the characteristic ratio of the harvested FFB.


CUSTOMER SATISFACTION

We maintain a strict product grading method to improve the quality of our CSPO production and the efficiency of our palm oil extraction and palm kernel oil extraction rates. Starting from the R&D part of our operations, we pay special attention to the species of palms we cultivate, ensuring quality from the very early stages of the planting phase. This is followed by our FFB grading method once the FFB has been harvested for processing into CPO. Kulim has outlined a grading criteria covering the FFB ripeness standards to our estates, mills and corporate office via email distribution and regular briefings. The standards also list the methods to distinguish the ripeness of the FFB by assessing the colour, size, stalk length and the characteristic ratio of the harvested FFB

COMMUNITY INVESTMENT

The Group upholds its commitment to protect the well-being of our employees and estate workers by investing in infrastructure that would improve their living quality. This is evident through our pro bono efforts to build houses to ensure estate workers have good estate housing quarters. Throughout FY 2018, we built four (4) housing units at Bukit Payung Estate, totaling our investment on community infrastructure to approximately RM239,300.