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

Malaysia’s palm oil industry is more than a century old. What started in 1917, has driven the nation’s economic growth, created job opportunities and boosted the export trade. Kulim strives to advance this fine tradition and become a leader not only in palm  oil production but in observing sustainable practices that impact the entire supply chain.

Key to this is supply chain visibility and traceability. In its pledge to ensure this, Kulim is RSPO certified and additionally, has incorporated elements of the UN’s SDGs into our business practices. The incorporated elements support our commitment to protecting the environment and uplifting the communities in which we operate. As the global community becomes more aware of and concerned with the provenance of the products they purchase, the ability for an organisation to prove the sustainability of its supply chain makes good business sense. For this reason, our actions are not only socially and environmentally responsible, but it will likely have a positive effect in terms of performance and marketability.

DELIVERING YEAR-ON YEAR PROFIT

We are long past the time when a company’s success was measured on profitability alone. Presently, we also look at the larger social and economic impacts, understanding that taking responsibility for these things are the only way for a company to grow and survive in the long-term.

AGRICULTURAL PRODUCTIVITY

Maintaining sustainable crude palm oil production requires constant improvement of our business practices. Kulim is tireless in its endeavours to achieve continuous agricultural productivity by maintaining a high percentage of OER and KER from the high quality of FFB we have harvested. We have achieved an OER of 21.66% and KER of 5.39% in FYE 2019.

Palm Oil Product FYE2019 FYE2018 FYE2017 FYE2016 FYE2015
FFB (MT) 1,430,514 1,459,331 1,467,696 1,339,659 1,410,658
EFB (MT) 271,971 282,552 296,771 261,350 243,210
PK (MT) 77,108 78,995 79,071 70,030 78,290
Crude Palm Oil (MT) 309,869 306,484 299,981 273,354 294,255
Raw Effluent/POME Produced (MT) 1,050,873 1,080,638 1,129,218 1,085,216 943,442
OER (%) 21.66 21.00 20.44 20.40 20.86
KER (%) 5.39 5.41 5.39 5.23 5.55

PRODUCT QUALITY

The quality of our palm oil influences the marketability of our products which is the higher the quality, the greater our customer’s satisfaction. To this end, Kulim has always ensured the highest levels of quality, and continues to be guided by the Quality Policy we implemented in 2008. The policy outlines expectations for the Group’s estates and mills based on the high standards of regulators, stakeholders and our customers.

QUALITY POLICY
ESTATES   MILLS
Produce ripe FFB to achieve maximum extraction rate   Remain in compliance to ISO 9001:2015
Prioritise mechanised harvesting method store reduce dependence on human resources   Implement a continuous improvement programme
Continuously train estate workers to achieve maximum working potential   Communicate policies to all employees
Promote a healthy and safe working condition   Regularly evaluate and assess the effectiveness of the Quality Policy
Recycling mill by-product to reduce environmental pollution   Fulfill customer requirement

STANDARD AND CERTIFICATIONS 

At Kulim, we faithfully comply with the international standards Environmental Management Systems (“EMS”) and Quality Management Systems (“QMS”). While adherence is voluntary, we believe the standards enable us, as an organisation, to usefully examine our values, priorities, policies, strategies, objectives, methods for allocating resources for delivering performance and continuous learning. 

Five (5) operating units namely, Tereh Selatan Estate, Palong Cocoa POM, Tereh POM, Sindora POM and Sedenak POM have successfully earned the latest ISO QMS 9001:2015 accreditation. Meanwhile, Sindora Estate, Sedenak Estate and Sindora POM, have earned ISO EMS 14001:2015 certification, the world’s most recognised environmental management system standard. Kulim’s UTCL has also been accredited with the ISO/ IEC 17025:2015 certification, which is the main ISO standard used by testing and calibration laboratories to be deemed technically competent. 

While ISO 14001:2015, ISO 9001:2015 and ISO/IEC 17025:20052 recertification is required annually, the recertification for MS 1500:2009 (Halal Certification) is required every two (2) years.

Since February 2017, all our palm oil mills, namely the Palong Cocoa POM, Tereh POM, Sindora POM, Sedenak POM and Pasir Panjang POM have earned the MS 1500:2009, Halal Certification issued by JAKIM for their products. 

PRODUCT GRADING METHOD

Kulim products are strictly graded using methods designed to guide our efforts in improving the quality of our CSPO production as well as palm oil and palm kernel oil extraction rates. Quality control starts at the earliest stages. At the R&D stage, we focus our attention on planting and cultivating specific species of palms. At the harvesting, we use the FFB grading method for best results when processing into CPO. Kulim’s grading criteria for FFB ripeness standards is distributed to our estates, mills and corporate office via email distribution and regular briefings. The standards also list instructions to distinguish the ripeness of the FFB by assessing the colour, size, stalk length and the characteristic ratios of harvested FFB.

CUSTOMER SATISFACTION 

Kulim depends on customer feedback to continuously improve on the quality of our products and services. We proactively solicit feedback through an annual customer satisfaction survey which allows us to engage with our customers in an organised and constructive manner, identify product quality issues, and take prompt action where necessary.

When customers return the surveys, the answers are analysed and our findings presented to Senior Management to ensure the Group’s leadership is aware of any challenges, issues or discontent. Keeping the line of engagement open with our customers also allows us to gain favourable feedback to further improve our products and remain a front-runner in the industry, especially in the competitive business of palm oil production.

COMMUNITY INVESTMENT

The Group is invested in protecting the well-being and quality of life for our employees and estate workers alike. This often translates into improving infrastructure, including the building of decent estate living quarters. As we already have sufficient housing in good condition, no new houses were built during the year under review, which also saved us a lot of costs during a challenging financial year.