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My Own Mini Oil Palm Estate - To Be a Dayak Millionaire Advice

Oni wat doik bajet pakai nai toyak sawit odopku bih?

Kebun otto bih...

I was looking up Google Earth one day and realized, that there is a huge parcel of jungle at the back end of my kampung home! Wow! Then I thought to myself what it would be like if part of that was actually mine.

Hehehehe...I can tell you, with a toyak that big, I could earn millions within less than 10 years (to be exact between 6 to 7 years)! Hey, it's true. If anyone out there has 10 hectares (or about 20 acres) of land at your disposal...man, I'm telling you - go plant it with oil palm. To me, it's the most concrete method of making good, hard-earned money as a Dayak these days, if you're not a child of an existing millionaire.

The reason for this is based on the following logic:

1. Dayaks inheritively still have a high density of ownership, or have legal, or customary rights to land.
2. Dayaks lack the actual finances to start any other kind of big business venture (that can earn big money).
3. The Dayaks' level of business competitiveness is quite low.

The statistics is this, if you look as SALCRA, they actually make crap yield compared to other poeple in the industry. To show that I'm not making the statistics up, here's the link to the official report from The Star online newspaper with official statistics and regarding SALCRA's performance:


And this is the exact quote from them relating to their performance in 2010:

"In the first nine months of this year, Salcra produced nearly 420,000 tonnes of FFBs. Its estates are expected to achieve an average yield of 14.9 tonnes per ha this year compared with 14.7 tonnes last year."

Now why do I dare say that SALCRA is not performing well? It's because the average Malaysian company could earn much more than that! To show that I'm not lying again, here's the link to IOI Plantation's yield report in PDF format:


But to put it right in your face, IOI's average yield is 24.44 tonnes in 2010. Believe that? It's almost double compared to SALCRA's?!

But I'm not writing this post to damn SALCRA la...no no no...far from it. I'm just using a comparative set of information to inform all of you that if you take every effort to manage your own oil palm, and with the price of let say around RM 635.00 for Sarawak region today (refer to MPOB's daily fresh fruit bunches price webpage), let's just see the difference in terms of income generated;

at 24.44 tonnes per hectare x RM 635.00 = RM 15,519.40

while

at 14.90 tonnes per hectare x RM 635.00 = RM  9.461.50

So if you have let only 5 hectares of land (which is about 10 acres) and your production is as good as IOI, the result would be;

RM 15,519.40 per hectare per year x 5 hectares = RM 77, 597.00 earned per year!!

that means you earn a gross income of RM 6,466.42 per month in that year.

Now YOU tell me..is that lucrative or what?

The key factors I think for a prospecting smallholder to gain that sort of yield are:

1. The type of seedling (clone quality)
2. Maximum planting density per hectare (the number of trees planted in one hectare)
2. Optimum manuring
4. Excellent maintenance and upkeep

Yeah, I'm not actually a specialist in oil palm, but from those known to me and who have vast knowledge in the industry, I guess the basics of what I'm mentioning here is near to accurate. Note that you can start harvesting as early as the second year after planting and the trees will bear fruit for you until they are at least 23 to 25 years old. That's 20 years of money being earned from one single development cost! And todate, the monthly running cost might reach about RM 3000.00 but it varies depending on how the smallholder chooses to manage their crop. So even by deducting RM 3000.00 of monthly running cost;

about RM 3,466.17 is still regarded as MONTHLY NETT earnings!!!

This means that if you are not a degree holder holder working in the government and posted outstation in rural areas with additional allowances...it is NOT EASY to earn that much money in a month.

The good thing about planting oil palm is that, once it's harvested...a planter is assured that they can sell their oil palm fruit bunches to the mill - meaning that the buyer is always there. Most other commercial crops require some sort of logistical and marketing challenge and this makes it difficult for the planter to sell his produce. Forget dragon fruit la, jathropa la, durian la, papaya la...coz you are going to have a headache in terms of selling it or you could already be having problems in terms of diseases among other things.

So? What are you waiting for? Got 5 to 10 hectares of land? Just do it! Even if you don't have the actual capital to plant it large scale in one go, you can still plant it hectare by hectare...inching your way to financial freedom.

Now back to my imaginary mini estate, if I have 50 hectares of land then that means I earn RM 61,664.17 NETT per month if my average yield is equal to IOI's.

Therefore, in 20 years, I'll be having a nett earning of...RM 14,799,400.00!!!


"THAT'S HOW TO BE A MILLIONAIRE!"

For any questions and queries or whatever opinions you might have, I gladly welcome your comments below.... Thanks.

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