Determining optimal replanting rate in palm oil industry, Malaysia: a system dynamics approach optimal policy search in oil palm plantation feedback loops using system dynamics optimisation

Abstract

One of the important factors that contribute to the stagnant growth of Malaysia's crude palm oil production is the accumulation of ageing oil palm plantation area. Given the scarcity of new plantation area in Malaysia, it is very important that an optimal replanting rate has to be determined to decrease the accumulation of ageing area. The objective of this study is to determine an optimal replanting rate for oil palm industry in Malaysia. This study compared the trend results of fresh fruit bunches (FFB) yield using base run system dynamics (SD) and SD with optimisation analysis. Findings indicate that the proposed optimal replanting rate based on SD revealed the maximum production of the FFB yield by year 2050 compared to base run analysis. Findings from this study proposed the appropriate planting strategy to ensure the continuous supply of palm oil without significant disruption if high replanting rate has been implemented.