LUBOK ANTU: The Sarawak Land Consolidation and Rehabilitation Authority (SALCRA) continues to make strides in the downstream palm oil industry with the launch of a Kernel Crushing Plant capable of generating up to RM58 million in gross annual revenue.
The plant, located at the SALCRA Palm Oil Mill Complex here, was officially launched today by the Premier of Sarawak, Datuk Patinggi Tan Sri Abang Johari Tun Openg, as part of efforts to realise the state’s circular economy policy.
According to the Food Industry, Commodity and Regional Development Minister, Datuk Seri Dr Stephen Rundi Utom, the project demonstrates the effectiveness of the circular economy approach introduced by the Premier in boosting yields without wastage.
“This new plant is capable of processing over 30,000 metric tonnes of palm kernel annually, a by-product that was previously not optimally utilised.
“We do not want any wastage in our agricultural output.
“Every product and by-product must be fully utilised to add value and benefit the state,” he said during his speech at the launch.
He explained that the construction of the plant is part of a long-term plan to improve the efficiency of palm oil utilisation and reduce reliance on raw material exports.
“We want to position SALCRA as a driving force for green and innovative technology adoption in the commodity sector.
“Besides increasing revenue, this plant will also serve as a pioneer model for over 80 other palm oil mills across Sarawak,” he said.
He added that SALCRA currently owns five mills and manages over 50,000 hectares of oil palm plantations under its supervision.
Dr Rundi also highlighted the potential of reprocessed palm kernel as a foundation for developing a biomass-based animal feed industry.
“This is part of the components for the animal feed project.
“We will integrate it with technologies, such as the Black Soldier Fly initiative, that we are working on with a partner from Johor.
“The German technology allows for the optimal use of biomass, including for cattle, goat, and pig farming, with the potential to expand into the aquaculture sector,” he explained.
He also encouraged the cultivation of Nampia grass as an additional source of livestock feed.
Rundi emphasised that SALCRA’s role is no longer limited to social responsibilities, but must also operate as a profit-driven business entity.
“All GLCs, including SALCRA, need to think commercially.
“If it’s not profitable, don’t do it. If you want profit, you must think of new ways,” he stressed.
Additionally, he announced that SALCRA Jaya Sdn Bhd has initiated efforts to produce its own oil palm seeds to reduce dependency on external sources such as Sabah.
“We no longer need to rely on imported seeds from Kota Kinabalu.
“Producing our own seeds will stabilise market prices and directly benefit smallholders under SALCRA’s supervision.
“This step is also seen as a way to create new opportunities to further increase the company’s and smallholders’ income through the commercialisation of high-quality palm seeds,” he added.
The establishment of the plant stands as proof of the Sarawak Government’s commitment to diversifying the food and commodity sectors into a modern, sustainable and globally competitive industry, in line with the state’s development aspirations.
