Please be informed that MPOB Daily Fresh Fruit Bunches (FFB) Reference Price at 1% OER as compared to Grade A, B & C previously has been released beginning 1st July 2020. It is hoped that the release of MPOB FFB Reference Price at 1% OER will be more beneficial to the palm oil industry, mainly smallholders. Here are some of the benefits:
Example of MPOB FFB Reference Price at 1% OER starting 1st July 2020 are as follows:
MPOB Daily FFB Reference Price at 1% OER (Mill Gate - RM / 1% OER)
From the example, if a smallholder in the South Region obtain an OER of 20.50% from FFB mills, then the price he should receive is RM500.20 per tonne (RM24.40 x 20.5). A smallholder in Sabah obtain an OER of 22.50% from FFB mills should receive RM483.75 per tonne (RM21.50 x 22.5).
It should be noted that MPOB does not determine the price of FFB. MPOB FFB Reference Price at 1% OER is based on the current market price of CPO, PK and CPKO according to region, derived from contract registration by licensees to MPOB.
In addition, MPOB FFB Reference Price at 1% OER is only a price reference (benchmark) that can be used by sellers and buyers in their FFB sale transactions.