Comparative cost between manual and mechanize of harvesting technique in oil palm plantation / Muhammad Syahmi Haris Suhairi

Nowadays, plantation sectors very depending on foreign labour. This situation leads to more spend us towards labour cost which impact give to high operation cost especially in harvesting process. A study was conducted to identify the lowest cost between manual and mechanize technique in harvesting process . This research used questionnaire to set primary data and data from an estate in Sabah were collected as secondary data. In analyse data, method used were enterprise budget and partial budget. From the findings, it show that mechanize technique need lower cost of operation compared to manual technique by reduction of 16.34% per hectare. There was 25% of reduction in labour energy and by using mechanize technique the productivity also increase. Reduction of total cost happen after changing in using from manual to mechanize technique. Manual technique estimated profit was lower than mechanize technique. Plantation can gain extra RM 1,459.81 per hectare of net income in promoting mechanize technique in harvesting Fresh Fruit Bunch. The study also show the cost-effectiveness of mechanize was higher than manual technique. The study concluded that the lowest cost technique in harvesting oil palm was mechanize (Cantas) technique. It is recommend planters and estate should apply mechanize technique in order to increase their profit and income.