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IPNISoutheast Asia ProgramT. Oberthür & C.R. Donough, with contribution by M. Hoffmann
Out of the Box Ideas for Plantation Management
Malaysian Estate Owners Association (MEOA) Raise Seminar
MPOB Bactrics Hall, Bangi11 August 2015
Malaysian Estate Owners Association “RAISE” Seminar
1. Co-authors2. Commercial data3. In house information4. Variable performance5. Solutions often simple, not
trivial6. Concepts transferable
Explanatory Footnotes
What is IPNI
Formed in 2007 from the Potash & Phosphate Institute, the International Plant Nutrition Institute is supported by leading fertilizer manufacturers.
Its mission is to promote scientific information on responsible management of plant nutrition.
International Plant Nutrition Institute
Engagement Pathway
International Plant Nutrition Institute
Engagement Pathway
International Plant Nutrition Institute
SustainableIntensification
Closing Yield Gaps
Producing More Food from the Same Area of Land while Reducing Impacts on the Environment.
The difference between Realized Productivity and Achievable Best,
with current genetic material, available technologies and management.
Garnett T. Science 341, 33 – 34 (2013)Godfray HCJ et al. Science 327, 812 – 818 (2010)
Engagement Pathway
44%
27%
14%
15%
Oil Palm Various Cocoa Cassava
International Plant Nutrition Institute
Engagement Pathway
“Out of the Box” Thinking
“Out of the Box”
Adopted from the “Bandrowski-Strategic-Innovation-Process" by James F. Bandrowski
MPLITUDE is the maximum displacement of points on a wave: the degree or intensity of change, measured from the equilibrium position.A
“Out of the Box”
Adopted from the “Bandrowski-Strategic-Innovation-Process" by James F. Bandrowski
The Plantation “Box”
MPLITUDE is the maximum displacement of points on a wave: the degree or intensity of change, measured from the equilibrium position.A
Plan Execute
“Out of the Box”
Adopted from the “Bandrowski-Strategic-Innovation-Process" by James F. Bandrowski
MPLITUDE is the maximum displacement of points on a wave: the degree or intensity of change, measured from the equilibrium position.A
The Plantation “Box”
Plan Execute
“Out of the Box”
Adopted from the “Bandrowski-Strategic-Innovation-Process" by James F. Bandrowski
ITHIN a Plantation Environment, the Amplitude Represents the Day to Day Responses to Tactical Management DemandsW
“Within” the Box Thinking is Critical
Adopted from the “Bandrowski-Strategic-Innovation-Process" by James F. Bandrowski
PositiveAmplitude
Plan Execute
NegativeAmplitude
“Out of the Box”
UT OF THE BOX ideas for plantation management are those that lead to larger than incremental performance changes O
Adopted from the “Bandrowski-Strategic-Innovation-Process" by James F. Bandrowski
PositiveAmplitude
Plan Execute
NegativeAmplitude
SelectStrategies
BuildBreakthroughConcepts
ApplyBestPractices
IdentifyPains &Causes
CrystallizeBreakthroughOpportunityAreas (BOAs)
IdentifyRisks
IdentifyCoreCompetency
TakeCreative
Leaps
“Out of the Box”
UT OF THE BOX ideas for plantation management are those that lead to larger than incremental performance changes O
Adopted from the “Bandrowski-Strategic-Innovation-Process" by James F. Bandrowski
PositiveAmplitude
Plan
NegativeAmplitude
SelectStrategies
BuildBreakthroughConcepts
ApplyBestPractices
IdentifyPains &Causes
CrystallizeBreakthroughOpportunityAreas (BOAs)
IdentifyRisks
IdentifyCoreCompetency
TakeCreative
Leaps
Breakdown
“Out of the Box”
UT OF THE BOX ideas for plantation management are those that lead to larger than incremental performance changes O
Adopted from the “Bandrowski-Strategic-Innovation-Process" by James F. Bandrowski
PositiveAmplitude
Plan
NegativeAmplitude
SelectStrategies
BuildBreakthroughConcepts
ApplyBestPractices
IdentifyPains &Causes
CrystallizeBreakthroughOpportunityAreas (BOAs)
IdentifyRisks
IdentifyCoreCompetency
TakeCreative
Leaps
Breakthrough
“Out of the Box”
UT OF THE BOX ideas for plantation management are those that lead to larger than incremental performance changes O
Amabile, 1999. How to Kill Creativity. In “Harvard Business Review on Breakthrough Thinking”
Experts: technical, procedural, and intellectual knowledge.
Innovators: imaginatively
approach problems.
Work Environment:Intrinsic & extrinsic
motivation to solve problems at hand.
“Out of the Box”
Actionable Solutions
Framing the Challenge
IPNI SEAPs Vision for the Industry
ISSUEBreeders raise yield ceiling while
managers keep it at the floor
So I have been told by a breeder …
IPNI SEAPs Vision for the Industry
EXPLANATION
R&D Breeder R&D
IPNI SEAPs Vision for the Industry
HYPOTHESISMore potential can be realized by adopting innovative management
Both authors agree …
IPNI SEAPs Vision for the Industry
VISIONREDUCING
UNREALIZEDPOTENTIAL
IPNI SEAPs Vision for the Industry
REDUCINGUNREALIZEDPOTENTIAL
VISION
Business Opportunity: Yield Gap
PALMSIM Model: Hoffmann et al., 2014
Fertilizer plots > 80% of average simulated potential yield;
unfertilized control plots 47.5%
Potential YieldFFB (Mg ha-1 year-1)
<10<20<30<40<48
Business Opportunity
The Planter, Kuala Lumpur, 91 (1067): 81-96 (2015)
Business Opportunity
0
40
30
20
50
60
3 4 11975 13 14 15
10
6 8 10 12 TREEAGE
FFB
(t/h
a)
Yield Age Profile Map Chart
0
40
30
20
50
60
3 4 11975 13 14 15
10
6 8 10 12 TREEAGE
FFB
(t/h
a)
Yield Age Profile Map Chart
Business Opportunity
0
40
30
20
50
60
3 4 11975 13 14 15
10
6 8 10 12 TREEAGE
FFB
(t/h
a)
Map ChartYield Age Profile
Business Opportunity
0
40
30
20
50
60
3 4 11975 13 14 15
10
6 8 10 12
FFB
(t/h
a)
TREEAGE
Map ChartYield Age Profile
Business Opportunity
Actionable Solutions
Actionable Solutions
Organizeexisting
performance data for
VISUALIZATION
Generate performance
indicators and metrics for
ANALYSES
Devisespecific
performance intervention options for
EVALUATION
Quantify performance change for
management DECISIONS
Actionable Solutions
Engage senior management Engaging senior management is essential to ensure commitment throughout the organization. PI is a long-term exercise that requires on-going commitment.
Acquire data Plantation operators have internal accounting or control systems that capture this. Data include inputs and outputs for each block.
Clean and assemble data Use data that is routinely available, not “special” experiment data. Anticipate some effort for this step.
Organize data Set up a common database structure. This may require several cycles before a final structure is established.
First analysis Show management the results of first analysis to seek feedback on future analyses.
Follow-up analysis Expand data sets to include new partners and data from their new and old plantations. Anticipate large variations.
Discuss with field managers Review results and ideas with field managers with the goal to interpret data for actionable recommendations.
Review and repeat To keep the PI exercise relevant, an annual review is recommended. Ideally, it should become part of regular board meetings where management can be briefed on the insights gained and decide on the best activities to be introduced in the next production cycle.
1
2
3
4
5
6
7
8
Actionable Solutions
0
40
30
20
50
60
3 4 11975 13 14 15
10
6 8 10 12 TREEAGE
FFB
(t/h
a)
Yield Age Profile Map Chart
Actionable Solutions
45
25
20
10
15
5
30
35
40
010 50403020 60 70 80
FFB
(t/ h
a)
Planted Area
y = 26.88 + (-0.07*x)
Actionable Solutions
RESPONSE TO FERTILIZER
UNDERSTANDING
Actionable Solutions
NPK
$ $ $
0100 200 800700600500400300
30
25
20
15
10
5
NPKMg added over this year and previous 2 yrs (kg/ha, weighted 25:50:25)
FFB
(t/h
a)
35
Actionable Solutions
8~10BREAK–EVEN
kg kg
point
fresh fruitbunches per kg fertilizer
Actionable Solutions
35
0100 200 800700600500400300
30
25
20
15
10
5
b=0.010
b=0.007
b=0.004
NPKMg added over this year and previous 2 yrs (kg/ha, weighted 25:50:25)
FFB
(t/h
a)
Soil Type Effects
Actionable Solutions
A
B
C
D
2010 2011 2012 2013 2014
Max
Average
Min
YieldPerformance
Soil-Climate Interactions
Actionable Solutions
10
15
5
30
25
20
40
35
15 4525 355 10 20 30 40
45
50
55
Harvest Man days
Fres
h Fr
uit B
unch
Yie
ld in
t pe
r ha
20032004200520062006200720082009201020112012
Labor YieldInteractions
Actionable Solutions
10
15
5
30
25
20
40
35
15 4525 355 10 20 30 40
45
50
55
Expected yield level
Fres
h Fr
uit B
unch
Yie
ld in
t pe
r ha
20032004200520062006200720082009201020112012
Labor YieldInteractions
Harvest Man days
Actionable Solutions
10
15
5
30
25
20
40
35
15 4525 355 10 20 30 40
45
50
55
Fruit is grown but not harvested
Only with enough labor, all fruit is harvested
Expected yield level
Fres
h Fr
uit B
unch
Yie
ld in
t pe
r ha
20032004200520062006200720082009201020112012
Labor YieldInteractions
Harvest Man days
Actionable Solutions
Full Gross Marginal Return from Blocks
Net Present Value (NPV) for Investment Evaluation
12
Systematic Sourcing of Fertilizers3
Further ApplicationsActionable Solutions
No intervention forfurther action identified
Possible management interventions identified
12
Actionable InterventionsActionable Solutions
Implementing Solutions
INTERVENTION:
trial at estate scale
Implementing Solutions
trial at block scale
Implementing Solutions
1
2
3
4
5
6BMP
step-by-step
Conduct a preliminaryyield gap analysis
Assign BMP and REF blocks throughout estate
Implement BMPsand collect data
Study data together with plantationmanagers and conduct a follow-up
yield gap analysis
Determine whichBMPs are suitable for
implementationat the whole plantation,
if any
Adopt BMP asstandard practice.
Optional: launch as Estate-Scale
Experimentation if greater certainty is
needed
Implementing Solutions
A sample estate with three soil types with one pair of BMP/REF blocks per 1,000 hectares.
Regular production block
BMP block
REF block
Soil A
Soil B
Soil c
Implementing Solutions
Oberthür et al. International Oil Palm Conference 2012.
Yield at REF blocks (t/ha/month)
Yiel
d at
BM
P bl
ocks
(t/h
a/m
onth
)
2 – Prime-age palms
1 – Prime-age palms
2 – Old palms
3 – Prime-age palms
1 – Old palms
Pre-BMP – Old palms
Pre-BMP – Prime-age palms
3 – Old palms
4 – Prime-age palms
4 – Old palms
1.0
1.5
2.0
2.5
3.0
1.5 2.0 2.5 3.0
Fresh fruit bunch yields among prime-age and old palms
Implementing Solutions
Implementing Solutions
none012
Division 1Division 2Division 3
TREATMENT
DIVISION
Fertilizer treatment layout
Implementing Solutions
Summary & Proposition
Plan ExecuteMonitor BMPs
BMP trials to test breakthrough concepts
Plantation Intellto identify causes
Plantation Intellto crystallizebreakthroughopportunities)
PalmSimSimulations
Breakthrough
Breakdown
Estate Scale Experiments to build breakthrough concepts
Summary & Proposition
MeasurePerformance
PlantationIntelligence
Business Opportunity
PALMSIMModel
Continuous Improvement
Best Management Practices
Summary & Proposition
MeasurePerformance
PlantationIntelligence
Business Opportunity
PALMSIMModel
Continuous Improvement
Best Management Practices
Summary & Proposition
THE MISSING LINKShare, Analyze, Learn, Change, Gainproduction ha by palm age, total monthly FFB & bunch number, monthly nutrient amounts, monthly rainfall & rain days …
EstateNetworking
TheBenchmark Club
Malaysian Estate Owners Association International Plant Nutrition Institute ???
Summary & Proposition
MeasurePerformance
PlantationIntelligence
Business Opportunity
PALMSIMModel
Continuous Improvement
Best Management Practices
EstateNetworking
TheBenchmark Club
Summary & Proposition
IPNI Southeast Asia Program
Malaysian Estate Owners AssociationRaise Seminar
August 11, 2015