*

Ganoderma spreads in Malaysia, affecting newly replanted

areas

*

Fungal infection could reduce palm oil yields

significantly

*

Palm board says 13.7% of surveyed Malaysian palm areas

infected

By Ashley Tang

KUALA LUMPUR, Sept 5 (Reuters) - A fungal disease once

confined to older palm trees in coastal areas is spreading

across Malaysian palm plantations and appearing much earlier in

growth cycles, threatening yields in newly replanted areas,

agricultural industry experts say.

The rise of the fungus in second-largest palm oil exporter

Malaysia, as well as in top producer Indonesia, is another

headache for an industry struggling with stagnating output of

the world's most popular vegetable oil as plantations age.

Ganoderma, the fungus, is emerging in second-generation

plantings, whereas previously it was only evident after three

planting cycles, said Julian McGill, managing director of oil

crop advisory firm Glenauk Economics.

The disease occurs more frequently when successive palm

generations are replanted on the same land.

"The enforcement of zero-burning policies in the field has

also increased its spread, and examples of Ganoderma in newer

plantings, inland soils and younger trees appear to be becoming

more frequent," McGill said.

Ganoderma spreads slowly but detection is difficult.

"By the time you see the symptoms in the field the disease

is already well established, and the infection may have spread,"

McGill said.

Previously, plantations would burn old trees to make way

for new plantings and that would stop the spread of an existing

infection, but burning has been banned because of its

contribution to Southeast Asia haze events.

Chong Khim Phin, a professor of plant pathology at the

University Malaysia Sabah, said some studies estimate that a 1%

increase in Ganoderma infection could reduce plantation yield by

0.5% to 0.8%, depending on factors including tree age and

infection density.

"Over a 25-year crop cycle, this could mean a cumulative

loss of 15%-20% in fresh fruit bunches (FFB) productivity in

heavily affected areas," he said.

According to Malaysian Palm Oil Board data, of 1.46 million

hectares of oil palm area surveyed last year, 199,644 hectares,

or 13.7%, were infected with Ganoderma, with the states of

Johor, Sabah, Sarawak, Perak and Negeri Sembilan most affected.

Data on previous years was unavailable. Malaysia's total oil

palm planted area is 5.61 million hectares.

Ganoderma will potentially cut into yields and palm oil

output and further tighten global supplies, which have already

been impacted by replanting delays and Indonesia's biodiesel

mandate, driving palm prices to a premium to soybean oil last

year, reversing years of discounts.

'DEATH SENTENCE'

M.R. Chandran, chairman of agritech firm IRGA, described

Ganoderma as the second-greatest concern for oil palm planters

after labour shortages, given its impact on yields.

A roughly 14% Ganoderma infection rate in a plantation can

lead to a FFB yield loss of 20% to 60% per hectare, depending on

other conditions, the industry veteran said.

In Peninsular Malaysia, young palms in replanted areas have

high infection rates because old diseased material was not

properly removed, he said.

Smallholders that lack resources to prevent Ganoderma's

spread are especially vulnerable.

Mohd Sharul Haizam Shafei, a planter in Selangor state, said

about two acres of his family's 50-acre plantation have been

affected, although only one tree has been felled because it

reached a critical stage.

Kuala Lumpur Kepong Berhad, which has a

planted area of 287,354 hectares in Malaysia and Indonesia, said

in its annual report that it was battling the disease across its

plantations but did not specify the extent or impact.

Malaysian planter FGV Holdings told Reuters

around 1% of its planted area was infected as of 2024, but that

the impact on FFB production this year would be below 0.1% due

to continuous intervention.

Carl Bek-Nielsen, chairman of the Malaysian Palm Oil

Council, said, however, that Ganoderma is "like a death

sentence" because there is no cure or treatment once a tree is

infected.

"Yields will immediately start a progressive decline after

infection so yields will be considerably lower in infected

fields," Bek-Nielsen said.