Fruit grading is a main activity that everyone in the palm oil industry knows to measure the quality of the fruit being harvested and delivered to the mill. Better and higher quality fruit will bring a lower rejection rate, more fruit being accepted by the mill and hence increase the chance to get better and higher income from the harvest.

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Having known that, PemPem is implementing no-fruit grading on your harvest at your farm. By doing this, we would like to provide a fair trade and real weight calculation of your fruit at the mill so you will get the actual values of your harvest. 

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How do we do that?

 

2 forms of no-fruit grading mechanisms have been implemented on PemPem.

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Alone-in-Truck

1. This mechanism applies when there is only 1 farm in 1 Niaga contract.

2. The fruit will be loaded directly by the handler onto the truck and transported to the mill, without weighing first.

3. All grading and deduction will follow the mill's.

4. The farmer, in this case, you, will be paid a 50% downpayment at the farm and later will receive the remaining payment after fruit delivery based on gross weight (Weight IN - Weight OUT) at the mill.

5. ​You will also receive a sharing revenue of the rejected fruit sales value, if any, and applicable in that contract using the calculation that PemPem provides.

6. All of these amounts will be available on your contract and you can request the payment from PemPem. The money will be transferred to your selected bank account right away or through cash payment.

 

Combined-in-Truck

1. This mechanism applies when there are many farms in 1 Niaga contract, where your farm is a part of it.

2. We ask the handler in charge of the contract to indicate the color of the harvest of each farm and then input the weight accordingly. There is no fruit grading defined by the handler.

3. The farmer, in this case, you, will be paid an 85% downpayment at the farm and later will receive the remaining payment after fruit delivery based on adjusted weight (the weight at the farm - the weight of the farmer's rejected fruit based on color - the weight paid in advance).

4. You will also receive a sharing revenue of the rejected fruit sales value, if any, and applicable in that contract using the calculation that PemPem provides.

5. All of these amounts will be available on your contract and you can request the payment from PemPem. The money will be transferred to your selected bank account right away or through cash payment.

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Easy, transparent, fair, and accountable.

 

If you have any questions or concerns regarding this, please feel free to contact our field team near your area. We will be more than happy to assist you.

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Please continue to maintain the quality of your fruit so that you get maximum yields!