Oil Palm Smallholder Secret of Success

4 Years After Field Planting

2017-05-01T09:21:00.001-07:00

This is how the 4 Years After Field Planting look like

AAR Oil Plan: Good planting distance

2016-10-16T05:43:00.001-07:00

Trace lines across the slope and put in your pegs in straight lines; leave 7.8 meters between rows and 9 metres between pegs. In this way you can plant 143 oil palms per hectare; this is the best density.

AAR 3.5 year after field planting

2016-10-07T21:15:00.001-07:00

AAR seedling 3.5 year after field planting.

12 fruits each palm tree

SIRIM & MPOB Licensed Seeds AA DxP seeds and seedlings are licensed by SIRIM and MPOB. Superior Pedigree Seeds AA DxP seeds are produced from selected dura and pisifera parents derived from superior pedigrees, which are featured in the best DxP seeds produced locally and internationally.

	Ulu Remis Deli duras are known for their uniform high yield and good oil extraction characteristics. La Me and Dabou Deli duras have been selected for high bunch weight, good oil extraction and short stature. In the production of AA DxP seeds, attempts are made to combine the best attributes of these pedigrees to give rise to palms with high oil yield and a small palm stature, important attributes in our increasingly scarce and costly labour market.
	AA DxP pisifera parents inherit the high bunch yield characteristic of S27B, AVROS and Yangambi, the high oil extraction of AVROS and Yangambi and the short stature of the Dumpy and the Yangambi parents.
	The next generation of AA pisiferas (Dy.Ybi.AVROS) will combine the best features of Dy.AVROS and Ybi.AVROS pisiferas.

replenishPalm oil prices may rise to RM3,000 per tonne next year

2016-08-23T15:30:00.001-07:00

KUALA LUMPUR: Crude palm oil (CPO) prices may rise to RM3,000 per tonne next year on the back of an increase in demand, especially from India, says Deputy Plantation Industries and Commodities Minister Datuk Nasrun Mansur.

He said India needed palm oil from Malaysia to support its biodiesel industry.

“The Indian government has introduced biodiesel blends in its market and is currently negotiating to import our palm oil,” he told reporters at the Palm Oil Familiarisation Programme (POFP) 2016 here yesterday.

The CPO price hit RM2,798 per tonne on Wednesday last week, the highest recorded so far this year.

Nasrun said the government is working tirelessly to utilise existing palm oil stock in the country to ensure price stability.

“If our (palm oil) products are dependent on overseas demand, prices will not be stable, as there may be a time when imports will fall short of demand,” he added.

Nasrun said India was Malaysia’s biggest importer of palm oil, exceeding China last year.

Malaysia’s total palm oil production in 2015 amounted to an all-time high of 19.96 million tonnes.

Exports totalled 17.441 million tonnes worth RM41.23 billion.

In 2015, palm oil and palm oil products contributed RM62.22 billion to the country’s export earnings and employed more than 600,000 people in all sectors of the industry.

“To further strengthen (position), the Malaysian Palm Oil Board will be opening two regional offices, namely in Mumbai (India) and Tehran (Iran), to facilitate technical support and advisory services,” said Nasrun.

Meanwhile, a Reuters article said crude palm oil prices are seen averaging at RM2,678 per tonne in 2016, up nearly 18 per cent from last year, boosted by demand from top consumer India and replenishment of stocks by China, according to the Malaysian Palm Oil Council (MPOC).

Benchmark palm oil prices on the Bursa Malaysia Derivatives Exchange have surged 11.3 per cent so far this month on the back of tight supplies and improving export data.

Palm futures closed 0.1 percent higher on Friday at RM2,578.

“In 2016 palm oil prices will average at RM2,678 per tonne, stabilising in a range between a low of RM2,162 and a high of RM3,195,” said Yusof Basiron, the chief executive of MPOC, in remarks posted online for a palm oil seminar.

The forecast price, up from palm’s year-to-date average of RM2,528, is on the back of strong demand from the world’s two largest consumers, according to Yusof.

India will maintain its position as the world’s largest consumer and importer of palm oil, he said, while China is expected to import more oils and fats for the rest of the year.

“The utilisation of the high carryover stocks in China caused them to import less oils and fats especially in the first half of 2016, but imports will be increased to replenish stocks in the second half of 2016,” said Yusof.

Palm oil shipments from Malaysia, the world’s second largest producer after Indonesia, rose 26.5 per cent in the first 20 days of August from the same period in July on improving exports to India.

Yusof also pegged Malaysia’s output at 19.1 million tonnes this year and Indonesian production at 32.8 million tonnes.

“(Malaysian) production from August onwards is expected to be higher as the dryness associated with effects of El Nino in early 2016 no longer hampers the production of palm oil,” he said.

Rapidly rising palm oil prices, however, could narrow its spread with rival soyoil, reducing its competitiveness.

The share of palm oil in India’s edible oil imports is already seen falling to a record low in this marketing year, as its price rally slashes its discount versus soyoil.

Palm’s discount to soy is around US$110, compared with a spread of US$140 a year ago. — Bernama

AA Hybrida Oil Palm at 3 After Field Planting

2016-07-30T23:48:00.001-07:00

Oil Palm AA Hybrida fact and figure

This palm growing well at undulating land.

More palm can be planted in one hectare with shorter planting distance.

Small size compare to Sawit Kinabalu but the FFB more and easier to handle.

Oil Palm

2016-07-15T17:29:00.001-07:00

Call to end palm oil price war

2016-03-12T16:03:00.001-08:00

THE palm oil price war between Indonesia and Malaysia – the world’s two largest producers – needs to be resolved fast as it is a no-win situation for both countries if prolonged.

Malaysian Palm Oil Council (MPOC) chief executive officer Tan Sri Dr Yusof Basiron said a price war has been shown to be detrimental to Malaysian and Indonesian palm oil export revenue. “The two countries should rationalise a more effective tax system and harmonise tax rates to avoid a price war, ” he said.

Despite Malaysia leading the way in establishing new markets to generate more uptake of palm oil, the country’s hard-earned markets were lost to Indonesia due to price undercutting, afforded by the latter’s market distorting tax structure, said Dr Yusof in his paperMalaysian Palm Oil: Creating New Drivers For Greater Global Market Penetration at the MPOC-organised Reach & Remind Friends Of The Industry Seminar 2016 and Dialogue in Kuching on Tuesday.

“Price undercutting for the palm oil market by Indonesian exporters is driven by the differentiated duty structure for crude palm oil (CPO) and processed palm oil (PPO), and the way palm oil producers are only paid discounted prices for their fresh fruit bunches to account for the export tax.

“When PPO is charged an export tax of 3% + US$20/tonne and CPO is taxed at 9% + US$50/tonne, the PPO exporter has a margin of 6% + US$30/tonne.

“And for packed products and biodiesel which are not taxed in % terms, the Indonesian palm oil exporter has an even bigger margin to undercut prices in the international markets, including cross-subsidising CPO from gains in certain products when competing against Malaysian exporters,” he said.

Dr Yusof said that under Indonesia’s new export tax structure, duty differential between refined palm oil and CPO has widened, thus encouraging greater production of refined palm oil – resulting in increased competition with Malaysia in refined products.

Under the old structure, the export tax on CPO was 12.5% and this was lowered to 9% under the new structure introduced in September 2014. The export tax for RBD palm olein was reduced to 3% from 12.5% while under the new structure, there was zero tax on RBD palm oil, RBD palm stearin and biofuel against 11%, 7.5% and 2% respectively previously.

Last July, Indonesia imposed another new palm oil products export levy, with the levy collected regardless of the CPO price. The levy for CPO is US$50/tonne exported.

Dr Yusof said the Indonesian logic was that in the short term, the levy would make Indonesian palm oil industry less competitive as producers had to bear the additional costs of the levy. In addition, local CPO price could decline and trade at as much as US$50/tonne below international CPO price. The long-term impact is that the levy is expected to boost international price of CPO as an additional 5.5 million tonnes of CPO would be used in the domestic market for biodiesel.

Dr Yusof also highlighted that the discounts offered by Indonesia over Malaysia for CPO/CPKO (crude palm kernel oil) is between US$15 and US$25 per tonne while that of RBD PO and RBD PL is between US$30 and US$40. It is US$50 to US$70 for RBD palm stearin.

“Indonesia has failed to recognise that when it introduces new tax structure, Malaysia will respond (accordingly) to recover its market share. The only way for Malaysia to recover our market share is to lower prices. Both Malaysia and Indonesia lose out eventually because of lower prices,” said Dr Yusof.

He said lack of export competitiveness has reduced Malaysian palm oil exports in many markets and also forced stocks to increase in Malaysia. This has led to palm oil prices declining as Malaysian exporters lowered prices to make sales possible.

According to Dr Yusof, Malaysia’s palm oil market share in China fell to 45.72% last year from 59.53% in 2010 but that of Indonesia rose to 53.97% from 40.17% during the same period. Similarly, Malaysia’s market share in the United States dropped to 54.03% from 93.44% while that of Indonesia rose to 44.49% from a mere 5.12%.

As the undercutting continued, both Malaysia and Indonesia suffered from lower export revenue from palm oil, and this defeated the objectives of the Council of Palm Oil Producing Countries (CPOPC) set up last November to protect and improve the benefits of stakeholders, he said.

Positive branding

Dr Yusof said the biggest markets for Malaysian palm oil are the Asia-Pacific, sub-continent and European markets

However, in terms of market growth, the two biggest growth regions are the African and American zones. Between 2001 and 2015, exports to these two regions increased from 382,186 tonnes and 288,000 tonnes to 2.01 million tonnes and 800,000 tonnes respectively (an increasea of 351% and 299%).

He attributed the strong performance to the industry’s continuous efforts in marketing Malaysian palm oil while, at the same time, countering anti-palm oil campaigns through factual evidence and engagement with stakeholders.

“Positive branding of palm oil is the way forward to enhance acceptance of Malaysian palm oil,” said Dr Yusof, adding that an integrated advertising and education campaign launched by MPOC in Europe last year had produced good results.

He said many people had seen the MPOC’s initiative as good and this was going to change the negative perception of palm oil. “Through branding and advertising, we should be able to access markets to appreciate Malaysian palm oil.”

Dr Yusof said to ensure that the Malaysian oil palm industry was sustainable, the production of sustainable palm oil was a necessity.

“Malaysia needs country-level commitment to support 100% (mandatory) sustainable palm oil. This can be achieved under RSPO, MSPO or their equivalent.”

He said that currently only 20% of Malaysian palm oil produced was certified under RSPO (Roundtable on Sustainable Palm Oil) and less than 2% certified under the Malaysian Sustainable Palm Oil (MSPO) standard scheme. He anticipates that by 2020, 30% of Malaysian palm oil production would be certified (20% RSPO + 10% MSPO).

“Branding Malaysian palm oil may not be possible if it is not backed by mandatory certification claims. If there is still a two-tier market, the smallholders will be the biggest loser, ” he added.

Review tax structure

In her paper Domestic Measures To Enhance Competitiveness Of The Palm Oil Industry, Malaysian Palm Oil Board (MPOB) director-general Datuk Dr Choo Yuen May urged Malaysia to re-look its palm oil export tax structure in the wake of Indonesia’s new export levy which would adversely impact Malaysian palm oil export competitiveness.

She said Indonesia has widened the gap between CPO and refined palm oil export taxes to encourage more downstream investments and production of refined palm products.

As the CPO and crude palm kernel oil (CPKO) were relatively cheaper for downstream activities in Indonesia, this has increased the competitiveness of its domestic downstream sector, she said.

“Malaysia and Indonesia compete in the same market, hence the change in export tax rate in one country will affect the other,” said Dr Choo, adding that MPOB and the Plantation Industries and Commodities Ministry were working on short-term measures to ensure the Malaysian downstream sector remains competitive.

Dr Choo said that as a measure to reduce palm oil stocks and push up palm oil price, the Government launched a RM100mil stabilisation fund last October as incentives for replanting oil palm, targeted at 83,000ha last year.

Under the National Key Economic Area (NKEA), the palm oil focus towards 2020 is to accelerate replanting and new planting of oil palm, increase independent smallholders’ income by 30% through increase in yield.

She said the palm oil entry point projects include accelerating replanting, improve fresh fruit bunch yield, improving workers’ productivity in plantations and estates, increasing oil extraction rate, developing biogas facilities at palm oil mills, developing oleo-derivatives and expediting growth of food and health-based downstream segments.

Thestar.com.my

Cattle Integration in the plantation

3 years after field planting

2016-02-07T06:24:00.001-08:00

AAR seedings, 3 years after planting

Cattle Integration With Oil Palm in Sarawak

2016-01-25T16:35:00.001-08:00

In view of the labour shortage and fall of FFB price, cattle integration is the best way for estate to reduce its production cost. There is a lot of opportunity in cattle rearing in view of the shortage of cattle in the country.

The market opportunity is huge especially for korban animal. The demand for korban cattle is growing every year with more than 1000 heads of cattle are imported and the price of cattle is going up.

The only cheaper way of keeping animal in Sarawak is through cattle integration. Therefore I urge the plantations estates to meet up with the Veterinary Division of the Department of Agriculture Sarawak to work out the project.

Oil Palm Price on the rise

2015-09-30T08:03:00.001-07:00

JAKARTA: Malaysian palm oil futures surged for a sixth day in a row to new 15-month highs on
Tuesday, bolstered by bullish analyst forecasts, a weakening ringgit and expectations recent dry weather and haze will curb crop output.
By Tuesday's close, the benchmark December palm oil contract on the Bursa Malaysia Derivatives (BMD) exchange was up 2.38 percent at 2,450 ringgit ($549.82) a tonne, after
dipping to as low as 2,352 ringitt during the morning session.
The benchmark touched 2,460 ringgit in the afternoon session, it's highest since June 2014.
Traded volume stood at 72,597 lots of 25 tonnes each, roughly double the average 35,000 lots usually traded daily.
"In the afternoon the spike came because of the news coming out of India," said a trader at a foreign commodities brokerage in Kuala Lumpur, referring to statements by leading analyst
James Fry at an industry conference in Mumbai.
"When someone like James Fry who has been very bearish on
crude oil has suddenly turned bullish, people holding positions
take note."
Crude palm oil (CPO) prices are likely to surge 40 percent
to $700 per tonne by mid-2016 as an El Nino weather event dents
output and as top producer Indonesia uses more palm-based
biodiesel, Fry said.
Prices are also being propped up by the recent weakening of
the ringgit, the trader said.
"The Malaysian economy is still playing air walk, and
invariably when the ringgit weakens it affects the BMD, because
some people trade BMD to hedge their ringgit positions also."
The depreciation of the ringgit, which has lost
nearly around 28 percent this year, makes palm cheaper for
offshore buyers, supporting demand and, subsequently, prices.
Worries that El Nino, a warming of sea surface temperatures
which can lead to scorching temperatures in Asia and East
Africa, could weigh on crop yields in Asia also supported palm
prices.
"The key now is production," a second trader said, referring
to impacts of the recent dry weather and haze on output of the
edible oil in the longer term.
World palm oil output growth will be halved next year due to
the El Nino weather pattern, leading vegetable oil analyst
Thomas Mielke said late on Monday.
Meanwhile, palm oil imports by India, the world's top
importer of edible oils, are also expected to climb to record
levels in 2016, also as a result of dry weather, which is seen
restricting supplies, a veteran trader said on Monday.

In competing vegetable oil markets, the U.S. December soyoil
contract was down 0.66 percent in late Asian trading,
while the most active January soybean oil contract on
the Dalian Commodity Exchange fell 1.36 percent.

Brunei Delegate Visit Cattle Integration

2015-09-22T16:07:00.001-07:00

The Brunei delegate lead by the Ministry of Agriculture visited SALCRA Mongkos cattle integaration project. There were impressed with the good system practice here.

TSH, IOI said to have best CPO yield

2015-09-22T16:02:00.001-07:00

PETALING JAYA: Malaysian plantation companies TSH Resources Bhd and IOI Corp Bhd have the best crude palm oil (CPO) yield for 2013, according to Maybank Kim Eng Research.

IOI Corp also remained one of the most profitable plantation groups on the research house’s list, although the group dropped to third spot, while TSH made it to the list of top-five most profitable planters.

Maybank KE said 2013 was a tree stress year for some plantation groups, as fresh fruit bunch (FFB) yield fell for First Resources Ltd, IJM Plantations Bhd, Golden Agri Resources Ltd, Ta Ann Holdings Bhd and PT Astra Agro Lestari Tbk (AALI).

“In terms of the best yield achieved by the groups on our list, TSH posted the best CPO yield for 2013 at 5.3 tonnes per ha, boosted by its high FFB yield of 25.3 tonnes a ha and oil extraction rate of 21%.

“This was followed by IOI Corp (5.1 tonnes per ha) and Kuala Lumpur Kepong Bhd (KLK) (4.8 tonnes per ha). The bottom-three spots were occupied by Kencana Agri at 3.3 tonnes per ha, Sarawak Oil Palms Bhd (3.4 tonnes per ha) and Boustead Plantations Bhd (3.6 tonnes per ha),” the research house said.

In terms of profitability, Singapore’s First Resources retained its top spot on Maybank KE’s list as the most profitable upstream plantation group in 2013, with an earnings before interest and tax of about RM9,620 per ha, partly supported by its locked-in sales at high prices.

Singapore-listed Bumitama Agri Ltd (BAL) moved up one spot from 2012 at the expense of IOI Corp, which dropped to third spot. TSH’s improved FFB yield have propelled the group to the top-five position.

By inference, Maybank KE said “the more profitable groups have the lower cost structure per tonne of CPO and could weather the current low CPO price” better than their peers.

Nevertheless, Maybank KE said the top-five listed oil palm planters in the world in 2013 remained unchanged from 2012, with Sime Darby Bhd (525,000ha) taking the top position, followed by Golden Agri (371,000ha), Felda Global Ventures Holdings Bhd (FGV) (335,000ha), Wilmar International Ltd (241,000ha) and Indofood Agri (239,000ha).

“Overall, the top-10 planters account for slightly under 20% of the total oil palm planted area globally,” the research house said.

Maybank KE noted that integrated players with downstream operations, diversified players and relatively low-cost producers, including IOI Corp, Sime Darby, First Resources, KLK and BAL, were least sensitive to CPO price changes.

“Those that have purer upstream exposure and relatively high all-in cost of production (per tonne) are the most leveraged due to either their relatively lower oil yield or higher cost base. They include TH Plantations Bhd, FGV, Boustead Plantations, AALI and Ta Ann, whereby for every RM100 per tonne change in the CPO average selling price (on a full-year basis), their earnings, we estimate, would change by 10%-13%,” Maybank KE said.

Bernama

Oil Palm, focus on market demand

2015-07-19T06:50:00.001-07:00

KUCHING: Malaysia and Indonesia should cease competing against each other on palm oil production and focus on market demand by improving their reputation around the world.

Cargill Tropical Palm Holding Pte Ltd (Cargill) chief executive officer John Hartmann, in giving this advice, stressed that both countries should focus on generating greater awareness and knowledge of the industry to consumers.

“Because of the increasing demand of palm oil internationally, I don’t see the (point for) competition between Malaysia and Indonesia.

“What is more important is for both countries to work together in a way that will increase demand around the world. As I have said, there is a need for us to improve our reputation so that we can serve our customers around the world into the future,” Hartmann told The Borneo Post on the sidelines of the 2nd Singapore Dialogue on Sustainable World Resources – “Sustainability: A new Profit Driver?” here recently.

He added that what was most important in the industry was to ensure there was robust demand for the product.

“Oil palm players must improve their credibility so as to tackle the negative perception of the crop among consumers and improve sustainability, such as eliminating deforestation from the supply chain, especially on peat soil.

“There is also a need to avoid exploitation of people and how to make people thrive, be they living in communities or are your employees. Reputation is important to keep, especially at the international level.”

Hartmann stressed that the world needed palm oil, and palm oil should respond to this demand.

“It does not require deforestation to be able to accomplish this, but by using new initiatives and yield intensification. Work with smallholders so that they can become more productive.”

Cargill currently has two refineries in West Malaysia, and it has plans to expand to Sarawak. It employs some 18,000 workers in Indonesia, especially in Sumatra and West Kalimantan. It operates some 80,000 hectares of oil palm plantations and another 40,000 hectares under smallholdings.

On another issue, Hartmann pointed out that in the palm oil industry, harvesters were considered as the most important component and the most difficult to recruit.

“For us, we try to have the right facilities for them. Say, if they have families, they would be living in a community. So, we have to provide housing, schools and medical facilities. Those are important parts to retain and attract harvesters.”

Meanwhile, non-governmental organisations (NGOs) such as World Wide Fund for Nature (WWF) and Greenpeace believed that technology and efficiency could be applied to improve yields for palm oil production.

“Improve yields through technology and efficiency to boost productivity, especially among smallholders. There is no need for any more deforestation that can endanger animals to extinction in the efforts to feed the increasing population in the world,” said WWF Asia Finance and Commodities Specialist Jeanne Stampe.

She stressed that WWF was “not against palm oil, but, in fact, we are pro palm oil”.

“Our view is that palm oil is the highest yielding edible oil seeds. If we don’t use palm oil, then we have to use other oils that require three, four or five times the amount of land to produce the needed oil.

“We do see palm oil in resolving the problem of oils that the world is facing, except that it has to be grown in a more sustainable way.”

Stampe stressed the need for banks in Malaysia to build their capacity and understanding to be more aware of the environment and conservation.

Plan for Oil Palm at Sg Tunoh Kapit

2015-07-19T06:43:00.001-07:00

KUCHING: Sarawak Land Consolidation and Rehabilitation Authority (Salcra) will develop 15,000 hectares of state land in Sg Tunoh River Basin in Kapit Division into oil palm plantations, revealed Minister of Land Development Tan Sri Datuk Amar Dr James Jemut Masing.

He said the development of such a large track of land by Salcra would help the government-linked company (GLC) generate more income to sustain its other development activities in future.

“This will be the first time in Salcra’s history that we develop State land. I want Salcra officers through Salcrajaya to prove their mettle whether they can do it or not through the same way other commercial plantations are doing.

“Salcra has been accused many times that it has a poor track record in terms of production,” Masing told The Borneo Post after presenting his minor rural project (MRP) grant to the president of Federation of Sarawak Journalists’ Association Phyllis Wong her office here yesterday.

The initial development of 15,000 hectares of land in Sg Tunoh River Basin for oil palm will spur further development in the area as it has some 50,000 hectares of agriculture land suitable for other crops such as paddy, said Masing.

He added that the approval of the state land by the State Government for oil palm plantations will ease dependence on native customary right (NCR) land especially in Kapit Division.

“We can say that the development of the Sg Tunoh River Basin will be the next big thing in Kapit Division as it is the most fertile area that lies right in the middle of the division,” he said.

Masing who is also Baleh assemblyman said currently the area is only accessible by logging road but there is a plan to build a proper road once the Baleh hydroelectric power (HEP) Dam is developed in the near future. The land was approved by former chief minister Tun Pehin Sri Abdul Taib Mahmud.

Meanwhile, Masing disclosed that the State Planning Unit (SPU) has made studies on Sg Tunoh River Basin on how best to develop the whole area further including its potential for commercial development.

“The land is 10 times bigger than Bario and it’s very suitable for agriculture. Currently there are farmers planting paddy there but they know they are squatting on state land,” added Masing.

Kelapa Sawit yang terlebih pangkas

2015-07-10T16:27:00.001-07:00

Ini merupakan kesilapan besar yang berlaku di kebun saya. Kesilapan ini adalah kerana kurangnya pengetahuan atau terlupa untuk memberitahu pekerja dan begitu juga pekerja tidak mengetahui tentang pengurusan yang baik.

Sebenarnya pemangkasan dahan atau daun kelepa sawit adalah ditegah untuk sawit berumur bawah 4 tahun. Kemungkinan akan menjejas penggeluarannya pada tahun berikutnya walau bagaimanapun kesannya belum dapat dilihat.

June palm oil stocks decline 4.33 pct to 2.15 million tonnes

2015-07-10T16:16:00.001-07:00

KUALA LUMPUR: Malaysia's total palm oil stocks in June 2015 declined 4.33% to 2.15 million tonnes against the 2.25 million tonnes recorded in the previous month.

In a statement today, the Malaysian Palm Oil Board (MPOB) stated that crude palm oil (CPO) stock for June decreased 14.55% to 1.10 million tonnes against 1.29 million tonnes previously.

Processed palm oil stock grew by 9.42% to 1.05 million tonnes in May.

Total CPO production eased 2.58 per cent to 1.76 million tonnes at end-June against 1.81 million tonnes recorded previously.

Exports of biodiesel for June was significantly higher at 22,670 tonnes, up 1,625.67 per cent from 1,314 tonnes previously.

Export of palm oil increased 5.19% to 1.697 million tonnes compared to 1.613 million tonnes in May.

Meanwhile, import of CPO for June rose by 8.40% to 79,396 tonnes compared to the previous month, while palm oil imports inched up 2.36% to 103,496 tonnes.

The average fresh fruit bunches (FFB) price in June was quoted at RM23.66 per tonne, up 4% from RM22.75 per tonne previously.- Bernama

35 months old oil palm AAR Seedling

2015-06-27T22:52:00.001-07:00

My 35 months old AAR clon oil palm.

My three years oil palm

2015-06-21T07:05:00.001-07:00

My three years old oil palm start bearing fruit.

Price increase to RM429 per metric tonne

2015-06-08T15:25:00.001-07:00

KUALA LUMPUR: Malaysian palm oil futures hit a three-month high on Tuesday,extending gains into a fourth straight session, buoyed by an overnight rally in soyoil markets and a weak ringgit.
The U.S. July soyoil contract climbed almost 8 percent over the last two sessions, lifted
by increased biodiesel targets by the U.S. Environmental Protection Agency - a move that may spur consumption of the edible oil.
Echoing the rise, the August palm oil contract on the Bursa Malaysia Derivatives
exchange rose as much as 2.4 percent to 2,349 ringgit ($635.38) a tonne intraday, its highest since March 5. Prices settled 0.8 percent higher at 2,312 ringgit by the day's close.
Total traded volume stood at 40,716 lots of 25 tonnes each, above the average 35,000 lots.
"The market is rising because of the strength in soybean oil, with the ringgit assisting the
rise," said Chandran Sinnasamy, head of dealing at LT International Futures in Malaysia, adding that palm has entered a new range between 2,250-2,400 ringgit.
"At the moment everything looks supportive. Palm may fall for correction in an overbought chart,but will be well supported between 2,280-2,300 ringgit," he said.
Palm prices, also supported by a drop in the ringgit to seven-week lows, have jumped
more than 10 percent from a trough of 2,121 ringgit reached on May 25. A weak ringgit makes palm a cheaper option for overseas buyers.
Technical charts show palm oil is expected to break resistance at 2,346 ringgit and rise to the next resistance at 2,385 ringgit, driven by an extended wave C, according to Reuters market analyst Wang Tao.

The U.S. soyoil contract was at 34.32 U.S. cents a pound by 1015 GMT, down 0.6 percent, while the most active September soybean oil contract on the Dalian Commodity Exchange was up 1.3
percent.
In other markets, oil prices rose on Tuesday as the dollar weakened and on expectations that
OPEC producers would maintain their group production target at current levels and resist pressure for an increase.

34 Months after field planting

2015-06-08T15:22:00.001-07:00

My palm after 34 months of field planting.

Sarawak Oil Palm Planted Area targeted 2 million ha by 2020

2015-03-24T04:25:00.001-07:00

KUCHING: The state’s plantation sector is poised for growth as Affin Hwang Investment Bank Bhd (Affin Hwang Capital) believes Sarawak can increase its oil palm planted area to two million hectares (ha) through the Sarawak Corridor of Renewable Energy (SCORE).

The firm in its overview report on the state yesterday reiterated the SCORE hopes of increasing the oil palm planted area to approximately two million ha by 2020 from approximately 1.3 million ha as at end-2014.

It was however unclear what proportion of the land available for development is peat, which would be increasingly difficult to develop due to sustainability issues aor consumer requirements, it said.

“Both Sarawak Plantations Bhd (Sarawak Plantations) and Sarawak Oil Palms Bhd (SOP)have plans to increase their areas planted with oil palm,” it divulged in the report yesterday, adding that increasing the scale of operations and yield to lower cost of production are critical to planters, who are effectively price-takers.

Sarawak Plantations, the firm said, has been seeing low yields over the past few years which was further impacted by encumbered estates.

“Poor plantation management, inability to harvest on estates affected by disputes and extreme weather conditions contributed to the downtrend in fresh fruit bunch (FFB) yield since 2005,” it observed.

“Plantation management issues are however being addressed to raise yields. Other strategies to drive growth include accelerated replanting and acquisition of 5,000ha of greenfield or brownfield lands per annum.”

Its current share price implies an extremely low earnings value per ha of land bank, Affin Hwang Capital added.

Looking at SOP, the firm estimated that its estates, milling, refining, kernel crushing and biodiesel currently has a good-sized land bank of 72,653ha of which 63,530ha are planted.

“We estimate the average age of palms at just above 10 years. The group is an integrated plantation company, having expanded into refining in the third quarter of 2012 and biodiesel production in 3Q14. Production of phytonutrient is expected to commence in 3Q15,” it added.

“A key growth driver is its rising FFB production as more areas reach maturity and prime age. Rising production will also contribute to lower cost of production of CPO.

“Refining operations are currently at the breakeven level compared to losses in 2014 while improvement in blending facilities will help drive demand for its biodiesel.”

All these led Affin Hwang Capital to maintain a neutral stance on the plantation sector based on its crude palm oil average selling price assumption of RM2,400 per metric tonne for 2015 and RM2,500 per metric tonne for 2016 to 2017. It retained its stock recommendations.

Rubber Block Planting

2015-03-15T16:31:00.001-07:00

The rubber block planting scheme is one of the National Key Economic Areas (NKEA) initiatives mooted by Prime Minister Datuk Seri Najib Tun Razak to help raise the income of the people.

“I believe the scheme will generate a high income as a hectare of high quality rubber can generate an average monthly income of RM1,500,” he said during an earth-breaking ceremony for a rubber block planting scheme at Rumah Nicholas Egai, Lengain, near here last Friday.

He said more local farmers would participate in the scheme when they realise the potential of rubber as a major commercial crop, because demand in the world market is expected to increase.

Jelaing added that participants from Ulu Sebetan, Empalaie, Awas, Bila Dua, Sungai Bangkong and Lengain have already registered for the programme.

The high quality rubber planted under the programme, he said, is expected to mature and be ready for tapping in six years’ time.

Parliament group supports state’s palm oil industry

2015-02-26T04:25:00.001-08:00

Jabu (centre), Ashworth and Helmer (left) fielding questions from reporters during the press conference. Earlier, the Modernisation of Agriculture Minister chaired a roundtable dialogue with the delegation. — Photo by Chimon Upon

KUCHING: The European Conservatives and Reformists Group (ECR) of the European Parliament has given its full backing to the state’s palm oil industry amid strong criticisms from European non-governmental organisations (NGOs) on the crop’s alleged damaging impact on the environment.

The parliament’s Committee on Agriculture and Rural Development member Richard Ashworth said ECR would defend the state’s palm oil cultivation practice against the passing of European laws that could affect the production of palm oil in the country.

The South East of England Member of European Parliament (MEP) mentioned that Sarawak had proven that palm oil was environmentally sustainable and that the industry had a phenomenal role to play in bringing wealth to the local community.

He criticised NGOs for using generic criticisms and making sweeping statements on the whole industry.

“We are conscious that there is a great deal of legislation being passed in the European Parliament within months or even years, which will heavily impact upon crops such as palm oil and in turn creating considerable effect on the prosperity of those producing the crop in Malaysia.

“We have been given great reassurance that in environmental terms, Sarawak has exceeded expectations. The agriculture development of palm oil, particularly the cooperative element with small farmers and shareholders scheme, is not just environmentally sustainable but has done enormous amount of good to lift small farmers out of subsistence agriculture and giving them a sense of involvement and dignified existence.

“On the series of ongoing debates in the European Parliament, we will make a difference. We will go back and speak on your behalf. We are on your side on this particular argument,” he told a press conference at Pullman Hotel here on Tuesday after attending a roundtable dialogue on the state’s palm oil industry.

Present were Deputy Chief Minister Datuk Patinggi Tan Sri Alfred Jabu Numpang and Roger Helmer, the MEP representing East Midlands England and member of the Industry, Research and Energy Committee.

Ashworth and Helmer were part of a delegation – including South East England MEP Nirj Deva and MEP representing Yorkshire and Humber region of the United Kingdom Amjad Bashir – on a two-day visit here to learn and better understand about palm oil crop and its cultivation, social element and environmental aspect.

Deva is also vice-chair of the Development Committee, while Bashir is also a Substitute Committee on International Trade.

Ashworth acknowledged that that there were examples of bad cultivation practices, such as the slash and burn policies of certain countries on their forests. He deemed the potential and productivity of palm oil crop and what it had achieved for the people and Sarawak as “fantastic” and should be cherished and encouraged.

Helmer also echoed Ashworth opinion on the damaging effect of what he labelled as unsubstantiated criticisms in the part of European NGOs and Green Party movement in the European Parliament.

“The Green organisation, which has so much influence in the European institution, does not focus particularly on Malaysia but are driven by an obsessive ideology and with little regards to facts. My personal view is they do a great deal of damage.

“The difference that has been made by us coming here is that we have a much clearer grasps on what is actually going on. One example is the issue of how much land have taken up for palm oil cultivation and how much land remains for the benefit of the environment.”

Citing Europe’s flawed biofuels policy as an example, Helmer mentioned that the European institution frequently introduced laws only to change it later on when the effect was found to be damaging.

Ashworth sits in a 19 strong Conservative delegation in Brussels, which is part of the ECR with 71 MEPs, and is the third largest group in the European Parliament. Helmer leads 24 United Kingdom Independence Party (UKIP) members, the largest UK delegation in Brussels. The European Parliament is composed of 751 members.

Palm oil production drops most in eight years

2015-02-11T04:39:00.001-08:00

KUCHING: Malaysian palm oil output fell the most in eight years according to official data by the Malaysian Palm Oil Board (MPOB) yesterday, a decline bigger than expected which signified greater impact from the recent floods.

Crude palm oil (CPO) production in December 2014 tumbled 22.04 per cent to 1.36 million metric tonnes against 1.75 million tonnes the previous month, the biggest drop since December 2006, according to Bloomberg estimates.

Palm oil stocks eased 11.55 per cent to 2.01 million tonnes at end-December 2014 against the 2.27 million tonnes recorded the previous month, MPOB said in a statement yesterday.

CPO stocks declined 23.61 per cent to 995,529 million tonnes, while that for processed palm oil grew 4.61 per cent to 1.02 million tonnes for the month under review.

Palm oil futures surged to a six-month high last week on concerns that the worst floods in decades in Peninsular Malaysia hurt harvesting, intensifying the impact of a seasonal decrease in output in the world’s most-used edible oil.

CIMB’s regional head of plantations and deputy head of research Ivy Ng told The Borneo Post her views that this was a ‘natural event’ as the inventory figure is broadly in line with the research houses and markets forecast.

“We don’t expect this event to be a key driver for CPO price or share prices of palm oil players in the near term,” she said in response to queries via email.

“With regards to the flood, our view is that players impacted by the floods may post weaker earnings as the rise in selling prices for CPO may not sufficient to offset the drop in output due to the flood.”

Output in the three east coast states on Peninsular Malaysia hit by floods – Kelantan, Terengganu and Pahang – fell 28 per cent in December from a year earlier, according to MPOB.

The Malaysian Meteorological Department anticipates isolated rains and thunderstorms are predicted over parts of Sabah and Sarawak until January 18.

Meanwhile, MPOB also said palm kernel stocks fell 20.55 per cent to 131,263 tonnes, while crude palm kernel oil lost 10.55 per cent to 162,234 tonnes.

Processed palm kernel oil stocks improved 5.51 per cent to 140,759 tonnes in December, while that for palm kernel cake stocks was 7.19 per cent lower at 350,855 tonnes, it added.

“Palm kernel production was down 21.64 per cent to 337,242 tonnes, while crude palm kernel oil output was 18.83 per cent lower at 175,030 tonnes and palm kernel cake production dropped 19.26 per cent to 192,823 tonnes.

“Palm oil exports rose 0.43 per cent to 1.52 million tonnes in December against 1.51 million tonnes in November 2014. Biodiesel exports depreciated 97.30 per cent to 614 tonnes.

“CPO imports in December slid 0.40 per cent to 52,872 tonnes, while that of processed palm oil inched down 18.26 per cent to 37,481 tonnes.”

Improving outlook for CPO prices with possible biodiesel subsidy hike

2015-02-06T18:40:00.001-08:00

KUCHING: Analysts at RAM Ratings Services Bhd (RAM Ratings) forecast crude palm oil (CPO) prices to average between RM2,200 and RM2,400 per metric tonne (MT) in 2015 as RHB Research Institute Sdn Bhd (RHB Research) remains optimistic on Indonesia’s possible hike in biodiesel subsidies.

In a statement yesterday, RAM Ratings expects CPO prices to average between RM2,200 and RM2,400 per MT this year against a backdrop of ample edible oil supply and subdued consumption growth.

The weak ringgit is expected to provide a cushion against an otherwise sharper fall from 2014’s average price of RM2,408 per MT, it said.

“As a growing mature hectarage in key palm oil-producing countries underpins CPO production growth in 2015, strong soybean production in the US and expectations of a bumper harvest in South America are anticipated to keep the edible oil market well supplied,’ it explained.

“The heightened competition between edible oils could keep CPO prices in check while demand growth is expected to be lackluster. Meanwhile, weak crude oil prices reduce the economic viability of CPO use in biodiesel, notwithstanding demand from government-driven mandates.

“While we note of the increased attractiveness of CPO due to the weaker ringgit, the build-up of inventory in the medium term would be bearish on the commodity’s prices. CPO prices may be supported by the lower production in the first half of the year and potentially weakening in the second half when production seasonally peaks.”

Meanwhile, a possible spike in Indonesia’s biodiesel subsidies would provide a catalyst for palm oil prices, RHB Research said in a note to investors.

The parliament’s energy commission and the government approved an increase to 4,000 rupiah (US$0.32) a liter from 1,500 rupiah. The move needs to be passed by the budget committee in parliament, the directorate general for oil and gas at the Energy & Mineral Resources Ministry said Thursday.

RHB Research said this translates into a positive margin of US$40 per barrel for biodiesel producers.

“This proposal still has to get parliamentary backing, but should it go through, would help provide a boost to CPO demand, assuming the B10 mandate is fully implemented in Indonesia.

“This law, if passed, would be a positive catalyst for palm oil prices,” observed RHB Research’s analyst Alvin Tai. “A US$0.40 per litre subsidy translates into US$63.60 per barrel. Currently the biodiesel margins (with no subsidies) are at minus US$23 per barrel.

“Therefore, with this subsidy, biodiesel producers would be able to make a positive margin of US$40 per barrel, excluding transport costs.”

Prior to the crude oil price drop, logistical and infrastructure problems hindered the implementation of Indonesia’s B10 mandate.

“Assuming these issues are resolved and Government is able to finance the additional subsidies, biodiesel producers in Indonesia would require up to three million tonnes of CPO to meet the B10 mandate in 2015.

“In 2014, Indonesia’s biodiesel demand was about 1.7 million tonnes. We highlight, however, the risk of crude oil prices dropping further, which could dampen margins and the feasibility of this flat subsidy rate. It would probably be better, in our opinion, if Indonesia adopts a more robust subsidy method, perhaps like Malaysia’s cost-plus method.

“Although the near-term upside for palm oil prices appear to be on the cards, our average price assumption of RM2,500 per tonne could be slightly optimistic and may be subject to downward revision,” the analyst added.