average actual yield in Malaysia ranges between 14.48 t ha−1 and 20.63 ... yields (FFB; unit in megagram per hectare (t ha−1)) are well below of potential levels and have stagnated over last two decades (Euler et al. As a result, Yield Per Hectare (“YPH”) also decreased to 21.69 tonnes from 22.13 tonnes recorded in the previous year. FFB_Yield_January-December_2020.pdf (349.78 KB) Oil_Yield_January-December_2020.pdf (343.2 KB) Hits: 55712. Our Malaysian operations in 2019 produced a total of 907,188 tonnes FFB, a 1.38% drop from the 919,844 tonnes that were produced in 2018. The FFB yield declined by 4.1% to 17.16 tonnes per hectare in 2018 as against 17.89 tonnes per hectare in 2017. It is evident that the oil palm is the highest yielding oil crop, capable of producing 4.27 t of palm oil and palm kernel oil per hectare per year. Published by R. Hirschmann, Jan 21, 2021 In 2019, the average yield of fresh fruit bunches of oil palm in Malaysia was 17.19 metric tons per hectare. Palm oil can begin yielding FFB at year 5, however peak yields are obtained between years 8through 18. Fourth quarter 2019 fruit yield reached 5.8 tonnes per hectare, leading to full year yield of 21.5 tonnes per hectare. t2�:��iq0��q@� \�A� FFB yield in Sabah registered a decrease of IJM Plantations Bhd of 19.04 million hectares, mainly from Indonesia and Malaysia. 2017; Varkkey, Tyson, and Choiruzzad 2018). This total translates to USD 8,681 per ha in a 3-5 year period (average four years). During the year, overall FFB yield fell 13.9% to 15.91 tonnes per hectare, from 18.48 tonnes per hectare achieved in 2015, as the El Nino phenomenon since the second half of 2015 brought prolonged dry weather and below-average rainfall. In 2019 Bumitama's plantations produced 3,266,483 metric tons of FFB, and a FFB yield of 19.1 metric tons per hectare. 2017; Barcelos et al. We maintain our “sell” call on IJM Plantations with an unchanged TP of RM1.84 per share, based on an unchanged 24 times price-earnings ratio for calendar year 2019. Over the last 10 years, New Britain Palm Oil plantations produced on average 7 tonnes of palms product yields per hectare. However, as a pure upstream player, any downside risk to crude palm oil prices may deteriorate its balance sheet quality further. 263 0 obj <>/Filter/FlateDecode/ID[<9F4CAE6360028D49B5F4804293A50744>]/Index[247 30]/Info 246 0 R/Length 82/Prev 1297581/Root 248 0 R/Size 277/Type/XRef/W[1 2 1]>>stream While our northern region estates experienced yields averaging 16.6 MT per ha, the southern region estates fared better, generating an average yield of 18.9 MT per ha. In a latest set of international trials, the average Oil and kernel yields at various sites ranged between 6 – 8.3 tons per hectare. 0 3,145,317. This strategy would tend to lower cost of capital. On-site soil and weather data provided … The year -to-year increase in harvested area is due to newly producing areas in East Malaysia. Overall, we see that improvements in cereal yields from the 19th century into the first half of the 20th century were relatively slow– by the 1940s, yields were typically in the range of 2-2.5 tonnes per hectare. Peak crop yields are achieved from the age of 9-18, and gradually decline thereafter. The range of CPO yield was between 3.90 tonne per hectare and 5.47 Management guided that FFB production for financial year 2019 (FY19) is estimated at 1.02 million tonnes (+9.35 year-on-year [y-o-y]), underpinned by increases in planted areas in Indonesia reaching maturity and yield recovery in both Malaysia and Indonesia estates from the effects of El Nino. 2015; Woittiez et al. However, management expects its FY19 average FFB yield to improve from 18 tonnes per hectare in FY18 to 19 tonnes per hectare in FY19, followed by 20 tonnes per hectare in FY20. Productivity gains between the 1950s and 1990s was rapid, growing 2-3 fold over this period. The Government and Malaysian Palm Oil Board shall not be liable for any loss or damage caused by the usage of any information obtained from this site. IJM Plantations has about 10,000 employees currently in Malaysia and Indonesia. Last year, the average crude palm oil yield was 3.21 tonnes per hectare, while the fresh fruit bunch (FFB) yield and oil extraction rate (OER) came in at 15.91 tonnes/ha and 20.18% due to the prolonged El Nino weather conditions. rainfall early this year in Sabah and Sarawak, which curbed the output of fresh fruit bunches (FFB). The Edge Communications Sdn. However, good agricultural and milling practices saw improvements in the However, it has limited the cash flow available for dividend payments and finance cost would remain high over the next few years. Management guided that the capital expenditure requirement for FY19 is approximately RM120 million (cater mainly for its Indonesia operation). Our recent meeting with the group’s management reaffirmed our view that the group is set to face another tough year ahead. Management guided that production cost for FY19 should increase marginally as the group has already purchased 75% of the fertiliser requirements at the same price paid in FY18. The Malaysian operations recorded 3.5% increase in FFB yield to end the year with 20.8 mt per hectare (2017: 20.1 mt per hectare), whilst Indonesian operations recorded FFB yield of 15.0 mt per hectare (2017: 13.9 mt per hectare). Refresh. Nevertheless, these numbers were well above industry averages for the same time period. Table 1 shows the productivity of various oilseed crops in terms of their oil content and oil yield. Refresh. Note that for the first two months of FY19 (2MFY19), FFB production decreased by 3% y-o-y to 164,000 tonnes, mainly due to a high base effect (2MFY18: +43.9% y-o-y). Annual Average Prices of Oil Palm Products (FFB - 1% Extraction Rate) Fresh Fruit Bunches (FFB) Yield Tonnes/Hectare (Peninsular Malaysia) Fresh Fruit Bunches (FFB) Yield Tonnes/Hectare (Sabah) Fresh Fruit Bunches (FFB) Yield Tonnes/Hectare (Sarawak) Source: Author, 2013 Each ripe bunch is commonly known as Fresh Fruit Bunch (FFB). 2019 2018 2019 2018; Jan: 1,680,891: 1,472,666: 81,477: 34,825: Feb: 1,324,615: 1,243,621: 94,278: 67,165: Mar: 1,620,752: 1,566,183: 131,242: 39,626: Apr: 1,654,499: 1,530,406: 62,112: 35,624: May: 1,715,719: 1,291,628: 61,789: 32,260: Jun: 1,397,140: 1,129,518: 101,250: 85,889: Jul: 1,486,485: 1,196,672: 40,069: 44,030: Aug: 1,736,300: 1,099,896: 51,055: 80,191: Sep: 1,409,089: 1,619,482: … FFB Yield & Crude Palm Oil Yield of Oil Palm Estates 2019. Average yield per ha of 17.7 tonnes FFB represented a 3% reduction from the 18.2 tonnes FFB per ha produced for the same period last year. Oil palm is a perennial crop, with trees potentially producing economically viable volumes of fresh fruit bunches (FFB) over a lifespan of 30 years or so. Cutting old trees causes a loss of ca 17 tons of FFB per hectare, translating into a loss of 3.6 ton of CPO per ha over a period of 3-5 years. OIL P ALM ECONOMIC PERFORMANCE IN MALA YSIA … Further details are available in the following table: LOCATION FFB YIELD 2015 (TONNES PER HECTARES) LEVELS OF “We have discussed about the target based on practicality. endstream endobj 248 0 obj <. 2020. %%EOF There’s no change to our earnings forecasts. Ways to search theedgemarkets.com content, by category: @category "corporate" "hot stock”, Combine search:  "high speed rail" @author "Bhattacharjee" @category "From the Edge". 146,912. DISCLAIMER. Note that IJM Plantations’ quick ratio has declined from 5.8 times in FY10 to 0.8 times in FY18 as the group has mostly funded its new planting programme via borrowings. MPIC says Sabah’s average FFB yield per month in Q1 2020 amounted to 1.17 tonnes per ha per month compared with 1.6 tonnes per ha per month in Q1 2019, a decrease of 26.9 per … For the On a regional basis, Sabah was the worst affected with average FFB yields declining by 8.1%, followed by Sarawak 5.7% and Peninsular Malaysia 1.4%. 3,398,847. IJM Plantations has about 10,000 employees currently in Malaysia and Indonesia. (July 3, RM2.25) Note that we have already factored in higher depreciation charges due to the adoption of Malaysian Financial Reporting Standards (MFRS) 116 and MFRS 141. Average annual yield ranged from 18.2 to 41.6 t FFB per ha per year for matured plantations (>10 years) across sites and years. Malaysia’s share of global production in 1999 was 51% but in 2011, it decreased to 38%. — TA Securities, July 5. For the quarter under review, the plantation sector recorded a 15 per cent y-o-y increase in fresh fruit bunch (FFB) production to 1.24 million MT from 1.08 million MT previously, while FFB yield increased 19 per cent y-o-y to 5.12 MT per hectare compared with 4.32 MT per hectare previously. � cb�E@��xu��%���7�V�Z�� ���\�mR�G.Y�U�� S��{N������q,X�p���еm@��E������(&$ ���B��Ӎ�LwXS�0&L3`l�m`�b�\���' �����l�4�Q ��� Management expects fresh fruit bunch (FFB) production to improve further in the second half during the peak season of harvesting in September to October in Malaysia, and November to December in Indonesia. 247 0 obj <> endobj The national average FFB yield per hectare fell 4.9% to 19.2 tonnes. At present it is estimated that 65 percent of Malaysia’s total oil palm area is between the ages of 9-28+, while 26 percent is at least 20-28+ years old. 2016; Hoffmann et al. However, management expects its FY19 average FFB yield to improve from 18 tonnes per hectare in FY18 to 19 tonnes per hectare in FY19, followed by 20 tonnes per hectare in FY20. Maintain sell with an unchanged target price (TP) of RM1.84: IJM Plantations Bhd’s share price has corrected by approximately 20% since we downgraded the stock to “sell” from “buy” in November 2017. Pen.Malaysia: 1.64: 1.87: 14.02: 1.39: 1.39: 0.00: Sabah: 1.77: 1.97: 11.30: 1.23: 1.30: 5.69: Sarawak: 1.24: 1.20-3.23: 0.93: 0.85-8.60: Sabah & Sarawak: 1.66: 1.81: 9.04: 1.17: 1.25: 6.84: MALAYSIA: 1.65: 1.85: … h�b```a``j�� FFB yield has dropped significantly since FY16 as a result of proliferation of young plants in Indonesia and the impact of El Nino. In Malaysia, the oil palm trees planted are mainly the tenera variety, a hybrid between the dura and pisifera. Date received: 19 April 2019; Sent for revision: 22 April 2019; Received in final form: 11 June 2019; Accepted: 12 June 2019. • Best yields to total palm products. » FFB production is expected to come down gradually in view of replanting programme for estates in Sabah in coming years but to be cushioned by expected increase in yield from young mature areas from estates in Sarawak and Sandakan. Bhd. This article first appeared in The Edge Financial Daily, on, Powering GE forward globally from Kuala Lumpur, SME Digital Transformation: Unlocking the exponential growth, EVENING 5: Azhar to resign as FGV chairman, TALKING EDGE: Duopharma’s long-term vaccine plan, EVENING 5: PM unveils RM20 bil Pemerkasa stimulus, EVENING 5: Jalil Rasheed is Berjaya Corp CEO, Gambler who bet millions on AirAsia wants everyone to notice, Malaysia's richest tycoons and the billions in dividends they earned in the final quarter of 2020, CTOS submits for IPO on Bursa Malaysia, eyes valuation of over RM2b — sources, Offshore vessel company first to be charged with MACC Act's new corporate liability provision, Top Glove’s annual production capacity now at 96 billion pieces. However, we do not see any silver lining as its shares would continue to be bogged down by weak earnings due to high production costs and depreciation charges. The company generally transports its harvested FFB to the CPO mills within 24 hours to ensure maximum freshness and yield. The cost of production (include palm kernel credit) in Malaysia is estimated to be around RM1,612 per tonne in FY18, while Indonesia’s is about RM2,142 per tonne (on the industry high side). 276 0 obj <>stream » Continual replanting programme of approximately 1,000 Ha per year for old palms from 2019 to 2026. With an assumption of USD 600 per ton CPO, the loss of cash flow per year for a smallholder is USD 2,170 per ha. FFB yield for Peninsular Malaysia decreased by 6.7% to 17.44 tonnes per hectare as against 18.70 tonnes per hectare in 2017. Malaysia’s FFB yield increased marginally by 0.2% to 17.19 tonnes per hectare in 2019 as against 17.16 tonnes per hectare in 2018. Having said that, no fundraising exercise is needed to be undertaken at this moment. The teneravariety yields about 4 to 5 tonnes of crude palm oil (CPO) per hectare per year and about 1 tonne of palm kernels. Yield per mature hectare (metric tonnes) 21.24. %PDF-1.5 %���� Equipped with an upgraded CPO mill that has a maximum operating capacity of 90 metric tonne (MT) per hour, mechanised processes are also increasingly being implemented to enhance in-field collection and transportation of crops as well as man-day activity. Overall, the average yield achieved by the Group was a 3% improvement year-on-year at 18.1 mt per hectare (2018: 17.5 mt per hectare).The Malaysian operations registered a yield decline of 3% at 20.1 mt per hectare (2018: 20.8 mt per hectare), whilst Indonesian operations recorded 11% increase in FFB yield to end the financial year with 3,155,628. FFB production (metric tonnes) 3,097,262. This implies that the vast … It added, "While HSP's production growth is lower than the sector average of eight per cent, we believe this is offset by the group's above-average yield (circa 22 metric tonnes per hectare against the Malaysian average of circa 18MT per ha).†h�bbd``b`� $f �& �Z $X6�1D���� ŗA�� �˨$��@,f q:����� d#���_ $ , FFB Yield & Crude Palm Oil Yield of Oil Palm Estates 2020. expansion, which is causing deforestation. We understand that approximately 6,000 to 8,000ha of young plants in Indonesia will move into prime age over the next two years. The increase in FFB productions raised the Group FFB yield to 17.5 mt per hectare (2017: 16.6 mt per hectare). The national average for Malaysia for FFB yield according to MPOB was 19.69 tonne per hectare. 3,514,857. endstream endobj startxref © All rights reserved. As shown in Fig. USDA estimates Malaysia 2018/19 palm oil area at 5.3 harvested million hectares, up 2 percent from last year. Malaysian palm oil alone fetched RM 46.12 FFB_Yield_January_Dec_2019.pdf (318.89 KB) Oil_Yield_January_Dec_2019.pdf (320.18 KB) Hits: 32601. We are conservative in our forecasts and expect FFB production to be slightly lower than management’s estimates at 982,000 tonnes for FY19. According to management, every RM100 hike in minimum wage will reduce its earnings by approximately RM4.5 million (assuming that IJM Plantations will need to bear the full impact). Moreover, young plant maturity in Indonesia would still require higher fertiliser application, palm maintenance and overheads, which would continue to put pressure on its bottom line. This was a decrease from the previous year. In 2018, the average yield of fresh fruit bunches in Malaysia was approximately 17.16 metric tons per hectare. For FY19 from the age of 9-18, and a FFB yield of Palm! 320.18 KB ) Hits: 32601 ) Oil_Yield_January-December_2020.pdf ( 343.2 KB ) Oil_Yield_January-December_2020.pdf ( 343.2 KB ) (... 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