PLANTATIONS
The Group continues to pursue its 30:30 initiative with the objective of raising fruit yields to 30 metric tons per hectare and palm product extraction rates to 30%. Results this year have been mixed especially with the new acquisition making year on year comparisons difficult. However, it is evident that cropping potential in most of the Group’s PNG and Solomon Islands (SI) estates can reach 30 metric tons of fruit per hectare, as this has already been achieved in some estates. The acquisition in PNG at the end of April 2010 of K POL added a further 26,000 hectares of oil palm estates as well as over 16,000 hectares of smallholders’ plantation. The Division’s oil palm planted area increased to 134,403 hectares as compared to 106,123 hectares in 2009. Reflecting the acquisitions overseas in the last few years, now over half of planted area is in countries outside Malaysia, the proportions being: 42% in Malaysia, 53% in PNG and 5% in the SI.
Malaysian Plantations
In Malaysia 3,326.96 hectares were replanted in 2010 against 3,489.66 hectares scheduled. The drought period from January to March and the wet weather in the second half of the year affected land preparation for the replanting in some of the estates, so the work is now in progress and is expected to be completed by early 2011. By the end of 2010, the Malaysian estates’ average palm age decreased slightly from 13.55 years in December 2009 to 12.99 years in December 2010.
PNG and SI Plantations
In PNG and SI, the volume of FFB processed rose dramatically to 1.98 million metric tons, boosted from May 2010 by the inclusion of the newly acquired K POL estates at Higaturu, Milne Bay and Poliamba. The proportion of smallholder’s crop to total crop fell to 27.7% compared to 29.3% the previous year, a result of the addition of the new estates. PNG and SI’s average yield of FFB per hectare over the 69,139 hectares of oil palms under harvest was 23.6 metric tons per hectare (assuming annualised yield for Higaturu, Milne Bay and Poliamba).
INTRAPRENEUR VENTURES (KULIM)
Building on its success in the oil palm seedling and ornamental plant nursery business, Kulim Nursery Sdn Bhd has entered into the production and marketing of an organic environmentally friendly fertiliser using oil palm by products – biocompost. A new venture, Extreme Edge Sdn Bhd, formerly a department within EPA Management Sdn Bhd, has been corporatised to capitalise on the growing opportunities present in the ICT sector as well as to provide ICT services to related companies within the Group.
Palm Oil Refinery in Liverpool, United Kingdom
NBPOL’s new refinery in Liverpool, United K ingdom, commenced operations in May 2010 and has already seen increases in sales and production.
Beef Production
NBPOL Group’s herd size showed no appreciable movement with 19,600 cattle managed in two separate locations (16,000 at Ramu and 3,600 in West New Britain). The Group’s herd produced some 803,000 kilograms of beef for the PNG market generating revenue of K 11.8 million.
