PROSPECTS AND PLANS
The global economy holds the key to the outlook for palm products’ prices. Energy prices and their effect on bio-diesel would be an important factor that would determine CPO prices this year. Local commodities are set to stay bullish at least until the first half of 2011.
Projections show that by 2015, about 62 to 63 million metric tons of palm oil would be required versus 45.5 million metric tons in 2010. While the palm oil industry’s sustainability initiative is making considerable progress toward improving its environmental performance, a major attraction for the wider adoption of RSPO standards is the financial incentives for producers.
The Group continues to pursue its two pronged strategy of organic growth and increasing oil yields through its 30:30 mission by banking on superior planting materials to replace the old palms as well as enhancing crop quality and the milling process to improve OER.
The strong performance of 2010 emphasizes the relative strength and robustness of the Division’s business model amid the strong challenges faced throughout the year. The Division will continue to be resolute in fulfilling its sustainable growth agenda whilst in the same time remains optimistic that its businesses will prevail and continue to grow throughout 2011.