MARKET DEVELOPMENT
IOI Corp Revises Fresh Fruit Bunches Growth Target Lower, As Hazy Weather Continues
IOI Corp Revises Fresh Fruit Bunches Growth Target Lower, As Hazy Weather Continues
27/10/2015 (The Sun) - IOI Corp Bhd has revised downward its fresh fruit bunches (FFB) growth target to between 3% and 5% for the financial year ending June 30, 2016 (FY16), from the initial forecast of 5% to 7%, due to the prolonged hazy weather.
Speaking to reporters after the company's AGM here today, CEO Datuk Lee Yeow Chor said the hazy condition, which reduces sunlight hours, will probably affect up to 10% of total FFB.
However, he assured that it will not have a negative impact on the company's profitability as low production will boost palm oil prices.
Lee expects palm oil prices, which hovers around RM2300 per tonne currently, to stay strong and stable on the back of seasonal low production.
"There is a good chance for it to go up at the beginning of next year," he opined.
Speaking to reporters after the company's AGM here today, CEO Datuk Lee Yeow Chor said the hazy condition, which reduces sunlight hours, will probably affect up to 10% of total FFB.
However, he assured that it will not have a negative impact on the company's profitability as low production will boost palm oil prices.
Lee expects palm oil prices, which hovers around RM2300 per tonne currently, to stay strong and stable on the back of seasonal low production.
"There is a good chance for it to go up at the beginning of next year," he opined.