MARKET DEVELOPMENT
Sampoerna Agro Optimistic on Palm Oil Production This Year
Sampoerna Agro Optimistic on Palm Oil Production This Year
02/11/2015 (Jakarta Globe) - Sampoerna Agro, the agriculture arm of the Sampoerna Group, is still upbeat on its palm oil production for the remainder of the year on the back of its so-called intensification and expansion efforts amid one of the country's worst dry seasons in decades.
"Despite prevailing weather conditions, we're still anticipating higher palm oil production in the second half of the year. That doesn't mean to say we are spared by the negative effects of the current dry spell, but there are several positive forces working for Sampoerna Agro," Marc Louette, vice president director at Sampoerna Agro, said in a statement recently, citing the maturing age profile of the company's palms as another contributing factor to his optimism.
About 106,578 hectares, or 80 percent of the company's total area for palm oil, in Sumatra and Kalimantan have matured as of September, according to a statement.
Fresh fruit bunches production at Sampoerna Agro increased by 5 percent year-on-year to 1.23 million tons during the same time. The company's crude palm oil and palm kernel production also both grew 7 percent to 264,985 tons and 62,428 tons respectively during the first nine months of the year compared to the year before.
Still, the increase in production failed to pick up profits at the agriculture company as it booked a 37 percent decline in net profit through the January-September period to approximately Rp 194 billion, namely due to persistently weak commodity prices and bloated expenses.
"Despite prevailing weather conditions, we're still anticipating higher palm oil production in the second half of the year. That doesn't mean to say we are spared by the negative effects of the current dry spell, but there are several positive forces working for Sampoerna Agro," Marc Louette, vice president director at Sampoerna Agro, said in a statement recently, citing the maturing age profile of the company's palms as another contributing factor to his optimism.
About 106,578 hectares, or 80 percent of the company's total area for palm oil, in Sumatra and Kalimantan have matured as of September, according to a statement.
Fresh fruit bunches production at Sampoerna Agro increased by 5 percent year-on-year to 1.23 million tons during the same time. The company's crude palm oil and palm kernel production also both grew 7 percent to 264,985 tons and 62,428 tons respectively during the first nine months of the year compared to the year before.
Still, the increase in production failed to pick up profits at the agriculture company as it booked a 37 percent decline in net profit through the January-September period to approximately Rp 194 billion, namely due to persistently weak commodity prices and bloated expenses.