MARKET DEVELOPMENT
FGV Eyes Sales Of Unit's Planting Materials In Indonesia
FGV Eyes Sales Of Unit's Planting Materials In Indonesia
03/11/2016 (Bernama) - Felda Global Ventures Holdings Bhd (FGV) will explore the possibility of marketing the planting materials of a subsidiary and other agriculture-related products, including fertilisers, in Indonesia.
In a filing to Bursa Malaysia today, FGV said, its unit, Felda Agricultural Services Sdn Bhd, had signed a memorandum of understanding (MOU) with PT Mitra Agro Servindo on collaborating to explore market opportunities.
It said the MoU was valid for six months to enable both parties to finalise and agree on a definitive agreement or such an extended period as agreed in writing by them.
Meanwhile, in a statement today, FGV Group President/Chief Executive Officer, Datuk Zakaria Arshad, said through this collaboration, the company was granted approval from the Indonesian Plant Varieties and Release Council for the DxP Felda Yangambi ML161 seeds.
"The release of FGV planting material will be beneficial to Indonesia through introduction of new germplasm, increasing variety and diversity of oil palm planting material, strengthening Indonesian oil palm industry through improvement in yield and increasing customer's preference in planting material," he said.
Zakaria said this will enable the oil palm seeds from FGV to be marketed commercially in Indonesia beginning in 2017.
He said one million seeds were expected to be exported to Indonesia next year with projected growth to five million seeds by 2020.
"The potential market size in Indonesia is huge and demand from the industry for new estate development and replanting programmes are expected to be between 60 and 90 million seeds per year," he said.
FGV said currently its seed production capacity was 30 million seeds per year while export market was about 435,000 seeds in 2015 and expected to grow to 850,000 seeds in 2017.
In a filing to Bursa Malaysia today, FGV said, its unit, Felda Agricultural Services Sdn Bhd, had signed a memorandum of understanding (MOU) with PT Mitra Agro Servindo on collaborating to explore market opportunities.
It said the MoU was valid for six months to enable both parties to finalise and agree on a definitive agreement or such an extended period as agreed in writing by them.
Meanwhile, in a statement today, FGV Group President/Chief Executive Officer, Datuk Zakaria Arshad, said through this collaboration, the company was granted approval from the Indonesian Plant Varieties and Release Council for the DxP Felda Yangambi ML161 seeds.
"The release of FGV planting material will be beneficial to Indonesia through introduction of new germplasm, increasing variety and diversity of oil palm planting material, strengthening Indonesian oil palm industry through improvement in yield and increasing customer's preference in planting material," he said.
Zakaria said this will enable the oil palm seeds from FGV to be marketed commercially in Indonesia beginning in 2017.
He said one million seeds were expected to be exported to Indonesia next year with projected growth to five million seeds by 2020.
"The potential market size in Indonesia is huge and demand from the industry for new estate development and replanting programmes are expected to be between 60 and 90 million seeds per year," he said.
FGV said currently its seed production capacity was 30 million seeds per year while export market was about 435,000 seeds in 2015 and expected to grow to 850,000 seeds in 2017.