30/03/2011 (Stock Market Wire) - Biofutures to looking at the viability of owning its own plantation following the recent extreme volatility of feedstock prices.

And the group is exploring the possibility of collaborating with reputable process plant suppliers to consider other downstream activities such as further fractioning of RBD palm oil into RBD palm olein that will complement the activities and revenue of its refinery.

Biofutures also announced that its subsidiary, Zurex Corporation, had agreed feedstock supply deals with two crude palm oil suppliers - Teck Guan Group and CC Palm Trading Sdn Bhd.

And it said an off-take/contract manufacturing memorandum of understanding had been signed between Zurex and CC Palm Trading.

Biofutures said: "As prices of CPO have been highly volatile in the first three months of 2011, Zurex has been extremely cautious in its refining approach in the view of optimising the use of its resources and to avoid any unwarranted losses.

"These agreements should help reduce the impact of such volatility in the longer term."