18/05/2012 (Bernama) - State government- owned company TDM Bhd remains positive on its plantation division's performance this year despite the lower forecast for crude palm oil (CPO) production and CPO prices compared to last year, said chief executive officer Badrul Hisham Mahari.

He said the company expects its production to be higher this year than last year as this year the stress cycle would be experience by the oil palm trees which occurs once every three or four years and would effecting their production.

"In line with overall market expectation also, we forecast CPO prices for this year to be lower compared to 2011, but the impact on earnings would be cushioned by our transformation programme initiated in 2004," he told the media at the company's annual general meeting here Thursday.

"The operational efficiency which leads to improvements in productivity and yields via our plantation rehabilitation programme recorded the highest ever fresh fruit bunch (FFB) production at 625,765 metric tonnes and a yield of 19.44 tonnes per hectare last year," he added.

Badrul Hisham said these figures were an increase of 14 per cent and 15 per cent over 2010's FFB production and yield of 550,625 metric tonnes and 17.9 metric tonnes per hectare respectively.