02/10/2012 (Bernama) - Oil palm plantations and agricultural machinery services are the core profit contributors to the Terengganu State Farmers Organisation (PPNT), said its Chairman, Datuk Wan Zakaria Abdul Rahman.

Last year, the oil palm plantations contributed more than RM100,000 in profit while the agricultural machinery services brought in RM320,000.

"We always see profits from these two businesses and although the figures are not that high, there is profit consistently," he told Bernama here today.

The plantation activities have been also the core source for the development of PPNT, contributing about 41 per cent to its revenue every year.

Their plantations operations began in 1982 and are located in Kampung Pelam, Terengganu, occupying an area of 158 hectares.

PPNT is capable of managing the plantations well and this is proven in the good returns, high income and the stable market price, Wan Zakaria said.

However, in mid 2009, all the oil palm in the plantation had reached the age of 25 years and could no longer produce any fruits.

The felling of the oil palm was undertaken in stages and replanting was carried out using the oil palm replanting reserves and incentives provided by the Malaysian Palm Oil Board.

Wan Zakaria said the agricultural machinery services provided by PPNT were services given directly to the members of the farmers organisation to carry out padi planting and harvesting.

These activities are carried out in two areas, namely in Besut and Kuala Terengganu. The machineries in Besut include 46 tractors and 16 harvesting machines that operate in the northern part of Terengganu.

In Kuala Terengganu meanwhile, there are 27 tractors and nine harvesting machines which operate in the southern region of Terengganu.

Last year, an area of 6,675.48 hectares was planted and a total of 214,373 sacks of padi were harvested involving a total of 11,207 farmers who had received the services.

"This indicates that the services of PPNT has been increasingly accepted by the community of farmers in Terengganu and the result has been the highly encouraging returns.

"We are also planning to carry out several economic development programmes that we hope will further strengthen the financial standing of the organisation," Wan Zakaria said.