MARKET DEVELOPMENT
Cargill’s CPO Output Drops on Aging Trees
Cargill’s CPO Output Drops on Aging Trees
08/05/2014 (Jakarta Post) - Crude palm oil (CPO) production of Singapore-based PT Cargill Tropical Palm fell 10 percent in the first quarter of this year compared with the same period a year ago.
Cargill president director Anthony Yeow said bad weather and the company’s aging palm trees, which are about 25 years old, have disrupted productivity. In the first three months of this year, Cargill only produced 70,000 tons CPO.
“A drop in production is unavoidable because of the impact of weather. Other than that, we also don’t have new trees,” Anthony said on Tuesday, as quoted by Kontan.co.id.
This would result in an overall drop in this year’s production by 6 percent.
In a bid to boost CPO productivity, Cargill plans the gradual replanting on 20,000 hectares of farmers’ land starting from 2016.
Cargill president director Anthony Yeow said bad weather and the company’s aging palm trees, which are about 25 years old, have disrupted productivity. In the first three months of this year, Cargill only produced 70,000 tons CPO.
“A drop in production is unavoidable because of the impact of weather. Other than that, we also don’t have new trees,” Anthony said on Tuesday, as quoted by Kontan.co.id.
This would result in an overall drop in this year’s production by 6 percent.
In a bid to boost CPO productivity, Cargill plans the gradual replanting on 20,000 hectares of farmers’ land starting from 2016.