12/7/04 - THE current crude palm oil (CPO) price level of RM1,450 pertonne is sustainable until the end of this quarter, said Golden HopePlantations Bhd (GHope) group chief executive Sabri Ahmad.

Sabri, who is also the Malaysian Palm Oil Association chairman, said theprice level should stabilise at RM1,600 in the last quarter this year.

The current level of between RM1,400 and RM1,450 has enjoyed good supportand it should be able to sustain, he told StarBiz during a visit byPlantation Industries and Commodities Minister Datuk Peter Chin Fah Kui toGHope’s research and development (R&D) centre in Banting yesterday.

Industry sources said the high stock level during this season hadcontributed to the low prices, but a post-peak correction would stabiliseprices in the last quarter this year.

Earlier, Chin launched the new GH 500 series oil palm planting material, asuperior type of seedlings that can produce yield of 40 tonnes per ha peryear, and an oil content of 31%.

Sabri said these seedlings would help GHope achieve its target of 30tonnes per ha in yield and 25% oil extraction rate (OER) in five years.

Last year, GHope recorded a yield of 21.64 tonnes and an OER of 20.98%.

GHope chairman Tan Sri Ahmad Sarji Abdul Hamid said the company wouldstrengthen its downstream activities and more funds would be allocated forR&D activities to produce more value-added products.

He said GHope would collaborate with Unimills of Netherlands in R&D toproduce enzymatic inter-esterification (rearrangement of enzymes) for newproducts and the application of red olein for margarine to replace the useof colouring.