MARKET DEVELOPMENT
FGV Expects Better Revenue In 2017, 2018 - Isa
FGV Expects Better Revenue In 2017, 2018 - Isa
17/01/2017 (Bernama) - Felda Global Ventures Holdings Bhd (FGV) expects its revenue in 2017 and 2018 to improve on the back of better crude palm oil prices coupled with first harvest from its replanting programme, its Chairman, Tan Sri Isa Abdul Samad said.
"The oil palm prices are looking good, while our oil palm replanting programme, which started in 2012 and 2013 involving 15,000 hectares a year, has already started harvesting," he told reporters after attending a community programme in Kampung Stoh, Lundu, 120 km northwest of here, today.
Isa said since its inception in 2012, FGV had never suffered any losses, but rather its profits were not big enough.
"This is because almost 80 per cent of our income derives from plantations, while the remaining 20 per cent from downstream activities.
"The commodity prices always fluctuate and we faced natural disasters like floods and El Nino last year which had affected our performance," he said.
Isa said the FGV Board would go through the group's revenue for the fourth quarter on Feb 22 before announcing the results.
On FGV's operations in Sarawak, he said it has two plantations -- about 7,000 hectares in Sampadi, Lundu and another 12,000 hectares in Miri.
Of the 7,000 hectares in Sampadi, he said 4,000 hectares were already planted with oil palm, while the remaining 3,000 were in the process of cultivation.
"Even if we cannot increase the acreage, if local smallholders were to sell their fresh fruit bunches to FGV, it will be a good opportunity for us.
"The palm oil mill in Sampadi has almost 200 local workers and gets its fresh fruit bunches from nearly 100 people on contracts," he said.
Commenting on the dispute over 1,000 hectares claimed by the local community in Sampadi, Isa said he was informed by Felda director of land of the solution that would be taken.
"Yesterday we deliberated on the matter, and its outcome will be brought up to the Felda Board. We (FGV) will accept whatever decision made by the board in the quest to solve the problem," he said.
"The oil palm prices are looking good, while our oil palm replanting programme, which started in 2012 and 2013 involving 15,000 hectares a year, has already started harvesting," he told reporters after attending a community programme in Kampung Stoh, Lundu, 120 km northwest of here, today.
Isa said since its inception in 2012, FGV had never suffered any losses, but rather its profits were not big enough.
"This is because almost 80 per cent of our income derives from plantations, while the remaining 20 per cent from downstream activities.
"The commodity prices always fluctuate and we faced natural disasters like floods and El Nino last year which had affected our performance," he said.
Isa said the FGV Board would go through the group's revenue for the fourth quarter on Feb 22 before announcing the results.
On FGV's operations in Sarawak, he said it has two plantations -- about 7,000 hectares in Sampadi, Lundu and another 12,000 hectares in Miri.
Of the 7,000 hectares in Sampadi, he said 4,000 hectares were already planted with oil palm, while the remaining 3,000 were in the process of cultivation.
"Even if we cannot increase the acreage, if local smallholders were to sell their fresh fruit bunches to FGV, it will be a good opportunity for us.
"The palm oil mill in Sampadi has almost 200 local workers and gets its fresh fruit bunches from nearly 100 people on contracts," he said.
Commenting on the dispute over 1,000 hectares claimed by the local community in Sampadi, Isa said he was informed by Felda director of land of the solution that would be taken.
"Yesterday we deliberated on the matter, and its outcome will be brought up to the Felda Board. We (FGV) will accept whatever decision made by the board in the quest to solve the problem," he said.