AGRIBUSINESS | Staff Reporter, Singapore

Golden Agri braces for 16% decline in fruit bunch yields

As of September, production dipped 21.1%.

Golden Agri Resources may now be back on its feet after it swings back to a profit of $310m. However, its fresh fruit bunch (FFB) yields may see an overall decline for the whole year.

According to UOB KayHian, FFB production already dipped 21.1% to 5.74m tonnes in 9M16.

"We maintain our FFB production growth forecast of -16% yoy for 2016, which is in line with management’s guidance of a 15-20% yoy decline," the brokerage firm said.

More so, UOB noted how Golden Agri expects FFB production to come in stronger for the last quarter of the year, with 60% of the production ratio coming from 2H16.

"Meanwhile, we are expecting 2017-18 FFB production growth of 6.8% yoy and 9.2% yoy respectively as production is expected to recover as rainfall has been good in 1H16 and there has been no further stress on trees," UOB KayHian forecast.

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