It eyes high CPO demand in 2H17.
Golden Agri-Resources is stepping up its game to increase its productivity with its two clones of high-yielding oil palm planting material that is approved for use by Indonesia’s Ministry of Agriculture.
According to OCBC Investment Research, these planting materials are envisaged by the company to potentially increase yields to more than 10 tonnes of crude palm oil (CPO)/hectare/year at prime age under optimal weather and soil conditions, which is a contrast to Indonesia’s industry average yield of below four tonnes/hectare/year.
"Over the next five years, the group will cultivate a sufficient quantity to plant over a larger commercial area starting in 2022. This longer term development is particularly important, in view of their estates’ average age of ~16 years (including plasma), which is considered to be one of the oldest among plantation peers," the brokerage firm said.
It added, "Replanting activities with higher-yielding seeds are thus expected to remain a key focus to keep a favourable age profile and sustain production growth."
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