2 Year after Field Planting

AAR seedling growing fast in this fertile land.

Sime Darby Expects Demand For CSPO To Grow By 25 Per Cent

KLANG, May 28 (Bernama) - Sime Darby Bhd expects demand for certified sustainable palm oil (CSPO) to grow by at least 25 per cent as the European Union's food labelling rule approaches its 2015 deadline. Second Senior Vice President and Head, Global Trading and Marketing, Jasni Ahmad said the rule requires food manufacturers to specify the vegetable oil used in their food products.

El Nino may increase CPO prices by 10%-15%

KUALA LUMPUR: The expected onset of the El Nino weather phenomenon in June or July is expected to drive palm oil prices between 10% and 15% higher in Malaysia and Indonesia.

Phillip Futures Sdn Bhd Product Specialist David Ng said the El Nino would impact large palm oil producers, as it would drastically cut output hence reducing supply.

El Nino, a warming of the ocean surface that occurs in the period of six consecutive months, is expected to see some areas in the world experiencing heavy rainfall while others, prolonged drought.

He said if the phenomenon persisted until the first quarter of next year, global CPO prices may increase between 10% and 15% to hover around RM2,800-RM3,000 per tonne.

"Production-wise for Malaysia, we will face some difficulties, because I think output will decrease between 10% and 20% if the El Nino strikes with intense dry weather. "But, it will eventually increase prices globally due to low supply," he told Bernama.

Last year, export of palm oil products increased 4.5% to 25.70 million tonnes against an offtake of 24.59 million tonnes recorded in 2012.

Ng said although the increase in CPO prices was good news for industry players, concerns over exorbitant prices could prompt buyers to shift to cheaper substitutes such as soy oil or sunflower oil.

"Although palm oil is one of the cheapest edible oil in the market, demand was likely to be affected as spiralling prices could place the edible out of market reach, hence dampening demand," he added. – Bernama 

AAR Hybrida in Mongkos

The oil palm is a very precocious crop, which comes into maturity at 25 months or earlier from field planting, with peak yield realized at four or more years thereafter.

As early bearing and high yields in the field are mainly dependent on production of uniformly good and healthy seedlings from a nursery, it follows that good nursery management would be required to achieve the latter.

The production of superior oil palm planting materials is fully dependent on attention to details at all stages in the nursery management and this entails following closely, proven standards and procedures.

Oil palm has an economic productive life span of 20 years or more and any shortcomings in the planting material will have long term consequences on yield. As such, the grower must select and plant only the best in his field in order to maximize his yields.

Mr Tan highlighted that the dwarf-like AA Hybrida 1S has more, albeit smaller, fruit bunches. It also has higher oil yields. 

AAR sells these designer seeds at RM2.70 each, a premium to the price of the average Dolly Parton variant. 

At prime fruit-bearing age, AAR's semi-clonal seedlings, grown under good management and environment, are capable of producing more than 30 tonnes of fresh fruit bunches with over 23 per cent oil extraction rate. That works out to be about seven tonnes of oil per hectare in a year, almost two times higher than the country's average yield.

Borneo Samudera seedling about 6 years after field planting.

Borneo Samudera seedling planted in 2008, which is about 6 years after field planting.

Motorcycle for Smallholders

Cendawan Sawit

One day I was having dinner with a friend. Then he asked me to study  more on Cendawan Kelapa Sawit (Oil Palm Mushroom in Malay language).

Mushrooms are a favourite "sayur" or wild vegetables of the Ibans and other indigenous people of Sarawak. I  sure there is potential to commercialize this mew venture.