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Mahamad Rodzi Abdul Ghani




Mahamad Rodzi Abdul Ghani





Increase In OER Can Boost Annual Revenue To RM17 m
KUALA LUMPUR, June 13 (Bernama) -- An increase of one percent in the oilextraction rate (OER) could bring in an annual RM17 million revenue forKumpulan Guthrie Bhd (KGB), said its group chief executive officer, TanSri Abdul Khalid Ibrahim here Thursday.He said the amount was based on their current production of 300,000 metrictonnes of Crude Palm Oil (CPO) with an average price of RM1,100 to RM1,200per metric tonne.

The latest CPO is priced at RM1,460 per metric tonne.

"Each percentage has impact on the total revenue we are going to get.

Last year, the industry was moving at 18.5 percent OER," he told a mediaconference after the annual general meeting of KGB's subsidiary, GuthrieRopel Bhd, here Thursday.

He said KGB embarked on a Vision 2525 to be achieved in the next fiveyears that would be to produce 25 metric tonnes of oil palm per hectareand 25 percent OER.

Currently, Guthrie's owned plantations produce an average of 19 to 20metric tonnes per hectare and the OER is around average 20 percent.

Abdul Khalid said the Fresh Fruit Brunch (FFB) per hectare was around 20metric tonne per year while Indonesia produces around 22 to 23 metrictonne.

He explained that currently Malaysia produced around three to four metrictonne of palm oil per hectare and in order for the industry to becompetitive in future, the production rate must be between six and sevenmetric tonnes.

"In order to achieve six metric tonne per hectare, your extraction ratemust be 25 percent, your output per hectare must be around 25 metrictonnes per hectare. You must have this type of benchmark in order tobeinternationally competitive," he added.

Abdul Khalid said the group had achieved an increasing OER with 18.35percent in 1999, 18.44 percent in 2000, 19.60 percent last year and up toFebruary 2002 it was 20.51 percent.

The group is currently ranked third in the national OER ranking.

However, the group's 2,000 hectare plantation and palm oil mill in Sabahhas recorded 24.5 percent OER this year.

KGB also has developed 200,000 hectares of plantation in seven provincesin Indonesia stretching from Acheh to Sulawesi.

Abdul Khalid said Indonesia could achieve higher yield than Malaysiabecause of the favourable soil condition apart from having adequateplantation workers.

In order to achieve the 2525 vision, he said, the group will be lookingfor high yielding variety and new clones to go with their replantingschemes.

On the CPO prices, Abdul Khalid said in order for the price to staybetween RM1,400 to RM1,500, producers must not unnecessarily increasesupply.

He said this price range would be adequate for the growers. -- BERNAMA