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KUMPULAN FIMA BERHAD
(11817-V) |
Annual Report
2016
The planting programme at the Group’s Ladang
Cendana estate in Kemaman, Terengganu is
proceeding well. As at 31 March 2016, approximately
489.09 hectares have been planted. The acute dry
weather had to some extent disrupted the estate’s
planting activities but we anticipate the planting will be
completed before the end of this current year.
Planting and development in recently acquired green
fields in Kelantan has also gained momentum. Site
clearing works on 249.82 hectares in Ladang Dabong,
Gua Musang, Kelantan together with the establishment
of oil palm nursery sites were completed during the year.
Site clearing and terracing works on the two other
estates in Kuala Krai, Kelantan measuring 404.68
hectares in total are ongoing and is expected to
be completed during this current year. Barring a
reoccurrence of extreme weather conditions, field
plantings at these properties are also expected to be
completed during this current year.
Good progress was also made in terms of infrastructure
developments such as roads and buildings, housing for
staff and workers, offices and storage facilities at each
of the Group’s estates.
Overall, the Group expects the continued upward trend
of the Group’s crops over the coming years given the
improving age profile resulting from the sizeable area
of new plantings and more areas moving into the
productive age. Palm oil prices weakened significantly
in 2015 but due to the El Niño effect since the second
half of 2015, prices have improved in the first quarter
of 2016.
The Board is of the view that palm oil, because of its
high yield and low cost of production, is well placed
to continue to benefit from increasing demand for
vegetable oil from a growing world population and the
outlook, therefore, remains positive.
Palm oil mill at PTNJL
Terracing at Phase 2, Ladang Cendana