PANEL DISCUSSION Theme: RECIPE FOR THE FUTURE

Transcription

1 13th NATSEM Years of Oil Palm: Surging Forward PANEL DISCUSSION Theme: RECIPE FOR THE FUTURE Moderator: M.R. Chandran Dorsett Grand Subang, Subang Jaya, Selangor 18 th july 2017

2 2 The Rantau Panjang Avenue Palms from Henri Fauconnier s collection of seeds from Sumatra in

3 3 Avenue Palms At Rantau Panjang

4 4 Sumatran Deli Dura Oil Palm Not Out Planted in 1914 by Henri Fauconnier in Rantau Panjang, Selangor Like a Rolex watch it does not just tell time, it tells history

5 5 Henri Fauconnier THE PLANTER

6 6 Fauconnier at 78 His last visit to Malaya in 1957

7 7 Henri Fauconnier s Bungalow

8 8 MALAISIE - Published in 1931 Won the Prix Goncourt award for French literature Translated by Muhammad Haji Salleh

9 9 Paris Conference on Oil Palm: 1918

10 10 Trials on the cultivation of oil palms in the Far East Fauconnier s opening paragraph at the Paris conference in 1918: > The Oil Palm which is the greatest wealth of the west coast of Africa, has not been developed on an industrial basis over there. > This is mainly due to the fact that the local population would find it difficult to adapt to the hard work on plantations. > Cultivation on a big scale, be it tea, coffee, rubber etc, is only possible in countries with an abundant and readily suitable labour force, and the colonies in the Far East from India & Ceylon to the French Indochina, through the Dutch East Indies and Malay Peninsula are ideally suited. > The plantations founded with European capital have developed there in an extraordinary manner in just a few years. > One wonders whether such a result could also be achieved with the OP. > As palm oil and palm kernels are in ever increasing demand. Fauconnier s opening sentence

11 11 Tennamaram Estate Signboard

12 12 Fifth Generation Palms at Tennamaram Estate

13 13 Young Mature Palms in Harvesting

14 14 The Edge Weekly Dated 6 Mar 2017

15 15 OIL PALMS: A MALAYSIAN SUCCESS STORY

16 16 Snapshot of Malaysian Palm Oil Industry Key Listed Plantation Companies in Bursa Malaysia* Market Capitalization RM188.1b US$43.4b Unilever NV: Euro 146b (RM693.4b) Price Earnings Ratio 23.1x Price to Book Ratio 1.75x ROE 7.6 % Total Assets RM b (US$ 51.3b) Total Turnover RM b (US$ 31.5 b) Net Profits RM 8.2 b (US$ 1.9 b) Total Cash RM 16.8 b (US$ 3.9 b) Unilever NV 2016: Euro 5.5b (RM26.1b) Total Debt RM 58.8 b (US$13.6 b) Total Common / Share Equity RM b (US$ 24.7 b) Total Debt to Common Equity 0.55 X * As at 8 th May 2017

17 17 Malaysia: Palm Oil Export Revenue by Products Products (RMm) Yoy % Change Palm Oil 43, , % PKO 4, , % PKC % Oleochemicals 12, , % Biodiesel % Finished Products 2, , % Other Palm Products % Total 64, , % Source: MPOB

18 18 Malaysia: Projection Total Planted Area (m ha) Total Mature Area ( m ha) Yield per ha CPO Total CPO Production Note: Immature 13.5% $64 Question: Can we achieve an oil yield of 5.0 T/ha in 2025?

19 19 Palm Oil Supply, F (m mt) F Production Malaysia Indonesia Others Total Production growth (%) (6.7) 11.3 First contraction in prod since Av annual growth in PO = +2.2 Mn T. (4 major oils = +3.0 Mn T). Total supply deficit = 5.2 mil mt. Demand drivers: India & Indonesia.

20 20 Palm Oil Share of Total Consumption PALM OIL: Share of Total Consumption of 17 Oils & Fats in 2015/16 in % 55% 56% 56% 51% 39% 22% 14% Palm oil has become the by far most important vegetable oil for consumers in many countries, primarily in Asia Africa C. & S. America 0 EU -28 In d ia Pa ki st an C h in a Ot h. A s ia A fri ca C.& S.A m e rica

21 21 Malaysia: Flat FFB Yield (tonne/ha) 23 Malaysia: National FFB Yield LKY Vision: 35 : Malaysia FFB Yield By Region (tons/ha) chg (%) Pen. Msia Sabah Swak Malaysia Source: MPOB

22 22 Malaysia: Stagnant CPO Yield Malaysia: CPO Yield (tonne/ha) EC Malaysia OER By Region (%) chg (%) Pen. Msia Sabah Swak Malaysia Source: MPOB

23 23 Labour shortage costs FGV RM2m a day

24 24 13th NATSEM2017: 100 Years of Oil Palm: Surging Forward > THERE IS A SAYING THAT TO GET TO THE NEXT LEVEL WE NEED A REAR VIEW MIRROR BUT OUR EYES SHOULD NOT BE GLUED TO IT. > So, let us now discuss the recipes required to remain sustainable for the next 100 years!