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Annual Report 2017
41
PLANTATION
DIVISION
Ladang Dabong, Kuala Krai, and Ladang
Aring, Gua Musang respectively. Planting
on the remaining areas at the estates has
been planned for this current financial
year.
Progress in obtaining the permission and
approvals for land development at our
greenfield estate in Sg. Siput, Perak have
been slow and are still pending to-date.
Barring any further delays, we expect to
receive the said approvals by the end of
this current financial year.
The Division’s prospects for this current
year will be largely influenced by CPO
prices and crop production. On a macro
level, it is anticipated that commodity
prices will remain unpredictable in this
current year on the expected recovery in
palm and soybean production, slowdown
in major markets like China as well as the
effects of extreme weather patterns.
Nonetheless, the Board is of the view that
this sector will continue to benefit from
the growing demand given that palm oil
is a significant and versatile raw material
pineapple segment revenue y-o-y
(RM’ million)
for both food and non-food industries,
and expect to see sustainable growth
over the long-term. In the medium term,
we forecast an upward trend in FFB
production as more young areas in the
Group’s greenfield estates attain maturity
and start to produce. Subject to palm
oil prices remaining at healthy levels,
growth in the Group’s FFB production is
expected to have a favourable impact on
the Group’s revenue in the coming years.
2.72
2.67
FYE2017
FYE2016