CPO still offers good margins although at 5 year low

Based on the efficient planters

PETALING JAYA: Efficient oil palm plantation companies in Peninsular Malaysia can still reap good margins this year, even though crude palm oil (CPO) is currently trading at its five-year low of about RM2,027 per tonne, said Malaysian Estate Owners Association president Boon Weng Siew.

Based on the efficient planters’ average cost of production of between RM1,200 and RM1,300 per tonne, he is optimistic that oil palm plantation companies would be able to generate about RM727 to RM827 per tonne CPO as profit margins.