Boustead Plantations' RM115m plan for replanting


Boustead Plantations Bhd is allocating RM115mil as capital and replanting expenditure for 2021 to strengthen its long-term prospect.

KUALA LUMPUR: Boustead Plantations Bhd is allocating RM115mil as capital and replanting expenditure for 2021 to strengthen its long-term prospects, chief executive officer Ibrahim Majid said.

He said the allocation will go towards replanting approximately 2,600 hectares of land and for the upkeep of immature areas, as well as for the installation of four additional units of the dust particulate trapping system and in palm oil mills.

"This is being carried out progressively and is on track to be completed by end-2021, in line with the Department of Environment’s Environment Quality (Clean Air) Regulation 2014,” he said in the company’s annual report shared with Bursa Malaysia.

Ibrahim noted that without a doubt, the year ahead will bring fair its share of challenges to the company but what is important is that the company stand firm and sustain the momentum it has built to propel towards realising the group’s aspirations for sustainable long-term growth, in strong alignment with the Reinventing Boustead strategy.

He said the volatile environment brought about by COVID-19 is expected to persist despite positive developments with the commencement of the national vaccination programme.

Albeit these disruptions, crude palm oil (CPO) prices have remained on an uptrend, picking up in early-2021 to cross the RM4,000 per tonne threshold, their highest level since March 2008, an indicative of the less than expected production and dwindling stocks.

Poor weather conditions in Southeast Asia from late-2020 into the early part of 2021 have significantly impacted production, leading to the low supply.

"Although CPO prices are being shored up by tight palm oil inventories currently, palm oil production is expected to see a recovery by 4.4 million tonnes in the year ahead, which will have a moderating effect on prices should this materialise.

"We are also mindful of India’s price sensitivities and growing oilseed crops, and China’s increasing soybean imports which may hamper demand for palm oil. Nonetheless, challenges such as labour shortages due to border closure,” he added. - Bernama
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

   

Next In Business News

Moody’s: Sustainable bonds issuance to top US$850bil
Public Mutual declares gross distributions of RM235m for 13 funds
Central banks go big on gold buying
Earnings bounce, bond-yield drop help keep party going for US stocks
Bitcoin rallies past key $40,000
PBOC: China will maintain prudent, flexible monetary policy
Bank Rakyat launches entrepreneur programme
CPO futures seen trading with upward bias next week
As scrutiny mounts, crypto exchange Binance to wind down derivatives in Europe
Oil price climbs, notches fourth monthly gain on growing demand

Stories You'll Enjoy


Vouchers