PETALING JAYA: FGV Holdings Bhd
(FGV) expects to achieve flat fresh fruit bunch (FFB) output for its financial year ending Dec 31, 2022 (FY22), before potentially growing between 10% and 15% in FY23.
CGS-CIMB Research said the resolving of worker shortage issue will aid to boost output in FY23.
The research house noted that as at end-October 2022, FGV has recruited 4,874 estate workers, lowering its worker shortage ratio to 28% from 38% as at end-August.
“FGV plans to bring in 10,000 foreign workers by end-FY22 and another 5,000 workers by FY23, which will rectify its worker shortage issue,” CGS-CIMB Research said in a report.
Owing to higher fertiliser prices and labour costs, FGV’s production cost of crude palm oil (CPO) grew by 39% year-on-year (y-o-y) to RM2,262 per tonne in the third quarter of its financial year 2022 (3Q22), while for the nine months ended Sept 30, production cost rose by 16% y-o-y to RM2,125 per tonne.
