2009 - TDM Berhad

28 TDM Berhad (6265-P)Plantation Division126,63117,034123,67516,161275,881190,66145,606114,466205,34161,867PBTRevenueRM’00020052006200720082009The period under review saw a fresh fruit bunches (FFB) productionof 530,494 metric tonnes which was 10.8% below the 2008 level of595,002 metric tonnes. The decline in production was partly the resultof the cyclical biological stress, which affected our palms followingbumper crop produced in the previous year, compounded by the warmweather from the El Nino effect.The target for 2010 is to raise the production to 20.05 metric tonnesper hectare or a total of 651,100 metric tonnes, and steps havealready been introduced to achieve this with a structured replantingprogramme; introduction of new higher yielding OP clones; precisionagriculture using ICT; adoption of Code of Good Agricultural Practice(COGAP) to meet the objectives of the Roundtable on SustainablePalm Oil (RSPO), rejuvenating the palms with fertiliser, improving thecrop evacuation process and enhancing the capacities of the mills.Efforts are also being made to increase the extraction rate and qualityof crude palm oil and kernel by improving the process fl ow andoperations at our two palm oil mills in Sungai Tong and Kemaman,Terengganu.2009 was a challenging one for the Malaysian palm oil industry with theprice of Crude Palm Oil (CPO) averaging at RM2,237 per metric tonnecompared to the 2008 record of RM2,884 per metric tonne, againstthe backdrop of a week global economy, a shift by fund managersfrom commodities to equities market, increasing costs of labour andfertilisers, and the weakened US dollars which affected profi t leveldespite the strong income stream.However, with the global economy beginning to show the greenshoots of recovery, CPO prices are expected to trade in the range ofRM2,000 - RM2,600 per metric tonne in 2010, buoyed by a forecast ofhigher global vegetable oil consumption. This augurs well for the TDMprospect in the incoming years.