FORGING AHEAD - Tradewinds Plantation Berhad

Meanwhile, we remain alert to the
windows of opportunity coming our
way to expand our landbank reserves
through strategic acquisitions. As
previously reported, in October 2009,
the Group acquired a 70% stake in
Northern Intergrated Agriculture Sdn.
Bhd. (“NIA”), adding 2,612.99 acres
(the “NIA Land”) of landbank to its
reser ves. The NIA Land is also
strategically located within the vicinity
of the Group’s existing 11,404 hectares
of plantation land in Padang Terap,
Kedah acquired in March 2008. The
subsequent development of 5,670
hectares for rubber planting has given
the Group the distinction of owning one
of the largest commercially operated
rubber plantations in the country within
a single location.
The Group started out with oil palm as a
single plantation crop. This monoculture
planting strategy exposes the Group to
inherent risks, not only from the
environmental but also economic
perspectives. Even though the prices of
palm products have been generally
favourable, a conscious decision was
taken as early as in 2007 to diversify
the Group’s earnings base to mitigate
any volatility and adverse changes in
the palm oil industry. Our diversification
strategy would also expand the Group’s
earnings base by providing an
additional source of recurring revenue.
A brilliant blue-print for success would
come to nothing if it were not for the
people resources to translate it into
reality. In this regard, the Group has an
exceptional pool of human capital.
Drawn from diverse disciplines, our
people are young, knowledgeable and
highly motivated and have demonstrated
the entrepreneurial flair to translate a
plan into concrete results. By leveraging
on what we consider to be one of our
greatest assets, our people have
propelled the Group forward to where
it stands today – recognised by peers
and competitors alike as a major player
in the industry.
PERFORMANCE REVIEW
FORGING AHEAD
Under the Group’s Development
Programme for 2011; 6,018 hectares
have been earmarked for development
into oil palm plantations. This is
consistent with the Group’s strategy to
develop 5,000 to 6,000 hectares per
annum and at this rate, the phased
development of the remaining plantable
reserves of some 18,000 hectares
would be completed by the year 2014.
N o n e t h e l e s s , t h e d e v e l o p m e n t
programme will be reviewed from time
to time, taking into consideration the
market dynamics, resources and cash
flow of the Group.
The coming year will see the Group
pressing ahead with its replanting
programme, whereby trees over the
age of 25 years with declining FFB
yields are replanted. Under this
programme, 1,286 hectares of oil
palms in Johor and Sabah will be
replanted. The Group’s development
and replanting programmes are closely
inter-twined and are designed as far as
possible to achieve an optimum age
profile.
TRADEWINDS PLANTATION BERHAD
Annual Report 2010
41