Olam Insights

    Delivering the Fruits of Labour

    Approximately 3,500 of our 31,500 planted hectares have now reached the three-year mark and are producing fresh fruit bunches or FFB. We are on track to complete Phase 1 development of 50,000 hectares by 2017.

    Note: The developed area in Awala represents 36% of total concession area with the balance 64% being conservation area. In Mouila, developed area represents 47% and conservation area 45% of total concession area.
    Planting schedule
    Hectares  Up till 2015 2016  2017 Total
    Awala 6,502 300 6,802
    Mouila 24,998 12,400 5,800 43,198
    Total 31,500 12,700 5,800 50,000

    Our first processing plant in Awala was commissioned in September 2015.  The oil extraction rate (OER) improved from 22.0% to 24.5% within the first year of harvesting mainly due to continuous training of harvesters and plantation staff and crop quality improvement. Loose fruit collection improved to 9% of the total FFB, which puts us on track to achieving an OER of 25%.
    Note: The developed area in Awala represents 36% of total concession area with the balance 64% being conservation area.  In Mouila, developed area represents 47% and conservation area 45% of total concession area.

    A second mill located in Mouila is due to start operations in January 2017.  Another two mills are currently planned for commissioning in 2020 when the entire 50,000 hectares of palm reach maturity.  We expect the plants to reach full capacity utilisation at a combined 887,900 metric tonnes of FFB per hectare by 2020, delivering a CPO yield of 5.2 metric tonnes per hectare or a total of 217,500 metric tonnes in CPO and 18,300 metric tonnes in palm kernel oil annually.

    Author

    Supramaniam R. Ramasamy President & Global Head, Palm and Rubber Plantations

    Supramaniam R. Ramasamy joined Olam International in September 2011 as Global Head of Plantation in Palm and Rubber based in Malaysia. He has 32 years’ experience in upstream and midstream businesses in palm, rubber and cocoa. He has also led large scale sustainable land development in Indonesia for 12 years. Prior to Olam, he had worked with Guthrie’s, Good Hope and Felda Global Ventures in Malaysia. Supramaniam holds a Bachelor of Science in Agriculture and a Master in Plantation Management from Agricultural University of Malaysia (UPM).

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