{"id":6313,"date":"2020-10-12T14:51:10","date_gmt":"2020-10-12T06:51:10","guid":{"rendered":"https:\/\/newmalaysiatimes.com\/?p=6313"},"modified":"2020-10-12T14:51:14","modified_gmt":"2020-10-12T06:51:14","slug":"sime-darby-plantation-eyes-more-brownfield-estates-for-growth","status":"publish","type":"post","link":"https:\/\/newmalaysiatimes.com\/?p=6313","title":{"rendered":"Sime Darby Plantation eyes more brownfield estates for growth"},"content":{"rendered":"\n

KUALA LUMPUR, Oct 12 — Sime Darby Plantation (SDPL) is eyeing more brownfield estates for growth while focusing on boosting fresh fruit bunches (FFB) yields via research, development and innovation.<\/p>\n\n\n\n

Maybank IB Research in its note today said that the company\u2019s future earnings growth would also likely come from the expansion of its downstream capacity and capabilities.<\/p>\n\n\n\n

\u201cIts No Deforestation, No Peat, No Exploitation policy (NDPE)\u00a0commitment means SDPL may likely preclude greenfield developments going forward, given the increased scarcity of strategically located greenfield lands,\u201d it said, adding that the NDPE policy is also\u00a0extended to all suppliers within SDPL\u2019s supply chain.<\/p>\n\n\n\n

\"sime<\/figure><\/div>\n\n\n\n

The research house said Sime Darby is also working towards a fully traceable supply chain;\u00a0having achieved 95 percent\u00a0traceability to the mill level, and 47 percent traceability to plantations in 2019.<\/p>\n\n\n\n

SDPL is the world\u2019s largest producer of certified sustainable palm oil with a production of 2.49 million tonnes as of last year; having embarked on its sustainability journey 30 years ago with its zero-burning pledge.<\/p>\n\n\n\n

On plantation workers, Maybank IB said the industry had been saddled with labour shortages for years, subsequently losing income due to uncollected FFB.<\/p>\n\n\n\n

\u201cMalaysian planters are heavily reliant on foreign workers, including SDPL which has 24,646 migrant workers in 2019.<\/p>\n\n\n\n

\u201cRising minimum wage, calls for enhanced labour rights and rising costs associated with hiring foreign workers are adding to cost pressures,\u201d it said.<\/p>\n\n\n\n

Without higher crude palm oil price to match rising costs, Maybank IB said the industry needs to continuously innovate, mechanise and introduce higher yielding materials to keep unit costs low, otherwise inefficient planters would risk going out of business in the not too distant future.<\/p>\n\n\n\n

— BERNAMA<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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