RM40M FOR R&D
of RM210 million and net profit of RM65 million last year and was expected to record RM236 million revenue this year, said Sharifah.
She said among the R&D output that had been commercialised were planting materials like palm oil seeds, seedlings, clone trees, agronomic products and crop protection products.
FGV currently holds the largest market share for seeds with 43 per cent. It accounted for about 20.26 million seeds out of 50.14 million sold in Malaysia last year.
Sharifah said FGV also had the largest production capacity of 30 million seeds a year from its three production centres in Jerantut (Tun Razak Agricultural Services Centre — the biggest), Ulu Belitung (Johor) and Lahad Datu, Sabah.
This year, the group aims to produce 25 million seeds, (priced at RM2.35 per seed), 2.1 million seedlings and one million clones.
“Five million of these seeds are for the group while the balance are for local and global consumption.
“The domestic market still makes up more than 90 per cent of FGV’s seed sale and the rest is exported to countries including the Philippines, Thailand and Indonesia,” she said.
The demand for seeds and clone products relied on replanting activities, which was a continuous process and depended on weather conditions and the commodity (crude palm oil) price, said Sharifah, adding that FGV alone was replanting 15,000ha per year.
After years of research, the seeds progeny that had been commercialised by FGV include Yangambi ML161, Three-way and Yangambi GT-1, a ganoderma tolerant seeds, she said.
“Basically, consumers want more Three-way seeds, but there are limitations in production capacity, currently at two million a year due to unavailability of sufficient mother palm to generate numbers.
“Hence, the big chunk of sales was contributed by Yangambi ML161,” said Sharifah.
She said FGV R&D was also expected to come out with four to five products a year, including actual products and an advisory project, and was now working on drought tolerance planting materials and irrigation system on some FGV plantations.
FGV R&D will come up with the “Palm of your dream” trees for every planter — short plants, which could ease harvesting and allow longer yielding life span of more than 25 years, enabling more trees to be planted per hectare, as well as fruits with higher quantity and quality.
Normal plantation could have 136 trees per hectare, while for compact could have up to 148-160 per hectare.
Meanwhile, FGVAT CEO Azman Jamin said his outfit had commercialised a unit mechanisation product, namely harvesting machine “cantas”, in which 30 had been produced for FASSB and another 30 for the open market.
The company is also in the midst of fine tuning its mobile bunch catcher machine and expects to perfect it by year-end for FGV’s own use before offering it to the open market. Bernama
Through the product commercialisation, some of the FASSB profits will be ploughed back into R&D.
The RM6 billion Manjung 5 plant has achieved its initial operation date on May 2, where for the first time its generator was synchronised to the national grid.