Felcra announces profit distribution of RM44.95 million for 1Q18

BANTING: Felcra Bhd has announced a profit distribution totalling RM44.95 million for the first quarter of 2018 (1Q18) to 56,671 settlers nationwide, in conjunction with the Hari Raya Aidilfitri celebration this year, said Rural Development Minister, Rina Harun.

She said the amount was 29 per cent lower compared with the profit distribution of RM63.44 million last year, as crude palm oil (CPO) prices had declined by 20 per cent to RM2,455 per metric tonne (MT) for the January-April 2018 period from RM3,055/MT in the same period last year.

“The fall in CPO prices led to a 25 per cent year-on-year decline in the prices of fresh fruit bunches, which fell to RM456/ MT in January-April 2018 from RM613/ MT previously,” she said.

Speaking to reporters after a visit to Tabika Kemas Kampung Olak Lempit yesterday, she said overall, Felcra’s oil palm yield had increased to 4.91MT per hectare (MT/ha) from January to April 2018, compared with 4.68MT/ha in the corresponding period last year.

“The increase in yield was due to the plantation management’s efforts to improve its efficiency and manage production costs,” she said.

However, Rina noted that the growth in productivity could not offset the commodity’s falling prices in the global market.

“Felcra will continue its efforts to ensure that the plantations are well- managed, so that it will be profitable for the settlers, as well as to be able to repay the government’s loans on the development costs of the plantations,” she added. — Bernama