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FIMA CORPORATION BERHAD
(21185-P) |
Annual Report
2016
PLANTATION (contd.)
ESTATE DEVELOPMENT
Ladang Cendana, Kemaman, Terengganu
The Group’s estate, Ladang Cendana in Kemaman, Terengganu, is approaching the tail-end of its planting
programme. As at 31 March 2016, approximately 489 hectares have been planted. The acute dry weather had
delayed the estate’s planting activities and the rate of planting will pick-up in this current year. As part of the
Group’s efforts to reduce its labour requirements, the infrastructure at Ladang Cendana is developed to facilitate
mechanized in-field FFB evacuation.
Ladang Dabong, Kuala Krai, Kelantan
Site clearing works on 250 hectares in Ladang Dabong and the establishment of oil palm nursery sites were
completed in FYE2016. Barring a reoccurrence of extreme weather conditions, field planting is expected to
commence during this current year.
Ladang Aring, Gua Musang, Kelantan
Site clearing and terracing works on this estate measuring 404.68 hectares is on-going and is expected to be
completed during this current year and thereafter, field planting will commence.
Ladang Sg. Siput, Perak
In the process of preparing for Environment Impact Assessment (EIA).
Good progress was also made in terms of infrastructure developments such as roads and buildings, including
housing for staff and workers, offices and storage facilities at the each of the Group’s estates.
Land Clearing
Road
Terracing
Main Drain
Field Drain
Chambering
Holing
Mucuna Bracteata Planting
Palm Planting
Completed
In progress
Not Started
Legend:
Ladang Cendana
Ladang
Dabong
Ladang
Aring 1
Ladang
Aring 2
Kemaman
Kuala Krai
Gua
Musang
Gua
Musang
Phase 1
380.38 ha
Phase 2
388.69 ha
250.00 ha 202.34 ha 202.34 ha
Land Preparation Status Of The Group’s Greenfield Estates
Ladang
Sg. Siput
Sg.
Siput
2,000 ha
Authorities Approval
FUTURE OUTLOOK
Palm oil prices fell sharply in 2015 and a marked improvement was seen in the first quarter of 2016, driven by
concerns on the effects of El Nino and overall reduction in the inventory stock levels. The Board is of the view that
the palm oil industry will continue to benefit from increasing demand for vegetable oil and the Division’s outlook,
therefore, remains positive.
The Board is also optimistic about the prospects of the Group’s FFB production uptrend in the coming years given
the sizeable area of new plantings and additional areas moving into the productive age. This will bode well for the
Group as CPO prices improve.
MANAGEMENT DISCUSSION
AND ANALYSIS
(contd.)