Plantations

World’s third largest oil palm estate operator

FGV manages approximately 467,330 hectares of plantation estates primarily devoted to the cultivation of oil palms. A total of 347,584 hectares of this land is leased from FELDA under a long-term contract whilst 8,280 hectares comprise FELDA land in Sarawak, which is managed by FGV.

In Indonesia, FGV has invested in Trurich (a joint venture with Lembaga Tabung Haji) that owns 42,000 hectares of oil palm plantations in East and Central Kalimantan, Indonesia. We also own PT Citra Niaga, a company that owns 14,385 hectares of land in West Kalimantan, Indonesia, currently being developed into oil palm plantations.

The Group has recently acquired another 21,037 hectares of land in West Kalimantan via PT Temila Agro Abadi and PT Landak Bhakti Palma, which are both 95 percent owned by FGV.

FGV's Total Land under Management (424,995 Hectares)




Managed Land By FGV in Indonesia (Hectares)




Breakdown of Land Managed by FGV (424,995 Hectares)



Produce

FGV harvested a total of 4.91 million tonnes of Fresh Fruit Bunches (FFB) from the oil palm plantation estates in 2012. All FFB produced from FELDA-Leased and Managed Land is purchased by Felda Palm Industries Sdn Bhd, a subsidiary of Felda Holdings Bhd. In turn, Felda Palm Industries Sdn Bhd , will substantially sell to us all of the total Crude Palm Oil (CPO) that it produces.

In addition to oil palm, we also harvest cup lumps on 9,472 hectares out of 10,308 hectares of rubber plantations on the FELDA-Leased and Managed Land, all of which we sell to Felda Rubber Industries Sdn Bhd (F Rubber Industries), a subsidiary of FHB, as raw material for its production of rubber products.

Challenges and Strategies

FGV is now embarking on an aggressive replanting exercise to further improve productivity, in the long run.

Currently 50 percent of the oil palm trees in FGV’s plantations are above 18 years old. In the meantime, 30 percent comprise young and immature trees. Every year, a certain portion of this 30 percent or 70,000 hectares of FGV-owned plantations will mature and so gradually balance the age profile.

To enhance FFB yields in the long-term, FGV targets to aggressively replant about 15,000 hectares per year, for the next three to five years.

This enables FGV to replace the aging trees with better planting materials such as its award winning Yangambi, which produce an oil extraction rate (OER) of 24 percent and boasts a yield of 30 tonnes per hectare per year.

Up till December 2012, FGV had planted about 5,000 hectares at the Sahabat estates in Sabah with new planting material.