Syarikat Ladang LKPP Sdn Bhd (“Syarikat Ladang”) is a plantation company set up by Lembaga Kemajuan Perusahaan Pertanian Negeri Pahang (LKPP). The company’s main businesses are cultivation of oil palm trees and provision of oil palm estate management.
History And Business
Syarikat Ladang was incorporated in Malaysia on 4 September 1978 as a private limited company under the Companies Act 1965 and subsequently became a wholly-owned subsidiary of LKPP. Syarikat Ladang’s purpose then was to provide management and advisory services to the estates owned by other subsidiaries of LKPP.
As part of the stock exchange listing exercise, LKPP divested 65% of its interest in Syarikat Ladang to Astral Asia Berhad and retained the remaining 35%, which resulted in Syarikat Ladang becoming a subsidiary of Astral Asia Berhad.
Oil Palm Plantation
Syarikat Ladang’s plantations consist of four estates with a total hectrage of 4,019 hectares (9,930 acres). These estates are:
||Bukit Kuin Estate, Kuantan, Pahang
||- 758 hectares
||Bukit Kuin 2 Estate, Kuantan, Pahang
||- 226 hectares
||Kertau Estate, Triang, Pahang
||- 1,757 hectares
||Sungai Pejing Estate, Triang, Pahang
|| - 1,278 hectares
Other plantation estates under the management of Syarikat Ladang are as follows:
||Lot 10 (Awam) Estate, Kuantan
||- 758 hectares
||Kemayan Bera Estate , Temerloh
||- 344 hectares
||Pamah Lebar Estate, Raub
||- 325 hectares
Syarikat Ladang is managed by a team of qualified and experienced personnel in the field of oil palm. We have a successful track record in the management of oil palm estates.
Syarikat Ladang recognises the essential role of human resources in producing a stable workforce capable of improving the efficiency of our oil palm operations. We are committed to build on the significant advances that we have achieved in the oil palm business.
We adopt an unbureaucratic flexibility of a centrally co-ordinated communication system to ensure synergy of operations throughout the organisation. Each member of our management team is constantly aware of and is in a position to contribute to every aspect of the management of Syarikat Ladang’s business.
Prospects of Syarikat Ladang
The prospects and profitability of Syarikat Ladang would depend on the prices of crude palm oil and the fresh fruit bunches production. The future of the palm oil industry remains bright given the increase in demand for palm oil in the local and overseas markets.
Palm Oil Background and History
Palm oil’s traditional markets are the food and detergent industries. However, the Palm Oil Research Institute of Malaysia (“PORIM”) has been working to improve the quality of palm oil and increasing its yield through breeding and selection. Researches on cloning selected palms for vegetative propagation through tissue culture are also being undertaken. Market for by-products of palm oil have also been found by using oil palm fronds to produce pulp and paper, utilising emptied oil palm fruit bunches to manufacture roof tiles and producing moulded practical boards form oil palm trunks.
Palm oil is a rich source of Vitamin E which is essential for good health and vitality. PORIM has intensified its nutrition research on palm oil. A new refined and deodorized palm oil containing relatively high content of vitamins E and A (tocopherol and carotene respectively) has been manufactured. It will enhance palm oil as nutritious oil, with antithrombotic effect which prevents the formation of cholesterol deposits in the walls of the arteries.
PORIM supports many projects on a worldwide basis with the primary aim of providing greater scientific evidence on the beneficial and nutritional properties of oil palm. These research projects are being carried out by established and reputable universities/institutions in the US, Britain, Netherlands, India, Pakistan, Australia, Republic of Korea and also within Malaysia itself. Thus far, these research projects have proven yet again that palm oil is as versatile as it is safe and nutritious, and not something harmful as it has been unfairly made out by anti-tropical oils campaigns. Overall, the completion of these projects is expected to increase information on the nutritional properties of palm oil and enhance its consumer acceptance worldwide.
Accordingly, it can be said that there is still vast potential for the oil palm industry. The latest bio-diesel technology reflects the true picture of the future potential of oil palm products.
Concomitant with the rapid expansion in the production of palm oil in the last two decades, the Ministry of Primary Industries and the Palm Oil Registration and Licence Authority (“PORLA”) and PORIM in cooperation with the Malaysian Palm Oil Promotion Council (“MPOPC”), pursued actively in market promotion efforts for palm oil and palm oil products, focusing on both traditional and new markets. Such activities include market missions, advisory services on technical matters and involvements in international trade fairs and expositions. The emphasis is on encouraging greater usage of palm oil for different utilisations. The superior quality of Malaysian palm oil, produced under stringent quality control measures, is the primary reason for worldwide acceptance of Malaysian palm oil.
MPOPC, established in 1990 has initiated and coordinated well-planned programmes of market development, public relations and promotion as well as scientific and technical services which were geared towards effectively promoting the marketing of Malaysian palm oil. The main thrust of market development activities continues to focus on seeking new opportunities for the exports of palm oil as well as to consolidate and enhance the existing market.
(a) Nature of the Industry
There are quite a number of palm oil producers in this country. However, the industry is more concerned with existing competition among the leading palm oil producing nations and competition from substitutes.
Palm oil is competing against other oils and fats, such as soya bean oil, rapeseed oil, sunflower oil, coconut oil and butter. However, because of its versatility as well as competitiveness in pricing, due largely to large scale cultivation and high oil content of palm oil fruits, the demand for palm oil is expected to grow faster than other competing vegetables.
(b) Cyclicated or Stability of Revenue
Revenue in the palm oil industry is dependent on the prices of palm oil which are subject to wide price fluctuations. The price of palm oil is by and large determined by supply and demand in the commodities market. Demand for palm oil is expected to increase as the Malaysian Government is actively promoting downstream activities