KUALA LUMPUR (Nov 18): The increase in the price of oil palm fresh fruit bunch (FFB), which has reached RM1,000 per tonne, can to some extent reduce the losses of Felda settlers who are affected due to the lack of foreign labour to harvest their plantations.

National Felda Settlers chief Sulong Jamil Mohamed Shariff said Felda settlers are grateful to be able to increase their income for future savings when FFB production recovers with the help of foreign workers who are expected to return soon.

"Because the settlers are mostly in their 60s, they are not interested to use the money for the purpose of changing new cars and so on.

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"Instead, it is used to invest in Felda cooperatives, for example, or other investment agencies," he told Bernama.

Sulong Jamil said, on average, settlers can get 10-12 tonnes of FFB per month (RM1,000 per tonne) for mature trees and the net income that can be earned is RM7,000-RM9,000 per month.

"This is their chance to generate more income. In the past two years, the price of FFB had dropped to around RM300 per tonne," he said.

However, Sulong Jamil said the settlers are also grateful for the government's announcement to allow the return of foreign labour to harvest oil palm in their plantations.

Earlier, he reportedly said that 80,000 Felda settlers nationwide had to bear losses of RM264 million per month due to the lack of foreign labour.

"With their entry later, we can reduce our burden especially in terms of harvesting fruits.

"Of the 32,000 foreign workers who will be allowed to enter the country soon, about 15,000 will be brought into Felda," he said.

Oil palm fruit harvesting is done two times per month, between 15 and 20 days per round.

Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin recently said the government had decided to bring in 32,000 foreigners to work in the plantation sector.

This, she said, was due to the lack of locals to fill the vacancies in the field.

The matter was approved by the Cabinet with strict recruitment adherence to standard operating procedures set by the Ministry of Health.

Zuraida also said that palm oil sales were expected to increase by about 40% and it could generate a return of about RM20 billion to the country before the end of this year.

"The entry of foreign workers needs to be accelerated to increase the country's exports as commodity prices are now showing an increase despite the Covid-19 pandemic," she reportedly said.

Calvin comments:

From the above we can SEE two facts

1) Fresh Fruit Bunches (FFB) now command Rm1,000 a metric ton (Was only Rm300 not to long ago)

 The increase in the price of oil palm fresh fruit bunch (FFB), which has reached RM1,000 per tonne, can to some extent reduce the losses of Felda settlers who are affected due to the lack of foreign labour to harvest their plantations.

This 200% increase in prices more than compensate the lack of Fruit Harvesters

Even if production is reduced by 20% the 200% Price Rise Excels & Amplify Profits by a Big Margin

2) In this SUPER BOOM Time A Felda Settler can expect to generate an income of between Rm7,000 to Rm9,000 a month

With very low cost of living in Ulu Areas the Savings will be substantial. Can expect Rural Malaysia to boom while Urban Centre languishes

Sulong Jamil said, on average, settlers can get 10-12 tonnes of FFB per month (RM1,000 per tonne) for mature trees and the net income that can be earned is RM7,000-RM9,000 per month.

"This is their chance to generate more income. In the past two years, the price of FFB had dropped to around RM300 per tonne," he said.

If FFB prices can sustain for a more prolonged period of time then more youths will move out of urban cities to rural farmlands for better pay and overall income

This will cause a rise of lands prices in Rural States where Palm oil is cultivated

AND THE END RESULT IS

1) PALM OIL COMPANIES THAT OWN VAST LANDS IN RURAL ESTATES WILL SEE PRICES OF LAND RISING

2) AS RURAL FELDA INDIVIDUAL CAN EARN SO EXTRA - ORDINARY INCOME THEN PALM OIL COMPANIES SHOULD ALSO EARN EXTRA - ORDINARY INCOMES

THE END BENEFIT WILL FLOW DOWN TO SHARE HOLDERS OF PALM OIL STOCKS BY WAY OF HUGE CASH PAY OUT, SPECIAL DIVIDENDS AND EVEN BONUS ISSUES

Warm regards

Calvin Tan

Please buy or sell after doing your own due diigence or consult your remisier/fund manager