Going forward bplant may suffer because malaysia lost the EU market for cpo bio diesel export. Eu banned importation of cpo and it's one single huge export market that is irreplaceable.
Secondly, India also increased cpo import tariff levy from 30% to latest 44% will basically killing cpo exporters and planters. The increased tariff was designed to ward off importation of cpo. Fyi, India is the largest cpo consumer in the world.
When demand for Malaysia's cpo export has been reduced from these 2 single largest export markets, most planters rather sold off their lands and diversify into other business. That is also why Bplant decided to dispose its own plantation lands in stages.
This year onward cpo price will be softer so does earnings of planters.
Stock: [BPLANT]: BOUSTEAD PLANTATIONS BHD
2018-03-07 15:18 | Report Abuse
Going forward bplant may suffer because malaysia lost the EU market for cpo bio diesel export. Eu banned importation of cpo and it's one single huge export market that is irreplaceable.
Secondly, India also increased cpo import tariff levy from 30% to latest 44% will basically killing cpo exporters and planters. The increased tariff was designed to ward off importation of cpo. Fyi, India is the largest cpo consumer in the world.
When demand for Malaysia's cpo export has been reduced from these 2 single largest export markets, most planters rather sold off their lands and diversify into other business. That is also why Bplant decided to dispose its own plantation lands in stages.
This year onward cpo price will be softer so does earnings of planters.
https://themalaysianreserve.com/2018/03/07/msia-to-appeal-to-india-on-palm-oil-import-tax-hike/
https://www.nst.com.my/business/2018/03/341297/no-free-trade-agreement-if-eu-bans-palm-oil-mah
http://www.theedgemarkets.com/article/ram-sees-softer-cpo-prices-2018-production-outstrips-demand