Posted by gark > 2014-02-07 17:12 | Report Abuse

Madviruz,

Yes, you are right peat soil planting has improved over the years, but still it is inferior to riverine alluvial soil with the newer clones. Also riverine soils have better nutrient content hence uses less fertilizer,less earthworks and hence lower costs.

Overall due to the poor soil factor JT cannot hope to match new plantations with similar/superior clones and improved plantation methodology. A good examples are SOP and SP both which is in the bintulu/miri location, even with fully matured palms, and starting with good clones (planted in 2000's) the FFB yield and OER remains inferior to other plantations. JT on similar soil why is it expected do better?

FFA is not related to soil type but of equal importance for the profitability of the CPO sales. Integrated plantation with own palm oil mill and good transport network to refineries will generally produce low FFA <3% oils which is considered as premium CPO with higher than spot price. Higher price means better profit.

Those plantation deep inside jungle and without own mills and near refineries, can expect FFA of between 4%-8% which is inferior and sold at below spot price.

Not all plantations are the same.