Cost of Cpo production jumped from Rm1600 to Rm2200 all due to 2 main factors
1. High cost of fertilizer 30% to 35% of production cost
Now Nitrogen fertilizer ( natural gas down by 80%) plus automation will also save on labour cost the cost of cpo production can then come down below Rm2000 and will translate into higher profits
We are talking about Gross Profit 80% more or less if Cpo is Rm3800 but if Cpo goes up to Rm4000 to Rm4200 then gross profit can rise to 100%
and from gross profit we have to deduct other expense like tax, Impairment and other cost and final cost which then give a final net net profit of 30% to 50% or more depending on more or less inefficient ones
Overall with new high level of Cpo price range of Rm3500 to Rm4200:upstream palm oil companies are doing very well
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
calvintaneng
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Blog: Reposted Article: OIL PALM STOCKS IN Bull Run Time: Those Prepared with Biggest Capacity Will Always Excel More Than Others, Calvin Tan
https://klse.i3investor.com/web/forum/forum-thread/600622097#google_vignette