Commodity – Palm Oil

Palm oil fruits and its products (oil)

Palm Oil is an edible vegetable oil derived from the mesocarp (reddish pulp) of the fruit of the oil palms. Malaysia, as the second world’s largest of the palm oil producer, produced and exported about nearly 10 of millions of crude palm oil on roughly about few million hectares of land. This indicates a huge efforts and revenue gains from the industry as it is critical contribution to country’s economy growth.

There are 3 critical performance measurements that need to be focus when analysing the palm oil companies:

1. Operational Efficiency
   1. FFB (fresh fruit bunch) Yield per Mature Hectare
   2. OER (Oil Extraction Rate)
2. Average Age of Palm Trees
   1. Prime Production (8 – 15 years)
   2. Increasing yield trend (4 – 7 years)
   3. Immature Palm (
   4. Maturing (21 – 25 years)
   5. Too Old/Replanting (>25 years)
3. Future Expansion Plan
   1. Acquisition of lands (in hectares)