04 Local Agro
@ AGROBiz | MARCH-APRIL . 2024
United Plantations starts 2024 on a positive note
UNITED Plantations Berhad ’ s reported a net profit increase of 18.54 per cent year-on-year to RM132.87 million for the first quarter ended March 31 , 2024 ( 1QFY2024 ). This was mainly due to a sharp drop in finance cost , slightly higher revenue , and higher crude palm oil ( CPO ) and palm kernel ( PK ) prices .
Revenue increased slightly by 3.64 per cent to RM476.75 million from RM459.99 million a year earlier due to increased revenues for the plantation and refinery segments .
The pre-tax profit of RM178.4 million for the latest quarter was 18.9 per cent
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higher than RM150 million a year ago , mainly due to higher contributions from the plantation segment .
The company said CPO prices recovered from a low of RM3,067 in early January to a high of RM4,197 in late March due to lower-than-expected production in Malaysia and Indonesia , resulting in lower stocks and a reduction in Brazil ’ s estimated soybean production .
Going forward , UP will be watching the impact of weather conditions on the total palm oil production of its Malaysian operations .
Another factor that will influence both the equity and commodity prices
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is the assessment of global economic growth for the remainder of 2024 , not least the speculation on possible interest rate cuts in the US and the development of the Chinese economy .
The group said that the escalation of geopolitical conflicts and their impact on global supply chains , which will affect business and consumer spending and ultimately determine demand for vegetable oils and fats , will also influence commodity prices .
“ Amid the global uncertainties and challenges , we continue to focus on our field operations by improving our yields , costs and productivity . This aim is pursued through ongoing mechanisation
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initiatives , and the replanting of older , less productive oil palm stands with our latest in-house produced superior planting materials .
“ These efforts are vital to our ability to remain competitive and profitable , as increasing labour costs , [ and costs of ] energy , fertilisers , chemicals and building materials , are expected to remain at high levels , thereby exerting upward pressure on our cost base ,” said UP .
The board of directors expects UP ’ s FY2024 results to be satisfactory , based on current palm oil prices and the company ’ s focus on securing the budgeted crop in the remainder of the year .
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CELL AgriTech Sdn Bhd ( Cell Agri- Tech ), Malaysia ’ s first cultivated meat company , recently collaborated with Taylor ’ s University through a Memorandum of Agreement ( MOA ) for an industry-academia research grant worth RM45,000 .
The goal was to support research and development in cultivated meat and seafood and inspire the next generation of scientists , technologists , and entrepreneurs . This collaboration began a journey towards a sustainable future , emphasising innovation , collaboration and a shared vision for a better world .
Cultivated meat , also known as cultured meat , is genuine animal meat ( including seafood and organ meats ) that is produced by cultivating animal cells directly .
The MOA , inked by Taylor ’ s University ’ s Vice-Chancellor and President , Professor Barry Winn and Cell AgriTech ’ s Director and Vice President , Jason Ng , ( witnessed by Taylor ’ s University Executive Dean Professor Neethiahnanthan ) solidified a synergistic alliance set to propel substantial advancements in research and development within the burgeoning cultivated meat industry .
Leading the research initiative is Taylor ’ s University School of Food Studies & Gastronomy Assoc Prof Dr Chong Li Choo . Under her guidance , the final-year project students from the Bachelor of Science ( Hons ) in Culinology programme will explore the acceptance of cultivated meat
Memorandum of Agreement ( MOA ) signing ceremony .
In support of cultivated meat
among Malaysians and innovate within the cultivated fish products domain .
The partnership includes initiatives like student-run restaurants , Taylor ’ s food innovation centre , and R & D activities at Cell AgriTech ’ s Centre of Excellence in Penang . The aim is to ignite a passion for sustainable innovation among students and encourage them to work towards a future where food contributes positively to the planet .
Cell AgriTech , in the convergence of culinary science and technology , aims to unlock new possibilities in food production and contribute to food and nutrition security on a global scale with this partnership .
FARM operators in Cameron Highlands anticipate scaling down production due to an expected shortage of foreign workers .
The government ' s move to cancel the unused foreign worker ’ s quota by March 31 , 2024 , raised concerns among operators as many labourers were returning home for Ramadan festivities .
Cameron Highlands Malay Farmers Association President Datuk Syed Abdul Rahman said : “ It will not be felt immediately , but the new condition ( cancel foreign worker quota ) will have an impact maybe starting May or June this year
New farming system in Keningau
ON Mar 6 , 2024 , Agriculture and Food Security Deputy Minister Datuk Arthur Joseph Kurup unveiled the Centralised Management of Farming System ( CMFS ) in Keningau , Sabah , with the Sabah Farmers ’ Organisation ( LPP ), Agriculture Chemicals Sdn Bhd ( a private company ) and Keningau Area Farmers ’ Organisation ( PPK ).
PPK Keningau Director ’ s Group Chairman Alexius Paulus , LPP Director Hadriyani Ahmad and 150 Magatang , Keningau region farmers were present . According to Kurup , Keningau is the first location in Sabah to use the system .
While the main focus is to help modernise rice cultivation practices , Kurup believes that the system introduces farmers to advanced farming techniques and efficient agronomy technology , aligning with the National Innovation for People ’ s
onwards .”
This manpower shortage could reduce vegetable production , impacting daily output and potentially necessitating vegetable imports to stabilise prices .
The Association has submitted an appeal for extending the foreign worker intake deadline to the Home Ministry with copies to the Transport Ministry and Immigration Department even as Home Minister Datuk Seri Saifuddin Nasution Ismail gears up for the Labour Recalibration Programme 2.0 . on the hiring of foreign workers by May 31 , 2024 . – @ AGROBiz
Datuk Arthur Joseph Kurup handing out the BKST2024 Phase 2 .
Agro-Food Security ( PINTAR ) to enhance productivity and sustainability in the agromo-food sector .
CMFS is expected to increase paddy production in the Magatang area significantly . The technology is anticipated to boost average paddy production from 2.5 metric tons per hectare to an impressive 4-5 metric tonnes per hectare , thus augmenting the farmers ’ overall income .
Kurup later distributed a Bantuan Khas Sumbangan Tunai ( BKST2024 ) to active farmers , with PPK Keningau receiving about RM630,000 for 1,050 recipients under their BKST Phase 2 .
He urged the PPK farmers to use their benefits as they are entitled to aid and subsidies , showcasing the Ministry ’ s support for collaborations with private entities to boost local food production .
Farmers fume over foreign worker shortage