MARCH-APRIL . 2024 | @ AGROBiz
Local Agro 05
Good response to Sime Darby ’ s fest
Bursa Malaysia Derivatives sets new high
SIME DARBY Plantation Berhad ( SDP ) made history by hosting the first-ever SDP Future Fest ‘ 24 on Feb 24-25 , 2024 , at Carey Island , Selangor . The event , attended by 1,806 participants , highlighted the palm oil industry ’ s remarkable transformation and innovative strides towards sustainability .
Attendees were immersed in lush oil palm greenery , where they witnessed the latest technological advancements such as flying drones , robotics , and scientific innovations , shaping the industry . The event also featured interactive workshops , seminars , and heritage tours , providing valuable insights into the history and cultural significance of the palm oil sector .
There were five main spaces : the Main Tent , EduPalm Field Demo , Edutainment Lounge , Michigan Technological University ( MTU ) and Robotics Workshop , and Heritage and Biodiversity Tour . The Main Tent housed most of the exhibitions and booths , focusing on sustainability and renewables .
SDP Chairman Tan Sri Dr Nik Norzrul Thani said the SDP Future Fest ‘ 24 was the first to display the most recent technological developments in oil palm plantation labour . “ Today , advanced machinery and technology have been implemented in our plantations . Some machines or technologies are still being tested before being commercialised .
“ Our dream is to build the ‘ Planta-
THE Ministry of Agriculture and Food Security ( KPKM ) has taken proactive measures to address the impact of the El Nino phenomenon on the agricultural and food sectors , mainly focusing on paddy ( rice sub-sector ) cultivation .
( El Nino is caused by increased sea surface temperatures and reduced rainfall in some areas . Prolonged drought can occur as a result , reducing water availability for agriculture in countries like Malaysia and Indonesia .)
The Deputy Minister of Agriculture and Food Security , Datuk Arthur Joseph Kurup , highlighted various agencies under the Ministry , such as the Muda Agricultural Development Authority ( MADA ), the Kemubu Agricultural Development Authority ( KADA ), and the Integrated Agricultural Development Area ( IADA ), were implementing these measures .
One of their key strategies was to ensure an adequate water supply in plantation areas by deploying backward and mobile pumps to farmers , constructing tube wells , repairing pump houses , increasing perimeter drains and deepening existing drainage systems .
Kurup mentioned : “ If the need arises , the ministry is prepared to carry out cloud seeding in collaboration with the Malaysian Meteorological Department and the National Disaster
Sime Darby Plantation Chairman Tan Sri Dr Nik Norzrul Thani Nik Hassan Thani .
tion of the Future ’. We believe that the changes we envision will not only elevate the oil palm plantation sector to excellence but also attract more locals to join the palm oil industry in our country ,” he explained .
A notable aspect of SDP Future Fest ‘ 24 was SDP ’ s strong commitment to sustainability . The company aims for a 50 per cent reduction in carbon intensity by 2030 and has set ambitious targets to eliminate deforestation from its supply chain . Investments in biogas plants , solar photovoltaic ( PV ) systems , and nature-based solutions were highlighted as part of SDP ’ s comprehensive sustainability strategy .
Through biogas , SDP hopes to transform trash into a helpful resource and drastically lower the carbon emissions linked to palm oil processing .
Cutting-edge technologies like drones for plantation management , autonomous robotic arms for fruit
Sime Darby Plantation Future Fest ‘ 24 .
assessment , and mechanised solutions for tasks such as fertilisation and herbicide application were showcased .
SDP ’ s vision for the future included reducing dependency on foreign labour ( by targeting 100 per cent local workforce within the sector by 2027 ), embracing automation , and partnering with institutions for research and development to drive industry-wide transformation .
SDP ’ s Chief Human Resources Officer Zulkifli Zainal Abidin said the decrease in foreign labour would require increasing the worker-to-area ratio from one worker per eight hectares to 17.5 hectares .
Overall , SDP ’ s ground-breaking SDP Future Fest ‘ 24 marked a pivotal moment in showcasing the palm oil industry ’ s innovation and commitment to sustainability- positioning it as a leader in shaping the industry ’ s future .
Malaysia prepared for El Nino phenomenon
Management Agency , Prime Minister ’ s Department to increase rainfall over water catchment areas for rice cultivation .”
This response was regarding inquiries during a parliamentary session . Kurup also explained that farmers facing reduced rice production due to unexpected weather changes can apply for cash assistance through the Rice Crop Disaster Fund ( TBTP ) by applying to the Agriculture Department in their district and State .
The assistance amounts to RM876 per hectare for crops aged 1- 70 days and RM1,800 for crops aged 71-120 days , with
Datuk Arthur Joseph Kurup at the Mega Agro MADANI sales programme in Sook , Sabah .
a maximum limit of three hectares per planting season .
( Applications must undergo verification by the Agriculture Department based on standard procedures before approval by the Ministry ’ s central committee ).
Furthermore , the Ministry introduced the Rice Crop Takaful Scheme on Apr 1,2024 . This scheme aims to compensate farmers affected by natural disasters and disease outbreaks . This pilot project is part of the ongoing efforts to support and protect farmers in the face of climate-related challenges in the agrofood sector .
PHOTO BY THE MALAYSIAN RESERVE
BURSA Malaysia Derivatives Berhad recently announced a significant milestone in the commodity market : its benchmark price-setting Crude Palm Oil Futures ( FCPO ) contract reached an all-time high in daily open interest .
This surge reached an unprecedented 299,190 contracts on Mar 14 , 2024 and marked a significant milestone reflecting the prevailing bullish sentiment in the crude palm oil market . This surpasses the previous 287,859 contracts set in 2014 . It aligned with an all-time high in combined open interest for all products , totalling 360,132 contracts , underscoring robust activity across the Exchange ’ s offerings .
Open interest is a pivotal metric that gauges market sentiment and trend momentum by tallying the total outstanding futures or options contracts at the end of a trading day . The consistent rise in FCPO open interest since mid-February 2024 mirrors increased market participation , bolstered by a positive outlook on Crude Palm Oil ( CPO ) prices .
This sentiment was further supported by insights shared at Bursa Malaysia ’ s 35th Palm & Lauric Oils Price Outlook Conference & Exhibition ( POC2024 ), highlighting the Exchange ’ s role as a pivotal platform for industry leaders .
On Mar 13 , 2024 , Malaysian FCPO witnessed a notable upswing , closing at RM4,195 , marking its highest level in over a year ( The benchmark thirdmonth contract saw a robust increase , closing at RM4,195 with a gain of RM66 ( 1.6 per cent ), marking its highest closing level since Mar 9 , 2023 .
This performance , influenced by rival solid edible oils and firmer crude oil prices , underscores the interconnected dynamics within the palm oil market , signalling opportunities for traders and investors alike .
Director of Bursa Malaysia Derivatives , Mohammad Saleem Kader Bakas , highlighted : “ As the landscape for the edible oil market evolves , our recordbreaking open interest underscores the value our clients place in Bursa Malaysia Derivatives ’ platform .
“ This surge , particularly in the FCPO market , amidst the dynamic shifts post-pandemic and geopolitical landscapes , demonstrates our market ’ s capability to adapt and serve as a critical hub for effective price risk management .
“ It reflects our market ’ s depth and liquidity and affirms Malaysia ’ s strategic position as the global trading hub for edible oils , aligning with our aim to cater to the complex needs of international participants in these changing times .”
Additionally , the recent introduction of the Bursa Malaysia DCE Soybean Oil Futures ( FSOY ) contract in collaboration with the Dalian Commodity Exchange ( DCE ) in China marked a strategic step towards diversifying the Exchange ’ s commodities portfolio . – @ AGROBiz