How the palm oil price can rise 35X
June 10, 2019
⏰ 1 minute read
⏰ 1 minute read
Greatness
Do you ever think to yourself, wow there’s just so much opportunity out there, so much more money to make, so much potential success available, so much room for share prices to rise? If you like a sense of optimism, how about this... what if I told you the price of palm oil could rise 35X, easily... would you believe me?
Shortage
You might think I’m taking about the now shortage of edible oil, the increasing reliance on palm on & the resulting extraordinarily high demand growth, which according to the latest Oil World is now running at 10% per year. Yes 10%! But no, as exciting as that is for you, it’s not what I’m talking about here.
Already
What I’m taking about already exists. You can buy palm oil today here in Jakarta for 70X the price we sell at & in the U.K. for 35X our selling price. I just did it. I bought 100ml of virgin red palm oil from Tokopedia for Rp48,000 that’s Rp480m a ton vs our price Rp6.5m. I just ate some for breakfast, it’s delicious.
Health
Virgin red palm oil is what you know as CPO. I used to bring exactly the same thing back from our mills & have it for breakfast. Red Palm is famous for huge amounts of Beta Karotene (which we use to make vitamin A) & vitamin E tocotrienol. It’s packed with energy & health benefits. Consumers love it. In the U.K. you can buy 3 471ml bottles for £17.27 that’s R226m a ton, 35X! (Note U.K. is 50% cheaper than Indonesia...)
BWPT No 1
Imagine we produced 1.8m tons of fruit this year (that’s our 12m average) & 414k tons of oil. At Rp226m/ton that’s Rp93.5 trillion of sales. With all in costs of about Rp4 trillion that’s a pre tax profit of Rp89.5 trillion. 10X valuation, we’d be worth Rp8,950 trillion or $625bn. We’d be bigger than the whole Indonesian stock market right now! Anything is possible...
Sebastian
Do you ever think to yourself, wow there’s just so much opportunity out there, so much more money to make, so much potential success available, so much room for share prices to rise? If you like a sense of optimism, how about this... what if I told you the price of palm oil could rise 35X, easily... would you believe me?
Shortage
You might think I’m taking about the now shortage of edible oil, the increasing reliance on palm on & the resulting extraordinarily high demand growth, which according to the latest Oil World is now running at 10% per year. Yes 10%! But no, as exciting as that is for you, it’s not what I’m talking about here.
Already
What I’m taking about already exists. You can buy palm oil today here in Jakarta for 70X the price we sell at & in the U.K. for 35X our selling price. I just did it. I bought 100ml of virgin red palm oil from Tokopedia for Rp48,000 that’s Rp480m a ton vs our price Rp6.5m. I just ate some for breakfast, it’s delicious.
Health
Virgin red palm oil is what you know as CPO. I used to bring exactly the same thing back from our mills & have it for breakfast. Red Palm is famous for huge amounts of Beta Karotene (which we use to make vitamin A) & vitamin E tocotrienol. It’s packed with energy & health benefits. Consumers love it. In the U.K. you can buy 3 471ml bottles for £17.27 that’s R226m a ton, 35X! (Note U.K. is 50% cheaper than Indonesia...)
BWPT No 1
Imagine we produced 1.8m tons of fruit this year (that’s our 12m average) & 414k tons of oil. At Rp226m/ton that’s Rp93.5 trillion of sales. With all in costs of about Rp4 trillion that’s a pre tax profit of Rp89.5 trillion. 10X valuation, we’d be worth Rp8,950 trillion or $625bn. We’d be bigger than the whole Indonesian stock market right now! Anything is possible...
Sebastian