Boast
December 13th, 2019
⏰ 1 minute read
⏰ 1 minute read
3%
This week something amazing happened. As you might know from our recent writings, we started a project 7 weeks ago to produce premium quality oil for our customers. Premium quality means low free fatty acid FFA. Well, this week for the first time in 5 years, we produced oil below 3% FFA. Here’s a boast. Only BWPT could do this in just 7 weeks. Here’s why.
Infrastructure
The first reason why is because we have great infrastructure. We have great roads in a perfectly designed network making it easy to get fresh fruit as quickly as possible to the mill for processing. I remember years ago when we were criticized for spending more on our new plantations at the beginning rather than later. Now you can see the benefits of that.
Location
The second reason is location. We have plantations with some of the best locations in Indonesia & most importantly, much of our area is contiguous, ie its in one place. That means we can put the mill right in the centre so it’s quickly accessible from all areas of the plantation. Again speed is key to producing quality oil. Our mills are also simple but great designs.
People
Third reason is the great people we have. As we have produced high quality oil in the past, they know exactly how to do what many people say is impossible. When we started this project in our first mill, all it took was one 20 minute conference call & our plantation & mill teams immediately got working on it together & you can see how quickly the results were achieved.
Premium
Oil below 5% is good & gets the Malaysian futures price or maybe slightly above. Oil below 3.5% is better quality, can be used to make branded consumer products & gets a higher price. Oil below 3% is considered even better quality & fetches double the premium price that the 3.5% oil gets. We have now started this low FFA project in our second mill.
Sebastian
This week something amazing happened. As you might know from our recent writings, we started a project 7 weeks ago to produce premium quality oil for our customers. Premium quality means low free fatty acid FFA. Well, this week for the first time in 5 years, we produced oil below 3% FFA. Here’s a boast. Only BWPT could do this in just 7 weeks. Here’s why.
Infrastructure
The first reason why is because we have great infrastructure. We have great roads in a perfectly designed network making it easy to get fresh fruit as quickly as possible to the mill for processing. I remember years ago when we were criticized for spending more on our new plantations at the beginning rather than later. Now you can see the benefits of that.
Location
The second reason is location. We have plantations with some of the best locations in Indonesia & most importantly, much of our area is contiguous, ie its in one place. That means we can put the mill right in the centre so it’s quickly accessible from all areas of the plantation. Again speed is key to producing quality oil. Our mills are also simple but great designs.
People
Third reason is the great people we have. As we have produced high quality oil in the past, they know exactly how to do what many people say is impossible. When we started this project in our first mill, all it took was one 20 minute conference call & our plantation & mill teams immediately got working on it together & you can see how quickly the results were achieved.
Premium
Oil below 5% is good & gets the Malaysian futures price or maybe slightly above. Oil below 3.5% is better quality, can be used to make branded consumer products & gets a higher price. Oil below 3% is considered even better quality & fetches double the premium price that the 3.5% oil gets. We have now started this low FFA project in our second mill.
Sebastian