News & Views

July Production

Smile, be happy.


1. Weak July & the unhappy face
20161025 figure1July was a pretty terrible month for fruit production, only 62k tons.

 

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June Production

The optimist has patience, a long term view, sees the opportunity in every challenge & always wins in the end.


1. Patience
20160722 figure1EHP is a growth company, but our production growth has been negative for 18 of the last 22 months. That's 2 years of down. This will end soon & the patience will be rewarded.

 

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Palm Oil has a Sustainable Future

CEO

See Teck Ann, Deputy CEO of EHP, shares some insights on EHP’s vision for the sector.

As consumers of palm oil, the world’s most used cooking oil, benefit from a five-year low in crude palm oil (CPO) prices, is it a good for the industry? In our view the cyclical slowdown represents a great opportunity to build momentum, while keeping an eye on the medium term future.

 

Today the palm sector is emerging from a ‘perfect storm.’ This is a confluence of several challenges including bumper crops of sunflower seeds in Russia and Ukraine, a better than expected soya bean harvest in the USA, a milder El Nino effect than forecast and slowing economies in China and India. In short, there are many reasons behind reduced demand, excess vegetable oil inventory and soft prices.

 

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Lower Impact and Cost, Higher Yield

arti

Technology, relatively new to the Indonesian palm sector, is saving costs, reduce environmental impact and improve plantation yield. I.B. Astawa of EHP reports encouraging developments in organic composting of palm oil waste at the Bangkirai Mill in East Kalimantan. The project and has emerged from recent trials with great success. What’s the secret? In the past, palm oil mill effluent – or POME – being the equivalent of 60% of the weight of fresh fruit bunches (FFB), is applied to plantation soils alongside fertilizer and a mulch of processed empty fruit bunches (EFB). Under the new technology, known as aerated tunnel composting or ATC, 16 bunkers of 400 tons capacity each, are used in 35-day cycles to compost both the EFB and POME together.

 

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