BW Plantation recorded a CPO production volume of 69 percent to 8,868 tons from 5,247 tons in January 2010. Increased production occurred because fresh food bunches increased by 68.9 percent to 22,917 tons from production last year of 38,708 tons.
Kelik Irwanto, the Secretary of BW Plantations, said fresh food bunches increased due to growth of planted land owned by the company. Out of the total planted lands of 52,060 hectare, producing planted lands increase to19,663 hectares from 15,270 hectares.
Kelik added that company took pains to increase productivity on planted lands, so that the CPO production growth target of 10 percent can be achieved. Besides that, harvest can be optimized during the dry season with better transportation system. “Last year, our production dropped by one percent due to harvesting in rainy season,” explained Kelik.
Astra Agro Lestari also recorded increased production of 92,116 tons in January 2011, up by 17.3 percent from January 2010, as much as 78,524 tons. Yarmanto, Investor Relation of Astra Agro, revealed that the increase was encouraged by rising production volume of fresh food bunches that went up by 10.9 percent from 300,724 ton to 333,582 tons. "Productivity of fresh food bunches increased from 1.41 percent per hectare to 1.51 percent per hectare," said Yarmanto.
Derom Bangun, Deputy Chair of the Indonesian Palm Oil Council, predicted that the export selling price of crude palm oil will reach US$ 900 per ton this year, from the average price in 2010 of US$ 840 per ton. Increasing global prices push rising export prices, while CPO production volume tends to be stagnant.
Other than increased demand, Derom said the increased CPO price in the exports market is the result of increased global crude oil price that encourages investors to switch demand to alternative energy raw materials including CPO. Brent-type global crude oil price currently touches at US$ 101 per barrel.
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