Asian palm oil plantation
English Version. Bahasa Indonesia Version. The team at Asia palm oil magazine have done a wonderful job at providing a great level of insight about the palm oil industry worldwide. View More.
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These companies would have better credit profiles as a result. SDP is the world's largest palm oil company by planted area, which is mainly in Malaysia and Indonesia. A large chunk of its acreage in Malaysia is near urban areas, which can be sold to provide additional financial flexibility. This bolsters an already strong coverage and liquidity position. However, its business profile is weakened by a large share of old trees in Indonesia, which reduces the productivity of fresh fruit bunches, and higher production costs in Malaysia and Papua New Guinea.
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Palm oil production is important to the economy of Indonesia as the country is the world's biggest producer and consumer of the commodity, providing about half of the world's supply. Oil palm plantations stretch across 12 million hectares, and is projected to reach 13 million by There are several different types of plantations, including small, privately owned plantations, and larger, state- owned plantations. A recent publication by the ONG Rainforest Action Network RAN indicates that the use of palm oil by some of the biggest chocolate and snacks' producers is increasing this problem. In addition to servicing traditional markets, Indonesia is looking to put more effort into producing biodiesel.
Asian Agri has 30 oil palm plantations located in the provinces of Riau, Jambi and North Sumatra totaling , hectares. The company also partners Plasma scheme and independent smallholders who respectively manage 60, ha and more than 41, ha of estates. With the first estate dating back to more than 33 years ago, Asian Agri has developed an integrated strategy aimed at producing and processing palm oil products , by taking advantage of a wide range of natural conditions that make Indonesia one of the most ideal palm oil producing regions in the world.