CHIEF EXECUTIVE OFFICER’S STATEMENT We made further strides in our 25-Year Replanting Programme (RP25), designed to manage the age profile of our estates and enhance field infrastructure. Through RP25 we have replanted 5,400 ha of our estates to-date, with 21,200 ha of our oil palm trees at the prime age of 10 to 20 years old in 2023. We maintained the utilisation of Zip Zap battery-operated cutters for the harvesting of fresh fruit bunches, while closely monitoring the Mechanical Assisted Infield Collection for crop evacuation. Ongoing soil fertility enhancements also saw the utilisation of 187,912 MT of empty fruit bunches for mulching. Data-driven insights are integral to our plantation management. Led by Applied Agricultural Resources Sdn Bhd (AAR), our research and development initiatives continue to leverage advanced tissue culture methods to optimise our resources and minimise environmental impact. The resulting higher oil-yielding palms from cultivation and deployment of high-quality DxP seeds have seen oil production increase by up to 20%, compared with more traditional planting materials. In addition, we have identified four potential endophytic nitrogen-fixing (NF) bacteria capable of colonising oil palm tissues, which offer a higher nitrogen fixation rate compared to soil-borne NF bacteria. Results from nursery trials demonstrated a significant 25% reduction in the usage of inorganic fertilisers. Alongside this, our subsidiary, Boustead Life Sciences Research Sdn Bhd (BLSR), is venturing into commercialisation of planting materials via tissue culture technology of other crops such as banana, MD2 pineapple and ginger. During the year, BLSR also entered into an agreement with the Malaysian Agricultural Research and Development Institute on tissue culture research. We expect the efforts of AAR and BLSR to potentially enable new engines of growth for the long-term sustainability of the Group. Embracing the Fourth Industrial Revolution, we have harnessed artificial intelligence and advanced technologies to spur gains in yield and crop resilience. Drone technology has been instrumental in terrain and crop mapping, and we have adopted proactive measures against extreme weather, such as rainwater harvesting and efficient irrigation, fortifying us against unpredictable weather patterns. Although advancements in mechanisation and automation in harvesting will eventually allow us to reduce the involvement of foreign labour, the current reality is that sufficient labour supply is fundamental to the progress of the oil palm industry. To this end, the Group was able to increase our foreign labour force to 3,798 in 2023 from 2,777 in 2022, primarily due to Government initiatives and BPlant’s human resource programmes. We are pleased to report that our Malaysian workforce has expanded to 2,770 from 2,377 in 2022. BPlant steadfastly upholds stringent Environmental, Social and Governance (ESG) standards. Our commitment spans from reducing our carbon footprint and conserving biodiversity to nurturing the well-being of our workforce and their families, thereby contributing positively to the socio-economic fabric of our communities. Through rigorous adherence to international sustainability standards and proactive stakeholder engagements, we are not only enhancing our conservation efforts but also future-proofing our operations. Aerial view of Sungai Jernih Palm Oil Mill, Pahang Boustead Plantations Berhad 030
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