Operational Efficiency • Mechanisation 2.0 • Maintained use of Zip Zap battery-operated cutters for the harvesting of FFB • Closely monitored the Mechanical Assisted Infield Collection for crop evacuation • Digitalisation • Continued utilisation of drone technology for precise mapping of terrain and elevation across Peninsular Malaysia and Sabah Enhanced Productivity and Yield • 25-Year Replanting Programme (RP25) • Ongoing execution and oversight of the RP25 programme • Soil fertility enhancement • Utilised 187,912 MT of Empty Fruit Bunches (EFB) for mulching • OER optimisation • OER continued to exceed the Malaysian Palm Oil Board’s average national threshold • Young and prime potential yield improvement • Reduced the underperforming young and prime fields from 185 to 129 fields • Yield disparities in Peninsular Malaysia improved from 37% to 50%, while the Sabah region showed a slight decline in performance, from 62% to 55% • Good agricultural practices • Maintained and enhanced the soil structure in our challenging operating units • Improved accessibility by constructing new roads, repairing the existing roads and build harvester footpaths • Palm oil mill efficiency enhancement • Sustained oil and kernel recovery efficiency at or above 94%, demonstrating effective management of milling losses • Modernised operations by replacing outdated equipment for new, more efficient, and cost-effective machinery • Implemented automation systems to enhance operational efficiency and minimise expenses • Palm oil mill integration • Implemented a food safety initiative aimed at producing CPO with lower levels of Mineral Oil Saturated Hydrocarbons and Mineral Oil Aromatic Hydrocarbons • Installed a CPO Washing Plant at one of the palm oil mills BUSINESS ENVIRONMENT Malaysia’s CPO production navigated its share of challenges in 2023 to achieve a slight uptick of 0.5%, reaching 18.6 million metric tonne (MT) compared to 18.5 million MT in the previous year. The increase was primarily due to improved foreign worker supply, particularly for harvesting and FFB collection activities. The FFB yield in 2023 increased by 1.9%, reaching 15.8 MT per ha from 15.5 MT per ha in 2022. Simultaneously, the OER rose by 1.0% to 19.9%, up from 19.7% in the previous year. The year also saw CPO prices fluctuate as a result of numerous factors including the sudden rise of sunflower oil supply from Russia and Ukraine as well as uncertainties of weather pattern. In 2023, BPlant estates contributed to approximately 87% of the total FFB processed, with the remainder sourced from smallholders. BUSINESS PERFORMANCE REVIEW Strategic Priorities Key Initiatives Achievements BUSINESS REVIEW PLANTATION Boustead Plantations Berhad 062
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