BUSINESS REVIEW Research and Development WHAT WE DO Our research and development (R&D) efforts are led by Applied Agricultural Resources Sdn Bhd (AAR). Meanwhile, our subsidiary, Boustead Life Sciences Research Sdn Bhd (BLSR), is playing a supportive role through its proficiency in Plant Tissue Culture technology for non-oil palm commercial products. AAR – With data being central to driving our plantation management, our R&D achievements have significantly enhanced resource optimisation and minimised environmental impact. R&D initiatives are spearheaded by AAR which has built a solid and trusted track record with more than 35 years of expertise in R&D and consultancy services. It advises over 230,000 ha of oil palm and rubber estates in Peninsular Malaysia, Sabah, Sarawak and Liberia. BLSR – In response to the rising global concerns about food insecurity, BLSR is venturing into the commercialisation of food crops cultivated with Plant Tissue Culture technology, a move that will also bolster the Group’s resilience and sustainability. BUSINESS ENVIRONMENT Cognisant of the need to secure business continuity and long-term economic stability, the Group prioritises the use of choice DxP seeds and tissue culture ramets to raise yields to their highest potential through the highly focused efforts of AAR in honing the benefits of advanced breeding and tissue culture methods. The higher oil-yielding palms derived from cultivation and deployment of DxP seeds and ramets resulted in a remarkable increase in oil production by up to 20% compared to traditional planting materials, positioning them as a highly lucrative commercial prospect. Sustaining good agricultural practices and making informed decisions rely significantly on our comprehensive database of agronomic data, geospatial maps and climate patterns derived from our estates. With geospatial data, AAR can analyse potential correction sites and pinpoint factors that are limiting or decreasing our yield. Microbial products that enhance fertiliser efficiency are part of AAR’s efforts in enhancing sustainable agriculture. To tap into opportunities in agriculture production diversification by leveraging our established facilities and expertise in tissue culture, BLSR has been concentrating its efforts on tissue culture production of non-oil palm commodities, particularly MD2 pineapples, bananas and ginger. As tissue culture is a cornerstone in modern agriculture technology, it enables rapid propagation of these plants under controlled conditions. BLSR is also exploring the potential commercial prospects of tissue-cultured planting materials for the MD2 pineapple, banana and ginger varieties, with the aim to equip farmers with superior planting materials that can enhance crop yields and quality. This strategic endeavour not only diversifies the Group’s offerings and enhances sustainability, it is aligned with the surging market demand for premium, disease-resistant crops. Integrated Report 2023 065
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