One of the reasons why we are different when compared to the other plantation companies is the LLA (land lease agreement) commitment. The other one is the opportunity to implement mechanisation, because the LLA land is about 351,000ha, [and] only about 48% is considered flattish. With the new Roundtable on Sustainable Palm Oil (RSPO) standards with regards to, let’s say, new planting, we have even less hectarage that we can plant because under the new rules, any gradient which is more than 25°, we cannot plant oil palm. The government wants to plant oil palm, but the weather conditions there are not suitable because it is dry. One, we will buy “peneroka” fruits regardless of their location and pay them good pricing following MPOB (Malaysian Palm Oil Board) guidelines.

Source: The Edge Markets August 13, 2020 07:07 UTC