Floods seen boosting earnings for plantation firms
Business Times
Thursday - December 27, 2007
by Ooi Tee Ching
The current floods are expected to bring in more earnings for plantation companies as the overall supply shortage keep prices buoyant.
In the January-November period, high prices pushed up Malaysian palm oil exports to RM39.89 billion. Palm oil futures on the Bursa Malaysia Derivatives Exchange have leapt past RM3,000 a tonne.
In Johor Baru, Kim Loong Resources Bhd said its estates had not been affected by the floods.
“There is hardly any crop loss. Our estates are not affected. The flood damage is in Muar, not so much here in Johor Baru,” its managing director Gooi Seong Heen said.
In
He added that IJM Plantations spent about RM2 million to RM3 million early this year to repair roads and bridges damaged by the floods.
“There was not much crop loss,” Tan said.
Oil palm trees are very hardy and can survive the yearly floods as long as they are not fully submerged in the water for days and weeks.
“While we have about 2,000-3,000 acres (810-1,215ha) of the oil palm in the flood plains, we don’t see it as a problem. As the trees grow taller by the year, they will be able to withstand the floods better,” he said.
The Meteorological Department has said that current strong northeasterly winds of 40-50 kmph, with waves as high as 3.5 metres in the waters off Kelantan, Terengganu, Pahang, east Johor, Sarawak, Labuan and west
Areas along the east coast of the peninsula and western
Among the areas still flooded in Johor are Kampung Sanglang and Kampung Kuala Paya in Buloh Kasap; Kampung Paya Dalam, Kampung Batu Badak and Kampung Alai in Jementah; and Kampung Pogoh 2, Kampung Bukit Senggir, Kampung Limau Manis, Kampung Chodan and Kampung Paya Besar in Kemelah.
