Indofood Agri Resources Ltd - Annual Report 2014 - page 23

21 INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2014
Rubber prices (RSS3 SICOM) fell 30% in 2014 to average
at US$1,957 per tonne, in contrast to an average US$2,795
per tonne in 2013. This was due to higher rubber production
in Thailand and Indonesia, as well as weaker demand from
major rubber consuming markets, particularly China, the US
and Europe. Lower rubber prices have also affected rubber
sales and earnings at Lonsum, the subsidiary owning most
of our rubber estates.
The Plantation Division’s total revenue for 2014 grew 22% to
Rp10.3 trillion year-on- year, reflecting higher sales volume and
average selling price of palm products. Internal CPO sales to
the Edible Oils & Fats Division increased 35% to Rp5.1 trillion,
all at market prices, resulting in inter-segment sales growth. In
line with this, the Division reported stronger EBITDA earnings
in 2014.
2014 FFB production has increased by 16% to 4,372,000
tonnes on higher nucleus output and external purchases. As
a result, CPO production grew 18% to 956,000 tonnes during
the year. Oil extraction rates increased slightly to 22.4%
versus 22.1% in 2013.
Sheet rubber, crumb rubber and cup lump remain the
Division’s key rubber products. Growth in rubber production
during the year was relatively flat at 18,400 tonnes due to
holdbacks on land expansion and some replanting activities.
The Group exported 57% of its rubber, while the balance was
sold domestically.
Oil Palm Plantation
Age Profile
246,055 Ha 153,921 Ha 92,135 Ha
24%
46%
6%
24% 29%
17%
5%
8%
35%
64%
31%
Group SIMP Lonsum
> 20 years 7-20 years 4-6 years Immature
11%
CPO vs Soy Oil Price
US$/tonne
Soy Oil Premium Over CPO
CPO (CIF Rotterdam)
Soy Oil (CIF Rotterdam)
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
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