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INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2014
2015 OUTLOOK
The outlook for the palm oil industry is expected to remain
positive. Demand for palm oil has been resilient, supported by
competitive CPO prices against other vegetable oils. Emerging
economies such as Indonesia, India and China will bolster
consumption growth. The Indonesian government’s biodiesel
blending mandate is also likely to sustain domestic demand
growth for palm oil products.
The Division’s CPO production growth is well supported
by its younger estates. We will continue to expand our oil
palm acreage by achieving 5,000 to 10,000 hectares of new
plantings annually. To cope with higher FFB production, we are
progressively expanding our milling capacities by constructing
two new mills in South Sumatra and three in Kalimantan, of
which three will be completed by 2016.
The long
-
term outlook remains optimistic with healthy demand
coming from tyre makers, automotive industries and rubber
goods manufacturers in developing markets, especially China.
PLANTATION REVIEW
PALM & RUBBER
2010
2011
2012
2013
2014
2,564
2,797
2,973 2,895
3,259
FFB Production (Nuclues)
’000 tonnes
CPO Production
’000 tonnes
2010
2011
2012
2013
2014
740
880
838
810
956
CAGR 6.2%
CAGR 6.6%
