25 June 2016: PepsiCo "engaging" with Indofood on child labour accusations, Liberia communities MOU with GVL

Indofood pushes Indomie as global halal noodle brand by WATARU SUZUKI and SINAN TAVSAN, Nikkei staff writers June 19, 2016 http://asia.nikkei.com/Business/AC/Indofood-pushes-Indomie-as-global-halal-noodle-brand

PepsiCo "engaging" with Indofood on child labour accusations By Katy Askew | 20 June 2016 http://www.just-food.com/news/pepsico-engaging-with-indofood-on-child-labour-accusations_id133586.aspx

PepsiCo products in Indonesia tainted with worker abuses, report finds 23 June 2016 / Daniel Pye -- A new investigation into the palm oil plantations of Indofood, the sole maker of PepsiCo products in the Southeast Asian country, reveal child labor, exposure to hazardous chemicals, below minimum-wage payments and more.  https://news.mongabay.com/2016/06/pepsico-products-tainted-with-worker-abuses-in-indonesia-report-finds/

Liberia’s Du-Wolee & Nyennue Communities Sign Oil Palm MOU with GVL -- Monrovia-More than 300 Citizens of Du-Wolee and  Nyennue communities, including  youth, elders, women's groups, district and county authority representatives welcomed agreement being reached for Golden Veroleum Liberia's (GVL)oil palm operations to come to the area after more than 3 years of negotiation. http://frontpageafricaonline.com/index.php/county-news/1123-liberia-s-du-wolee-nyennue-communities-sign-oil-palm-mou-with-gvl

LOCALS SIGN OIL PALM DEAL WITH GVL  21 June 2016 http://www.thenewdawnliberia.com/news/10688-locals-sign-oil-palm-deal-with-gvl

25 April 2016: Astra Agro rights issue and the deflation-debt context, MP Evans strategy, Indonesia debt outlook 

Editor's note: A bigger corporate news update pending
Astra Agro launches rights issue to cut dollar debts by Anton HermansyahAnton Hermansyah April 12 2016 http://www.thejakartapost.com/news/2016/04/12/astra-agro-launches-rights-issue-to-cut-dollar-debts.html

As profits retreat, Astra Agro halts dividends by Anton HermansyahAnton Hermansyah April 11 2016 http://www.thejakartapost.com/news/2016/04/11/as-profits-retreat-astra-agro-halts-dividends.html

Bloomberg - palm oil's debt and deflation context

• Palm Oil's Bad Rap Gets Worse By Andy Mukherjee and David Fickling. Mar 2, 2016 ... Palm oil, that ubiquitous liquid found in everything from shampoo and soap to lipstick, noodles and bread, is hoping for bad weather. But a supply squeeze alone won't be enough to deliver it from the twin problems of debt and deflation. ... Following a downgrade by Standard & Poor's last week, Moody's on Tuesday cut its rating on Malaysian planter Sime Darby by one notch, and warned of further action if the company fails to deleverage. Sime Darby, which is still struggling to digest its 2014 debt-financed acquisition of a palm-oil cultivator in Papua New Guinea, saw operating income from plantations dwindle to $34 million last quarter, a fraction of what the business used to make before the global commodities rout....Sime Darby is hardly alone. Palm-oil profits have collapsed amid heightened global scrutiny of the industry's environmental impact. Indonesia's Astra Agro Lestari now earns a return on capital of a little more than 5 percent, compared with almost 30 percent in 2012. Malaysian planter and refiner IOI Corp. has net debt that's more than three times Ebitda, according to data compiled by Bloomberg. A significant amount of its borrowings are denominated in U.S. dollars and S&P says liabilities will rise further this year as IOI acquires capacity in Europe to turn palm oil into ingredients used in food, cosmetics and personal care..... Bad weather can at best be a short-term palliative for palm oil, but believing it can also be a cure for lackluster demand, price deflation and elevated debt is wishful thinking.... http://www.bloomberg.com/gadfly/articles/2016-03-02/palm-oil-s-bad-rap-gets-worse
• IOI Oleochemicals Buys Oleochemical Operations of German Firm  21/09/2015, Corporate Communications ... IOI Oleochemical Industries Berhad (“IOI Oleo”) is pleased to announce that its indirect wholly-owned subsidiary, Alstersee 217. V V GmbH (to be renamed as IOI Oleo GmbH in the future) has reached a conditional asset purchase agreement with Cremer Oleo GmbH & Co KG to acquire Cremer Oleo’s entire oleochemicals manufacturing business in Germany for €89.4 million or RM433.3 million on 9 September 2015.... https://www.ioigroup.com/Content/NEWS/NewsroomDetails?intNewsID=740

Recently Convicted Bank Swindler Commits Suicide - A banker in Medan, North Sumatra who was recently convicted of banking crimes was found dead in his home on Wednesday (20/04) just a day before he was scheduled to be transferred to prison. By : Arnold H Sianturi | on April 21, 2016...  Darul, the former marketing business group head of the Medan branch of Bank BNI, was found guilty of costing the bank Rp 129 billion ($10 million) when he approved a loan filed by a palm oil businessman using fake collateral. The businessman, Boy Hermansyah, disappeared with the money. Boy is now on the run from police.... http://jakartaglobe.beritasatu.com/news/recently-convicted-bank-swindler-commits-suicide/

Indonesia's Warped Debt Mirror By Andy Mukherjee Apr 18, 2016.. .Creditors are receiving ugly haircuts in Indonesia's debt salon.Now that the nation's China-fueled commodity boom has gone bust, Indonesia's legal system is busy running a sharp razor across what was once a luxuriant crop of collateral: Standard Chartered's claim on a $1 billion loan to mining tycoon Samin Tan was recently thrown out by a local court on the grounds that a foreign advance against a coal mine -- a national asset -- was illegal. AVERAGE ONE-YEAR DEFAULT RISK OF JUNK-RATED COMPANIES IN INDONESIA0.87%.... But as bad as the reflection in the mirror may be, leading to spurious comparisons with the aftermath of the 1997 Asian crisis, the present situation is very different in one key respect: The nation's currency isn't in free fall. That's provided a cushion to share prices and ensured the default risk of Indonesia's publicly traded companies is receding faster than counterparts in several other emerging markets... The risk that these Indonesian firms won't be able to meet their obligations is also down by about a third from the highest point this year. Few other large emerging markets have seen such a steep improvement in credit quality.... Things could take a turn for the worse if the Federal Reserve presses on with interest-rate increases, putting the rupiah under renewed pressure and making it difficult for Indonesian borrowers to refinance their dollar-denominated debt.Corporate stress could also intensify if coal prices remain subdued, a nascent recovery in palm-oil prices proves short-lived, or President Joko Widodo's much-vaunted infrastructure push proves a dud. Among large Indonesian debtors, highway operator's Jasa Marga's creditworthiness has worsened this year, Bloomberg data show....For now, though, the rewards from monetary easing outweigh the risks. Bank Indonesia cut interest rates every month in the first quarter of this year. The central bank will adopt a new policy-rate benchmark in August, effectively pruning borrowing costs by as much as 100 basis points, according to Natixis. http://www.bloomberg.com/gadfly/articles/2016-04-18/indonesia-s-warped-debt-mirror

Top Southeast Asian Bond House Sees `Robust' Deal Pipeline by Chanyaporn Chanjaroen  Pooi Koon Chong  April 15, 2016... Malayan Banking Bhd., Malaysia’s top lender, is anticipating bond sales driven by big Southeast Asian infrastructure projects to offset a downturn in fees from sluggish regional equity markets.... The biggest deal Maybank handled this year was a 2.2 billion ringgit ($565 billion) perpetual sukuk for palm-oil producer Sime Darby Bhd., for which the bank is the sole principal adviser, lead arranger and manager, it said in a March 24 statement. Islamic bonds, or sukuk, are debt instruments that comply with Shariah law, which prohibits the payment of interest.... http://www.bloomberg.com/news/articles/2016-04-15/top-southeast-asian-bond-house-sees-deals-offsetting-equity-drop

29 Mar 2016: Zakaria Arshad appointed new CEO of FGV 

15 Mar 2016:  FGV now says it is deliberating on change of CEO, one of two China deals held up?

Editor's note: Last major news review was done 22 Feb 2016. 

FGV now says it is deliberating on change of CEO By Meena Lakshana / theedgemarkets.com   | March 14, 2016 KUALA LUMPUR (March 14): In an about turn, Felda Global Ventures Holdings Bhd (FGV) said it is now deliberating on the change of its chief executive officer (CEO), which is currently held by Datuk Mohd Emir Mavani Abdullah. "The board of FGV will deliberate on the appointment/change of FGV CEO and will make the requisite announcement immediately upon the receipt of the nomination letter from the relevant authority," it said in a filing with Bursa Malaysia today. FGV had on Friday issued a statement, saying Emir will continue to serve as its CEO and president, after local media reported that he may be replaced next month.....In a separate filing with Bursa, FGV said the terms and conditions of its two sale and purchase agreements (SPA 1 and SPA 2) regarding the proposed acquisition of a 55% stake in Zhong Ling Nutril-Oil Holdings Ltd for RM976.25 million were made at "arm's length and in the ordinary course of commercial negotiations"... FGV noted that however, the application to one of the regulators was cancelled pending more information on the investment from the group. "To date, no subsequent application has been submitted to the said regulator," it said. http://www.theedgemarkets.com/en/node/265325?google_editors_picks=true


RM618,000 to defend 1MDB and Red-Shirt rally, says Salleh BY MARTIN CARVALHO, LOSHANA K SHAGAR, NICHOLAS CHENG, andD. KANYAKUMARI; THE Government spent RM618,000 to print books to defend criticisms against 1Malaysia Development Bhd (1MDB) and the Red-Shirt rally. Communications and Multimedia Minister Datuk Dr Salleh Said Keruak, in a written reply to Teo Kok Seong (DAP-Rasah), said the books were published to “present facts” in light of the highly-politicised climate surrounding both the state sovereign fund and the racially-charged gathering. A total of RM606,250 was used to print 125,000 copies of 1MDB: Siapa Kata Tidak Dijawab in Malay (100,000 copies), Tamil (15,000) and English (10,000), he added. Dr Salleh Said said the Department of Special Affairs also printed 2,000 Red-Shirt Rally books costing RM12,000.http://www.thestar.com.my/news/nation/2016/03/15/rm618000-to-defend-1mdb-and-redshirt-rally-says-salleh/
Note: Felda settlers were reported to be significant participants in the Red Shirt Rally. Journalists also reported that many rally goers were bussed in and were not aware of the purpose of their trip to KL.

Alert form a reader: An FGV mill has been suspended by the RSPO based on the WSJ and subsequent NGO complaints on alleged migrant labour issues - 7th March 2016 - RSPO Complaints Panel reviewed the independent assessment reports and decided to suspend Pasoh palm oil mill owned by Felda until full clearence is given based on the re-audits: http://www.rspo.org/members/complaints/status-of-complaints/view/85

22 Feb 2016: CIMB on Wilmar results briefing - concerns over its unwinding of carry trade proved unfounded, Indonesia biodiesel benefits its tropical oils division, Wilmar and First Resources are key beneficiaries in biodiesel. IOI downstream EBIT drops - AmBank.

Editor's note: Please review CIMB and AmBank reports. Addition of plantation subsidy sham article 14 Feb.

Subsidy sham: Fertilizers reach Indonesia plantations, not small farmers by SUKOHARJO/JAKARTA, INDONESIA | BY RANDY FABI AND BERNADETTE CHRISTINA MUNTHE Feb 14, 2016; Millions of dollars worth of subsidized fertilizers meant for small Indonesian farmers are being sold to big plantations, such as palm oil and rubber, at huge profits by state-backed retailers, a government report viewed by Reuters shows.... According to the yet-to-be-published government report, parts of which were seen by Reuters, as much as 30 percent of subsidized fertilizers were misallocated in some areas of Indonesia last year. Investigators with the ombudsman found subsidized fertilizer being sold at as high as 2,500 rupiah ($0.1854) per kg in 2015, around 40 percent above the state-set price but below the non-subsidized 4,200 rupiah that plantations must pay....  "The kiosks are selling fertilizer to plantations and not to the small farmers," said an investigator, who declined to be named as the report, based on data from five key rice-growing districts on three different islands, had not been finalised.... http://www.reuters.com/article/us-indonesia-fertilizers-idUSKCN0VN127 


Wilmar International CIMB 21 Feb 2016: Key takeaways from results briefing
The key takeaways from Wilmar’s results briefing are: (1) concerns over its unwinding of carry trade proved unfounded; (2) rice and flour businesses in China have turned profitable; (3) higher biodiesel consumption in Indonesia will benefit its tropical oils division; (4) no plans to venture into property in the immediate term; and (5) keen on M&A at the right price.... Oilseeds and grains post strong profits. Tropical oils earnings slumped to its lowest since 2007. Final core net profit 3-4% above due to higher oilseeds and grain earnings....

IOI Corporation CIMB 21 Feb 2016 - Plantation and derivatives gains boost 2Q, 1H core net profit above, making up 64% of our and 58% of consensus’ full-year. Better performance due to higher plantation and fair value gain on derivatives....

Indonesia makes progress in biodiesel usage CIMB 21 Feb 2016 - This is positive for CPO prices, and we estimate the CPO Fund could support up to  3.19m kls of biodiesel in 2016, higher than the usage of 863,000 kls in 2015. Wilmar and First Resources are key beneficiaries of Indonesia’s biodiesel program.


IOI CORPORATION (IOI MK,IOI.KL) by AmBank 22 February 2016: Benefited from fair value gains on derivatives; ... E xcluding the fair value changes of RM256.4mil in 2QFY16,  IOI’s manufacturing EBIT would have plunged by 40.9%
QoQ to RM112.2mil in 2QFY16...  IOI said that the oleochemical and specialty fats units in  the manufacturing division suffered lower operating  margins. IOI also opined that the outlook for the refining  sub-segment is challenging as refining margins have  turned negative. We believe that this is due to the  competition from the refiners in Indonesia, which benefited  from the imposition of the export levy in July 2015.

20 Feb 2016:  Major news review done. Wilmar net profit suffer weak palm oil performance, RAM lowers Golden Agri's RM5b debt note rating, Felda settlers' bauxite problem

17 Feb 2016: News review in progress - Sime cutting debt load, Sime bond ratings, IOI Corp, Felda's Indonesian deal, Wilmar-Singapore GLC JVs, Australia minister "gets a dressing down" by Singapore exec over Queensland sugar tussle

Editor's note: This news review is broadly grouped by company news and goes back several weeks. News review pre-Christmas to 17 Feb completed.

Bunge Plunges After Profit Disappoints Amid `Tough' Markets by Shruti Singh  February 12, 2016 http://www.bloomberg.com/news/articles/2016-02-11/bunge-plunges-after-earnings-disappoint-amid-tough-markets

Sime Darby

Malaysia’s Sime Darby May Sell $500 Million in Real-Estate Assets- Conglomerate is seeking to cut its debt load By YANTOULTRA NGUI in Kuala Lumpur, Malaysia and P.R. VENKAT in Singapore Feb. 16, 2016 http://www.wsj.com/articles/malaysias-sime-darby-may-sell-500-million-in-real-estate-assets-1455613787


FGV on expansion mode BY AFIQ ISA 13 February 2016 http://www.thestar.com.my/business/business-news/2016/02/13/fgv-on-expansion-mode/

Felda: From humble agency to conglomerate BY ZAIDI ISHAM ISMAIL - 14 JANUARY 2016 Read More : http://www.nst.com.my/news/2016/01/122057/felda-humble-agency-conglomerate

FGV upbeat on 2016 prospects BY GOH THEAN HOWE - 4 JANUARY 2016 Read More : http://www.nst.com.my/news/2016/01/120420/fgv-upbeat-2016-prospects

Malaysia's Felda to re-attempt Indonesian deal with unlisted unit -sources By Eveline Danubrata and Emily Chow Feb 11, 2016 * Earlier Felda plan to buy $680 mln stake was heavily criticised * Felda to now use unlisted unit to acquire the stake -sources * Felda now seeking to cut price by as much as 30 pct -sources... http://www.reuters.com/article/indonesia-sondakh-idUSL3N15I090

19 December 2015: Wilmar eyeing some property projects after naming new COO (non-commodity / property expert), investors worry about FGV even if it buys less than 10% in Eagle High, FGV eyes biodegradable plastics from palm oil waste

Wilmar eyeing some property projects after naming new COO - Perennial Real Estate CEO's appointment to post will give commodity giant an advantage by Wong Wei Han, Dec 15, 2015; At first glance, it looks an odd fit, but commodity giant Wilmar International believes appointing the boss of a property firm to run its operations will reap a double payoff. As well as gaining a tried-and-tested businessman, Wilmar believes naming Perennial Real Estate chief executive Pua Seck Guan as its chief operating officer and an executive director will give it a way to take part in property development projects.... "In many places where Wilmar has significant operations, we have been offered attractive projects by the local government, which we declined as we do not have expertise in property development. "With the association with Perennial through Mr Pua, these projects can be undertaken by Perennial, with Wilmar maybe taking a small stake. Successful development of these projects will enhance Wilmar's relationship with the  government and standing of the company in those places." Perennial has a portfolio of properties developed or managed in Singapore, China, Malaysia and Ghana....http://www.straitstimes.com/business/wilmar-eyeing-some-property-projects-after-naming-new-coo

Wilmar falls after announcing management changes   By PC Lee / theedgemarkets.com   | December 14, 2015  http://www.theedgemarkets.com/sg/article/wilmar-falls-after-announcing-management-changes

CIMB expresses caution even if FGV buys less than 10% in Eagle High by sharidan m. ali  15 December 2015 http://www.thestar.com.my/business/business-news/2015/12/15/cimb-expresses-caution-even-if-fgv-buys-less-than-10-in-eagle-high/?style=biz

FGV to produce biodegradable plastics from palm oil waste 15 December 2015 http://www.thestar.com.my/business/business-news/2015/12/15/fgv-to-produce-biodegradable-plastics-from-palm-oil-waste/?style=biz

 

14 December 2015: Eagle High still trying to find deal within Felda / FGV group, The Edge Malaysia reports FIC says no; new Wilmar COO 1 Jan 2016

Note: Some chatter about new Wilmar COO starting 1 Jan 2016 (see 12 Dec posting immediately below).


Deal trail and issues, include

• Felda Group to buy 37 pct of Eagle High in new deal-Rajawali exec By Cindy Silviana Dec 11, 2015  http://www.reuters.com/article/felda-glo-vntrs-eagle-high-plnt-ma-idUSL3N14023820151211#SeA8p6J3iTZRoeAp.99
• Felda Global explains why it cannot do Indonesian Eagle deal alone by afiq isa 7 December 2015...FGV chief executive officer Datuk Mohd Emir Mavani Abdullah had recently told StarBiz that all options were being considered to revive the deal.  The 37% stake in Eagle High is held by the Rajawali Group, a conglomerate controlled by Indonesian tycoon Tan Sri Peter Sondakh.... http://www.thestar.com.my/business/business-news/2015/12/07/fgv-explains-variations/?style=biz
• Rajawali's Eagle High says pledged assets to secure $201 mln bank loan Oct 19, 2015 http://www.reuters.com/article/eagle-high-loans-idUSL3N12K1ND20151020
• Felda Said to Mull Price Cut for $680 Million Indonesia Deal  by Joyce Koh and Elffie Chew  September 1, 2015

12 December 2015: ADM-Wilmar boost Olenex Europe JV, Wilmar in FOE spotlight, Felda Group to buy 37 pct of Eagle High in new deal, Sime Darby and others to test oil palm production scheme, Sime’s plan to reduce RM19.7bil debt, GVL prepares for processing, CBIP mill deals

Perennial Real Estate CEO to become COO at Wilmar - Mr Pua Seck Guan will become COO and executive director at Wilmar with effect from Jan 1, 2016. He will also retain his positions in Perennial. Posted 11 Dec 2015 http://www.channelnewsasia.com/news/business/singapore/perennial-real-estate-ceo/2339208.html

Pua Seck Guan of Perennial doubles up as COO of Wilmar   By Tay Hock Meng / The Edge Property, Perennial Real Estate Holdings Ltd | December 11, 2015; Perennial Real Estate Holdings Limited CEO and executive director (ED) Pua Seck Guan has been appointed the new COO and executive director of Wilmar International Ltd with effect from January 1, 2016. Pua will retain his current positions at Perennial. Wilmar’s current COO and ED, Teo Kim Yong, will be retiring on December 31....http://www.theedgeproperty.com.sg/content/pua-seck-guan-perennial-doubles-coo-wilmar

Replaces: Mr Teo Kim Yong, 61, is in charge of the Group’s commercial activities, merchandising of palm and lauric oils, as well as the manufacturing, palm and biodiesel trading operations..... http://www.wilmar-international.com/who-we-are/board-of-directors/


ADM, Wilmar strengthen joint venture  12/10/2015; Archer Daniels Midland Co. (ADM) and Wilmar International Limited announced on Dec. 10 that they have entered into an agreement whereby Olenex, their partnership to market oils and fats in Europe, will become a full-function joint venture with its own assets.  As part of the agreement, ADM will transfer two sites — a specialty oils and fats facility and a palm refining plant in Hamburg, Germany — to the new joint venture. Wilmar will transfer its tropical oils processing plants in Brake, Germany and Rotterdam, Netherlands. In addition to processing, the joint venture will also integrate raw materials sourcing, trading, and sales and marketing operations. The agreement also stipulates that refined oils and fats from ADM’s other plants in the Czech Republic, Germany, the Netherlands, Poland and the U.K. will be marketed by Olenex. ...http://www.world-grain.com/articles/news_home/World_Grain_News/2015/12/ADM_Wilmar_strengthen_joint_ve.aspx?ID=%7BAE30A875-7EFE-40D6-8E1E-1C9F2D94A3F8%7D&cck=1

Archer Daniels Midland spent $20 mln to raise Wilmar stake -filing Nov 4, 2015 http://www.reuters.com/article/adm-wilmar-filing-idUSL1N12Z2U120151104

Australia - Wilmar signs interim deal for 0.5 mln t of cane for 2017 season Published: 27 November 2015 .. Australia's largest sugar producer - Wilmar - says securing an interim agreement with 22 individual growers is a "breakthrough" to the current impasse about how export sugar is marketed, reports ABC Rural. .. https://www.agra-net.com/agra/international-sugar-and-sweetener-report/sugar-news/cane-sugar/australia---wilmar-signs-interim-deal-for-0.5-mln-t-of-cane-for-2017-season--1.htm

Sugar and grain industries say new ethanol legislation is a big win By David Sparkes  3 Dec 2015 Queensland Energy and Water Minister Mark Bailey on a tour the Wilmar Bioethanol facility in Sarina Photo: Queensland Energy Minister Mark Bailey (centre) visited the Wilmar Bioethanol plant earlier this year to discuss a possible mandate. (David Sparkes)  Australia's biggest sugar milling company, Wilmar, says new legislation boosts the chances of bioethanol becoming a major contributor to the state's economy. The legislation passed through Queensland Parliament last night and sets a mandated level of 3 per cent ethanol in the state's petrol and 0.5 per cent in diesel from January 1, 2017. http://www.abc.net.au/news/2015-12-02/industry-players-wlecome-passing-of-bioethanol-bill/6993620

Wilmar stuck in an ROE rut: Jefferies   By PC Lee / theedgemarkets.com   | November 18, 2015  SINGAPORE (Nov 18): Agricultural trader Wilmar International ( Valuation: 2.00, Fundamental: 0.80) looks stuck in a trading range until it can improve its return on equity any further, Jefferies says in a note soon after the firm reported quarterly earnings. Jefferies notes that Wilmar's management emphasised achievements in scale, dist.. http://www.theedgemarkets.com/sg/article/wilmar-stuck-roe-rut-Jefferies


Sime’s plan to reduce RM19.7bil debt; may monetise assets, place out shares  by s.puspadevi 27 November 2015 http://www.thestar.com.my/business/business-news/2015/11/27/simes-debt-plan/?style=biz

Felda Group to buy 37 pct of Eagle High in new deal-Rajawali exec By Cindy Silviana Dec 11, 2015  * Eagle High shares soar 8 pct after Rajawali comments * Most of purchase likely via different Felda unit -Rajawali * Felda Global may take less than 10 pct -Rajawali * Felda Global says still evaluating possible new deal (Adds comment from Felda Global Ventures, share price) JAKARTA, Dec 11 Malaysia's Felda Group still plans to buy 37 percent of PT Eagle High Plantations Tbk in a restructured deal, a managing director of the Indonesian firm's parent company said, sending shares in Eagle High soaring. The companies are finalising the price, Rajawali's managing director Darjoto Setyawan told Reuters in a text message interview. Read more at Reuters http://www.reuters.com/article/felda-glo-vntrs-eagle-high-plnt-ma-idUSL3N14023820151211#SeA8p6J3iTZRoeAp.99

Felda Global explains why it cannot do Indonesian Eagle deal alone by afiq isa 7 December 2015...FGV chief executive officer Datuk Mohd Emir Mavani Abdullah had recently told StarBiz that all options were being considered to revive the deal.  The 37% stake in Eagle High is held by the Rajawali Group, a conglomerate controlled by Indonesian tycoon Tan Sri Peter Sondakh.

Minister settles defamation suit against PAS, Mustafa Ali and Harakahdaily by Bernama | Published on December 08, 2015; The suit was in relation to a defamatory statement by former PAS vice-president Datuk Husam Musa against Mustapa, who is Kelantan UMNO Liaison committee chairman on the shares of Felda Global Ventures Holdings Berhad (FGVH).

Felda Global completes sale of Canadian unit for RM567mil  by p. aruna 4 November 2015... KUALA LUMPUR: Felda Global Ventures (FGV) Holdings Bhd has completed the sale of its loss-making Canadian subsidiary, and received the cash purchase price of C$172.7mil (RM567.1mil). The subsidiary, Twin Rivers Technologies Entreprises De Transformation De Graines Oléagineuses Du Québec Inc (TRT-ETGO) was sold to Canadian grain and oilseeds marketer and handler, Viterra Inc as part of FGV’s five-year transformation strategy. ...  http://www.thestar.com.my/business/business-news/2015/11/04/fgv-completes-sale-of-canadian-unit-for-rm567mil/?style=biz
Plantation giant Felda Global Ventures records pre-tax loss with higher revenue KUALA LUMPUR, NOV 26, 2015 http://www.therakyatpost.com/business/2015/11/26/plantation-giant-felda-global-ventures-records-pre-tax-loss-with-higher-revenue/

GVL prepares for processing 08 December 2015 http://www.thenewdawnliberia.com/news/9015-gvl-prepares-for-processing

Indonesian conglomerate in poultry tie-up with Malaysia's CAB by WATARU SUZUKI, Nikkei staff writer JAKARTA -- Indonesian conglomerate Salim Group is partnering with Malaysia's CAB Cakaran to set up an integrated poultry business in Indonesia. http://asia.nikkei.com/Business/AC/Indonesian-conglomerate-in-poultry-tie-up-with-Malaysia-s-CAB

Sime Darby to test oil palm production scheme Published: 11 December 2015 5:04 PM Major oil palm growers, including Sime Darby Bhd will conduct trials of a sustainable cultivation scheme under the Sustainable Palm Oil Manifesto - See more at: http://www.themalaysianinsider.com/business/article/sime-darby-to-test-oil-palm-production-scheme#sthash.mnvIYveQ.dpuf

How Sime Darby & Oil Palm production will help Liberia’s Economy - By Richard Sambulah Submitted by Cholo Brooks on Mon, 11/23/2015  http://www.gnnliberia.com/articles/2015/11/23/how-sime-darby-oil-palm-production-will-help-liberia%E2%80%99s-economy-richard-sambulah

Sime Darby appoints former Indonesian minister as director  24 November 2015 http://www.thestar.com.my/business/business-news/2015/11/24/sime-darby-appoints-former-indonesian-minister-as-director/?style=biz

Sime Darby to expand rubber plantation despite weak price November 23, 2015 http://asia.nikkei.com/Business/AC/To-expand-rubber-plantation-despite-weak-price


Indofood CBP Sukses Makmur: Giant Force in Indonesia's Consumer Goods Market 18 November 2015 |  Despite weakening purchasing power in an economy that has lost its growth momentum since 2011, Indonesia's largest packaged-food company Indofood CBP Sukses Makmur contains a number of advantages that are believed to lift the company's profit figures. Indofood CBP Sukses Makmur is a subsidiary of Indofood Sukses Makmur, a leading total food solutions firm in Southeast Asia's largest economy. The Indofood Group is known as the world's largest instant noodles producer. http://www.indonesia-investments.com/news/todays-headlines/indofood-cbp-sukses-makmur-giant-force-in-indonesia-s-consumer-goods-market/item6187
First Resources posts 26.4% fall in 3Q earnings to $45 mil   By PC Lee / theedgemarkets.com   | November 13, 2015 SINGAPORE (Nov 13): Palm oil producer First Resources ( Valuation: 0.90, Fundamental: 2.60) posted a 26.4% fall in 3Q earnings to US$31.7 million ($45 million) from $43.1 million a year ago. The weaker bottom line was dragged down by a 24.6% decline in profit from operations to US$54.1 million mainly due to the effects of lower palm oil... http://www.theedgemarkets.com/sg/article/first-resources-posts-264-fall-3q-earnings-45-mil

Bumitama Agri’s 3Q earnings fall 30%   By Trinity Chua / theedgemarkets.com   | November 12, 2015 SINGAPORE (Nov 12): Indonesian palm oil company Bumitama Agri’s 3Q ( Valuation: 0.90, Fundamental: 1.15) earnings fell 30% to 199.8 billion rupiah ($0.021 billion) on the back of higher cost of sales, increased expenses and a decline in selling prices for crude palm oil (CPO) and palm kernel. Revenue dropped 13.7% to 1,179 billion rup http://www.theedgemarkets.com/sg/article/bumitama-agri%E2%80%99s-3q-earnings-fall-30


Wilmar posts 35% fall in Q3 profit to $392.5m - In the tropical oils business, pre-tax profit fell 45.9 per cent to $149.5 million. This was because of declining crude palm oil prices and lower margins from the refining and downstream businesses, Wilmar said. In the tropical oils business, pre-tax profit fell 45.9 per cent to $149.5 million. This was because of declining crude palm oil prices and lower margins from the refining and downstream businesses, Wilmar said.PHOTO: REUTERS Nov 12, 2015 http://www.straitstimes.com/business/companies-markets/wilmar-posts-35-fall-in-q3-profit-to-3925m

Asia's big three commodity traders reveal profit pain by Huileng Tan 13 Nov 2015; Asia's big three commodity trading houses were hit in the third quarter by a slump in raw materials prices that hammered profits and revenues. Reporting results this week, Noble Group, Olam International and Wilmar International - collectively known as the NOW group - highlighted a trio of challenging market conditions this year: Volatility in raw material prices, currency fluctuations and slumping investments.  On Thursday, Singapore-listed Noble reported an 84 percent on-year plunge in third-quarter profits to $24.7 million, mainly due to losses in its metals division and agricultural arm. Revenue was down 20 per cent to $18.7 billion.

Golden Agri-Resources Q3 profit jumps but El Nino looms Nov 12, 2015 4:30am EST  http://www.reuters.com/article/golden-agri-results-idUSL3N1372JA20151112#JuHUsCjpJhO1RlZH.99


How Felda mobilised 10,000 for ‘red shirt’ rally 11 Nov 2015  The total number of Felda settlers who joined the rally was estimated to be 10,000, according to the parliamentary reply, she said. This means that about 10,000 Felda settlers joined the red shirt rally, she surmised. Many of the settlers were transported to Kuala Lumpur in buses. About RM1mil spent ... government-backed Village Development and Security Committee (JKKR) and the Coalition of Women's Movement (GPW) for giving RM925,000 to fund the ‘Felda rally’. https://www.malaysiakini.com/news/319014

Indofood sees profit almost halved amid weakening rupiah The Jakarta Post, Jakarta | Business | Sat, October 31 2015, 5:05 PM - See more at: http://www.thejakartapost.com/news/2015/10/31/indofood-sees-profit-almost-halved-amid-weakening-rupiah.html#sthash.JWtPCzcD.dpuf

RAM Ratings reaffirms First Resources’ AA2/Stable Sukuk rating  01, November 2015 by Matthew Amlôt http://www.cpifinancial.net/news/post/33389/ram-ratings-reaffirms-first-resources-aa2-stable-sukuk-rating

Rating Action:  Moody's withdraws Golden Agri's Ba3 corporate family rating November 06, 2015 -- Moody's Investors Service, ("Moody's") has withdrawn the Ba3 corporate family rating of Golden Agri-Resources Ltd. The rating outlook was negative at the time of its withdrawal.  https://www.moodys.com/research/Moodys-withdraws-Golden-Agris-Ba3-corporate-family-rating--PR_338271

CB Industrial bags palm mill contract worth RM51m in Indonesia   By Gho Chee Yuan / theedgemarkets.com   | December 7, 2015 KUALA LUMPUR (Dec 7): CB Industrial Product Holding Bhd ( Valuation: 1.80, Fundamental: 3.00) has bagged a contract worth RM51.08 million from PT Ichtiar Gusti Pudi, a subsidiary of Ahmad Zaki Resources Bhd ( Valuation: 2.60, Fundamental: 0.60), to supply one continuous sterilisation palm oil mill with a capacity of 60 tonnes per hour. http://www.theedgemarkets.com/my/article/cb-industrial-bags-palm-mill-contract-worth-rm51m-Indonesia

CBIP wins RM60mil deal to supply another mill in PNG 4 December 2015 KUALA LUMPUR: CB Industrial Product Holding Bhd (CBIP) has secured a RM60mil contract from East New Britain Palm Oil Ltd’s subsidiary Glory Jade Investments Ltd to supply a continuous sterilisation palm oil mill for the client’s Papua New Guinea (PNG) operations. http://www.thestar.com.my/business/business-news/2015/12/04/cbip-wins-rm60mil-deal-to-supply-another-mill-in-png/?style=biz


IOI Corp sees lower oil palm FFB output, 28 October 2015 by Lee Weng Khuen PUTRAJAYA: IOI Corp Bhd has revised downwards its fresh fruit bunch (FFB) growth to between 3% and 5% for the financial year ending June 30, 2016 (FY16), from the initial forecast of 5% to 7%, due to the prolonged hazy weather. Speaking to reporters after the company’s AGM here yesterday, CEO Datuk Lee Yeow Chor said the hazy condition, which reduces sunlight hours, will probably affect up to 10% of total FFB. However, he said it will not have a negative impact on the company’s profitability as low production will boost palm oil prices... http://www.thesundaily.my/news/1595494

The tree whisperer  by tee lin say 24 October 2015; Lee, the executive chairman and founder of IOI Corp, is the single-largest shareholder of both IOI Corp and IOI Prop, controlling some 51% of both companies. IOI Prop was demerged from IOI Corp and relisted separately on Jan 15, 2014 with a market capitalisation of RM8.13bil, making it the second-largest property player after UEM Sunrise Bhd back then. Today, it is the second-biggest property developer listed on Bursa Malaysia after SP Setia Bhd with a market cap of RM8.36bil....IOI Corp is a fully integrated company that undertakes the plantation and resource-based manufacturing businesses. The plantation business covers Malaysia and Indonesia with a landbank of more than 230,000 ha, making it one of the largest plantation owners in the industry. IOI Group owns four palm oil refineries, three located in Malaysia and one in the Netherlands, with a combined annual refining capacity of 3,300,000 tonnes. http://www.thestar.com.my/business/business-news/2015/10/24/the-tree-whisperer/?style=biz

PepsiCo’s palm oil pledge should not exempt Indofood, NGOs say - The global food and beverage giant recently promised to source deforestation-free palm oil, but green groups say the commitment should apply to joint venture partners that sell its branded partners. That includes Indofood, Indonesia's largest food company. by Mongabay.com  29 October 2015 http://www.eco-business.com/news/pepsicos-palm-oil-pledge-should-not-exempt-indofood-ngos-say/

Indonesia's Indofood posts biggest 9-mth profit decline in decade on forex hit Oct 30, 2015 By Eveline Danubrata and Cindy Silviana * 9-mth profit 1.7 trillion rupiah vs 3.1 trillion a year ago * Net profit margin falls to 3.5 pct from 6.6 pct * Indofood has $1.2 bln in foreign currency debt * Plantation business hit by weak crude palm oil prices Read more at Reuters http://www.reuters.com/article/indofood-sukses-results-idUSL3N12U2F920151030#fqGjTCeWwSYIHmto.99

SG’s First Resources buys out Indonesian plantation firm Karya Tama by Vincencia NLS October 26, 2015:   Singapore-based palm oil producer First Resources Limited has announced its indirect subsidiary PT Pancasurya Agrindo has acquired Indonesian plantation firm PT Karya Tama Bakti Mulia for a cash consideration of $1.4 million. The acquisition is being funded through internal accruals, the company said, in a filing to the stock exchange. Karya Tama is incorporated in Indonesia and principally engaged in the plantation business in the Riau province of Indonesia.... (First Resources) It manages over 190,000 hectares of oil palm plantations, including plasma plantations, and operates 12 palm oil mills across the Riau, East Kalimantan and West Kalimantan provinces of Indonesia. http://www.dealstreetasia.com/stories/singapores-first-resources-buys-out-indonesian-plantation-firm-karya-tama-17018/

Smear campaign against Indonesian palm oil underway: GAPKI Thejakartapost.com, Jakarta | National | Mon, October 26 2015 - See more at: http://www.thejakartapost.com/news/2015/10/26/smear-campaign-against-indonesian-palm-oil-underway-gapki.html#sthash.na3QryPB.dpuf  

Rajawali's Eagle High says pledged assets to secure $201 mln bank loan Oct 19, 2015; PT Eagle High Plantations Tbk , the plantation unit of Indonesian conglomerate Rajawali Group, has secured a 2.74 trillion rupiah ($201 million) loan from PT Bank Negara Indonesia Tbk, an executive said on Tuesday. Eagle High Corporate Secretary Rudy Suhendra told Reuters by phone the loan will be used to refinance existing debt, make upcoming payments on bonds and build a new palm oil mill. Eagle High pledged some plantations as well as palm oil factories owned by its five subsidiaries as security for the loan, Suhendra said. In June, Malaysia's Felda Global Ventures Holdings Bhd said it will buy 37 percent of Eagle High from Rajawali for $680 million. http://www.reuters.com/article/eagle-high-loans-idUSL3N12K1ND20151020


Kedah Rubber City’s GDV estimated at RM11.2bil 23 October 2015; ... Emir added it was also encouraging to note that the Government continued to provide funds to enhance the Felda settlers livelihood, in terms of income and productivity. Among the initiatives provided are RM200mil to improve the standards for road in Felda settlements and construction of 20,000 residences for the second generation Felda settlers. Others include increasing the incentive of Rubber Production Incentive (IPG) from RM4.60 to RM5.50 per kg for SMR 20 Freight on Board Rubber and scrap rubber (cup lumps) will be increased from RM1.75 to RM2.20 per kg. “All relevant Budget 2016 initiatives will directly and indirectly contribute to FGV in promising and positive ways.  “The budget complements our five-year transformation plan that focuses on enhancing revenue, cost optimisation and operational excellence across all our businesses such as palm oil, rubber and sugar,” added Emir. - Bernama...http://www.thestar.com.my/business/business-news/2015/10/23/kedah-rubber-citys-gdv-estimated-at-rm11bil/?style=biz

Archived News (26/10/2015) : Olam International Signs MoU With FGV To Train Gabonese Farmers....   http://www.bernama.com.my/bernama/v8/ge/newsgeneral.php?id=1183513

29 October 2015: Olam secures $1B in new loans to refinance debt

 

Olam secures $1B in new loans to refinance debt by Neelabh Chaturvedi Tuesday, 27 Oct 2015 | 9:46 PM ET;...Agri-trader Olam International has secured $1 billion in funding to refinance existing debt, just a couple of months after Mitsubishi Corp snagged a 20 percent stake in the company. Olam said the new revolving credit and term loan facility will comprise an $850 million 364-day revolving credit facility and a $150 million 5-year term loan. Singapore state investor Temasek Holdings owns 51.4 percent of Olam....    http://www.cnbc.com/2015/10/27/olam-noble-rival-once-muddy-waters-target-refinances-with-1b-loans.html; (also see, Why Mitsubishi took a stake in troubled Olam - http://video.cnbc.com/gallery/?video=3000412226 )

10 October 2015: Golden-Agri suppliers and Indonesia forex hedging and foreign debt conversion, IPOP dilution for smallholder interests, FGV news, Wilmar deals and tax break, IOI oleochem buy, Moody's eyes China slowdown impacts and plantation sector credit quality weakening,  Eagle High gets new loan, Indonesia gives tax incentives to dairy and biodiesel, consumer slow down

 

More certainty for sale of majority stake in China Minzhong Food By Andrea CHINA Minzhong Holdings and PT Indofood Sukses Makmur have committed to continue to discuss and work towards the finalisation of the proposed acquisition by China Minzhong Holdings of a majority stake in China Minzhong Food Corporation. http://www.businesstimes.com.sg/companies-markets/more-certainty-for-sale-of-majority-stake-in-china-minzhong-food

Felda Global gains 2.4% on renewed buying interest    By Surin Murugiah / theedgemarkets.com   | October 15, 2015 : 9:42 AM MYT     http://www.theedgemarkets.com/en/article/felda-global-gains-24-renewed-buying-interest

Felda forays into student accommodation in London by Ismail Amsyar Mohd Said, Bernama    Published 14 Oct 2015, 4:27 pm     http://www.malaysiakini.com/news/315731
Giving back to society is 'right thing to do'- Palm oil giant Golden Agri-Resources funds schools, builds infrastructure and develops housing in the communities it operates.  By SUE-ANN CHIA http://www.businesstimes.com.sg/hub/ey-entrepreneur-of-the-year-2015/giving-back-to-society-is-right-thing-to-do

Give Shares Of Golden-Agri Resources A Pass  Oct. 9, 2015 3:09 PM ET   |  About: Golden Agri-Resources ADR (GARPY)   Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...) Summary • The relationship between revenue and net income is actually negative. • After a review of the cash flow statement, we believe the dividend is in danger of being cut.  http://seekingalpha.com/article/3562816-give-shares-of-golden-agri-resources-a-pass

MNC looking to invest $60.4m, set up shop in Iskandar Malaysia by Liz Lee October 12, 2015:  A multinational company specialising in the distribution of tropical vegetable oils and their derivatives, has expressed interest to invest MYR250 million ($60.36 million) in Iskandar Malaysia, according to the Johor Tourism, Domestic Trade and Consumerism committee. Committee chairman Tee Siew Kiong said the Europe-based company, with its head office in Singapore, plans to set up its operations in the Southern Economic Corridor in peninsular Malaysia. “The investment could be realised by this year or in the first quarter of next year,” he told a press conference after opening D’ Elegance Hotel in Taman Nusanatara last Friday. http://www.dealstreetasia.com/stories/mnc-looking-to-invest-60-4m-set-up-shop-in-iskandar-malaysia-15324/

Indofood to hedge, convert foreign debts Anggi M. Lubis, The Jakarta Post, Jakarta | Business | Sat, October 03 2015, 5:27 PM; Consumer goods giant PT Indofood Sukses Makmur plans to hedge and convert a sum of its foreign denominated loans later this year to comply with the central bank’s hedging regulation and to reduce financial costs. Indofood, one of the world’s largest noodle makers, has a total of US$1.2 billion in foreign-denominated loans, the company’s director Werianty Setiawan says.“None of the loans have been hedged. We will hedge at least 20 percent of our net exposure in the fourth quarter,” she said.“The hedging is to comply with BI’s [Bank Indonesia] regulation.”Late last year, BI introduced a new regulation requiring all Indonesian companies planning to borrow dollars to have a specific health level in three indicators: liquidity strength, hedging ratio and credit rating level.The rule came into effect in January 2015. Companies must hedge at least 20 percent of their short-term dollar debts and have a liquidity ratio of 50 percent. - See more at: http://www.thejakartapost.com/news/2015/10/03/indofood -

Golden Agri loses suppliers after IPOP implementation The Jakarta Post, Jakarta | Business | Tue, October 06 2015, 5:53 PM; Singapore-listed Golden Agri Resources (GAR) has said that it lost hundreds of thousands of tons of fresh fruit bunch (FFB) supplies as it suspended partnerships with several supplier companies due to the implementation of GAR’s non-deforestation policy.GAR sustainability and strategic stakeholder engagement managing director Agus Purnomo said in Jakarta on Monday that since May, the company had stopped buying FFB and crude palm oil (CPO) for its refineries from five to six companies allegedly conducting deforestation. However, he declined to reveal the value, saying it would be found in the company’s year-end financial report.“The impact of the decision to suspend the purchases was serious because it affected the company’s production,” he said.According to the company’s financial report published in August, GAR’s CPO output dipped by around 9 percent to 1.09 million tons in the first half of this year while its FFB production slipped by 3 percent to 4.58 million tons year-on-year. - See more at: http://www.thejakartapost.com/news/2015/10/06/golden-agri-loses-suppliers-after-ipop-implementation.html#sthash.RuiWkUZ6.dpuf

Big palm oil's pledge to preserve forests vexes Indonesia Wed Oct 7, 2015 7:47pm EDT  JAKARTA  |  By Michael Taylor  The Indonesian government is asking major palm oil companies to row back on the historic “no deforestation” pledges they made at last year’s United Nations climate change summit, officials and company sources say. Major palm oil companies were invited to a series of meetings at the economics ministry last week, where officials expressed concern the pledges the plantation companies made are causing big problems for smaller palm oil firms in their supply chain, the sources told Reuters. The government has asked palm oil firms who signed the Indonesian Palm Oil Pledge (IPOP) to exempt smallholders because they are not yet ready to practice the same level of sustainable forest practices as the big players, said Musdhalifah Machmud, deputy minister for food and agriculture at the coordinating ministry for economic affairs.  http://www.reuters.com/article/2015/10/07/us-indonesia-forests-insight-idUSKCN0S02SX20151007

Credit quality of Asian palm oil players weakens, says Moody’s Thursday, 8 October 2015; PETALING JAYA: The credit quality of Asian palm oil producers is weakening, as oversupply is muting crude palm oil (CPO) prices and hampering deleveraging efforts, said Moody’s Investors Service. The average CPO price fell more than 30% to RM2,191 per tonne in the second quarter of this year from the second quarter of 2012 and averaged RM2,067 per tonne in July-August. “We expect CPO prices to remain under pressure over the next 18 months, with vegetable oil markets oversupplied and soft demand,” said Alan Greene, Moody’s vice-president, senior credit officer and a lead analyst on Asian palm oil producers. He said in Moody’s latest edition of Inside ASEAN that lower prices had muted cash generation, reflected in the recent negative rating actions on palm oil companies Golden Agri-Resources Ltd (Ba3 negative), Sime Darby Bhd (A3 negative) and IOI Corp Bhd (Baa2 negative). Inside ASEAN also examined the impact of the recent currency depreciation of the Malaysian (A3 positive) ringgit and Indonesian (Baa3 stable) rupiah. The ringgit depreciation was a symptom of declining export revenues, capital outflows and worsening sentiment towards Malaysia. http://www.thestar.com.my/Business/Business-News/2015/10/08/Credit-quality-of-Asian-palm-oil-players-weakens-says-Moodys/?style=biz

Cashing In On the TPP By Benjamin Shepherd on October 8, 2015; The largest trade pack in modern history is a go. Negotiators from 12 Pacific Rim countries, including the U.S., announced earlier this week that they have reached a final agreement on the Trans Pacific Partnership (TPP). The deal, which covers the trade between countries that account for roughly 40% of the global economy, will lower trade barriers and set rules governing more than $1 trillion of goods and services. Now, everything from milk to auto parts will move more easily around the countries bordering the Pacific Ocean....For instance, Mexican poultry producer Industrias Bachoco S.A.B de C.V. does a booming business in its home country and the U.S., with revenue nearly doubling over the past five years and earnings shooting up from $2.12 to $5.18. The company’s operations are still relatively modest compared to the Tyson Foods of the world, which has more than three times the market capitalization of Industrias Bachoco, so shipping its chicks beyond the U.S. and Mexico would be a challenge. But the TPP will implement a single set of rules across the Pacific region that will replace a regulatory maze of food safety rules. As a result, Industrias Bachoco (NYSE: IBA) can soon more easily reach nearly 500 million new customers across Asia. The benefits accrue in both directions though, so Singapore-based Wilmar International could see North American vistas opening to it. A top producer of palm oil, sugar, flour and other agricultural products, Wilmar’s (OTC: WLMIY) business is largely confined to Southeast Asia, China, Europe and Africa. While its products are more in demand in those regions, palm oil is a relatively common ingredient in food production and used in more than half of all packaged products we Americans consumer.  The palm trees that produce the oil are only grown in the tropics, so most of the oil we consume is produced by domestic companies. But now that the TPP will be leveling the agricultural field, Wilmar can compete in the Nort  American market more easily. And the timing really couldn’t be better since earlier this year the U.S. Food and Drug administration ordered food manufacturers to stop using artificial trans fats within three years, much of which will likely be replaced with palm oil. http://www.investingdaily.com/23742/cashing-in-on-the-tpp-2/

Indofood to hedge, convert foreign debts Anggi M. Lubis, The Jakarta Post, Jakarta | Business | Sat, October 03 2015, 5:27 PM; Consumer goods giant PT Indofood Sukses Makmur plans to hedge and convert a sum of its foreign denominated loans later this year to comply with the central bank’s hedging regulation and to reduce financial costs. Indofood, one of the world’s largest noodle makers, has a total of US$1.2 billion in foreign-denominated loans, the company’s director Werianty Setiawan says.“None of the loans have been hedged. We will hedge at least 20 percent of our net exposure in the fourth quarter,” she said.“The hedging is to comply with BI’s [Bank Indonesia] regulation.”Late last year, BI introduced a new regulation requiring all Indonesian companies planning to borrow dollars to have a specific health level in three indicators: liquidity strength, hedging ratio and credit rating level.The rule came into effect in January 2015. Companies must hedge at least 20 percent of their short-term dollar debts and have a liquidity ratio of 50 percent…. http://www.thejakartapost.com/news/2015/10/03/indofood-hedge-convert-foreign-debts.html#sthash.UDvICWt9.dpuf

Sime Darby - Malaysia plantation shares suffer from low palm oil prices, supply glut September 29, 2015 8:05 pm JST; Shares of Sime Darby, the world's largest palm oil producer by acreage, have slipped 18% so far this year while state-run Felda Global Ventures has lost nearly a third of its value. That compares to the benchmark FTSE Bursa Malaysia KLCI's 9.2% year-to-date decline.... http://asia.nikkei.com/Business/AC/Malaysia-plantation-shares-suffer-from-low-palm-oil-prices-supply-glut

Plantations lead market higher, FGV in focus Wednesday, 30 September 2015 By: JOSEPH CHIN; KUALA LUMPUR: The recent rally in crude palm oil (CPO) prices on worries about a decline in output due to the impending El Nino phenomenon by year end saw plantations topping the gainers list while Felda Global Ventures (FGV) was in focus. http://www.thestar.com.my/Business/Business-News/2015/09/30/Plantations-lead-market-higher-FGV-in-focus/?style=biz ...

Indofood CBP Expects Slower Sales Growth Until Year-End By : Vanesha Manuturi | on 8:38 PM October 01, 2015; Jakarta. Sales at Indofood CBP Sukses Makmur, the world's largest instant noodle factory, is forecast to grow by 6 percent at most by the end of the year, showcasing a pessimistic view from the company for the remaining three months of the year.  "In the beginning of the year, we had hoped that sales would show double digit growth, however since the conditions are not conducive right now, it seems like full-year growth will be similar to the first half of the year, which is between 5 percent and 6 percent," Werianty Setiawan, a director at Indofood, told reporters in Jakarta on Thursday. Indofood CBP Sukses Makmur booked approximately Rp 1.7 trillion ($116 million) in net profit during the first half of the year, up 28 percent from about Rp 1.4 trillion in the same period last year. It recorded around Rp 17 trillion in sales during the first half of the year, up 6.6 percent from Rp 15.5 trillion in the revious year. Consumer goods companies, like Indofood CBP, have struggled to maintain sales growth in the past year as the nation faces a depreciated rupiah against the US dollar and its slowest economic pace since 2009, which has dampened consumer sentiment across the archipelago.... http://jakartaglobe.beritasatu.com/business/indofood-cbp-expects-slower-sales-growth-year-end/

Indofood Agri Resources Mulls Plans for Three New CPO Plants By : Vanesha Manuturi | on 4:04 PM October 02, 2015; Jakarta. Singapore-listed Indofood Agri Resources, the agriculture arm of beverage and food giant Indofood Group, is planning to build up to three new crude palm oil factories next year through its subsidiaries, Salim Ivomas Pratama and London Sumatra, according to top executives at the company. Johnny Ponto, a director at publicly-listed Salim Ivomas Pratama, said that a majority of the palm fruits grown by Salim Ivomas Pratama are ready to be harvested and converted to crude palm oil in the next few years, which is why Salim Ivomas is planning to build two plants in East Kalimantan next year. "The factories will support our plantation estates... Hopefully, we can start [construction] by the end of the year or in the beginning of 2016, and complete it in 2017," Johnny said during a press conference in Jakarta on Thursday.  One of the factories will have the capacity to refine 40 tons to 80 tons of palm fruit per hour, he added.  Meanwhile, the second plant will have the capacity to process 40 tons of palm fruit per hour. Each is expected to cost Rp 200 billion ($13.6 million) in investment. Its subsidiary, London Sumatra, is also planning to add one CPO plant in East Kalimantan with a capacity to process 60 tons of palm fruit per hour, according to London Sumatra president director Benny Tjoeng. http://jakartaglobe.beritasatu.com/business/indofood-agri-resources-mulls-plans-three-new-cpo-plants/

Danone, Kerry, Pulmuone also eyeing Quorn By Dean Best | 30 September 2015  http://www.just-food.com/news/danone-kerry-pulmuone-also-eyeing-quorn_id131226.aspx

UPDATE 2-Quorn fields takeover interest from range of parties -sources http://www.reuters.com/article/2015/09/29/quorn-ma-asia-idUSL5N11Z2VB20150929

Big Order Sweeps Sugar Market - Wilmar International Ltd. emerged as buyer of $346 million of sugar, traders and brokers say By Carolyn Cui and Julie Wernau  Sept. 30, 2015 5:35 p.m. ET  Wilmar International Ltd. has bought 1.2 million tons of raw sugar on the ICE Futures U.S. Exchange against the October contract, the third delivery taken by the Singapore-based commodity company in recent months, bringing the total of this year’s purchases to more than $1 billion, traders and brokers said. http://www.wsj.com/articles/big-order-sweeps-sugar-market-1443648939

Volac Increases Turnover in Volatile Dairy Market 30 Sep 2015 --- Dairy nutrition company Volac has published its financial results for the 10 month period ending December 2014. During this 10 month period, turnover increased 1% from €265m to €268m compared to the previous full financial year and profit before tax decreased 10% from €25m to €22m. http://www.foodingredientsfirst.com/News/Volac-Increases-Turnover-in-Volatile-Dairy-Market.html?section=Business%20News&tracking=All%20News&article_type=article

Malaysia's Felda Global says taking additional steps in Eagle High purchase KUALA LUMPUR, Sept 29  http://www.reuters.com/article/2015/09/29/malaysia-felda-eagle-high-plnt-idUSL3N11Z3ST20150929

MALAYSIA PRESS-Felda Global yet to pay deposit on Eagle High deal pending approvals-The Star http://www.reuters.com/article/2015/09/28/malaysia-press-felda-idUSL3N11Y11B20150928

BNM needs details on FGVH remittance  by Kavithah RakwanTuesday, September 29, 2015 http://themalaysianreserve.com/new/story/bnm-needs-details-fgvh-remittance

Immediate support for Felda Global at RM1.47, says AllianceDBS Research Published: 2 October 2015 12:03 PM - See more at: http://www.themalaysianinsider.com/business/article/immediate-support-for-felda-global-at-rm1.47-says-alliancedbs-research#sthash.A5puptba.dpuf

Sime Darby voted best managed large cap in Malaysia By: LEON HUNG YEE  29 September 2015 http://www.thestar.com.my/Business/Business-News/2015/09/29/Sime-Darby-voted-best-managed-large-cap-in-Malaysia/?style=biz

LIBERIA: Bomi Superintendent Advises Sime Darby Company To Suspend Operations Submitted by Cholo Brooks on Sun, 09/27/2015 - 09:31  http://www.gnnliberia.com/articles/2015/09/27/liberia-bomi-superintendent-advises-sime-darby-company-suspend-operations

Analysts maintain ‘neutral’ on plantations following govt replanting scheme   By Sangeetha Amarthalingam / theedgemarkets.com   | September 28, 2015 : 12:14 PM MYT     KUALA LUMPUR (Sept 28): Research bank analysts have maintained a “neutral” call on the plantation sector following the government’s move to implement a RM100 million replanting scheme between Oct 1 and Dec 31. CIMB ( Valuation: 1.65, Fundamental: 1.05) analyst Ivy Ng Lee Fang said there was no surprise because the bank had... http://www.theedgemarkets.com/my/article/analysts-maintain-%E2%80%98neutral%E2%80%99-plantations-following-govt-replanting-scheme


IOI Corp least affected by weak CPO prices due to exposure to downstream segment   By PublicInvest Research / The Edge Financial Daily   | September 23, 2015 : 10:28 AM MYT   http://www.theedgemarkets.com/my/article/ioi-corp-least-affected-weak-cpo-prices-due-exposure-downstream-segment

IOI to see better outlook in FY16 September 23, 2015, Wednesday http://www.theborneopost.com/2015/09/23/ioi-to-see-better-outlook-in-fy16/

Salim Group extends its reach WATARU SUZUKI, Nikkei staff writer September 24, 2015 12:00 am JST http://asia.nikkei.com/magazine/20150924-The-REBIRTH-of-SALIM-GROUP/On-the-Cover/Salim-Group-extends-its-reach
Moody's: China Slowdown to Hit Indonesian Mining, Agriculture Sectors  By : Vanesha Manuturi | on 12:54 PM September 24, 2015; Jakarta. Indonesia's mining and agriculture industries will take the biggest hits from China's slowing economy in the next year, international rating agency Moody's Investors Service predicts.  In a report that was published on Wednesday, Moody's noted that mining businesses in Indonesia, such as Berau Coal Energy and Indika Energy, will probably see already weak coal demand exacerbated due to the slowdown.  "Falling demand for Indonesian thermal coal from China has led to an 11 percent dip in coal exports for the first six months of 2015," Moody's analysts said. "Weakened Chinese demand is now exacerbating the ongoing four-year slump in thermal coal prices, which is reducing the earnings and cash flows of the rated Indonesian coal companies."  Sinar Mas Group's agri-business unit, Golden Agri-Resources, also has a large exposure to China as more than 20 percent of the company's revenue last year came from customers there, according to Moody's.  "Golden Agri-Resources has a deep-sea port and interests in edible oil refining and marketing in China, as well as noodle manufacturing and distribution. Profitablity remains volatile as a result of overcapacity in the oilseed-crushing industry," Moody's analysts said.  http://jakartaglobe.beritasatu.com/business/moodys-china-slowdown-hit-indonesian-mining-agriculture-sectors/

Smallholders welcome independent Beluru mill project September 19, 2015, Saturday; BELURU: Smallholders have welcomed a proposed pilot independent palm oil mill project at Sungai Laong, where they have been invited to be among the shareholders. Assistant Minister of Agriculture (Farmers Organisation) Datuk Sylvester Entri Muran said preliminary preparations are being concluded and an official application will be submitted to the Malaysian Palm Oil Board (MPOB) and Ministry of Land Development within a week. The stakeholders of the proposed mill will be the Sarawak Farmers Organisation (30 per cent), National Farmers Organisation (20 per cent), DD Plantation (30 per cent), Land Consolidation and Development Authority (10 per cent) and the smallholders (10 per cent). “This would be the first in Sarawak where smallholders can also purchase shares and be stakeholders in a palm oil mill,” Entri said during a project progress briefing to about 1,000 smallholders and representatives yesterday. The projected cost of the mill would be between RM40 million and RM50 million, which would involve RM5 million worth of shares for smallholders. Read more: http://www.theborneopost.com/2015/09/19/smallholders-welcome-independent-beluru-mill-project/#ixzz3owZxu7Xm

Palm oil giant Golden Agri-Resources stops buying from firm implicated in haze Published Sep 24, 2015, 5:00 am SGT http://www.straitstimes.com/business/companies-markets/palm-oil-giant-stops-buying-from-firm-implicated-in-haze

Golden Agri says halts buys from haze-implicated supplier Wed Sep 23, 2015 2:04am EDT JAKARTA, Sept 23  |  By Michael Taylor  http://www.reuters.com/article/2015/09/23/indonesia-golden-agri-haze-idUSL4N11T1N920150923

Dairy, Palm Oil Firms Granted Tax Incentives to Help Expansion; By : Damiana Simanjuntak & Tabita Diela | on 8:19 PM September 21, 2015; Jakarta. One dairy and two palm oil companies have been granted tax allowances that will let them enjoy reduced income tax bills for up to 15 years. Fonterra Brands Manufacturing Indonesia, Wilmar Bioenergi Indonesia and Wilmar Nabati Indonesia were approved for the privilege after a Finance Ministry decree issued recently, according to Industry Ministry official Haris Munandar. Corporate income tax in Indonesia is typically set at 25 percent, with a discount offered to companies that invest heavily in the country. Haris did not provide details on how much of a discount the companies would enjoy. Fonterra Brands Manufacturing Indonesia plans to invest $29.6 million for a plant in Bekasi, on the eastern outskirts of Jakarta, to produce powdered milk. Wilmar Bioenergi Indonesia is pouring $36.1 million into its oil palm plantation in Dumai, Riau province, and Wilmar Nabati Indonesia is investing Rp 828.43 billion ($57 million) for its organic chemical base plant, also in Dumai. Haris said the government had extended the tax breaks to other companies and was currently reviewing two other requests.  http://jakartaglobe.beritasatu.com/business/dairy-palm-oil-firms-granted-tax-incentives-help-expansion/

Inventure Renewables to build commercial scale waste oil biofuel plant for Wilmar in China  September 24, 2015   | Meghan Sapp;  In Alabama, Inventure Renewables, Inc. has announced construction of a commercial scale plant for Wilmar (China) Oleochemicals Co., Ltd. The commercial scale plant will be used to convert a waste vegetable oil byproduct into intermediate materials, which can be further processed into higher value food, feed and industrial products, including biodiesel. “We’re very excited to be working with Wilmar (China) Oleochemicals Co., Ltd.,” said Mark Tegen, President and Chief Executive Officer of Inventure Renewables. “The recent selection of Inventure’s Mixed Super Critical Fluid (MSCF) technology over competing alternatives is notable and would not have been possible without the compelling case for improved operational efficiencies that our technology offers.” Inventure has provided a complete solution for Wilmar including basic engineering, detailed engineering, equipment design, fabricat on, supervision of installation and start up support. It’s the company’s goal to provide comprehensive client solutions. http://www.biofuelsdigest.com/bdigest/2015/09/24/inventure-renewables-to-build-commercials-scale-waste-oil-biofuel-plant-for-wilmar-in-china/

Indonesia’s new emissions target actually a step back: Greenpeace The new target might seem like an improvement over Indonesia’s previous commitment to cut emissions growth by 26 per cent over projected business-as-usual levels by 2020, but it actually represents a regression, Greenpeace says. http://www.eco-business.com/news/indonesias-new-emissions-target-actually-a-step-back-greenpeace/

FGVH said to be target of global anti-palm oil lobby by Mohamad Azlan JaafarWednesday, September 23, 2015; Several anti-palm oil groups are pressuring international manufacturers to boycott products from Felda Global Ventures Holdings Bhd (FGVH), according to industry sources. FGVH, Malaysia’s largest oil palm planter, is being singled out for using “unfair labour practices” among other things. There has always been an anti-oil palm lobby, but recently several non-governmental organisations’ (NGOs) have canvassed local manufacturers of consumer product companies to stop buying products from FGVH. “It appears that there is a move to target FGVH products using labour practices as the excuse,” said an industry source. “The authorities should investigate this latest move to boycott FGVH products.” Previously, anti-palm oil lobbyists, comprising NGOs and consumer groups, have cited deforestation, destruction of peatlands, health concerns, habitat degradation, animal cruelty and indigenous rights abuses to spread t eir anti-palm oil gospel. Today, they have added “modern slavery” into their argument to force international food and consumer goods manufacturers to abandon palm oil in the production of their products. http://themalaysianreserve.com/new/story/fgvh-said-be-target-global-anti-palm-oil-lobby

Many Asia-Pac corporates can withstand impact from China's slowdown: Moody's By Siow Li Sen; Most exposed to China are corporates in the metals and mining, coal, oil and gas, steel, chemical, auto, technology and agriculture sectors, said Moody's on Wednesday. Corporates with modest exposure are those in the business and consumer services, gaming, manufacturing, port, real estate, retail, shipping and trading sectors. Exposure is low for airports, homebuilding and building materials, telecommunications and utility sectors, as these sectors tend to derive their revenues domestically.... http://www.businesstimes.com.sg/companies-markets/many-asia-pac-corporates-can-withstand-impact-from-chinas-slowdown-moodys

China makes, another, cattle ranch purchase in Australia 15th Sept 2015, by Mike Verdin; China chalked up another land acquisition in Australia, as Fucheng Group purchased a 31,000-hectare cattle property at a price which exceeded market expectations – and the threshold requiring the deal to require government clearance. Fucheng for Aus$28.0m ($20m) bought the Woodlands cattle-fattening property in southern Queensland from MP Evans, the London-listed palm oil group which first put the ranch up for sale six years ago. The deal - which excludes the purchase of the cattle and equipment at the site, estimated by MP Evans to be worth more than Aus$10m – is considerably more than many commentators had expected for the site. http://www.agrimoney.com/news/china-makes-another-cattle-ranch-purchase-in-australia--8773.html

IOI Corp invests in German oleochemical firm   By Affin Hwang Capital / digitaledge Daily   | September 14, 2015 : 10:32 AM MYT     IOI Corp Bhd ( Valuation: 0.50, Fundamental: 1.05) (Sept 11, RM4.00)Maintain hold with target price (TP) of RM4.02: IOI Corp Bhd announced that an indirect-wholly-owned subsidiary had on Sept 9 entered into a conditional asset purchase agreement to acquire the entire oleochemicals business of Cremer Oleo GmbH & Co KG in Germany for http://www.theedgemarkets.com/my/article/ioi-corp-invests-german-oleochemical-firm

To break up Sime Darby or not? by Khairie Hisyam     Published 14 Sep 2015, 2:17 pm https://www.malaysiakini.com/news/312245

Wilmar International plans partial stake sale in German subsidiary by Shiwen Yap, September 16, 2015:  Singapore-listed commodities group Wilmar International is considering divesting a part of its stake in German animal feed trading house H. Boegel (link in German). A Wilmar spokesperson said: “An interested party in the animal feed business has approached Wilmar to buy part of our stake and we are considering the proposal as it would benefit Boegel.” Boegel is an indirect subsidiary of Wilmar, which holds a 66 per cent stake in the firm through a subsidiary. The Hamburg-based firm is involved in the import and trading of animal feeds. Recently, Religare Institutional Research shared with the The Business Times that the agribusiness group is skating on thin ice, recommending investors to sell their shares in it and divest their interest in the group. According to Religare, Wilmar’s intense capital expenditure programme, estimated to be US$6.5 billion since 2010, has delivered poor returns to investors. http://www.dealstreetasia.com/stories/wilmar-international-plans-partial-stake-sale-in-german-subsidiary-12507/

EU Approves Dutch Biodiesel JV Between Wilmar & Fox Petrolifera, 9/11/2015 8:21 PM ET The European Commission on Friday said it has approved the creation of a Dutch joint venture company between Wilmar International Limited of Singapore and Fox Petrolifera Italiana SpA of Italy, under the EU Merger Regulation. The joint venture will produce biodiesel and its by-products from an existing Italian biodiesel plant currently operated by Fox Petrolifera. Both companies' are active in the production of biodiesel as well as crude and refined glycerin. The joint venture's parent companies will also sell palm and seed oil, which are both used in the production of biodiesel. http://www.rttnews.com/2551853/eu-approves-dutch-biodiesel-jv-between-wilmar-fox-petrolifera.aspx

Broker's take: Wilmar skating on thin ice, says research house By Claire Huanghuang Aug 27, 201510:13 AM, RELIGARE Institutional Research said on Thursday that Singapore-headquartered agribusiness group Wilmar International is skating on thin ice, and initiated coverage on it with a "sell" call and a target price of S$2.27. Wilmar's intense capital expenditure programme (US$6.5 billion over last five years) has delivered poor returns, Religare says. "Its core refining business is threatened by severe overcapacity and driven by volatile trading gains. At 14x enterprise value/earnings before interest, tax, depreciation & amortisation FY2015 forecast, Wilmar is overvalued for its risks." http://www.businesstimes.com.sg/stocks/brokers-take-wilmar-skating-on-thin-ice-says-research-house

Plantation Company Eagle High Secures Rp 2.74t Loan From BNI By : Jakarta Globe | on 2:52 PM September 13, 2015; Jakarta. Plantation company Eagle High Plantations secured Rp 2.74 trillion ($192.3 million) in loans from state lender Bank Negara Indonesia to repay its debts and expand its businesses, Eagle High said in a statement released on Friday.  Eagle High’s corporate secretary Rudy Suhendra said the company signed the loan deal with BNI last Thursday.  ”The [loan] facility will be used to repay existing debts to BNI and develop the company's palm plantation business [through subsidiaries],” Rudy said in the statement, adding that the loans mature in 84 to 96 months.  Eagle High’s subsidiaries Bumilanggeng Perdanatrada, Bumihutani Lestari, Adhyaksa Dharmasatya, Satria Manunggal Sejahtera and Prima Cipta Selaras stand to benefit from the loan.  Eagle High has this year set aside Rp 800 billion in capital expenditure to be spent on developing two new palm oil processing companies and 5,000-10,000 hectares of plantation area. http://jakartaglobe.beritasatu.com/business/plantation-company-eagle-high-secures-rp-2-74t-loan-bni/

Felda gets UMA query on share price surge Published: 14 September 2015 9:01 PM Felda Global Ventures Holdings Bhd (FGV) has been issued an unusual market activity (UMA) query by Bursa Malaysia Securities Bhd, after the sudden sharp rise in its share price today. FGV's counter rose as high as 30% to trade at RM1.65 today. The stock has been on a slide since early this year, plunging to its historical low of RM1.19 on August 26. FGV saw a stellar listing debut when its shares rose 19% premium to RM5.39, over its retail offering price of RM4.55. It closed at RM5.30 on the first day of listing on June 28, 2012. - See more at: http://www.themalaysianinsider.com/business/article/felda-gets-uma-query-on-share-price-surge#sthash.UpJM3Y5t.dpuf

Felda Settlers Assembly should be called off if connected to Red shirt rally Posted on 14 September 2015 - 05:56pm; PETALING JAYA: The Felda Settlers Assembly on Sept 16 should be called off if it is in any way connected to the coming Red shirt rally on the same day, Felda Settlers Children Association (Anak) president Mazlan Aliman said today. Mazlan questioned the legitimacy of the assembly and urged Felda director general Datuk Hanapi Suhada to clarify several key points in a letter issued by one Zulhai Mohd Nor Affendy, allegedly on behalf of the Felda Community Development director. "Anak wants to clarify, what is the motive behind this assembly. If it is related to the Red shirt rally, we urge that the assembly be cancelled. "Felda must not be involved in any activity that presents a security risk and exploits its settlers for certain political agenda," he said in a Facebook post today. http://www.thesundaily.my/news/1552058

Felda settlers bussed in for M'sia Day, not rally by Alyaa Azhar     Published 15 Sep 2015, 3:22 pm; The Federal Land Development Authority (Felda) has denied that its event to be held tomorrow in the city centre has any connection with the red shirt rally. “We don’t have any connection with the red shirt rally. We just want to celebrate Malaysia Day which is on the 16th,” said a Felda spokesperson. https://www.malaysiakini.com/news/312405

16 September 2015: Thailand PTT sells interest in East Kalimantan unit, Provident Agro unit caught up in Riau fires charge

Thailand's PTT to Sell More Palm Oil Assets in Indonesia By : Reuters | on 06:00 AM September 10, 2015; Bangkok. PTT Pcl, Thailand's largest energy firm, said on Wednesday it will sell its stake in a palm oil business in Indonesia for an undisclosed sum as part of a plan to divest non-core assets. Its subsidiary PTT Green Energy Pte will sell its entire holding in PTT Green Energy (Netherlands) Cooperatief U.A. (PTTGE) to its partner in the operation, Sindopalm Pte Ltd, an affiliate of PT Kalpataru Investama, the Thai firm said in a statement. PTT had been in investing since 2010 in PTTGE, which has interests in seven palm oil companies in East Kalimantan with a total area of 78,877 ha. ... The PTT unit had in June sold its 95 percent stake in a palm oil business in Indonesia for $35 million.  http://jakartaglobe.beritasatu.com/business/thailands-ptt-sell-palm-oil-assets-indonesia/

Provident Agro unit - Police Charge Oil Palm Company Over Sumatra Forest Fire By : Jakarta Globe | on 16:39 PM September 14, 2015; The company has been identified as Langgam Inti Hibrida, an joins 40 individuals charged with setting 37 forest fires in Riau province, according to Adj. Sr. Comr. Guntur Aryo Tedjo, a spokesman for the provincial police....Established in 1998, LIH is based in Riau’s Pelalawan district and is 99.8 percent owned by publicly lited Provident Agro. The company was also cited earlier this year by district environmental officials for improper waste management.  http://jakartaglobe.beritasatu.com/news/police-charge-oil-palm-company-sumatra-forest-fire/

13 September 2015: Sime Darby to Raise $1.5 Billion From Rights Issue, Various ratings downgrades, GAR biodiesel push, Goldman banker joins Wilmar for deal making, Wilmar's new industrial estate and port, Felda denies WSJ allegations, worries that Indonesia subsidy will undermine sustainability and IPOP pledges

Editor's note - due to being away on travels lately news review has been a bit sparse, so this segment is a major review going back to 28 August.

Will Indonesia’s new palm oil subsidy undermine no-deforestation push? 1st September 2015 / Philip Jacobson & Sapariah Saturi - Officials are selling nascent CPO Fund on sustainability grounds, but experts fear it will do more harm than good... • Questions remain about whether the CPO Fund will carry environmental safeguards and how its resources will be divided between its two main purposes: helping farmers increase their yields and subsidizing biodiesel. • A senior adviser to the energy minister worries the subsidy, if administered haphazardly, could throw an unfortunate lifeline to the dwindling market for palm oil from deforestation, peatland coversion and land grabbing. • The man who designed the fund says it's all about sustainability because it will reduce dependence on foreign petroleum and shore up flagging palm oil prices. http://news.mongabay.com/2015/09/will-indonesias-new-palm-oil-subsidy-undermine-no-deforestation-push/

Rating Action: Moody's downgrades Golden Agri-Resources Ltd to Ba3; outlook negative by Global Credit Research - 04 Sep 2015; Singapore, September 04, 2015 -- Moody's Investors Service has downgraded the corporate family rating of Golden Agri-Resources Ltd (GAR) to Ba3 from Ba2.  The outlook on the rating remains negative....  "The downgrade reflects an ongoing erosion in palm oil prices such that they have now hit six-year lows and our view that GAR will be unable to reduce leverage significantly in the next six to nine months from over 6x currently, and its liquidity will continue to remain under pressure," says Alan Greene, a Moody's Vice President and Senior Credit Officer.  Despite adverse market conditions, GAR has continued to make further progress towards refinancing the probable put on its convertible bonds on 4 October 2015.  https://www.moodys.com/research/Moodys-downgrades-Golden-Agri-Resources-Ltd-to-Ba3-outlook-negative--PR_333585

Golden Agri Resources to build $150m biodiesel facility Anggi M. Lubis, The Jakarta Post, Jakarta | Business | Fri, August 14 2015, 3:46 PM; “We are currently in the process of building two biodiesel plants of 300,000 tons per annum each in capacity, of which we expect can be completed by next year,” he said.“The construction for one of the plants started earlier so it is expected to be fully completed in the first half [of next year] while the second one has just started recently so it will be done toward the second half.”For the two plants, Fung said that a total of $150 million in investments would be disbursed, and the expansion was carried out by one of GAR’s subsidiaries. The new plants, he explained, are located in Marunda in North Jakarta and Tarjun in South Kalimantan. - See more at: http://www.thejakartapost.com/news/2015/08/14/golden-agri-resources-build-150m-biodiesel-facility.html#sthash.hCX7NdrI.dpuf

Former Top Goldman Banker Joins Wilmar in Dealmaking Role by  Chanyaporn Chanjaroen and Joyce Koh  September 8, 2015 — 12:09 PM HKTUpdated on September 8, 2015 — 5:42 PM HKT; Wilmar International Ltd., the world’s biggest palm-oil processor, has hired former Goldman Sachs Group Inc. banker Hsin Yue Yong for a dealmaking role. Yong, who was Goldman’s head of Southeast Asia investment banking, joined Wilmar in July as general manager for special projects, the Singapore-based company said in an e-mailed statement Tuesday responding to Bloomberg queries. The former banker’s role is “centered around” strategic development, which also involves mergers and acquisitions, according to the statement. Yong, who’s related by marriage to the billionaire Kuok family that controls Wilmar, has about two decades of dealmaking experience, the statement shows.    http://www.bloomberg.com/news/articles/2015-09-08/former-top-goldman-sachs-banker-yong-joins-wilmar-in-m-a-role

Wilmar’s industrial estate to kick off operations this year The Jakarta Post, Jakarta | Business | Sat, August 08 2015, 4:13 PM; The Wilmar Group Indonesia, which is the country’s largest palm oil producer and a subsidiary of Singapore-listed Wilmar International, is developing the zone on a piece of land measuring approximately 1,744 hectares, which includes 544 ha of reclamation area for a port and industrial development.The integrated industrial estate will have its own power plant with a capacity of 2 x 1,000 Megawatts worth US$2.5 billion, a port with a loading capacity of 30 million tons per year worth $500 million of investment and a railway system. The zone’s construction phase cost $130 million worth of investment from the total planned investment of $700 million and has absorbed around 2,000 workers. Currently, the project is entering the port construction phase.Wilmar Group Indonesia director Erik Tjia said on Friday that his office was in the process of applying for the port construction permit.“We will finish the project gradually with infrastructure construction as the priority,” he said as quoted by kontan.co.id, adding that the port would be focused on facilitating exported goods shipments while the railway would provide access for transporting raw materials and finished products. - See more at: http://www.thejakartapost.com/news/2015/08/08/wilmar-s-industrial-estate-kick-operations-year.html#sthash.idr1yUzc.dpuf

Singapore businesses mark 10 years of CSR push By Medilyn Manibo Thursday 27 August 2015; Keppel Land, Wilmar and Maritime and Port Authority of Singapore have received accolades for championing corporate social responsibility as part of their core business practices. http://www.eco-business.com/news/singapore-businesses-mark-10-years-of-csr-push/

Sime Darby to Raise $1.5 Billion From Rights Issue - The potential share sale, which likely would be Malaysia’s biggest this year, comes after palm-oil prices hit six-year lows By P.R. Venkat  Sept. 8, 2015 1:07 a.m. ET  SINGAPORE—State-controlled Malaysian palm-oil producer Sime Darby Bhd. is planning to raise around $1.5 billion from a rights issue that could shore up its balance sheet, people with knowledge of the deal said Tuesday. http://www.wsj.com/articles/sime-darby-to-raise-1-5-billion-from-rights-issue-1441688842

Moody’s downgrades Sime Darby’s sukuk and notes  Saturday, 5 September 2015; KUALA LUMPUR: Moody’s Investors Service has downgraded the outlook for Sime Darby Bhd’s sukuk and medium-term note (MTN) programme to “negative” as the diversified conglomerate – which is involved in plantations, property and motors – had been impacted across the board. The international ratings agency said yesterday that Sime Darby was affected by the slower rate of growth in China and most Asia-Pacific economies, lower commodity prices and a weaker ringgit.  “This has seen leverage surge to over four times for the year ended June 30, 2015 from 1.5 times for FY2012,” it said....http://www.thestar.com.my/Business/Business-News/2015/09/05/Moodys-downgrades-Sime-Darbys-sukuk-and-notes/?style=biz

FGV in final stage of acquiring stake in Eagle High Plantations Published: 10 September 2015 11:06 PM; EHP owns 425,000 hectares of oil palm plantations, out of which 67% are in Kalimantan and the rest in Papua New Guinea (9%), Sulawesi (19 per cent) and Sumatra (5%). – Bernama - See more at: http://www.themalaysianinsider.com/malaysia/article/fgv-in-final-stage-of-acquiring-stake-in-eagle-high-plantations#sthash.QYWLIH7M.dpuf

FGV taps India’s oil palm potential  By GOH THEAN HOWE - 7 September 2015 @ 11:00 AM  KUALA LUMPUR: FELDA Global Ventures Holdings Bhd (FGV), the world's largest crude palm oil producer, plans to collaborate and explore partnership opportunities with a few Indian partners to further strengthen its market position as the leader in the oil palm-based downstream sector.... http://www.nst.com.my/news/2015/09/fgv-taps-india%E2%80%99s-oil-palm-potential

Viterra buys Canada oilseed plant from Malaysia's Felda By Reuters Media  on Sep 8, 2015    at 8:25 a.m. WINNIPEG, Manitoba - Viterra Inc, the agriculture segment of Glencore PLC, said on Thursday that it agreed to buy Eastern Canada's largest oilseed processing plant from Malaysia's Felda Global Ventures Holdings Bhd.    Felda, the world's third-largest palm plantation operator, said it would sell the TRT-ETGO plant at Bécanour, Quebec to Viterra for C$190 million ($143.43 million)... http://www.agweek.com/news/business-and-technology/3834107-viterra-buys-canada-oilseed-plant-malaysias-felda

Felda stronghold maintain Najib’s grip on power BY RAM ANAND Published: 6 September 2015 8:55 AM | Updated: 6 September 2015 11:09 AM - See more at: http://www.themalaysianinsider.com/malaysia/article/felda-strongholds-hold-the-fort-for-najib#sthash.AKy1OtyG.dpuf

More homes to be built for Felda settlers  by sharanpal singh randhawa Updated: Monday August 31, 2015 MYT 11:35:32 AM; KUALA TERENGGANU: More homes will be built for the second generation of Federal and Land Development Authority (Felda) settlers, as a sign of the government’s gratitude to them. Datuk Seri Najib Tun Razak said the houses would cost between RM60,000 and RM70,000. “Recently I announced that house prices for the second generation of Felda settlers be reduced from RM120,000 to RM90,000. But now, I would like to announce that more houses will be built for them and these houses would only cost between RM60,000 and RM70,000. “This is because Felda settlers have risked and sacrificed everything they had and placed all their trust in the government....“The price of the Felda Global Ventures (FGV) shares will rise and fall and that is normal. My advice to settlers is, keep your shares and not to sell them. Let them accumulate and the price will rise. “For the short term, what we have is the dividend. Last year, we paid a total of RM59.2mil in dividends, I can assure you that Felda has enough of reserves to continue paying such dividends for a long time,” he said. Najib said the Government was constantly finding ways to ensure that Felda settlers benefit from any major venture...  http://www.thestar.com.my/News/Nation/2015/08/31/More-homes-to-be-built-for-Felda-settlers/

Felda denies WSJ report on workers’ abuse, hiring illegals Published: 28 August 2015 9:17 PM; Felda Global Ventures Holdings Bhd (FGV) has investigated allegations of human rights abuses raised by The Wall Street Journal (WSJ) and clarified that it did not employ illegal immigrants. In a statement, it said a special taskforce was assembled and chaired by its group president and chief executive officer, Datuk Mohd Emir Mavani Abdullah, to investigate the allegations and reiterated that all its workers were employed in full compliance of all regulations and laws. - See more at: http://www.themalaysianinsider.com/malaysia/article/felda-denies-wsj-report-on-workers-abuse-hiring-illegals#sthash.XDFSt14s.dpuf

FGV net profit takes a hit from falling palm oil prices Tuesday, 25 August 2015; PETALING JAYA: Felda Global Ventures Holdings Bhd (FGV), which is buying a 37% stake in Indonesian planter Eagle High Plantations Tbk, said net profit for the second quarter ended June 30, 2015 plunged 70% to RM46.09mil from RM151.86mil a year ago...http://www.thestar.com.my/Business/Business-News/2015/08/25/FGV-net-profit-takes-a-hit-from-falling-palm-oil-prices/?style=biz

BIMB Securities cuts Felda Global's target to RM1.03   by The Edge Markets  KUALA LUMPUR (Aug 25): BIMB Securities Research has maintained its “Sell” rating on Felda Global Ventures Holdings Bhd (FGV) with a lower ...

Rating Action: Moody's affirms IOI ratings at Baa2; changes outlook to negative - Global Credit Research - 04 Sep 2015; Based on IOI's latest financial results for the year ended 30 June 2015 (FY2015), credit metrics have weakened further with adjusted debt/EBITDA at 4x, and negative retained cash flow.  "IOI's credit metrics are largely a function of the company's policy in terms of shareholder distributions and capital structure and therefore controllable by management," says Alan Greene, a Moody's Vice President and Senior Credit Officer...   https://www.moodys.com/research/Moodys-affirms-IOI-ratings-at-Baa2-changes-outlook-to-negative--PR_333581

10 September 2015: Sinar Mas mulls bioplastics, two biodiesel plants in construction

Sinar Mas Group Mulls Plans to Start Producing Bioplastic - Jakarta GLobe, ...Franky Widjdja, the chairman of publicly listed Sinar Mas Agribusiness & Foods (SMART), said the company was currently researching the feasibility of bioplastics, which are derived from vegetable-based oils such palm oil, rather than from crude oil.  "We're learning about the commercial possibilities of the business. Right now, the government is offering a really attractive incentive," Franky told reporters in Jakarta over the weekend...Sinar Mas Group is currently constructing two biodiesel fuel factories located in Jakarta and Kalimantan with total capacity to process up to 800,000 metric tons of crude palm oil, Franky said. "The investment wasn't really that costly. It ranges from about $30 million to $40 million for one plant," he added....   http://jakartaglobe.beritasatu.com/business/sinar-mas-group-mulls-plans-start-producing-bioplastic/

7 September 2015: Felda mulls price cut for Indonesia deal, plantations the mainstay for Sime, DSN stock split, palm oil mill sludge pellets, S&P lowers IOI Corp outlook

Felda Said to Mull Price Cut for $680 Million Indonesia Deal  by Joyce Koh and Elffie Chew  September 1, 2015 — 5:33 PM HKTUpdated on September 2, 2015 — 6:40 PM HKT; Felda said June 12 it planned to buy 37 percent of Eagle High from Indonesian conglomerate Rajawali Group for $680 million in cash and shares. That implies an enterprise value of about $17,400 per hectare of land, compared with the $25,900 that Sime Darby Bhd. paid for New Britain Palm Oil Ltd. in March, Felda Chief Executive Officer Mohd Emir Mavani Abdullah said in a July interview. Employees Provident Fund, Malaysia’s biggest pension fund manager, is concerned about the valuation Felda is paying, the official Bernama news agency reported in June

Plantations the mainstay of Sime Saturday, 29 August 2015  By: HANIM ADNAN; SIME Darby Bhd has built its reputation as one of the world’s largest listed palm oil conglomerates producing some 2.8 million tonnes of crude palm oil (CPO), which represents 5% of the world’s total production. Despite its well-diversified business portfolio, Sime’s plantation division has been the mainstay contributing over 40% to the group’s profit annually.  Hence, to keep up with the high momentum in the oil palm business, Sime has aggressively been expanding its land bank overseas given the scarcity of suitable land for oil palm in Malaysia.  Sime has a total land bank of one million ha across Malaysia, Indonesia, Liberia, the Solomon Islands and Papua New Guinea (PNG)..... http://www.thestar.com.my/Business/Business-News/2015/08/29/Plantations-the-mainstay-of-Sime/?style=biz

Dharma Satya Nusantara Plans 1-to-5 Stock Split  http://jakartaglobe.beritasatu.com/business/dharma-satya-nusantara-plans-1-5-stock-split/

‘Sustainability company’ transforms palm mill wastes into fuel for electricity  Saturday, 5 September 2015; “In 2013, we found a palm oil mill owner in Klang who was willing to give us a chance, and a Korean company agreed to invest in us,” he told StarBizWeek.... Hyper Fusion treats the waste water sludge and separates the solid particles from the mix. The remaining sludge is then turned into pellets. A palm oil mill generates four kinds of waste: empty fruit bunches, oil palm mesocarp fibre (OPMF), kernel shells (PKS) and POME – collectively known as biomass. The company takes all the four by-products and processes them by removing up to 90% of moisture, thereby transforming them into an efficient form of fuel for the boilers. “A mill usually has at least 10 ponds, and the ponds take up about two-thirds of the mill area. “What we do eliminates the need for so many ponds. All we need is the first pond, and the last two ponds,” said Dinesh. Not only was Hyper Fusion’s method better for the environment, he said, but also saved a lot of space in the mill area, which could be used for other operations such as farming. The process treats the effluent and reduces the chemical oxygen demand (COD) and BOD (biochemical oxygen demand) by 80% in less than 10 minutes. The remainder is then sent into the last two ponds to complete the clarification process which takes about two weeks. When it is done using the traditional ponding method, the entire process usually takes between 90 and 120 days.... http://www.thestar.com.my/Business/Business-News/2015/09/05/Power-from-biofuel-pellets/?style=biz

S&P lowers IOI Corp outlook to negative Wednesday, 2 September 2015; S&P credit analyst Vishal Kulkarni said he had revised the outlook as IOI’s earnings before interest, taxes, depreciation and amortisation (Ebitda) and cash flows were likely to be weaker than earlier expected over the next 12 months because of a recent sharp decline in CPO prices. “At the same time, IOI’s reported debt will increase following the depreciation of the ringgit. The company’s distribution of the majority of its operating cash flow to shareholders limits its deleveraging potential,” he said. Kulkarni has projected that IOI’s ratio of debt to earnings before interest, taxation, depreciation and Ebitda would deteriorate to more than 3.5 times for fiscal 2016 ending June 30, 2016. This is based on the assumption that the ringgit will stay at about 4.2 per US dollar and CPO prices would remain subdued for the rest of the fiscal year. “The negative outlook reflects our view that IOI’s debt-to-Ebitda ratio may not recover to close to 3 times over the next six to 12 months if CPO prices remained at current levels and the company’s shareholder distributions stay elevated....http://www.thestar.com.my/Business/Business-News/2015/09/02/SP-lowers-IOI-Corp-outlook-to-negative/?style=biz

Glencore Studies Selling Stake in Agriculture Unit to Curb Debt by  Javier Blas and Jesse Riseborough  September 7, 2015 — 3:21 PM HKTUpdated on September 7, 2015 — 5:43 PM HKT; Glencore Plc is considering selling a minority stake in its agriculture business as part of the Swiss miner and commodity trader’s wider plan to reduce its $30 billion of debt by about a third.

22 August 2015: Expectations of weak 2Q2015 for Malaysian plantations, KL Kepong results, FGV denies raising wages

Tough times for palm planters Saturday, 22 August 2015  By: HANIM ADNAN Tough times for palm planters Saturday, 22 August 2015 By: HANIM ADNAN Weak CPO price to hurt earnings; rising stockpile and production to affect sentiment A BUMPY ride ahead is envisaged for plantation companies as their earnings are expected to be dragged down by weaker average crude palm oil (CPO) selling prices. The price of CPO, which has fallen by about 14% year-to-date, is currently trading below the RM2,000-per-tonne mark.  According to OilWorld estimates, world palm oil production this year will hit a record 60.7 million tonnes, thus contributing to a surge in the stock-usage ratio. Singapore-based Nomura Research, in its latest report, expects a weak second quarter 2015 (Q2) results for Malaysian plantation companies. “In the last few weeks, Indonesia and Singapore plantation companies have released their Q2 results. “All of the companies under our coverage reported results that were below market expectations, due mainly to the weaker average selling prices.” http://www.thestar.com.my/Business/Business-News/2015/08/22/Tough-times-for-palm-planters/?style=biz

KL Kepong core earnings below survey Thursday, 20 August 2015; KUALA LUMPUR: Affin Hwang Capital Research said Kuala Lumpur Kepong Bhd’s (KL Kepong) core net profit for the nine months to June 30 were below expectations due to lower selling prices for crude palm oil (CPO), palm kernel and rubber as well as continued pressure on manufacturing margins.

Wages of plantation workers not raised, says Felda Published: 17 August 2015 10:54 PM; "We have not raised the wages of our plantation workers, including palm oil mill employees, and other general workers, by 8 to 10% effective April 1, 2015, as suggested in the report. - See more at: http://www.themalaysianinsider.com/malaysia/article/wages-of-plantation-workers-not-raised-says-felda#sthash.26HV7ktW.dpuf

Bumitama Agri's Q2 profit drops 26% By Nisha Ramchandani; Aug 13, 201511:45 AM PALM-OIL planter Bumitama Agri reported a 26 per cent year on year slide in net profit to 217.08 billion Indonesian rupiah (S$22 million) for the second quarter ended June 30, due to the lower selling prices of crude palm oil (CPO) and palm kernel (PK), share of losses of associate companies as well as higher costs and expenses. http://www.businesstimes.com.sg/companies-markets/bumitama-agris-q2-profit-drops-26

First Resources' net profit from operations down 6.8% on weak palm oil prices - Weaker palm oil prices dragged down performance at First Resources.  Weaker palm oil prices dragged down performance at First Resources. PHOTO: BLOOMBERG Aug 13, 2015, 11:48 am SGT by Yasmine Yahya; SINGAPORE - Weaker palm oil prices dragged down performance at First Resources, which said net profit from operations for the second quarter fell 6.8 per cent from a year ago to US$47 million, even as sales rose. Sales in the three months ended June 30 increased 5.9 per cent to US$118.8 million due to higher sales volumes of palm-based products, partially offset by the effects of lower average selling prices....http://www.straitstimes.com/business/companies-markets/first-resources-net-profit-from-operations-down-68-on-weak-palm-oil

27 July 2015: PT Provident Agro key shareholders want to sell, First Resources acquires 6,000 ha, Genting Plantations said to buy 70,000 ha oil palm plantation

from AmBank research 27 July: Bloomberg reported that PT Provident Agro’s two largest shareholders are exploring a sale of their majority stake in the company. Provident Capital Partners and PT Saratoga Investments may start reaching out to buyers next month. The two shareholders own a combined stake of 88.3% in Provident Agro, which has a market capitalisation of US$339mil (share price of Rp640). Provident Agro has 44,475ha of planted landbank and 110,000ha of total landbank.

From CIMB research 23 July: First Resources has acquired PT Falcon Agri, an Indonesian planter with 6,000ha of planted oil palm estates, for an estimated US$11,000/ha, which we view as fair. Meanwhile, we expect the group to meet our expectations by delivering a core net profit of US$34m when it releases its 2Q results on 13 Aug. The stock remains an Add due to its young estates and strong management. Our target price stays at S$2.44, based on 15.3x or its historical average P/E.

MALAYSIA PRESS-Genting Plantations plans Indonesia expansion-Business Times Wed Jul 22, 2015 8:42pm EDT Malaysia's Genting Plantations Bhd plans to buy a 70,000-hectare oil palm plantation in Indonesia to grow its business in the country, Business Times reported on Thursday, citing sources. The plantations arm of Malaysian conglomerate Genting Bhd has identified the site in Indonesia and is in talks with relevant parties before entering into an agreement, the sources was quoted as saying.... http://www.reuters.com/article/2015/07/23/malaysia-press-genting-plntn-idUSL3N10305Y20150723

21 July 2015: FGV Emir to stay on, FGV to raise money from non-core asset sale, Dr M shared concerns says FGV activitist, FGV says no more new acquisitions;  Volac-Wilmar global animal feed fats business, Sime Darby plantations moves to dispose of its non-core business and ease future cashflow, Green Synergy Sdn Bhd a significant SME player in the Malayisa biomass sector

Emir to stay on? Tuesday, 21 July 2015 By: SHARIDAN M. ALI PETALING JAYA: Felda Global Ventures Holdings Bhd (FGV) group president and CEO Datuk Mohd Emir Mavani Abdullah’s contract to helm the plantation group is likely to be renewed for another year, sources said.
It is learnt that Emir’s contract that ended last Wednesday was extended. Previously there was speculation that there would be a new person to lead FGV following scrutiny on the company’s performance and deals. FGV had yet to get back to query on the issue at press time.
FGV market capitalisation has halved since its Bursa debut back in 2012 and its latest proposed purchase of a 37% stake in Indonesia’s PT Eagle High Plantations for US$680mil on June 12 was criticised as being an expensive deal.  Emir has defended the Eagle High deal as FGV was paying a lower enterprise value (EV) at US$17,400 per planted ha, contrary to market talk that its purchase of Indonesia’s third largest listed oil palm planter was overpriced..... http://www.thestar.com.my/Business/Business-News/2015/07/21/Emir-to-stay-on/?style=biz

FGV to raise RM1bil from non-core asset sale Thursday, 9 July 2015; KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) plans to raise more than RM1bil selling non-core assets as the world’s biggest crude palm oil producer focuses on plantations to repair investor confidence dented by an acquisition. Unprofitable crushing and refining businesses in the US and Canada that have drawn initial bids ranging from US$180mil (RM686mil) to US$250mil (RM953mil) may be sold later this month, chief executive officer Emir Mavani Abdullah said in an interview. Holdings in a travel firm, and engineering and information technology units may fetch a further RM300mil, he said.
http://www.thestar.com.my/Business/Business-News/2015/07/09/FGV-to-raise-RM1bil-from-noncore-asset-sale/?style=biz

Dr Mahathir shared concerns over FGV listing, says activist Published: 6 July 2015 10:14 PM; Former prime minister Tun Dr Mahathir Mohamad had feared that the listing of Malaysia oil palm giant Felda Global Ventures Holdings (FGV) would not bode well for settlers under the government scheme to resettle and uplift the rural poor through smallholdings, an activist for Felda settlers said. National Felda Settlers' Children's Association (Anak) president Mazlan Aliman said this on his Facebook page after the non-governmental organisation met Dr Mahathir today at Perdana Leadership Foundation in Putrajaya. Mazlan, a PAS member, said the NGO had a one hour meeting with Dr Mahathir on Felda, FGV, Korporasi Permodalan Felda, 1Malaysia Development Berhad, the goods and services tax and his criticism against Prime Minister Datuk Seri Najib Razak. googletag.cmd.push(function() {googletag.display('div-gpt-ad-1400601790726-3');}); "Why did FGV throw away money to buy hotels, factories and invest overseas when there are room and vast opportunities to do so at home? Buying assets at high prices and taking advantage for personal interests...Mazlan said Dr Mahathir's views on Felda's listing was the most interesting issue he spoke about at the meeting, adding that the former prime minister had also talked about Najib and the things he had done which have "jeopardised" the country. - See more at: http://www.themalaysianinsider.com/malaysia/article/dr-mahathir-shared-concerns-over-fgv-listing-says-activist#sthash.WZt5KFNc.dpuf

Felda Global to strengthen investments, drive growth, new acquisitions out Tuesday, 7 July 2015; PETALING JAYA: Plantation conglomerate Felda Global Ventures Holdings Bhd (FGV) said it would not be looking at any new acquisitions but would focus on strengthening its investments. “FGV will not be pursuing more acquisitions we will consolidate all our investments and drive growth,” the group said in a statement yesterday. “FGV will also focus on integrating and extracting efficiencies of recent acquisitions. Our goal is to empower management teams, guided by a unifying vision and culture of performance and sustainability,” it added.  In the last three years, FGV had spent more than RM4bil on mergers and acquisitions, comprising mainly brownfield plantations to fast-track growth expansion and improve its crop age profile..... http://www.thestar.com.my/Business/Business-News/2015/07/07/Felda-Global-to-strengthen-investments-drive-growth/?style=biz

Volac, Wilmar form global animal feed fats business Published on: Jul 6, 2015; Volac International Ltd. and Wilmar International Ltd. announced July 6 the creation of a joint venture group to develop their added value animal feed fat business around the world. Volac Wilmar Feed Ingredients combines the nutritional reputation, global brand and sales network of Volac with the operational raw material logistics and scale of Wilmar. The joint venture will focus on animal feed fats, supporting the dairy farming industry through nutritional expertise, by marketing an expanded "MEGA" branded range of feed fat products that will be responsibly sourced through a leading sustainability approach and by maximizing operational efficiency. Volac Animal Nutrition managing director David Neville said, "Volac believes that responsibly sourced feed fats will play a key role in sustainable livestock nutrition in the future and, therefore, we are expanding our fats business as part of our company strategy. The joint venture with  ilmar will supply sustainable and traceable fat nutrition ingredients, which will help improve the productivity of livestock production across world markets." Napoleon Pefianco, managing director of Wilmar Europe Holdings B.V., added that the two companies "have an aspiration to set the agenda for sustainability. Through the joint venture, we will use our combined resources to develop sustainable feed ingredients globally, putting the joint venture at the leading edge of ethically sourced feed fat ingredients." Volac and Wilmar have an existing business relationship through a joint venture called Volac Ingredients Sdn. Bhd. (VISB), which is based in Malaysia and was established in 2003. This joint venture produces MEGALAC rumen-protected fat under license in China. Volac is a privately-owned business based near Cambridge, U.K., that focuses on improving livestock productivity and helping consumers to live healthier lives for longer. http://feedstuffs.com/story-volac-wilmar-form-global-animal-feed-fats-business-45-129578

Tesco stake sale seen as in line with Sime Darby’s plan Thursday, 9 July 2015  By: EUGENE MAHALINGAM; PETALING JAYA: The proposed disposal of Sime Darby Bhd’s 30% stake in Tesco Malaysia will be in line with the plantation giant’s move to dispose of its non-core business and ease future cashflow.... MIDF Research, in a report yesterday, noted that Tesco Malaysia only accounted for 0.6% of Sime Darby’s total earnings last year. “In its financial year ended June 30, 2014 (FY14), Tesco Malaysia contributed RM25mil to Sime Darby’s profit before interest and taxes (PBIT). “Against the group’s PBIT of RM4.22bil, it was only 0.6%,” it said, adding that Sime’s Darby’s net asset for its 30% stake in Tesco Malaysia was RM94.4mil based on its FY14 annual report.” AmResearch in its report yesterday said the disposal of Tesco Malaysia, if it happened, could help Sime Darby to part-finance the recent acquisition of New Britain Palm Oil Ltd (NBPOL). “This could be positive from a cash flow point of view, and a disposal of its stake in Tesco Malaysia would be in line with a disposal of a non-core business,” it said........... http://www.thestar.com.my/Business/Business-News/2015/07/09/In-line-with-Sime-Darbys-plan/?style=biz

From palm waste to wealth Updated: Monday July 20, 2015 MYT 8:17:00 AM; Datuk Joseph Lim Heng Ye, 41, is now a well-known figure in the green business scene, having built up his startup which focused on turning palm waste into revenue-generating bio-products since 2008. Global Green Synergy Sdn Bhd (GGS), the company Lim founded together with Ngan Teng Ye, has now become a significant SME player in the local biomass sector. The company converts palm oil waste (biomass) into palm fiber, palm pellet and other palm-related products. It also makes the machines that produce these products. After Lim won the prestigious World Creative Young Entrepreneur Award (2011-World Champion Winner) by Brussels-based Junior Chamber International in 2011, there has been no shortage of green jobs for GGS. The RMB1bil project to green the Kubuqi Desert in Inner Mongolia, which sees GGS partnering with China’s Elion Resources Group, is just the latest example. And a whopper it is, too. Back in 2013, the company set up a joint venture with Malaysia Palm Oil Board to produce palm bio-briquette to be used as biofuel. Yet another achievement for GGS is its partnership with Chinalight (Guangzhou) Import & Export Corp in October 2013 to supply biomass pellets to the Chinese power giant..... http://www.thestar.com.my/Metro/SMEBiz/People/2015/07/20/From-palm-waste-to-wealth/

8 July 2015: Najib announces RM88.8 million for Felda settlers, and highlights FGV plan to buy 420,000 ha in PNG

Najib announces RM88.8 million for Felda settlers, payment starts next week Published: 7 July 2015 8:39 PM; "We need to be with Felda, do not stray too far away... actually those who confuse Felda people are those who come to Felda like pests out to poison the minds of settlers so much so when we do good, the people say otherwise," he told Bernama. He said Felda has various plans to improve the income of settlers and overcome the constraints of land to be developed as plantations in the country. He added that FGV planned to purchase 420,000 hectares of land in Papua New Guinea which could generate revenue double the amount in this country as the volcanic land there is fertile. - See more at: http://www.themalaysianinsider.com/malaysia/article/najib-announces-rm88.8-million-for-felda-settlers-payment-starts-next-week#sthash.yHdN3Hb9.dpuf

26 June 2015: Australian sugar industry reject Wilmar proposal, farmers prepare to fight, Wilmar calls on Singapore help to fight back - on Australia FTA obligation breach, Wilmar calls up boats for almost all record ICE sugar delivery, FGV Trading targets RM6-8 billion revenue, PT Eagle High Plantations unit in spotlight on forest clearance, FGV’s Indonesian deal a bailout for Najib crony, say bankers  - The Edge Review, Indonesia's Rajawali to maintain 2.55% stake in FGV (on Thursday it said it would like to hold at least 21% of FGV if the Malaysian firm decides to seek a controlling stake), Heng Huat Resources invests RM35m to expand in Kelantan, Indonesia's PT Indofood Sukses Makmur  plans sugar investment, eastern Indonesia prepares 500,000 ha for sugar and cattle investors

Australian sugar industry reject Wilmar proposal, puts government under spotlight SYDNEY, June 25  |  By Colin Packham;  Australian sugar growers on Thursday rejected a marketing proposal from the country's largest sugar processor Wilmar International Ltd, saying it does not guarantee top prices, and called for laws that give them a say in exports. Wilmar, MSF Sugar, owned by Thai sugar giant Mitr Phol , and the Australian unit of Chinese agribusiness COFCO Corp plan to stop selling sugar through the industry-owned marketing body from 2017. Australian sugar is currently controlled by an independent entity, Queensland Sugar Limited. The three processors want to bypass the industry body and use their own exporting arm, which they say will allow them to control their supply chains and maximise revenues. But the move is unpopular with sugar farmers in Australia, the world's third largest exporter of raw sweetener. Sugar cane must be processed within a day of being harvested and with no alternative millers nearby, growers say they have no choice but to sell to the three processors and have little assurance on crop prices."An Australian sugar farmer should have free choice in his economic destiny and the Wilmar proposal does not allow that," said Steve Guazzo, chairman of the industry body, CANEGROWERS.... http://www.reuters.com/article/2015/06/25/australia-sugar-wilmar-idUSL3N0ZB2OC20150625

Debate on sugar marketing escalates 19th Jun 2015 5:00 AM; THE SINGAPORE government has become another player in the escalating debate between cane growers and sugar marketing giant Wilmar. Two codes of conduct, which would ensure growers have a choice in cane marketing and would retain existing market arrangements, are making their way through parliament. This followed Wilmar's announcement they planned to exit current sugar marketing arrangements during 2016. But a Wilmar executive general manager Shayne Rutherford said the proposed codes of conduct had prompted the company to raise concerns with the Singapore government. "We have raised our concerns about the expropriation of our manufactured sugar with both the Australian and Singapore governments," Mr Rutherford said. "Why would anyone want to invest in an Australian manufacturing or processing business if it doesn't own and control the product it makes?" He said the codes would likely breach free trade agreement obligations. http://www.dailymercury.com.au/news/debate-on-sugar-marketing-escalates/2677141/

Farmers prepare to fight Asian tycoon over sugar marketing   Glen Norris  The Courier-Mail  June 15, 2015 11:43AM  The tranquil green fields of Australia’s biggest sugar growing district have become the focus of a battle between cane farmers and one of Asia’s richest men.  At stake farmers say is how they will be paid for their crop by mills owned by Robert Kuok’s giant Wilmar Sugar when new marketing arrangements are introduced in 2017. The escalating conflict comes as the Federal Government considers a mandatory code for the sugar industry that would give farmers greater rights to dispute contracts with millers. Wilmar and other foreign millers last year announced they would pull out of a long-standing arrangement whereby most sugar was marketed through the not-for-profit Queensland Sugar Ltd (QSL) and deal directly with farmers. Fearing Wilmar will use its market power to push prices down, Burdekin farmers last year formed their own company to allow them to better negotiate with the huge agribusiness that owns eight mills in central and north Queensland. http://www.couriermail.com.au/business/farmers-prepare-to-fight-asian-tycoon-over-sugar-marketing/story-fnihsps3-1227397738610

Wilmar calls up boats for almost all record ICE sugar delivery; Jun 25, 20157:23 PM [SINGAPORE] Wilmar International Ltd said it has booked for shipment almost all the 1.9 million tonnes of sugar it scooped up two months ago in the biggest-ever exchange deal, even as traders fret about weak demand and low prices. The Singapore firm, one of the biggest merchants in the 180-million tonne sugar market, has booked spots on vessels for all but 100,000 tonnes of the US$550 million worth of sugar it bought when the May contract expired. Wilmar expects to call on sellers to load the remaining tonnage this week, the company said in an emailed statement. After months of uncertainty about the pace of the shipments from Brazil and Central and South American growers, the news may help restore some calm to the sweetener market. Prices languish near 6-1/2-year lows as the market struggles through a fifth straight surplus year.  http://www.businesstimes.com.sg/companies-markets/wilmar-calls-up-boats-for-almost-all-record-ice-sugar-delivery

Shree Renuka Sugars Ltd appoints nominee directors of Wilmar Sugar Holdings Pte Ltd. Posted On: 2015-06-24 11:14:07  The Board of Directors of Shree Renuka Sugars Ltd at its meeting held on June 24, 2015, approved the appointment of Mr. Jean-Luc Bohbot and Mr. AtuI Chaturvedi as Nominee Directors of Wilmar Sugar Holdings Pte Ltd., w.e.f. June 24, 2015. http://www.equitybulls.com/admin/news2006/news_det.asp?id=162145

FGV Trading targets RM6-8 billion revenue this year Published: 19 June 2015 5:01 PM  Felda Global Ventures Holdings Bhd (FGV)'s wholly owned subsidiary, FGV Trading, is targeting revenue of between RM6 billion and RM8 billion this year. FGV’s transformation plan, which channeled its oil trading activities through FGV Trading, showed impressive growth with a revenue of RM2.5 billion in just four months of its trading operations since February, said a statement. Head of trading & marketing and logistics (TML) cluster Datuk Khairil Anuar Aziz said FGV Trading would become the second largest contributor to the group's revenue, at 34 %. "So far, FGV Trading has traded 1.3 million tonnes of crude palm oil (CPO) and this is a good achievement for a new company," he said. He added that FGV Trading aimed to trade 4.7 million tonnes of CPO, 60% from internal CPO, while the rest will be from external sources. FGV Trading, which is now headed by chief executive officer Datuk Wira Adam, also planned to explore the potential of other high-value vegetables oils, for example coconut oil from the Philippines for the international market. Its traditional market included China, Japan, Bangladesh, India and Pakistan, as well as, the Indo-China region such as Vietnam, Myanmar, Cambodia and Laos, the statement said, adding that it was also involved in the premium market for countries in Europe. In line with FGV’s land bank expansion and increase in CPO production, FGV Trading is also eyeing new markets among the countries of West Asia, the Mediterranean, North Africa, Eastern Europe and the Balkan regions. http://www.themalaysianinsider.com/business/article/fgv-trading-targets-rm6-8-billion-revenue-this-year#sthash.8EBTWx99.dpbs

Indonesia's Rajawali to maintain 2.55% stake in Felda Global Ventures By: IZWAN IDRIS, SHARIDAN M. ALI Friday, 26 June 2015 PETALING JAYA: The Rajawali Group has no immediate plans to seek a bigger stake in Felda Global Ventures Holdings Bhd (FGV), even as the two companies plan to complete a deal by August....http://www.thestar.com.my/Business/Business-News/2015/06/26/Rajawali-to-maintain-255-stake-in-FGV/?style=biz 

UPDATE 2-Rajawali wants bigger Felda stake if Felda sees control of Eagle High By Cindy Silviana and Eveline Danubrata Thu Jun 25, 2015 6:05am EDT  * Felda's offer for 37 pct of Eagle High is too high-analysts * Felda shares down over 6 pct after announcing offer * Five bidders for Rajawali stake in Nusantara Infrastructure (Adds no comment from Felda, clarifies that Felda is the world's third biggest palm oil plantation operator) JAKARTA, June 25 (Reuters) - Indonesia's Rajawali Group said on Thursday it would like to hold at least 21 percent of Felda Global Ventures Holdings Bhd if the Malaysian firm decides to seek a controlling stake in Rajawali unit PT Eagle High Plantations Tbk.
http://www.reuters.com/article/2015/06/25/eagle-high-plnt-rajawali-idUSL3N0ZB2LS20150625

Felda Global Venture’s Indonesian deal a bailout for Najib crony, say bankers BY LESLIE LOPEZ Published: 19 June 2015 9:00 AM; State-controlled Felda Global Ventures Bhd, Malaysia’s largest listed plantation company, is touting its US$746 million (RM2.8 billion) purchase of a clutch of plantation and sugar assets owned by Indonesian tycoon Tan Sri Peter Sondakh as a demonstration of economic integration among the 10-member Asean. But portfolio investors and bankers are panning the acquisition, arguing that the deal is hugely expensive for Felda and smacks of a bailout for the Sondakh, who enjoys close ties to Malaysian Prime Minister Datuk Seri Najib Razak. Coming on the heels of the widening furore surrounding debt-laden sovereign fund 1Malaysia Development Bhd (1MDB), the deal is raising serious corporate governance concerns over the management of so-called government-linked companies which dominate the Malaysian economy and use of public funds.... The deal, which will be financed through borrowings and internal reserves of Felda, will largely wipe out its cash reserves, which currently amount to RM2.87 billion (US$768 million)..... Sondakh’s Rajawali Group, on the other hand, is getting a sweetheart deal. Despite paying such a huge premium for its 37% equity interest in Eagle High, Felda will not gain management control of the company. The Rajawali group, with a reduced stake of 31.6%, will continue to run the company. The Sondakh-controlled group will also receive an immediate deposit payment of US$174 million, or roughly 23% of the total acquisition price, from Felda even before the completion of due diligence on the assets and cross-border regulatory approvals are obtained for the transaction. Bankers and investment analysts in Jakarta and Kuala Lumpur say that the deal will provide a crucial financial lifeline to Sondakh, who has been struggling with his creditors to service debt obligations after an aggressive expansion into plantations and mining backfired following the collapse of commodity prices..... http://www.themalaysianinsider.com/malaysia/article/felda-global-ventures-indonesian-deal-a-bailout-for-najib-crony-say-bankers#sthash.oMF5CxbR.dpbs

One of Indonesia’s Richest Men Is Bullish on Commodity Processing  Jun 26, 2015; As the head of one of Indonesia’s largest investment companies, Peter Sondakh knows to follow market trends. It’s the reason he took up smoking cigars last year, he says, beneath the whir of air purifiers in his office. It’s also, he says, partly why he’s selling off stakes in his palm oil plantation – Indonesia’s third largest – in the hope of moving toward processing, refining and trading at a time when slumping commodity prices and weakened demand for raw materials from China have dented the economy. “I pride myself in adding value,” said Mr. Sondakh, whose PT Rajawali Corp. is one of Indonesia’s biggest conglomerates with investments in mining, property, plantations and media. “Added value products will have more profit.”... The need seems all the more urgent now that consumer spending, which makes up more than half of the country’s GDP, is dropping off. Mr. Sondakh says he’s concerned by the slump in consumption. Rajawali plans to divest shares in one of the country’s largest taxi operators, PT Express Transindo Utama, and focus on its core business sectors – mining, plantations and property.... Since Mr. Sondakh founded Rajawali in the 1980s, he’s earned a reputation for turning around ailing companies. He has also become one of Indonesia’s richest men; Forbes estimated his net worth this year at $2.3 billion. In the early 1990s Mr. Sondakh bought a bankrupt cigarette company, PT Bentoel Investama, and later sold his majority stake to British American Tobacco for $494 million. He bought cement producer Semen Gresik (now Semen Indonesia) for just $336.7 million, eventually selling it to the government in an equity transaction that raised $1.08 billion... http://blogs.wsj.com/indonesiarealtime/2015/06/26/one-of-indonesias-richest-men-is-bullish-on-commodity-processing/?mod=WSJBlog&mod=WSJ_SEA_Blog

Malaysia's Felda Global to raise funds to buy stake in Eagle High KUALA LUMPUR, June 16  http://www.reuters.com/article/2015/06/16/malaysia-felda-eagle-high-plnt-idUSL3N0Z22OE20150616

Felda buy in Indonesian company above market rate, says veteran newsman Published: 14 June 2015 9:34 AM  http://www.themalaysianinsider.com/malaysia/article/felda-buy-in-indonesian-company-above-market-rate-says-veteran-newsman#sthash.dHvRD8QU.dpbs
Palm oil giants to investigate company found razing Papuan rainforest; Mongabay.com Monday 22 June 2015; Agribusiness giants Cargill and Golden Agri-Resources (GAR) are pledging to investigate a palm oil supplier after an Indonesian environmental group presented evidence of rainforest clearing in New Guinea. On Thursday, Greenomics-Indonesia released a report documenting destruction of forests in South Sorong, a regency in West Papua, Indonesian New Guinea. Greenomics found that PT Varia Mitra Andalan (VMA), a subsidiary of publicly-listed PT Eagle High Plantations Tbk, continued to clear high carbon stock forests through March 2015, potentially putting it in breach of sustainability commitments established last year by Cargill and GAR. Both companies buy significant volumes of product from Eagle High Plantations, according to public disclosures.  The findings led Greenomics to call on the companies to respect their “deforestation-free” sourcing policies. Both companies are signatories of the Indonesian Palm Oil Pledge (IPOP), a corporate commitment to eliminate deforestation from supply chains... http://www.eco-business.com/news/palm-oil-giants-to-investigate-company-found-razing-papuan-rainforest/

Here Are 5 Of Singapore’s Cheapest Blue Chip Shares By Chong Ser Jing - June 26, 2015; There are many ways to value a stock and one popular method is to focus on its book value. The book value of a company is the cash that can theoretically be returned to its shareholders after the firm liquidates all its assets and settles all its obligations. Mathematically, the book value’s given in the formula below:
Book value = Total assets – Total liabilities. Companies with a price-to-book ratio of below 1 are selling for lower than their book values and investors who are able to buy such shares are therefore getting their hands on a potential bargain. With this in mind, the quintet of Golden Agri-Resources Ltd (SGX: E5H), Noble Group Limited (SGX: N21), Hongkong Land Holdings Limited (SGX: H78), Jardine Strategic Holdings Limited (SGX: J37), and CapitaLand Limited (SGX: C31) might rightfully be called Singapore’s cheapest blue chips; they have the lowest PB ratios (see table below) amongst the 30 constituents of Singapore’s market barometer, the Straits Times Index (SGX: ^STI).http://www.fool.sg/2015/06/26/here-are-5-of-singapores-cheapest-blue-chip-shares/

Heng Huat Resources invests RM35m to expand in Kelantan  Thursday, 25 June 2015; KUALA LUMPUR: Heng Huat Resources Group Bhd is investing RM35mil to expand its operations in Gua Musang, Kelantan to process oil palm empty fruit bunch (EFB) fibre. It said on Thursday the new plant would enable the group to meet the rising demand from China and also export to new markets in Australia, South Korea and Japan. Managing director H’ng Choon Seng said the new plant would source the  raw material from palm oil mills in Kelantan which could provide a sustainable supply of EFB. Of the RM35mil, it would use RM11mil to purchase the land and build the factory, RM12mil for the machinery and RM2mil for vehicles and equipment. The remaining RM10mil would be for a biomass co-generation power plant which would enable the it to reduce its operating costs through better energy-efficiency and re-utilisation of production waste materials. The capital expenditure would be from bank borrowings and its own funds. Heng Huat currently has two oil palm EFB fibre factories in Seberang Perai, Penang.  The new plant in Gua Musang would increase its total oil palm EFB fibre production lines from 20 lines to 27 lines and annual production capacity rising from 100,500 tonnes to more than 135,000 tonnes. The new manufacturing facility is targeted to be operational in the second quarter of 2016. H’ng explained Heng Huat had been expanding its fibre exports to China and the expansion is timely as its plants are now running at 90% capacity.http://www.thestar.com.my/Business/Business-News/2015/06/25/Heng-Huat-Resources-invests-RM35m-to-expand-in-Kelantan/?style=biz

BLD strives to keep costs low in midst of challenging outlook by Ronnie Teo, June 18, 2015, Thursday; KUCHING: BLD Plantation Bhd (BLD) aims to keep its costs low amidst a challenging outlook for the palm oil industry as crude palm oil (CPO) prices remain lacklustre. According to executive chairman Datuk Henry Lau, global demand for palm oil and its related products have not been as encouraging as expected. This was on the back of increasing costs of operations including minimum wages, goods and services which Lau said were generally on the uptrend....
http://www.theborneopost.com/2015/06/18/bld-strives-to-keep-costs-low-in-midst-of-challenging-outlook/#ixzz3eEjldKaa

Ta Ann enters into JV for oil palm projects Posted on 23 June 2015 - 05:40am PETALING JAYA: Ta Ann Holdings Bhd, which lost a legal battle to native owners in Sarawak over customary land last year, is making a second attempt at expanding its palm oil landbank in the state via a joint venture (JV). Ta Ann's plans to collaborate with the Sarawak state government and Native Customary Rights (NCR) owners to implement oil palm development projects spread over 28,195 ha in the state. Ta Ann's unit, Ta Ann Plantation Sdn Bhd (TAP), yesterday entered into two JV agreements with Pelita Holdings Sdn Bhd (PHSB), the trustee to the NCR owner, to develop 17,017 ha in Sibu and 11,178 ha in Kapit. In a Bursa Malaysia announcement yesterday, Ta Ann said the projects are "replacement" projects for the failed project entered into in Sept 28, 2012 between TAP and PHSB with the land owners owners at Matu-Daro, Mukah division; Tambirat-Asajaya, Kota Samarahan division; and Sebuyau Sebangan, Kota Samarahan division, all in Sarawak http://www.thesundaily.my/news/1468216
Indonesia's PT Indofood Sukses Makmur Tbk, one of the world's biggest instant noodle makers, plans to invest $150 million to build a sugar processing facility in eastern Indonesia, Kontan reported on Thursday. http://www.dailymail.co.uk/wires/reuters/article-3119358/INDONESIA-PRESS-Indofood-plans-invest-150-mln-sugar-factory-Kontan.html#ixzz3eFnEKjtS

Govt prepares areas for sugar, cattle investors Grace D. Amianti, The Jakarta Post, Jakarta | Business | Thu, June 18 2015, 9:01 AM; The 26 investors who expressed a keen interest in entering the country’s sugar industry consisted of 11 refined sugar producers and 15 sugarcane plantation companies, Franky said. “There are also around two to three Japanese investors who are interested in investing in the sugar industry. However, most of the time, in the sugar sector, foreign direct investors choose to first collaborate with their local partners in joint-venture companies,” Franky said. According to his ministry’s calculations, Amran said, a sugar refinery with a capacity to process 10,000 tons of sugarcane per day would cost about Rp 5 trillion (US$374.4 million) to build. The Agriculture Ministry has also run the plan by the Environment and Forestry Minister Siti Nurbaya, who agreed that the land in the three regions would be able to support the industry, Amran added. “We are planning to allocate 500,000 hectares of land in the three regions, calculating that one mill with a plantation will need at least 50,000 ha of land,” Amran said. Aside from the sugar industry, Amran said at least nine foreign and domestic investors also showed an interest in investing in Indonesia’s cattle sector, which would be located in regions such as East and West Nusa Tenggara, Buru Island in Maluku and East Kalimantan. http://www.thejakartapost.com/news/2015/06/18/govt-prepares-areas-sugar-cattle-investors.html#sthash.4FmMcn1F.dpuf

What are the Top Five Brands Bought by Indonesian Consumers? 08 June 2015 The five top brands that are purchased most often by Indonesian households are Indomie, Mie Sedaap, Royco, So Klin and Frisian Flag. This is the result of research conducted by Kantar Worldpanel (KW), a global research firm that investigates consumers' purchasing behaviour. Fabrice Carrasco, KW’s Managing Director for Vietnam, Indonesia and the Philippines, wrote in a statement received on Monday that more than 90 percent of Indonesian households buy the five above-mentioned brands. http://www.indonesia-investments.com/news/todays-headlines/what-are-the-top-five-brands-bought-by-indonesian-consumers/item5629

25 June 2015: UOBKH: Felda Global Ventures (FGV MK) - Plans For Its Indonesian Partnership, Sawit Sumbermas seeks Rp 3t/US$226 mill for refinancing, expansion - Jakarta Post

Sawit Sumbermas seeks Rp 3t for refinancing, expansion The Jakarta Post, Jakarta | Business | Wed, June 24 2015, 9:46 AM; Publicly listed palm oil company Sawit Sumbermas Sarana is looking for Rp 3 trillion (US$226 million) in loans to refinance its debts and expand production, a company executive has said.Around Rp 2.36 trillion will come from syndicated loans from the country’s largest lender Bank Mandiri, while the remaining Rp 730 billion will come from state-owned financing agency Indonesia Eximbank.The company will use half of the total loans to refinance its debts to Bank Mandiri, worth Rp 1.3 trillion, and to Indonesia Eximbank, worth Rp 700 billion.Another Rp 1.5 trillion will be spent on the company’s capital expenditure to boost its production performance in both the upstream and downstream sectors, including to fund a new acquisition.“We need to take out loans as we have to maintain our cash,” finance director Harry M. Nadir said in Jakarta on Tuesday, adding that the company — which will offer its land-use permit (HGU), including land assets, as a guarantee — expected the five-year loans to be secured early in the second semester.Sawit Sumbermas spent around Rp 1.5 trillion to acquire PT Tanjung Sawit Abadi (TSA) and PT Sawit Multi Utama (SMU) in February, in an attempt to increase production capacity. - See more at: http://www.thejakartapost.com/news/2015/06/24/sawit-sumbermas-seeks-rp-3t-refinancing-expansion.html#sthash.DOiQ7PJQ.dpuf

UOBKH: Felda Global Ventures (FGV MK) - Plans For Its Indonesian Partnership, Thursday, 25 June 2015; FGV clarified concern over its partnership with Rajawali Group in Eagle High Plantation. Key messages are it is: a) penetrating large greenfield and brownfield developments, b) buying the sugar plantation to gain exposure to the lucrative sugar business, and c) exploring further in the downstream and consumer segments with Rajawali. FGV reported EV of US$17,400 per planted hectare, which excludes the valuation of the unplanted 267,000ha landbank..... FGV’s justification for the high valuation of the acquisition. FGV indicated that the acquisition price is fair and derived using a DCF method assuming long-term CPO price of RM2,900/tonne and discount rate of 9%. The valuation is lower than that for the acquisitions in the past three years, and slightly below the US$17,700/ha transacted in the land disposal by Tabung Haji in 2012. Also, this acquisition is expected to be earnings accretive by 2018 when more of BWPT’s planted hectarage move into young prime areas. .... Happy with a 37% stake for now. While FGV has no intention to do a mandatory general offer (GO) to increase its stake in BWPT, it may raise its stake in the future to consolidate BWPT into FGV. If FGV were to do a GO now, it would need to fork out
another U$1,833m, which we think is difficult for FGV, given its high gearing post the 37%
stake acquisition.....


23 June 2015: Ta Ann new NCR JV for 60% stake in 17,000 ha (60% plantable; Sibu and Kapit area) replaces 2012 agreements revoked for lack of land owners' interest; BLD questioned over "no deforestation, no peatland" policy; Palm oil a matter of national security for Malaysia (especially for smallholder interests) - opinion - /khorreports-palmoil/2014/11/rspo-meeting-sabah-considering-100.html

22 June 2015: FGV falls 3.4% after defending Eagle High acquisition - The Edge; an argument for the deal - it's strategic partnership to benefit smallholders and other stakeholders?

FGV falls 3.4% after defending Eagle High acquisition by Ahmad Naqib Idris / theedgemarkets.com, 22 June 2015; http://www.theedgemarkets.com/my/article/fgv-falls-34-after-defending-eagle-high-acquisition?google_editors_picks=true

FGV-EHP partnership: a way forward to prosperity for two nations – HS Dillon Published: 20 June 2015 12:49 PM; The recent press statements reporting that Felda Global Ventures (FGV) intends to buy a substantial stake in EHP, and the ensuing debate, revive old memories. It is indeed remarkable that what had been my dream as a senior official of Indonesia's Ministry of Agriculture, thwarted by vested-interests nearly quarter of a century ago, is now being promoted by visionary entrepreneurs.
Obsessed with creating greater equality in rural Indonesia, I gladly welcomed my appointment as Head of The Team for Restructuring State-owned Plantations in 1993. Due to strong support from the then very honest minister of finance, Marie Muhammad, we managed to consolidate the previous 26 separate corporate entities into nine plantation groups. Talking to the press after the brief meeting, the PM stated that Malaysia, facing land constraints, had no other option but to invest in oil-palm plantations in Indonesia. We then started to explore avenues for cooperation with senior Malaysian officials, including private placement into our state plantations. With the best Malaysian plantation management practices, utilising state-of-the-art technology, and good corporate governance, we could have launched an IPO within five to six years after entering into such a partnership. Therein, the Malaysian investors would have reaped relatively quick yields, and our state-owned plantations would have ranked among the best. Of course, the powers that be in Indonesia, gleaning rents from the status quo, did not allow this to materialise; but that is a different story.... Most of the current exchange has revolved around whether the Heads of Agreement signed last week by the two parties is commercially sound, in the narrow sense of generating immediate profits for their shareholders....But that which has been omitted from the exchange is what interests me the most: the smallholders and other stakeholders. This is more than just another B2B deal, it is a People-Private Partnership on both sides. Most observers apparently are not aware of the genesis of FGV, and do not realise that more than a 100,000 members of Felda are shareholders. Around 60 years ago, former prime minister Tunku Abdul Rahman decided to launch a massive initiative to help poor rural households climb out of poverty, who at point were not very different from their Indonesian cousins.....Education and rural infrastructure managed to lay the foundations of a productive middle-class. Now the descendants of the erstwhile poor Malaysian smallholders have become bosses, with oil-palm holdings being tended by the progeny of the still poor rural Indonesian households. Indeed, by overcoming rent and wage barriers to expansion, this FGV-EHP partnership should enable Felda members to continue earning handsome returns, but around the same number of Indonesian smallholders already partnering with EHP in contract-farming schemes, also stand to benefit..... FGV institutional memory would be better suited to striking rapport with rural Papuan households, for instance, than the colonial institutional memory inherited by a number of Indonesian plantation managers.....What would be the repercussions, or what economists call second-round effects? Other Indonesian plantation groups might enter into such partnerships to remain competitive... http://www.themalaysianinsider.com/sideviews/article/fgv-ehp-partnership-a-way-forward-to-prosperity-for-two-nations-hs-dillon#sthash.mGSAlewo.dpbs



The Edge articles:

• FGV defends Eagle High stake buy as cheaper than NBPOL, Unico Plantations acquisitions 19 Jun 2015, http://www.theedgemarkets.com/my/article/fgv-defends-eagle-high-stake-buy-cheaper-nbpol-unico-plantations-acquisitions
• EPF ceases to be substantial shareholder of FGV  18 Jun 2015 , http://www.theedgemarkets.com/my/article/epf-ceases-be-substantial-shareholder-fgv
• EPF chief to FGV: Why the premium price for Eagle High?  18 Jun 2015, http://www.theedgemarkets.com/my/article/epf-chief-fgv-why-premium-price-eagle-high
• FGV shareholders voted out a director 16 Jun 2015, http://www.theedgemarkets.com/my/article/fgv-shareholders-voted-out-director
• An expensive deal for FGV 16 Jun 2015, http://www.theedgemarkets.com/my/article/expensive-deal-fgv
• FGV plunges to record low on overpaying concern 16 Jun 2015, http://www.theedgemarkets.com/my/article/fgv-plunges-record-low-overpaying-concern

21 June 2015: Genting Plantations in WSJ article on ties with 1MDB and politics

http://www.wsj.com/articles/fund-controversy-threatens-malaysias-leader-1434681241?mod=djem10point


20 June 2015: Rajawali and FGV talk of rationale for investment plan

Rajawali to adopt Felda’s technology for business expansion Anggi M. Lubis, The Jakarta Post, Jakarta | Business | Thu, June 18 2015, 9:26 AM; Industrial conglomerate PT Rajawali Corpora says it plans to strengthen its downstream palm oil business by adopting technology from a Malaysian company that recently bought its shares in local oil palm company PT Eagle High Plantation (EHP).Rajawali Corpora managing director Darjoto Setyawan said Rajawali had no plan to fully divest its ownership in the palm oil plantation after releasing 37 percent of total 68.5 percent stakes it had to Felda Global Ventures Holdings Bhd (FGV), the world’s largest crude palm oil (CPO) producer.According to Darjoto, Rajawali is instead looking to enhance its business using cutting-edge technology it hopes to adopt from FGV.Rajawali and Felda signed the deal last week in a ceremony attended by Coordinating Economic Minister Sofjan Djalil and Malaysia’s International Trade and Industry Minister, Dato Sri Mustapa Mohamed - See more at: http://www.thejakartapost.com/news/2015/06/18/rajawali-adopt-felda-s-technology-business-expansion.html#sthash.F98ZGm1b.dpuf

FGV eyes EHP acquisition in bid to further palm oil interests Friday June 19, 201509:55 PM GMT+8 - KUALA LUMPUR, June 19 — Felda Global Ventures Holdings Bhd (FGV) today clarified that its proposed investment in PT Eagle High Plantations (EHP) is in line with its plan to become a world leading integrated palm oil plantation company. “The proposed investment would increase landbank, improve age profile of crops, cost optimisation and provide strategic long-term partnership, with a conglomerate in Indonesia,” FGV said in a statement today.  FGV refers to article “EPF hopes FGV will address valuation concern on PT Eagle High” as reported by Bernama on Wednesday, questioning the rationale for the US$680 million, or RM2.55 billion, proposed acquisition of EHP from Rajawali Group which has been regarded as too expensive by analysts.  The partnership, FGV said, would also provide access to Asean’s largest single market, allowing FGV to gain a foothold in a key palm oil supply market.  FGV said it was important to note that the proposal implied equity value /hectare (ha) for the planted hectarage of Rajawali at approximately US$17,400, which was lower than the recent reported transactions involving Sime Darby Bhd’s acquisition of New Britain Palm Oil Ltd (US$25,900) and IOI Corp Bhd’s takeover of Unico-Desa Plantations (US$23,500).
In comparing with recent Indonesian transactions, hectarages involved were small in nature, of less than 70,000 ha, said FGV. From a corporate perspective, FGV said, this deal presented it with a great opportunity as part of its expansion plan. EHP owns 425,000 ha, with 67 per cent in Kalimantan.—Bernama - See more at: http://www.themalaymailonline.com/money/article/fgv-eyes-ehp-acquisition-in-bid-to-further-palm-oil-interests#sthash.44syMEwC.dpuf

16 June 2015: FGV - Eagle High deal - The Edge reports 23% down payment prior to S&P agreement and Peter Sondakh / Rajawali cash raising and strategic deal witnessed by Sofyan Djalil (Econ Coordinating Minister) and Malayisa MITI's Mustapa Mohamed - Jakarta Globe

Rajawali Piles Up Cash, Gets Ready for More Acquisitions By Vanesha Manuturi on 05:08 pm Jun 14, 2015.... The venture would mark Rajawali’s second sale this year as the group works to focus on its other core businesses: property and mining.... Peter (Sondakh) built his reputation by buying then selling companies with a hefty profit in the past decade. The conglomerate’s most lucrative deals include the sale of Bentoel International Investama for $494 million in 2009 to British American Tobacco. In 2010, Rajawali sold $1 billion worth of shares in Semen Gresik, which it bought from Mexican cement maker Cemex for $337 million in 2006..... The business conglomerate — whose businesses range from palm oil, property to mining — signed an agreement with executives from Felda Global Venture on Friday, witnessed by Indonesia’s Coordinating Minister for Economy Sofyan Djalil and Malaysia’s Minister of International Trade and Industry Mustapa Mohamed.
http://thejakartaglobe.beritasatu.com/business/rajawali-piles-cash-gets-ready-acquisitions/




15 June 2015: Analysts worry about FGV - Eagle High deal. FGV shares move down toward analyst lowered price outlooks.

AMBank: Felda Global: No earnings enhancement from Eagle High investment: We are downgrading Felda Global Ventures (FGV) ..... We have reduced FGV’s FY16F EPS by 6% to account for the dilutive impact of the US$680mil investment in 37% of Eagle High and US$67mil acquisition of 95% of Rajawali’s sugar assets.

CIMB: FGV has entered into a Heads of Agreement with Rajawali group to buy a 37% stake in PT Eagle High Plantations (EHP) and a 95% stake in its sugar assets for US$746m (RM2.8bn)...... (3) we estimate the acquisition could dilute its FY16 net profit by 10%; and (4) net gearing will rise to 1.43x from 1.05x and cashflow will be negatively impacted. ....Key potential de-rating catalysts are this proposal and earnings risk.

10 June 2015: Unilever Indonesia capex spend of up to $90 million per year

Unilever Sets Aside $90m for Indonesia Expansion By Vanesha Manuturi & Antonia Timmerman on 07:27 pm Jun 08, 2015; Home and personal care products make up 73 percent of Unilever Indonesia's sales, with food and refreshment products accounting for the remainder. (Antara Photo/Zabur Karuru)
Jakarta. Unilever Indonesia, one of the largest listed consumer goods producers in Indonesia, is setting aside Rp 1.2 trillion ($90 million) for investment this year as the firm foresees a continuing slowdown in consumer demand for the remainder of the year. “Our [capital expenditure] is set to range from about Rp 1 trillion to Rp 1.2 trillion. It’s around the same amount as what we invested last year. We still believe in Indonesia for the long-term,” Sancoyo Antarikso, corporate secretary at Unilever Indonesia, told a press conference in Jakarta on Monday. Much of the spending — funding for which will mostly be sought internally — is meant to increase the company’s plant capacity, improve distribution networks, as well as adding more ice cream cabinets in stores across Indonesia, Sancoyo explained. First established in 1933, Unilever Indonesia, the local arm of British-Dutch multinational consumer goods company Unilever, is among a slew of publicly-listed companies in Indonesia that have announced less-than-ambitious expansion plans this year amid a weak local currency and a nationwide economic slowdown. Indonesia, where household spending accounts for some 56 percent of the economy, grew 4.7 percent between January and March — its slowest pace of growth in five years. Meanwhile, the rupiah has depreciated by nearly 6 percent against the US dollar so far this year, data from the central bank showed.
http://thejakartaglobe.beritasatu.com/business/unilever-sets-aside-90-million-indonesia-expansion/

8 June 2015:  APRIL promises stop harvesting of natural forest; FGV price fall questions; Wilmar news items - in spite of new moves, more criticisms; supplier issues highlight by FPP and Australia sugar tussles, GAR in Liberia and Moody's spotlight, Sime Darby credit rating cut

Deforestation, exploitation, hypocrisy: no end to Wilmar's palm oil land grabs Anne van Schaik & Godwin Ojo 27th May 2015 With the deadline due this year for the full implementation of Wilmar's 'No peat, no deforestation, no exploitation' promise, the oil palm giant is keen to push its green image in Europe. But for communities suffering its land grabs in Nigeria, nothing has changed. While Wilmar spins green rhetoric, its bulldozers are still destroying vast swathes of forest and farmland.
http://www.theecologist.org/News/news_analysis/2879965/deforestation_exploitation_hypocrisy_no_end_to_wilmars_palm_oil_land_grabs.html

Ghosts of problems past and present loom over Nigerian palm oil plans  by Mongabay.com A youth leader who lives near one of Wilmar's Nigerian oil palm projects shows an alternative water hole the community has dug as a result of the ...http://news.mongabay.com/2015/0528-norman-nigeria-palm-oil.htm

GAR, Wilmar punish palm oil supplier for clearing rainforest in New Guinea  Mongabay.com Wilmar, another palm oil titan, put its business with the company, Austindo Nusantara Jaya (ANJ) Agri, on hold in April, though it waited nine months ... http://news.mongabay.com/2015/0528-jacobson-anj-gar-wilmar-greenomics.html
Golden Agri's Liberia unit under sustainability fire by Chan Yi Wen The Business TimesTuesday, Jun 02, 2015 Last week's violent demonstrations at Golden Veroleum Liberia's (GVL) plantations in south-east Liberia came after recent criticisms levelled at GVL, and its lead investor Singapore-listed palm oil giant Golden Agri-Resources, for its efforts (or lack thereof) at sustainability. The blow-ups at GVL's plantations last Tuesday were started by a local group with specific grievances, which included the desire for more jobs to be made available to the community, GVL said on its website.
GVL's narrative runs contrary to a Reuters report that had speculated the riots were sparked by the Forest Peoples Programme (FPP), a group campaigning for the rights of indigenous people.
In April, FPP had accused GVL of taking land without community consent. - See more at: http://business.asiaone.com/news/golden-agris-liberia-unit-under-sustainability-fire#sthash.Ljmgw2Uz.dpuf

Rating Action: Moody's changes Golden Agri-Resources' outlook to negative; affirms Ba2 Global Credit Research - 03 Jun 2015  Singapore, June 03, 2015 -- Moody's Investors Service has changed to negative from stable the outlook for Golden Agri-Resources Ltd ("GAR").  At the same time, Moody's has affirmed GAR's Ba2 corporate family rating. The outlook change reflects the continued deterioration in GAR's credit metrics, arising in turn from falling palm oil prices and weak returns from its heavy investment in downstream activities.  Accordingly, leverage has risen, with debt/EBITDA rising to 5.7x for the financial year ended 31 December 2014 from 2.4x in the year ended 31 December 2012.  At the same time, liquidity has tightened, with short-term debt totaling $1.72 billion as of 31 March 2015, including the likely put of its $400 million convertible bond on 4 October 2015. However, since March, GAR has issued SGD200 milllion of notes due 2018.
"From being strongly positioned for its rating range in late 2012, GAR's credit metrics have deteriorated steadily," says Alan Greene, a Moody's Vice President and Senior Credit Officer.
https://www.moodys.com/research/Moodys-changes-Golden-Agri-Resources-outlook-to-negative-affirms-Ba2--PR_326179

Palm oil regulator asked to investigate illegal land grabs by Wilmar Group supplier in Borneo News Date: 2nd June 2015 Borneo human rights organization files complaint alleging multiple breaches of RSPO standards by palm oil supplier PT. Swadaya Mukti Prakarsa / First Resources. By FPP. http://www.businessghana.com/portal/news/index.php?op=getNews&news_cat_id=&id=204579

'Trust, transparency and more power to growers' only way forward for divided sugar industry: new sugar chief by ABC Rural  By Charlie McKillop   Updated Thu at 8:34am  Queensland's peak sugar body has admitted it is no closer to reaching a compromise on marketing, despite renewed efforts to reopen negotiations with milling companies. After months of stalled negotiations, Canegrowers will meet with Australia's largest sugar milling company, Wilmar, in three weeks to discuss the preferred models being put forward by both parties.  Head of the State Government's sugar industry taskforce, George Christensen, also accused the Singaporean sugar giant of refusing to 'budge' on its initial position that would take growers' economic share out of the longstanding sugar pool.
http://www.abc.net.au/news/2015-06-04/nrn-new-canegrowers-boss-says-sugar-marketing-his-biggest-prior/6521952

Sugar code of conduct delayed but still on track to break sugar marketing deadlock: MP ABC Rural  Charlie McKillopUpdated Thu at 8:24am Cane growers have been told they will have to wait until the end of this month to hear from the federal taskforce set up to consider a sugar industry code of conduct. The head of the taskforce, George Christensen MP, said there had been a slight delay in the final report due to a flood of late submissions.  Audio: George Christensen says a sugar code of conduct will find a fairer way forward for growers against 'monopoly' millers (ABC Rural)
His comments come as the Federal Government announced a review of the code of conduct for the horticulture industry, a move widely welcomed by fruit and vegetable growers who say it has not met expectations. Mr Christensen said it highlighted the importance of the taskforce taking its time to "get it right" for the sugar industry. http://www.abc.net.au/news/2015-06-03/sugar-code-of-conduct-delayed-but-still-on-track/6519386

Felda settler group rejects explanation on share price plunge BY SHERIDAN MAHAVERA Published: 31 May 2015 3:42 PM; Felda settlers have rejected Felda Global Ventures Holdings Berhad’s (FGVH) explanation that the fall in share prices and the company’s poor performance were partly due to severe floods late last year which affected its plantation operations. National Felda Settlers' Children's Association (Anak), a group that represents settlers and their families, is also worried about blowback from the plunge in share prices, which have fallen by more than 50% since it was listed three years ago. Anak president Mazlan Aliman said the severe flooding occurred in Kelantan, which does not have much oil palm plantation. googletag.cmd.push(function() {googletag.display('div-gpt-ad-1400601790726-3');}); "The severe flooding happened in Kelantan, how many FGVH plantations are there in Kelantan?” Mazlan asked. According to FGVH’s website, its largest plantations in Malaysia are located in Pahang and Sabah. “The floods in Pahang were not as bad. I do not buy the explanation. I think it’s just an excuse for the company’s poor business decisions,” he told The Malaysian Insider when contacted. - See more at: http://www.themalaysianinsider.com/malaysia/article/felda-settler-group-rejects-explanation-on-share-price-plunge#sthash.9OSG7YDJ.dpuf

Conservationists press Jakarta to follow industry lead on forests Nicholas Perry, Associated Press, Jakarta | World | Sun, June 07 2015, 11:40 AM - See more at: Conservationists are urging the Indonesian government to listen to business and start taking deforestation seriously after a major paper giant joined the growing ranks of companies pledging to stop clearing forests. Asia Pacific Resources International Holdings Ltd (APRIL), the second largest pulp and paper company in Indonesia, announced this week it had stopped harvesting natural forest in a move hailed by its former critic Greenpeace as a "major breakthrough". Indonesia has some of the world's most extensive and biodiverse rainforests, but huge swathes have been chopped down by palm oil, mining and timber companies. As a result, Southeast Asia's top economy has become the world's third-biggest carbon emitter. APRIL and its major rival Asia Pulp and Paper (APP), which together produce 80 percent of Indonesia's pulp products, have been accused of destroying vast tranches of the forests that are home to endangered species such as Sumatran orangutans and tigers. APRIL had only last year committed to phasing out deforestation in its supply chain by 2020, following APP's promise in 2013 to stop using any logs from Indonesia's natural forests in its mills. But in what APRIL's group president Praveen Singhavi called a major step in their "sustainability journey", the company ceased forest clearing in May and promised no new developments on Indonesian forest or peat land. - See more at: http://www.thejakartapost.com/news/2015/06/07/conservationists-press-jakarta-follow-industry-lead-forests.html#sthash.wuGTCB9g.dpuf


Standard & Poor lowers Sime Darby credit rating 29 May 2015 @ 12:18 PM KUALA LUMPUR: Standard &Poor’s has lowered the credit rating on Sime Darby Bhd from A to negative outlook at A-.
The conglomerate’s acquisition of the palm oil plantation in Papua New Guinea New Britain Palm Oil Ltd (NBPOL), weaker operating cash flows and a weaker ringgit which have raised the company’s debt level were the reasons cited. "We lowered the ratings because of likely delays and amendments in the implementation of Sime Darby's deleveraging plan that could offset the impact of higher debt from the acquisition of NBPOL,” said S&P’s credit analyst Bertrand Jabouley.
http://www.nst.com.my/node/86104

28 May 2015: KLK buying Emery Germany oleochemical assets; slew of corporate results for Malaysia include Genting Plantations, TH Plantations, FGV, MSM, Hap Seng, TSH Resources, KLK, IOI etc.

KLK buying Sime Darby's Germany oleochemical assets By Chong Jin Hun / theedgemarkets.com   | May 27, 2015 : 1:22 PM MYT     KUALA LUMPUR (May 27): Kuala Lumpur Kepong Bhd (KLK) ( http://edgemarkets-fl.s3.amazonaws.com/img/stock.png Financial Dashboard) is buying Emery Oleochemical GmbH's assets in Germany in an all cash Euro 40.5 million (RM162 million) deal. Emery is a unit under Sime Darby Bhd ( http://edgemarkets-fl.s3.amazonaws.com/img/stock.png Financial Dashboard) (fundamental: 0.8; valuation: 1.4). In a statement to Bursa Malaysia today, KLK (fundamental: 1; valuation: 1.1) said it had signed a conditional asset purchase agreement to buy Emery's plant, tangible assets and inventories. KLK said the transaction would enable the company to "diversify into the tallow-based market". Tallow is a substance derived from animal fat. KLK said the acquisition would also complement its existing fatty acid and glycerine business. KLK said the transaction was scheduled for completion by the third quarter of this year.
http://www.themalaysianinsider.com/business/article/klk-buying-sime-darbys-germany-oleochemical-assets

24 May 2015: Wilmar's 700,000 tonne sugar order - a substantial tonnage of sugar looking for a final home;  Sime Darby denies strike (its a go slow), results; TH Plantations sets RM 500 million revenue target; Equatorial Palm Oil, Praetorian, Benso Oil Palm

Wilmar nominated up to 700,000 T sugar on expiry so far-trade  Wed May 20, 2015 10:54am EDT By David Brough * Sugar finds homes in Morocco, Algeria, India, Malaysia * Market talk of some cancelled vessel nominations  LONDON, May 20 (Reuters) - Trading house Wilmar has nominated vessels to take some 600,000-700,000 tonnes of raw sugar so far from a record 1.9 million tonnes delivery against the ICE May expiry, trade sources said. Some trade sources said around 500,000 tonnes of further nominations had been withdrawn until a later date. That still leaves a substantial tonnage of sugar looking for a final home, they added. "The market was hoping they were missing something - that Wilmar has a big home for the sugar. But no one was missing anything," one London-based trade source said. A spokesman for Singapore-based Wilmar could not immediately be reached for comment. Trade sources said there was talk that Wilmar had nominated some vessels and later cancelled them in order to test whether those scheduled to deliver sugar had supplies available. European traders said they believed that Wilmar had taken sugar for end-destinations where it had access to refining capacity, such as Morocco, Algeria, India and Malaysia. "I would say at least 500,000 tonnes has been withdrawn for a later date," a European commodities trade source said. http://www.reuters.com/article/2015/05/20/sugar-delivery-wilmar-idUSL5N0YB3YC20150520

Wilmar Intl Rating Lowered to Sell at Zacks (WLMIY) Posted by Seth Barnet on May 16th, 2015 // No Comments; Wilmar Intl l(NASDAQ:WLMIY) was downgraded by Zacks from a “hold” rating to a “sell” rating in a report issued on Friday. Zacks’ analyst wrote, “Wilmar International Limited is an agribusiness group. The Company captures the entire value chain of the agricultural commodity processing business, from origination and processing to the branding, merchandising and distribution of a wide range of agricultural products. Its business activities include oil palm cultivation, oilseeds crushing, edible oils refining, consumer pack edible oils processing and merchandising, specialty fats, oleochemicals and biodiesel manufacturing, and grains processing and merchandising. Wilmar International Limited is headquartered in Singapore, Singapore. “http://www.wkrb13.com/markets/604023/wilmar-intl-rating-lowered-to-sell-at-zacks-wlmiy/

Sime Darby denies strike (its a go slow) report  Published: Monday, 18 May 2015 02:10  The Management of  Sime Darby Plantation Liberia (SDPL) has clarified that there is no strike at its plantation contrary to report in the media. “What is happening is a “go slow” action, which means that employees are coming to work but mainly with a purpose of discussing work-related issues with the management”, a press release issued by the company on Sunday said. According to the release, every April the company in accordance with the Liberian tax regulation, deducts Vacation Leave Payment tax from pay-checks, which causes employees’ dissatisfaction, adding, “We are currently talking to the representatives of the workers’ union to explain the issue and resolve any misunderstanding.” Recently, an online news outlet, Global News Network Liberia, reported strike at China Union and Sime Darby Plantation Liberia. http://www.thenewdawnliberia.com/news/7388-sime-darby-denies-strike-report

Malaysia's Sime Darby Q3 net profit drops 54.7 pct y/y Industries  |  Fri May 22, 2015 12:48am EDT  May 22 Sime Darby Bhd, the world's biggest listed palm oil producer, announced on Friday a 54.7 percent drop in its third-quarter profit due to weak commodity prices. http://www.reuters.com/article/2015/05/22/malaysia-sime-darby-bhd-results-idUSL3N0YC3DD20150522

Sime Darby sees palm oil at RM2,200-RM2,400 per tonne to year-end Published: 22 May 2015 4:50 PM Sime Darby expects palm oil prices to be between RM2,200 and RM2,400 per tonne. – The Malaysian Insider filepic, May 22, 2015. Palm oil prices will likely trade between RM2,200 and RM2,400 per tonne between now to the end of the year, said the chief executive of Malaysia's Sime Darby Bhd, the world's top oil palm planter by land size. That would be higher than the current Malaysian benchmark palm prices of RM2,136 (US$596.31). Sime Darby CEO Tan Sri Mohd Bakke Salleh had in February forecast prices between RM2,300 and RM2,500 until June 2015. googletag.cmd.push(function() {googletag.display('div-gpt-ad-1400601790726-3');}); "If El Nino kicks in then the price could be higher. Otherwise, based on our readings of the markets, crop patterns, and production, it should support a RM2,200-RM2,400 price," Bakke said on Friday. He was speaking at a press conference after Sime Darby reported a 54.7% plunge in its third-quarter net profit partly due to depressed palm oil prices. Earnings for the current financial year are expected to come in at RM2-RM2.1 billion, short of a target of RM2.5 billion set earlier, Bakke said. Palm futures have shed more than 5% so far this year in the absence of a weather premium and due to bleak exports. Weak crude oil prices that make the tropical oil less attractive for blending into biofuels have also dragged on prices. - See more at: http://www.themalaysianinsider.com/business/article/sime-darby-sees-palm-oil-at-rm2200-rm2400-per-tonne-to-year-end#sthash.A81hnCqJ.dpuf

TH Plantations sets RM500m revenue target  Alexander Winifred Thursday, May 21, 2015 TH Plantations (THP) Bhd, the plantation arm of Lembaga Tabung Haji, is aiming to achieve a revenue of more RM500 million this year, driven by production inccrase from maturing plantations and its entry into the international markets. THP CEO Datuk Zainal Azwar Zainal Aminuddin said the company expects a 5% increase in revenue for 2015 compared to RM489 million recorded in 2014. "More plantations are coming into maturity in the near future and it will ensure steady revenue growth in the coming years," he said this at the company’s AGM in Kuala Lumpur yesterday.
Zainal says THP will also begin exploring the sale of its produce from its plantations in Sarawak to markets like China, India, and the Middle East.  "As long as they can give us a good price," he said. Presently, THP only sells its produce to the local market.  The group had embarked on an aggressive expansion plan that saw its plantation land increased to 106,000 hectares from 15,000 hectares in 2006.  For the final quarter of 2014, the group reported a net loss of RM2 million, dragging its full year profits to RM34 million, a 46% year-on-year drop in profits.  http://www.themalaysianreserve.com/new/story/th-plantations-sets-rm500m-revenue-target

Equatorial Palm Oil First-Half Loss Narrows As Ebola Hits Operations Mon, 18th May 2015 11:19 LONDON (Alliance News) - Equatorial Palm Oil PLC Monday said its pretax loss in the first half of the year was in line with expectations after the Ebola crisis had a significant impact on its operations but said it is still in a strong position to carry out its strategy. For the first half of the financial year ended March 31, the palm oil producer reported a pretax loss of USD439,000, which is narrower than the USD745,000 loss reported a year earlier as the company cut its administrative expenses to USD458,000 from USD628,000. Equatorial said the loss was "in line with expectations". Equatorial also made a smaller operating loss from its joint ventures of USD245,000 from USD323,000, whilst interest income rose to USD230,000 from USD206,000 and other income totalled USD34,000 from none a year earlier.The company does not yet generate any revenue and said the Ebola crisis had a "significant impact" on its operations in the period due to the restriction of movement in Liberia until March. The company noted that the country has now been declared Ebola-free.  ttp://www.lse.co.uk/AllNews.asp?code=s9sfb95t&headline=Equatorial_Palm_Oil_FirstHalf_Loss_Narrows_As_Ebola_Hits_Operations

Praetorian Resources shares soar as it offloads stake in palm oil firm  By Andrew Neil May 15 2015, 1:50pm Praetorian shares were up over 100% in early afternoon deals and trading at 5.8p. Praetorian shares were up over 100% in early afternoon deals and trading at 5.8p.  Shares in Praetorian Resources (LON:PRAE) doubled in value as the firm sold its entire stake in Equatorial Palm Oil (LON:EPO).
The Guernsey-based investment company offloaded its full holding for £637,500 in cash, higher than EPO’s book value of £552,000. The palm oil producer, which has plants in Liberia on the West African cost, had been part of Praetorian’s portfolio since the vehicle listed on AIM back in 2012. Praetorian, which also holds stakes in ASX-listed Ausgold and TSX listed Maya Gold & Silver, said the funds raised will be used to provide additional working capital for the company.
Shares were up over 100% in early afternoon deals and trading at 5.8p. http://www.proactiveinvestors.co.uk/companies/news/80407/praetorian-resources-shares-soar-as-it-offloads-stake-in-palm-oil-firm--80407.html

Benso Oil Palm Plantation makes profit Business News of Monday, 18 May 2015  The Benso Oil Palm Plantation Limited made a profit after tax of 12.9 million Ghana cedis in 2014 representing 112 per cent increase over that of 2013.  Mr Ishmael Yamson, the Chairman of Board of Directors, announced this at the Annual General Meeting (AGM) of the company at Takoradi.  He said a dividend of GH¢ 0.0706.00 per share was approved for 2012 compared to GH¢0.0334 for the previous year.  He said by the prudent operation of the management, the company had been declared the first certified sustainable oil palm plantation in Ghana and second in the whole of Africa by the Round Table Sustainable Palm Oil (RSPO), an international organisation based in Malaysia.
http://www.ghanaweb.com/GhanaHomePage/business/artikel.php?ID=358534




22 May 2015: Palm oil machinery maker Dolphin to use IPO proceeds for factory expansion and working capital 

Dolphin to use IPO proceeds for factory expansion and working capital  20 May 2015 @ 7:02 PM
KUALA LUMPUR: Dolphin International Bhd, headed for listing on the Main Market of Bursa Malaysia on June 9, will utilise more than 50 per cent of the RM31.28 million it expects to raise from its Initial Public Offering (IPO), for factory expansion and working capital. The rest will be for establishing a research and development facility and repay bank borrowings, said Group Managing Director Eric Low Teck Yin. He said the listing would place the company in a stronger position to tap into Malaysia and Indonesia’s huge palm oil milling machinery market.  There are over 439 mills in Malaysia and about 608 in Indonesia. Dolphin International is involved in the design, development, fabrication and sale of palm oil machinery. “We will concentrate on catering to the demand for process integration and automation solutions that enhance productivity, safety and efficiency, while improving our facilities in Shah Alam and Puchong as well as innovating new solutions for customers in both countries,” Low said. http://www.nst.com.my/node/84843

Dolphin International IPO prospectus: http://www.bursamalaysia.com/market/listed-companies/company-announcements/4741721

21 May 2015: Sarawakian timber and palm oil groups unhappy about frozen accounts

Sarawakian timber and palm oil groups unhappy about frozen accounts Updated: Saturday May 16, 2015 MYT 12:25:05 PM; KUCHING: Timber and oil palm industry lobby groups in Sarawak are unhappy that hundreds of bank accounts have been frozen under a probe on corruption and illegal logging.   In separate statements, the Sarawak Timber Association (STA) and Sarawak Oil Palm Plantation Owners Association (Soppoa) described the freezing of accounts under Ops Gergaji as extreme and disruptive.  STA chairman Pemanca Datuk Wong Kie Yik said that MACC's freezing of 519 bank account worth RM700mil was "too harsh".  He said Ops Gergaji, which began last Tuesday, had crippled daily operations of member companies, some of which not directly involved in the timber trade.  "This has put affected companies in dire situations of not being able to pay their contractors, sub-contractors, suppliers and their employees when the Gawai Dayak festival is just around the corner," Wong said in a statement.  He added that those companies would break the law by not meeting statutory requirements of paying Employees Provident Fund, Social Security and the Goods and Services Tax.  Wong reiterated the industry's support for anti illegal logging efforts but said the methods deployed had been unreasonable and without compassion.  The Malaysian Anti-Corruption Commission's (MACC) has frozen more than 500 accounts involving nearly RM700mil and seized 1,785 logs worth RM1mil.  Ops Gergaji involved 400 officers and covered Miri, Kuching, Sibu, Bintulu, Bakun and Kapit. Fourteen people, who are directors and managers of sawmill and log ponds, had been called up to assist in investigations.  In the Soppoa statement, issued late Friday, it said members welcomed the move to fight illegal logging but "strongly oppose the freezing of bank accounts of other businesses not related to such activities".  It said that accounts of plantation companies, educational institutions, hospitality businesses and many other businesses across Sarawak had been frozen.......
http://www.thestar.com.my/News/Nation/2015/05/16/Sarawak-companies-not-happy-bank-accounts/

18 May 2015: Will FGV be removed from the KLCI?

Note: Thanks to alert from Felda case study team member on the chatter about FGV being removed from the KLCI. If so, this could dampen ETF tracking and institutional portfolio investment interest in the stock. Many such investors have a focus on holding the largest market capitalization stocks and presence on the KLCI (the key equity index for the Malaysia stock exchange) is important.

FGV company youtube videos, https://www.youtube.com/user/fgvofficial
Below some news articles relating to these FGV issues:

FGV to review LLA terms Saturday, 28 February 2015 By: HANIM ADNAN FELDA Global Ventures Holdings Bhd (FGV) is believed to be in the midst of finding a solution to improve the terms of its land lease agreement (LLA) with the Federal Land Development Authority (Felda) which has distorted the calculation of its profits, say sources. Under the LLA agreement signed in 2012, FGV has to pay Felda a fixed amount of RM250mil per year in cash for 20 years and a 15% share of operating profit from the sales of fresh fruit bunches derived from the estate land leased from Felda.
From a business perspective, sources says the LLA business model is working well at the FGV group’s operational level. However, the LLA factor in practice is distorting and complicates the fair value accounting treatment on FGV, which saw its profits pulled down in its recent financial year results. “Hence, FGV is trying to work out with Felda on how to make it easier for the LLA fair value change calculation to be done and better reflect on the operational profits based on measures taken by the FGV group since 2012,” adds the source.  http://www.thestar.com.my/Business/Business-News/2015/02/28/FGV-to-review-LLA-terms/?style=biz

FGV down on stock downgrade Thursday, 26 February 2015  By: S. PUSPADEVI PETALING JAYA: Felda Global Ventures Holdings Bhd’s (FGV) share price dropped by almost 13% after analysts downgraded the stock following the group’s disappointing quarter.  The stock closed 38 sen lower at RM2.56 yesterday, the steepest fall in the last 18 months. The counter saw 14.56 million shares being traded.  Some volatility in the shares is expected, as analysts have maintained their bleak outlook on the group’s performance, stating that the downstream segment remained a challenge.
CIMB Research attributed the weaker fourth-quarter earnings to lower plantation and downstream contributions.  It also downgraded the stock as it viewed the 34% share price rally over the past months as unjustified, given its poor quarterly results and potential removal from the FTSE Bursa Malaysia KL Composite Index due to its lower market capitalisation.
http://www.thestar.com.my/Business/Business-News/2015/02/26/FGV-down-on-stock-downgrade/?style=biz


17 May 2015: Indofood trims capex plan, IOI Corp net loss and forex loss on US$ loans, First Resources and PT SAL, Bumitama Agri, CBPI, FGV sells non-core assets amidst leadership uncertainty, GAR-GVL palm oil mill, Wilmar profits and its Australia sugar tussle

Indofood plans lower capex of Rp 9t this year Grace D. Amianti, The Jakarta Post, Jakarta | Business | Sat, May 09 2015, 10:54 AM; Publicly listed food and consumer goods giant Indofood Sukses Makmur (INDF) has reduced its capital expenditure (capex) plans amid lackluster domestic economic growth. Indofood expects to spend Rp 9 trillion (US$686 million) capex for business expansion this year, down from Rp 9.6 trillion last year, which was a 60 percent increase from 2013.“Capex is usually used for expansion of existing plants as well as constructing new ones. This year, we will use our capex for upgrading our existing factories through installing new machines and so on,” Indofood president director Anthony Salim said at a press conference after the company’s general shareholders meeting on Friday.Indonesia’s economy, over half of which is driven by consumer demand, grew 4.7 percent in the first quarter of this year, the weakest growth rate since 2009, and far from the government’s 5.7 percent target this year.Indofood finance director Thomas Tjhie said 30 percent of this year’s capex would be allocated to its largest subsidiary and business division, Indofood CBP Sukses Makmur (ICBP), which is among the world’s top instant noodle makers.Other business divisions, such as Bogasari and agribusiness, obtained a 26 percent portion each. The remaining 18 percent will be split evenly for its distribution and cultivation divisions, Thomas added - See more at: http://www.thejakartapost.com/news/2015/05/09/indofood-plans-lower-capex-rp-9t-year.html#sthash.odXj4iPN.dpuf

IOI Corp's 3Q sees a net loss of RM188m on higher net forex loss By Yimie Yong / theedgemarkets.com   | May 14, 2015 : 8:29 PM MYT     KUALA LUMPUR (May 14): IOI Corp Bhd ( Financial Dashboard) posted a net loss of RM188 million in the third quarter ended March 31, 2015 (3QFY15) from a net profit of RM2.18 billion a year ago, mainly due to higher net foreign currency translation loss. This translated into a loss per share of 2.95 sen, compared to an earnings per share (EPS) of 34.2 sen. Revenue declined 4.25% to RM2.78 billion, from RM2.9 billion a year earlier. In a filing with Bursa Malaysia today, IOI Corp (fundamental: 1.7; valuation: 2.1) said the group’s lower profit was also due to lower contribution from both plantation and resource-based manufacturing segments. Lower earnings from plantation business was due to lower fresh fruit bunches production and lower crude palm oil (CPO) price, while lower profit from resource-based manufacturing business was due to lower margin and sales volume. IOI Corp also explained that during the quarter under review, there was a net repayment of US$526 million (approximately RM1.88 billion) on its US dollar denominated borrowings. “As a result, the impact of the dollar-ringgit volatility on our US dollar denominated borrowings will be lower in the future,” it added.
http://www.theedgemarkets.com/my/article/ioi-corps-3q-sees-net-loss-rm188m-higher-net-forex-loss

First Resources' Q1 profit falls 38.5%, hit by lower palm-oil prices By Anita Gabriel  May 11, 20158:33 AM FIRST Resources on Monday reported a 38.5 per cent drop in net profit to US$27.7 million for the first quarter ended March 31, 2015, from US$45 million in the year-ago period, as profit from operations declined 24 per cent due to lower average selling prices and sales volumes of palm-based products. Revenue fell 46 per cent to US$96.3 million from US$178 million. Cost of sales slipped 63 per cent to US$38 million mainly due to lower sales volumes, decrease in purchases of fresh fruit bunches and palm-oil products from third parties, as well as lower processing costs
Ebitda (earnings before interest, taxes, depreciation and amortisation) saw a 21 per cent decline to US$53.4 million, while Ebitda margin improved to 55.5 per cent from 37.9 per cent a year ago, which was partly contributed by lower purchases from third parties. http://www.businesstimes.com.sg/companies-markets/first-resources-q1-profit-falls-385-hit-by-lower-palm-oil-prices

Weak moratorium endangers peatlands in Riau Adisti Sukma Sawitri, The Jakarta Post, Indragiri Hilir/Jakarta | National | Tue, May 12 2015, 6:20 AM; Thousands of hectares of peatland in Indragiri Hilir regency, Riau, are under threat by the advance of palm oil company PT Setia Agrindo Lestari (PT SAL), which has begun to clear the area to make way for new plantations.An indirect subsidiary of palm oil giant First Resources Limited, PT SAL obtained a location permit for the 17,059-hectare property, spread over five villages in Gaung district, from the Indragiri Hilir administration in 2012, a year after former president Susilo Bambang Yudhoyono issued a presidential instruction (Inpres) banning the issuance of new permits to clear primary forests or peatlands. The forest moratorium, which was extended in 2013, mandates the protection of primary forests and peatlands. When Perspektif Baru Foundation and Kemitraan invited journalists from media companies, including The Jakarta Post, to visit a part of the PT SAL concession in Pungkat village last Wednesday, a new trench was opened by the company workers. The trench passes through the cleared area, which is the size of several soccer fields. By siphoning vegetation felled by the land clearing toward the village, the trenches have caused water supplies have become polluted, locals say. “The water has been murky for the past few days. We are lucky this is the rainy season, so we can still gather rainwater. I can’t imagine how we will survive during the dry season,” said Masniar, a Pungkat resident.The village has depended on water from the peatland areas during the dry season since 1974....In its 2014 financial report, First Resources Limited, which is publicly listed in Singapore, stated it held a 46.7 percent stake in PT SAL.Riko Kurniawan from the Riau chapter of the NGO Indonesian Forum fot the Environment (Walhi) said many palm oil companies still disregarded the forest moratorium, since it carried no punishment for violators. - See more at: http://www.thejakartapost.com/news/2015/05/12/weak-moratorium-endangers-peatlands-riau.html#sthash.yForvjIU.dpuf

Bumitama Agri Q1 profits fall 41% to 181.6 billion rupiah Published on May 12, 2015 11:42 AM SINGAPORE - Palm-oil producer Bumitama Agri announced on Tuesday that net profit for the first quarter ended March 31, 2015, fell 41 per cent to 181.57 billion rupiah (S$18.44 million) from 307.84 billion rupiah for the year-ago period. The mainboard-listed company blamed lower selling prices for both crude palm oil and palm kernel, the higher cost of sales, foreign-exchange loss and share of loss of associate companies. Revenue for the quarter dipped 1.7 per cent to 1.33 trillion rupiah as the lower selling prices offset the increase in sales volume of both products. - See more at: http://www.straitstimes.com/news/business/companies/story/bumitama-agri-q1-profits-fall-41-1816-billion-rupiah-20150512#sthash.vkNGKQ3h.dpuf

CB Industrial awarded more than RM250m worth of contracts this year By AmResearch / The Edge Financial Daily   | May 7, 2015 : 10:42 AM MYT      http://www.theedgemarkets.com/my/article/cb-industrial-awarded-more-rm250m-worth-contracts-year

Felda Global Ventures to sell non-core ventures by third quarter Thursday, 7 May 2015
KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) will complete the disposal of its non-core businesses by the third quarter of 2015, said group president and chief executive officer Datuk Mohd Emir Mavani Abdullah. The disposal, which includes Felda Travel, Felda Property and Felda Prodata Systems, will be carried out through open tender process. http://www.thestar.com.my/Business/Business-News/2015/05/07/Felda-Global-Ventures-to-sell-noncore-ventures-by-third-quarter/?style=biz

Renewal of Felda Global Venture CEO contract remains unclear Published: 6 May 2015 7:58 PM Felda Global Ventures Bhd’s (FGV) CEO Datuk Mohd Emir Mavani Abdullah's answer was vague when asked whether his employment contract, which will end in July, will be renewed. “It is in the process,” Emir Mavani said cryptically when asked if he would continue to helm the plantation group, whose share price has come under heavy pressure as a result of the poor earnings performance. He was speaking to reporters after FGV's signing ceremony to establish the Rafflesia Centre for Research and Interpretation and Sun Bear Conservation Centre today. - See more at: http://www.themalaysianinsider.com/malaysia/article/renewal-of-felda-global-venture-ceo-contract-remains-unclear#sthash.PFReS0xC.dpuf

GVL oil palm mill coming soon  Published: Friday, 08 May 2015 00:22; Golden Veroleum Liberia signed a Letter of Acceptance with Malaysia-based Modipalm Engineering Sdn Bhd for the construction of its Tarjuowon Palm Oil Mill and Greenville Bulking Station.   A press release issued by GVL says the contract, worth upwards of 21 million USD, is expected to be completed by 2017 and will employ several hundred Liberians during construction and  pproximately 150 Liberians in industrial processing when in full operation. Currently, GVL employs approximately 3,700 in the South East of the country. “What we want to do is continue that number upward as we grow with the help of the communities,” said GVL Spokesman Stephen Binda. “The mill and bulking station will certainly help with that and ensure Liberia will have its own processing capabilities, which in essence means that there are products made in Liberia by Liberians.” When completed the mill will be used to process fresh fruit bunches, also known as FFB, typically within 24 hours of harvesting.  Then the oil would be transported to the bulking station. “This is a process that began for us a couple of years ago when we sent our first batch of Liberian engineers to Jakarta, Indonesia to train specifically in oil palm mill engineering. They returned and are now helping to run the company, and they will have an enormous task ahead of them with the mill. But they have stepped up to the challenge and we expect great things from them,” according to Binda. Of the current GVL workforce, 64 Liberians are in various management positions, the mill and bulking station will increase that number. When fully operational, the company expects to employ between 35,000 and 40,000, the release concluded. http://www.thenewdawnliberia.com/news/7328-gvl-oil-palm-mill-coming-soon

UPDATE 2-Wilmar Q1 profit jumps on grains, oilseeds performance * Q1 net rises 49 pct to $241.2 million * Revenue falls 8.3 pct on lower commodity prices * Expects crushing margin to be positive into mid-2015 (Adds details on sugar business in paragraphs 1, 7,8) SINGAPORE, May 7 (Reuters) - Singapore-based Wilmar International Ltd on Thursday said net profit jumped 49 percent in the first quarter as strong earnings at its oilseeds and grains business offset losses in other segments, including the company's sugar segment. The world's largest palm oil processor and one of the biggest buyers of soybeans reported profit of $241.2 million for January-March. That was on revenue which fell 8.3 percent to $9.4 billion due to a decline in commodity prices. Pre-tax profit from the oilseeds and grains division grew to $166.1 million from $13.6 million a year earlier, driven by higher crushing margins and improved performance in its consumer product business. Wilmar said crushing margins in China CNSOY-RZO-MRG rose due to a decline in soybean imports and prices. "Crush margins are expected to remain positive going into mid-2015," Wilmar said in a statement. High earnings contributions from associates in India and China also boosted profit, Wilmar said. That helped offset a pre-tax loss in Wilmar's sugar segment of $68 million in the first quarter, more than a quarter higher than the prior year's loss of $54 million, due to weaker performances in the company's Indonesian refineries and merchandising business. http://www.reuters.com/article/2015/05/07/wilmar-results-idUSL4N0XY41V20150507

Big Sugar Order Gives Prices a Jolt; More Than a Dozen Ships Are Lined Up in Brazil to Fulfill the Order; By  Carolyn Cui and  Julie Wernau  May 8, 2015 6:53 p.m. ET; One company’s purchase of an unusually large amount of sugar is sending the market scrambling. Wilmar International Ltd. bought 1.9 million tons of sugar on the ICE Futures U.S. Exchange and called on sellers to ship the order—the largest exchange delivery...  http://www.wsj.com/articles/big-sugar-order-gives-prices-a-jolt-143112559

Wilmar believes fair competition in sugar is "premature" Emily Smith | 5th May 2015 6:00 AM
DRAFTING legislation to ensure fair competition in sugar marketing is "premature and unnecessary", according to sugar industry giant Wilmar.  The company responded yesterday to plans of a private member's bill the state Opposition wants to bring to parliament, designed to add pro-competition amendments to the Sugar Industry Act 1999. If it makes it through parliament, it would protect farmers from "no choice" marketing plans Wilmar proposed, after they break away from independent sugar marketer Queensland Sugar Limited in 2017.  But Wilmar's executive general manager strategy and business development, Shayne Rutherford, said the proposed changes already would take growers into consideration.  "Wilmar is disappointed the LNP is discussing a private member's bill without having met with us to understand the marketing model we are proposing or the status of negotiations," he said Wilmar believes fair competition in sugar is "premature" http://www.dailymercury.com.au/news/wilmar-upset-by-plan/2627953/

LETTER TO THE ED: Choice is the key issue for cane farmers Kerry Latter, CEO Canegrowers Mackay | 6th May 2015 8:20 AM  WILMAR continues to fight against any opportunity to provide growers with a choice model in sugar marketing, commercial or legislative (DM 05/05/15).
Given the monopsony position of Wilmar's sugar mills, the key remedy to the issue is to provide cane growers with economic bargaining power and real choice.  This may be achieved by the twin means of explicitly and permanently granting all Queensland growers:  1. Beneficial economic interest in their share of raw sugar created from their cane under the current supply contract formulae;
2. The right to choose how and with whom that share of the raw sugar is marketed.  The key issue is choice. Queensland cane growers should be able to choose who markets their sugar. Whether that is the industry owned not for profit company, Queensland Sugar Limited, Wilmar or some other entity, it should be their choice.  The State Government needs to comprehend this and the impacts on Queensland families across the state, providing a simple change to the existing Queensland Sugar Act 1999 is not hard to do.... http://www.dailymercury.com.au/news/choice-is-the-key-issue-for-cane-farmerswilmar-con/2629547/

1 May 2015: Indofood sales, Angro-Eastern warns, second mill for Month Reththy Cambodia, Peter Lim (former Wilmar deal maker and owner) sets up for EU deal making

Indofood books sales of S$1.5 billionThe Jakarta Post/Asia News NetworkFriday, May 01, 2015 ; http://news.asiaone.com/news/asia/indofood-books-sales-s15-billion#sthash.8sqGADQR.dpuf

Indofood books sales of Rp 15.02t The Jakarta Post, Jakarta | Business | Thu, April 30 2015, 7:57 PM; Leading food manufacturer PT Indofood Sukses Makmur Tbk (INDF) booked net sales of Rp 15.02 trillion (US$1.15 billion) in the first quarter of 2015, down by 0.1 percent compared to the same period last year.INDF president director and Chief Executive Officer (CEO) Anthoni Salim said Indofood CBP, which manufactures consumer branded goods, contributed 52 percent to sales, followed by Bogasari (25 percent), Agribusiness (15 percent) and Distribution (8 percent).INDF’s overall profits were down by 37.2 percent to Rp 870.1 billion.Meanwhile, the net profit margin declined to 5.8 percent from 9.2 percent, due largely to exchange rate losses as a result of the depreciation of the rupiah.Anthoni said by not calculating non-recurring accounts and exchange rate margins, INDF’s core profit which reflected its operational work performance grew by 11.6 percent to Rp 1.05 trillion from Rp 939.9 billion.“Entering 2015, the domestic economic situation is not yet conducive. In the midst of challenging market conditions and the depreciating rupiah, INDF’s operational work performance remains strong as reflected in its core profit,” said Anthoni. (ebf) - See more at: http://www.thejakartapost.com/news/2015/04/30/indofood-books-sales-rp-1502.html#sthash.wBbGdZPb.dpuf

Indonesia's Indofood Sukses net profit falls 37 pct in Q1 Wed Apr 29, 2015 9:20pm EDT  JAKARTA, April 30  (Reuters) - Indonesia's PT Indofood Sukses Makmur Tbk, one of the world's largest instant noodle makers, reported on Thursday a 37 percent plunge in first-quarter net profit.
http://www.reuters.com/article/2015/04/30/indofood-sukses-results-idUSL4N0XR0D420150430


Anglo-Eastern Posts Profit Drop, Warns Of Challenges In Palm Oil Thu, 30th Apr 2015 13:14
LONDON (Alliance News) - Anglo-Eastern Plantations PLC Thursday reported a big drop in profit in 2014 despite an increase in revenue, due to a biological asset value adjustment, and warned of a challenging future as crude palm oil prices remain under pressure due to lower prices for alternatives like crude oil and soya and sunflower oil and because input costs are rising. The palm oil and rubber producer reported a 67% drop in pretax profit to USD51.2 million, from USD153.4 million in 2013, despite a 24% rise in revenue to USD251.3 million from USD201.9 million on the back of higher production of fresh fruit bunches. The profit drop was caused by a biological asset adjustment of USD33.7 million, compared with a credit of USD93.7 million in 2013, mainly due to the weakening of the Rupiah against the US dollar. Excluding this adjustment, its profit rose to USD85.0 million, from USD59.7 million....the company said the mill construction in Central Kalimantan is progressing on schedule and said it is expected to be operational in the second quarter of 2015, while the USD5 million construction of the biogas and biomass plant in North Sumatera is now complete and has begun operations ........"The group expects to face tougher challenges with steeper rise in operating costs in 2015 due to rising fertiliser prices, higher wage inflation and removal of government fuel subsidies in Indonesia," the chairman added. http://www.lse.co.uk/AllNews.asp?code=agm0me59&headline=AngloEastern_Posts_Profit_Drop_Warns_Of_Challenges_In_Palm_Oil

Cambodian PM inaugurates 2nd palm oil plant; PHNOM PENH, April 29 (Xinhua) -- Cambodian Prime Minister Hun Sen on Wednesday inaugurated a 20 million U.S. dollars palm oil factory in southwest Cambodia's Preah Sihanouk province. It was the kingdom's second palm oil plant that was jointly invested by Cambodia's Mong Reththy Group and Thai Charoen Corporation Group. Hun Sen said the factory was a new achievement in the development of agro-industrial sector. "The launching of the factory will contribute to developing the economy and reducing poverty through job creation in rural areas," he said. Mong Reththy, president of the Mong Reththy Group, said the new plant is capable to process 45 tons of fresh oil palm fruit per hour, while the old factory, launched since 2002, is able to process only 30 tons per hour. http://www.globalpost.com/article/6532368/2015/04/29/cambodian-pm-inaugurates-2nd-palm-oil-plant

Billionaire Valencia Boss Taps LVMH Dealmaker for Europe Push 'By'Joyce Koh 12:00 AM HKT   April 30, 2015; Lim, a 61-year-old former stockbroker, made his fortune through holdings in palm oil producers and a chain of Manchester United cafes in Asia. He also has stakes in supercar maker McLaren Automotive Ltd., Singapore property developer Rowsley Ltd. and security provider Soverus Group Pte.....http://www.bloomberg.com/news/articles/2015-04-29/singapore-billionaire-lim-said-to-hire-lvmh-private-equity-s-teo

26 April 2015: Sime Darby Bumiputera vendor devt programme, Wilmar US$1 billion complex at Maloy East Kalimantan, Cargill seeks poultry play, more palm oil mills in Indonesia; GAR's US$1.5 billion multicurrency medium term note programme; PZ Wilmar Nigeria refinery capacity 300,000 tons/year and 50m000 ha of oil palm soon;  Presco's Investment in Nigeria over US$1bn

Sime Darby launches Bumiputera vendor devt programme Wednesday, 22 April 2015 By: ZUNAIRA SAIEED; KUALA LUMPUR: Sime Darby Bhd has launched the Bumiputera vendor development programme to help specific Bumiputera companies develop their capabilities to become more competitive in the local and global markets. Sime Darby said on Wednesday it had identified nine companies that have signed the MoUs with Sime Darby Plantation and Sime Darby Property, reflecting a spread of Bumiputera vendors in both divisions. “In support of Malaysia’s national agenda, the group is determined to increase our pool of approved Bumiputera vendors in the approved vendor list to 30%,” said Sime Darby president and group chief executive Tan Sri Mohd Bakke Salleh...... The selected vendors would be given opportunity to supply goods and services to needs of Sime Darby for a period of three to five years. “Sime Darby will also assist the vendor to obtain financial and training assistance from government agencies, financial institutions or any other certified technical agencies,” Sime Darby added. If the selected vendors KPIs are met after graduating from the programme, the vendors would be recognised as “Sime Darby Preferred Vendor’, which would likely increase their opportunity to be involved in future projects..... For its financial year ended June 30, 2014, the group’s saving from procurement activities stood at RM60mil.... http://www.thestar.com.my/Business/Business-News/2015/04/22/Sime-Darby-launches-Bumiputera-Vendor-Development-Programme/?style=biz
Wilmar to Build $1b Integrated CPO Factory in E. Kalimantan By Amrozi Amenan on 11:34 am Apr 20, 2015; Gresik, East Java. The biggest crude palm oil processing company in the world, Wilmar Nabati Indonesia — the local unit of Wilmar International — plans to build a $1 billion integrated factory in the Maloy industrial area in East Kalimantan to produce more processed CPO products. The company is currently negotiating on land for the factory with the East Kalimantan government, Wilmar Nabati Indonesia president director Hendri Sakti said last week. “Once we get the land, we will start building the factory. It will be similar to our factory in Gresik,” Hendri said...... Wilmar Nabati Indonesia has a 100-hectare CPO processing factory in Gresik that produces processed CPO products such as oleo-food, oleo-chemical, bio-fuel, bio-lefin and bio-avtur...... http://thejakartaglobe.beritasatu.com/business/%EF%BB%BFwilmar-build-1b-integrated-cpo-factory-e-kalimantan/

Cargill Seeking Poultry Play, Building Palm Oil Mills In Indonesia - Minnesota-based company is also considering entering aquaculture for the first time By Ben Otto  April 20, 2015 8:30 a.m. ET
JAKARTA, Indonesia—Cargill Inc. is seeking to enter the Indonesian poultry sector and is investing in mills for its growing palm oil business there, part of its plans to pour $1 billion into Southeast Asia’s largest economy in the coming years...... The Minnesota-based company is “in active discussions” to enter the poultry sector in Indonesia, which will include building a new facility and likely partnering, Alan Willits, Cargill... http://www.wsj.com/articles/cargill-seeking-poultry-play-building-palm-oil-mills-in-indonesia-1429533058

Golden Agri's S$125m three-year notes priced at 5.5% a year By Cai Haoxianghaoxiang@sph.com.sg@HaoxiangCaiBT; 22 Apr7:52 AM; PALM oil plantation company Golden Agri-Resources said on Wednesday that it has priced its S$125 million senior unsecured fixed rate notes due April 27, 2018, at 5.5 per cent a year. The company is getting funding from a US$1.5 billion multicurrency medium term note programme. The latest offering is managed by Credit Suisse, MUFJ, and OCBC Bank......  Golden Agri said net proceeds will be used for general corporate purposes and working capital needs, including but not limited to the repayment of outstanding borrowings...... http://www.businesstimes.com.sg/companies-markets/golden-agris-s125m-three-year-notes-priced-at-55-a-year

Banks raising $400m for palm oil expansion 'must examine high risks' by Oliver Tickell 20th April 2015; Banks preparing to launch a $400m bond issue for a global palm oil giant with a history of legal violations and broken standards have been warned of their 'high risk client' and the 'extreme and outstanding' social and environmental conflicts in the palm oil agribusiness sector. "Banks and investors must examine the full range of environmental, social, reputational, legal and market risks prevalent in the palm oil sector", warns a new alert from the Banktrack Network. They should also "ensure that they undertake enhanced, robust due diligence procedures to identify, understand and screen these risks prior to any financing", the group insists......  The warning was issued as a syndicate of three global financial institutions - Credit Suisse, Oversea-Chinese Banking Corporation and Mitsubishi UFJ Securities - prepare to issue $400 million in bonds for palm oil expansion.
The syndicate is acting for Singapore-registered Golden Agri-Resources (GAR) - one of the world's largest palm oil companies and a part of the Sinar Mas Group - according to a Debtwire report last week. And it's beginning meetings this week with credit investors this week in Hong Kong and Singapore...... http://www.theecologist.org/News/news_round_up/2837736/banks_raising_400m_for_palm_oil_expansion_must_examine_high_risks.html

Nigeria's path to revamping oil palm sector by Femi Adekoya on April 22, 2015
http://www.ngrguardiannews.com/2015/04/nigerias-path-to-revamping-oil-palm-sector/

PZ Wilmar Nigeria refinery capacity 300,000 tons/year and 50m000 ha of oil palm soon  - Backward integration ‘ll cut palm oil import by $300m April 22, 2015 Written by Chikodi Okereocha; On-going backward integration plan for palm oil embarked upon by PZ Wilmar Nigeria Limited, a palm oil processing, packaging and distribution company, will help Nigeria save foreign exchange by eliminating imports to the value of $300 million per year now being spent on palm oil import, its Managing Director, Mr. Santosh Pillai, has said. The backward integration programme, which aims at making the country self-sufficient in oil palm production would also create about 9, 000 direct and 45, 000 indirect jobs,......He said: “With refinery capacity of over 300, 000 tons per year, it will reduce Nigeria’s estimated 500, 000 ton annual supply shortage by 60 per cent.”..... According to Pillai, Nigeria’s total market for palm oil is estimated at two million tons, and local output meets about 75 per cent of total. He said to close the supply gap of crude palm oil in the country, the company is working to increase the availability of locally sourced products, as well as introducing modern plantation management. He said the company has acquired 26, 500 hectares of land in Cross River State for oil palm plantation, adding that the target is to acquire 50, 000 hectares soon...... The 26,500-hectare project is part of an integrated end-to-end value chain in oil palm production and processing. The project, according to Pillai, is the result of a joint venture between PZ Cussons and Wilmar of Singapore to explore the opportunities in the agro-allied industry and in the process deliver benefits to the Nigerian economy...... http://thenationonlineng.net/new/backward-integration-ll-cut-palm-oil-import-by-300m/

Presco's Investment in Nigeria ?Hits $1bn 21 Apr 2015; The investment injected into the Nigeria economy by Presco Oil Palm plc in the past one decade has risen beyond $1 billion, THISDAY has learnt...... With the company bringing in a minimum of $100 million investment into the country annually for the past ten years, the companies total investment in the country has risen over a billion dollars during the period. Chairman of the company, Mr. Pierre Vandebeeck, explained that the investments  included procuring high quality state-of-the-art ‎equipments, automated steam turbines and a biogas plant  for power generation, oil palm processing mills, refineries  and plants and machineries.....  Vandebeeck in an interview with THISDAY, said the company is going forward by building a new refinery and oil mill that would gulp another $30 million to boost oil palm production in Nigeria. In his words: "I have not done the feasibility study yet but the cost estimate for the oil mill  is about $20 million and the refinery is $10 million summing up to a $30 million investment. A hectare of new plantation is about $6000 so multiply that to know how much we are investing every year. We are not stopping. We are like a vehicle driving very fast  all the time, although I do say should we  slow down a bit but there are so many opportunities that come up that we do not want to miss and therefore you are more or less pushed to continue investing. ‎"........"We are the only company in this industry in the world that has succeeded  in cloning rubber trees. We started two years ago and will be planting our first cloned rubber trees in Ivory Coast and Ghana because we believe through this system we will be increasing the rubber yields by about 30 per cent per hectares by 2 tonnes to 3 tonnes, but I believe it will be more‎," he said..... ‎He noted that for the past  ten years, Presco has being investing in what he described as a genetic block of oil palm having over 200 different crosses ‎and varieties from all over the world, saying that the company will propagate and make it available to anyone willing to pay the price. "We have the first result for this and five years after planting, we added 20,000,000 per hectares with an extraction rate of 29 per cent and this means we are doubling the oil yields per hectare of what is coming now.‎ We are doing the same thing ‎for cocoa because personally I believe in three crops which are  rubbber, oil palm and cocoa. We are going to produce high performing clones that are disease resistant, he said...... http://www.thisdaylive.com/articles/prescos-investment-in-nigeria-hits-1bn/207365/

Asian and African business leaders form business council to boost trade, prosperity Published on Apr 21, 2015 6:45 PM; JAKARTA - INSTANT noodle producer Indofood plans to build a factory in Morocco, its sixth in Africa, this year. It is one of a growing number of Asian companies investing in the continent of late. More natural resources from Africa, such as crude oil from Angola, are also flowing to Asia. But trade between both regions remains well below its potential, and business leaders on both sides today agreed to form an Asian-African Business Council (AABC) to step up links, share know-how and boost investments..... http://www.straitstimes.com/news/asia/south-east-asia/story/asian-and-african-business-leaders-form-business-council-boost-trade#sthash.NVVHZxow.dpuf

22 April 2015: Sabah biorefinery complex at Lahad Datu, Astra Agro capex plans US$230 million for 2015 - more mills, plans for PK crushing, government cattle farming integration plan

Sabah soon to have world’s first palm oil based biorefinery complex  by ruben sario Updated: Wednesday April 22, 2015 MYT 6:39:05 AM; KOTA KINABALU: Malaysia is set to become a key producer of sustainably produced raw materials for the manufacture of detergents, lubricants and plastics once the world’s first palm oil based bio refinery complex is operational in the east coast of Lahad Datu district. Science, Technology and Innovation Minister Datuk Dr Ewon Ebin said the bio refinery complex would be producing speciality chemicals such as olefins, saturated methyl ester and methyl ester sulphonate. He said the RM2bil metathesis biorefinery plant at the Palm Oil Industrial Cluster in Lahad Datu was a joint venture between US-based Elevance Renewable Sciences Inc and Genting Plantations Bhd. “The plant is expected to be operational in about two years and will propel Malaysia as a key producer of sustainably produced specialty chemicals,” Ewon said after the launching of the BioBorneo conference and exhibition here on Monday. ...Ewon said bio-refinery complex was one of the 13 key projects nationwide under the bio-economy transformation programme, of which three were located in Sabah. He said the other two projects in the state utilised oil palm waste for the manufacture of compressed natural gas and organic fertiliser. Ewon said the Felda Palm Industries would be equipping its Hamparan Badai, Kembara Sakti and Nilam Permata palm oil mills to convert raw biogas from the effluent into compressed industrial grade natural gas. “Each of these facilities would have the capacity to produce 900 cubic metres per hour of this compressed natural gas,” he added. Ewon said the palm oil waste was also be used to produce organic fertiliser with local firm Green Plant Organic Fertilizer Sdn Bhd constructing plant on a build-operate-transfer basis for Sawit Kinabalu in Sabah......... http://www.thestar.com.my/Metro/Community/2015/04/22/RM2bil-plant-pact-State-soon-to-have-worlds-first-palm-oil-based-biorefinery-complex/

Astra Agro to venture into cattle farming Tassia Sipahutar, The Jakarta Post, Jakarta | Business | Wed, April 15 2015, 8:41 AM; Major plantation company PT Astra Agro Lestari (AALI), part of diversified conglomerate PT Astra International (ASII), is set to venture into cattle farming in an effort to diversify its business, according to its top boss.Astra Agro president director Widya Wiryawan said on Tuesday that the publicly listed company — whose major commodity is crude palm oil (CPO) — was assessing in more detail the possibility of entering the cattle-breeding business.“It may go hand-in-hand with our existing palm oil plantation, creating a business synergy. We have many flat plantation sites that may suit the cattle’s needs,” he said in a press conference after the company’s annual general shareholders’ meeting. At present, Astra Agro’s plantation sites are scattered across the country, but most of them are located in Kalimantan and Sulawesi. In addition to palm oil, the company also has a rubber plantation in Banten.Widya acknowledged that cattle farming would provide a new business opportunity for the company, citing the government’s ambition to achieve national beef self-sufficiency. “But we will need more clarity from the government on the program before we move on to more concrete action,” he said...... According to Widya, Astra Agro has the potential to produce further CPO derivatives. “We have not really done anything with our palm oil kernels. The end product may be in the form of an oil that resembles coconut oil, but further study is needed,” he said. Astra Agro finance director Rudy said that his firm had allocated around Rp 3 trillion (US$231.14 million) to finance its expenditure this year.“About one third of the figure will be used for various plantation purposes, one third to upgrade existing plants or build new ones and the rest to improve infrastructure in areas around our plantations sites,” he explained. - See more at: http://www.thejakartapost.com/news/2015/04/15/astra-agro-venture-cattle-farming.html#sthash.nRrHqIOM.dpuf
Astra Agro to Spend $24m for Two Palm Oil Plants By Antonia Timmerman on 01:07 pm Apr 15, 2015; Jakarta. Astra Argo Lestari, the palm oil unit of Astra International, is setting aside $20 million to $24 million for the construction of two palm plants in South Kalimantan and Central Sulawesi this year. “We are indeed trying to expand in many regions that so far have not yet been touched,” said Astra Argo director Joko Supriyono on Tuesday. The plants will be completed in October 2016 with production capacity of 45 metric tons per hour for each plant. Astra Argo will have 31 palm plants next year from 29 units this year. Astra Argo finance director Rudy said the company will finance the construction from its capital expenditure. In 2015, the company allocated Rp 3 trillion ($230 million) to Rp 3.5 trillion for capital spending..... http://thejakartaglobe.beritasatu.com/business/astra-agro-spend-24m-two-palm-oil-plants/


19 April 2015:   Fitch affirm ratings of GAR units, KLK raises RM1.6 billion multi-currency sukuk, Asahi Indofood's new beverage plant, Indofood and Tunas Baru new sugar mills, GAR guidance on output, FGV graphene venture, Queensland growers commercial fight with millers

Malaysia's KLK to raise up to 1.6 bln ringgit from multi-currency sukuk, KUALA LUMPUR, April 13; (Reuters) - Malaysian plantation company Kuala Lumpur Kepong (KLK) Bhd will raise up to 1.6 billion ringgit ($431.9 million) from Islamic bonds, rating agency RAM Ratings said on Monday.
 The multi-currency sukuk programme expires in 2027 and was rated AA1 or stable by RAM Ratings in a statement.... http://www.reuters.com/article/2015/04/13/malaysia-sukuk-kl-kepong-idUSL4N0XA3UT20150413

Fitch Affirms 3 Indonesian Palm Oil Producers; Outlook Stable (The following statement was released by the rating agency) JAKARTA/SYDNEY, April 14 (Fitch) Fitch Ratings has affirmed the National Long-Term Ratings of Indonesia-based palm oil producers PT Sinar Mas Agro Resources and Technology Tbk (SMART), PT Ivo Mas Tunggal (IMT) and PT Sawit Mas Sejahtera (SMS) at 'AA(idn)', with Stable Outlooks. SMART, IMT and SMS are wholly owned by Golden Agri Resources, Ltd (GAR). At the same time the agency has affirmed SMART's IDR1trn bonds due in 2017 and 2019 at 'AA(idn)'. 'AA' National Ratings denote expectations of very low default risk relative to other issuers or obligations in the same country... KEY RATINGS DRIVERS Delayed Deleveraging: Fitch now expects GAR to begin deleveraging about a year later than previously forecast, because of low CPO prices, thinner downstream margins and disappointing performance of its China operations. The affirmation of the ratings on the three GAR subsidiaries is driven by Fitch's expectation that GAR's consolidated profile will improve, with FFO-adjusted leverage falling to around 4x by end-2016. This is in line with management's expectation that losses at GAR's Chinese operation in 2014 are non-recurring, the global CPO price will rebound in 2016, and higher refining capacity utilisation will improve overall downstream margins.... http://www.reuters.com/article/2015/04/15/idUSFit91968620150415
Asahi Indofood opens new beverage plant, The Jakarta Post/Asia News Network Friday, Apr 10, 2015 http://business.asiaone.com/news/asahi-indofood-opens-new-beverage-plant#sthash.YQPYNrr7.dpuf

UPDATE 1-Indofood Agri plans new Indonesian sugar mill to feed local demand Tue Apr 7, 2015 3:39am EDT By Eveline Danubrata and Cindy Silviana
* New mill may cost at least $150 mln -Indofood Agri CEO
* Indonesia is short of around 3 mln tonnes of sugar
* Tunas Baru to invest $100 mln in new sugar factory (Adds comment from CEO, government data, background) http://www.reuters.com/article/2015/04/07/indofood-agri-sugar-idUSL3N0X41ED20150407

Golden Agri sees 2015 palm output at lower end of expectations April 04, 2015  RECORDER REPORT; Golden Agri-Resources Ltd expects its palm and palm kernel oil production to rise around 5 percent this year, coming in at the lower end of a projected annual growth rate as dry weather hurts yields, a senior company executive said.... A smaller rise in output from the world's second-largest oil palm planter by acreage could underpin palm prices, which fell almost 15 percent in 2014 as high rival oilseed supplies and sliding crude oil prices dented demand for the tropical oil from the food and energy sectors..... Based on normal weather conditions, Golden Agri could expect a 5-10 percent rise in output, but this year "because of the weather concerns we are expecting to hit the lower end of that number", the firm's chief financial officer, Rafael Concepcion, told Reuters on Tuesday..... 
http://www.brecorder.com/agriculture-a-allied/183/1168677/

Malaysia poised to become Asia’s largest producer of graphene Friday April 10, 2015; KUALA LUMPUR, April 10 — Malaysia is poised to become the largest producer of graphene materials in Asia once Felda Global Ventures Holdings Bhd (FGV) sets up a graphene plant in the country within two years. FGV Executive Vice-President of Palm Downstream Cluster Datuk Zakaria Arshad said the RM15 million plant was expected to have a production capacity of nine kilogrammes of graphene per day. “The location of the plant has not been specifically identified, but it is expected to be located at one of FGV’s mills,” he told reporters at the Malaysian Investment Development Authority seminar on Graphene here today. Graphene is a one-atom-thick sheet of carbon that combines extreme mechanical strength, exceptional electronic and thermal conductivities, impermeability to gases as well as many other properties that make it highly attractive for a broad range of applications. This downstream production of graphene material would be used in the development of products in various industries encompassing aerospace, telecommunications, rubber, palm oil, electronics, oil and gas and solar, he said. Giving an example for graphene use in palm oil, Zakaria said this innovative development enables methane and other by-products from crude palm oil to be used as raw input at very low costs, while producing high quality materials. Last year, FGV, in a joint venture effort with Cambridge Nanosystems, built a carbon nanotubes and graphene plant in the United Kingdom that produces between 50 and 100 tonnes of products a year to cater the European market. - See more at: http://www.themalaymailonline.com/money/article/malaysia-poised-to-become-asias-largest-producer-of-graphene#sthash.BcJ03ajF.dpuf

Settlers lost RM177 million from Felda Global, says Pua BY ANISAH SHUKRY Published: 8 April 2015 1:39 PM ,,,The 94,125 settlers who still have shares in Felda Global Ventures Holdings (FGVH) have lost a total estimated RM177 million, DAP MP Tony Pua said today, citing the market closing price of RM2.09 per share yesterday. He said the government revealed yesterday that 99.9% of the 94,219 settlers who bought their allocated 800 shares in FGVH at RM4.45 in 2012 still held on to their shares. “Unfortunately, these settlers who held on to their shares would have lost an estimated total of RM177 million based on yesterday’s market closing price of only RM2.09 per share..... “This is the result of a 53% drop in the share price over the past two years,” Pua told a press conference at the Parliament lobby. - See more at: http://www.themalaysianinsider.com/malaysia/article/settlers-lost-rm177-million-from-felda-global-says-pua#sthash.CiK1eWAC.dpuf

Blockade at Wilmar mill could erupt into full-blown strike by Andi Fachrizal  April 03, 2015
Local people blocked the road to a Wilmar palm oil mill in Sungai Malaya, a village in Indonesia’s West Kalimantan province, demanding the release of nine day laborers who were arrested during an earlier protest over delayed wages.... As of April 1, the company’s operations were paralyzed, with trucks carrying fresh fruit bunches from nearby plantations unable to deliver their cargo. School buses and other vehicles were allowed to pass unimpeded..... The protesters threatened that if the company, a Wilmar subsidiary named Bumi Pratama Khatulistiwa, did not meet their demands by April 4, all workers would go on strike..... According to Maulana, a youth leader from Sungai Malaya, Kubu Raya regency, the case began in January when day laborers who were fed up with Bumi Pratama’s consistent failure to pay them on time rallied in front of the company’s office..... 
http://news.mongabay.com/2015/0403-jacobson-wilmar-mill-blockade-kalbar.html#ixzz3Xidj5UyV

Sugar price slump canes Queensland growers Apr 10 2015| THE AUSTRALIAN FINANCIAL REVIEW| A drop in the sugar price is causing huge woe for growers. But the problems don't end there: a fight has broken out them and millers over the end of a century-old monopoly marketing arrangement..... http://www.afr.com/business/agriculture/sugar-price-slump-canes-queensland-growers-20150410-1m2xb6


Wilmar warns of potential Australian sugar production shortfall Wed Apr 8, 2015 2:26am GMT By Colin Packham; SYDNEY, April 8 (Reuters) - Australia's sugar production during the 2014/15 season may miss official estimates as a result of recent dry weather across the northeast coast of the world's third-largest raw sugar exporter, Wilmar International Ltd said on Wednesday. Much of Queensland, which accounts for more than 95 percent of the Australian sugar cane production, received less than half the typical levels of rain between January and March, Wilmar said. Australian sugar production relies on rains during the first few months of the year when rainfall is at its heaviest.
Less Australian output would support global sugar prices, which fell to more than six-year lows in March on ample supplies.... http://af.reuters.com/article/commoditiesNews/idAFL4N0X514H20150408

6 April 2015: Indomie Morocco, Delta Wilmar CIS, FGV replanting, Fitch negative outlook on Sime Darby rating, Genting refinery, XingHe Selangor plant, Equatorial Palm Oil awaits HCS study, Liberia tax records warning

Indomie to build factory in Morocco | The Jakarta Post
http://m.thejakartapost.com/news/2015/04/01/indomie-build-factory-morocco.html

FINCHANNEL.com - Ukraine: Delta Wilmar CIS to increase the margarines export to Poland
http://finchannel.com/index.php/world/ukraine/item/42348-ukraine-delta-wilmar-cis-to-increase-the-margarines-export-to-Poland

FGV focus on replanting to ride out CPO price slump - The Rakyat Post
http://www.therakyatpost.com/business/2015/04/01/fgv-focus-on-replanting-to-ride-out-cpo-price-slump/

Fitch revises Outlook on Sime Darby issuer ratings to Negative - Business News | The Star Online
http://www.thestar.com.my/Business/Business-News/2015/03/30/Fitch-revises-Outlook-on-Sime-Darby-issuer-ratings-to-Negative/?style=biz

tcetoday | News | Genting plans 600 t/y palm oil refinery
http://www.tcetoday.com/latest%20news/2015/march/genting-plans-palm-oil-refinery.aspx#.VSI9qKCwrqA

XingHe to set up first plant out of China in Selangor | theSundaily
http://m.thesundaily.my/node/302756

Equatorial Palm Oil holds back on development pending HCS study - Yahoo Finance UK
https://uk.finance.yahoo.com/news/equatorial-palm-oil-holds-back-154200616.html

Liberia transparency body warns resource companies over tax records
http://mobile.reuters.com/article/idUSL6N0WT2CX20150327?irpc=932