Palm Oil Plantation Rehabilitation

The oil palm is the green dollar tree. The oil palm is grown in this region, directly generate thousand of farm workers, out of 5,000 hectares partially develop planting area 962 were planted and bearing and are now 10 years old, with an estimated 2 tons/has/yr of FFB, and it is set away in the annals of history, abandoned due to lack of funds.

The Kuta Ranao Oil Palm Plantation (KROPP) will provide its 5,000 oil palm plantation, shall improved its operational schemes, palm varieties, training and other extensions services. In recent years there has been growth in the demand for palm oils both from local and international markets.

The organization aims to capture these opportunities in the palm oil food and bio-fuels markets through strengthening their society’s capacity in the areas of management, business planning, production, and marketing of palm oil.

A ton of red palm oil is a minimum of $400, while average gross revenue of $2120 is obtained from red palm oil. The price fixed for FFBs during the last four years i.e., 01.02.2005 to 31.01.2009 varied between $83.82 and $136.98 per tonnes. The price of FFB has been considered at $75 per tonnes in this model which is the prevailing price for the period 01.02.09 to 30.04.09 and the lowest in the last five years.

We can also get three metric tons of palm kernels per hectare, stearin and olien oil and biofuels. This translates to annual income of 15%. Total income realizable is about 64%, while the annual operating expense is put at 40%.

This leaves us with average net income of $1196.37 ton/hectare/year for the investor for the rest of his/her life. Serious-minded investors can be assisted in realizing this worthwhile investment. Source: MPOB (2008). Palm Oil Cost of Production Survey.

The goal of this project is to promote the growth of small-scale agricultural enterprises and improve the standard of living of rural thru palm oil production in the region.

Enhance institutional, management, governance, sustained, expansion, as indicated by the development of a comprehensive business plan that Investor deems suitable by a donor or other financial institution.

Transparently ensure that operation expenditure and capital expenditure return the maximum value and end-results with no risk. Opportunities for payback must be identified to attain the highest Return-On-Opportunity (ROO).

Breakdown of Use of Funds
Acquisition:
5-10 tons/hr mobile CPO extractor $ 1,100,000.00
20 tons/hr Processing Plant 2,500,000.00
Equipment System 1,200,000.00
Operation Equipment 1,500,000.00
Sub-total 6,300,000.00
Operating Expenses:
Salaries 1,400,000.00
Other Operating expenses 2,300,000.00
Sub-total 3,700,000.00
Total $10,000,000.00

Interested investors can contact us on Merar. Business plan is also available for download.