KUALA LUMPUR (May 25): Felda Global Ventures Holdings Berhad (FGV) ventured into the Philippines markets to supply its premier oil palm seeds to planters in Mindanao.
In a statement today, FGV (fundamental: 1.55; valuation: 1.4) said its subsidiary Felda Agriculture Services Sdn Bhd (FASSB) has signed a Memorandum of Collaboration with Bali Oil Palm Produce Corporation (BOPPC) to explore the possibility of collaborating with each other in agricultural related products and services.
According to FGV, FASSB is committed to deliver the first oil palm seeds to Philippine Coconut Authority (PCA) and BOPPC in 2015.
“It shall deliver 110,000 DxP oil palm germinated seeds to PCA and one million DxP oil palm germinated seeds to BOPPC commencing June 2015,” FGV said.
FGV also believes the collaboration will be a springboard for Mindanao to become one of the major world-class palm oil exporters together with FGV and other world’s top producer.
FGV also mentioned that the development of FASSB’s oil palm planting material is backed by a comprehensive research and development programme started 47 years ago.
“We are indeed very glad to be associated with BOPPC in providing us the opportunity to be involved in the Philippines market through introduction of our premier oil palm seeds, fertilizers and other related agricultural products,” FGV’s Senior Vice-President and Head of R&D and Agri Services S. Palaniappan said in the statement today.
“Other areas of collaboration of interest will include training on Nursery and Plantation Management which would deal with Good Agronomic Practices, leading to the production of sustainable palm oil and also collaboration in our support services,” he continued.
FGV produces over 25 million seeds annually and its export market includes Indonesia, Papua New Guinea, Honduras, Cambodia, Sierra Leone, Ethiopia, Myanmar, Thailand, Sri Lanka and Gabon.
“This collaboration is not all about oil palm plantation. It is about bringing to our people the opportunity for a livelihood and improving their living condition. It is an investment where the host communities get the long-term economic benefit,” chairman of BOPPC Manuel Boniao said.
FGV closed five sen or 2.42% lower at RM2.02 per share today, with 1.71 million shares traded, giving it a market capitalisation of RM7.55 billion.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)