Page 23 - ar2012

2012 Review
A slowdown in the global economy, particularly in Europe and China,
weighed down on commodity markets in 2012. In Europe, biodiesel
off-take was signifcantly lower than forecasted. Coupled with higher
seasonal production in the second half of the year, increased palm
oil stocks have put signifcant pressure on palm prices since August
2012, creating unusually wide discounts relative to soya oil and
other vegetable oils & fats. On a full year basis, CPO prices (CIF
Rotterdam) averaged US$1,006 per tonne in 2012 compared to
US$1,128 per tonne in 2011. The decline in market prices for PK
and rubber were even sharper compared to palm.
Plantation Division’s 2012 total revenue came in close to last year
at Rp8.4 trillion, refecting principally the combined effects of lower
average selling prices of plantation crops and lower internal CPO sales
to the Group’s refneries at market price. This was offset by higher
sales contribution from sugar products following the commencement
of our frst full year of sugar cane crushing operations.
CPO vs Soy Oil Price
US$ / tonne
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Jan ‘06Jul ‘06Jan ‘07Jul ‘07Jan ‘08Jul ‘08Jan ‘09Jul ‘09Jan ‘10Jul ‘10Jan ‘11Jul ‘11Jan ‘12Jul ‘12
Soy Oil Premium Over CPO
CPO (CIF Rotterdam) Soy Oil (CIF Rotterdam)
Rubber Price
US$ / tonne
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Jan ‘06Jul ‘06Jan ‘07Jul ‘07Jan ‘08Jul ‘08Jan ‘09Jul ‘09Jan ‘10Jul ‘10Jan ‘11Jul ‘11Jan ‘12Jul ‘12
RSS3 (Sheet) TSR20 (Block Form)
Immature
24%
4–6 Years
19%
7–20 Years
34%
Above
20 Years
23%
Oil Palm Plantation
Age Profile
Indofood Agri Resources Ltd. • Annual Report 2012 21