Page 25 - ar2012

2013 Outlook
Palm
The outlook for the palm oil industry is expected to remain positive
as global demand is likely to be supported by consumption growth
from emerging Asian economies like India and China, coupled with
demand for biodiesel driven by government mandates from Europe,
Brazil and Argentina. Bolstered by its large population of 240 million
people, Indonesia has become one of the largest consumers of
palm oil after China and India. We also expect Indonesia’s thriving
food and beverage industry to sustain domestic demand for palm
oil products.
Looking ahead, our CPO production growth will be supported by
younger estates, as nearly 43% of our total oil palm planted area
has not reached peak maturity yields. We will continue to build
scale by expanding our oil palm acreage through approximately
10,000 to 15,000 hectares of new plantings in 2013 in order to
sustain production outputs.
In line with expected growth in FFB production from newly matured
areas, we are constructing two palm oil mills in 2013 with FFB
processing capacities of 45 tonnes per hour in East Kalimantan
and 80 tonnes per hour in South Sumatra respectively. We are
also planning to construct two more palm oil mills with processing
capacities ranging from 30 to 45 tonnes per hour in 2014. In
addition, we will be expanding two existing mills in 2013 as well
as building a new bulking station with a storage capacity of 5,000
tonnes in Kalimantan.
Rubber
The long-term outlook for rubber remains upbeat, supported by
healthy demand from tyre-makers, automotive industries and rubber
goods manufacturers in developing markets. China in particular,
is expected to contribute strongly to this demand, given its large
population and status as the world’s largest natural rubber consumer.
FFB production (nucleus)
‘000 mt
CPO Production
‘000 mt
CAGR 5.4% CAGR 4.5%
Indofood Agri Resources Ltd. • Annual Report 2012 23