11
INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2014
Like all large
-
scale agricultural businesses, we are at the
mercy of the weather. Global warming has made the climate
more unpredictable. Prolonged spells of drought or flooding
can weaken the constitution of the crops, lowering the yield.
The Transboundary Haze Pollution Act in Singapore, and
similar laws in Indonesia are important legislation for our
industry. We care deeply about the environment, the health
of our workers, our plantations and the local community. We
have a no
-
burning policy but we are watchful of and concerned
about wildfires and man
-
made fires outside our estates.
Our plantations are our primary assets. They are vulnerable to
fires during the dry spells. We have put in place an effective
fire prevention and safety system in all our plantations. Fully
equipped and manned by professionally trained fire response
teams, this system has been extended to cover the immediate
areas beyond the perimeters of our estates.
Our aim is to cope with encroaching fires from nearby hot
spots and other fire
-
prone areas. A dual
-
ringed fire monitoring
mechanism was established in all our estates to alert the estate
teams and local authorities immediately of any external fire
incidents in the locality of our operations. We will continue to
work closely with local officials to combat the haze problem.
More details are found in the Sustainability Report.
Even as we faced the occasional head
-
winds in our industry,
it is imperative to emphasize efficiency, sustainability and
resilience. We monitor our strategy and its implementation for
optimal outcomes. We continue to improve on the management
of our estates, enhancing productivity and infrastructural
development.
This is our third year of reporting on our sustainability
efforts. We are proud of the remarkable progress of our
Sustainability programmes. Notable are the extension
of the RSPO standards to the smallholders and out
-
growers in our supply chain. The development of a generic
sustainability standard, the improvements in food safety
and accountability, and local community development are
part of our sustainability drive.
There are reasons to be optimistic. The global demand for
basic commodities like vegetable oils will stay strong given the
rise in global population and urbanisation. In the long run, the
prices of essential commodities, particularly CPO and sugar,
should hold up well in tandem with the robust core demand
worldwide.
For our performance in 2014, the Board is pleased to propose
a first and final tax
-
exempt dividend of 0.52 Singapore cents
per share.
I will like to express my deep appreciation to my colleagues
on the Board and our dedicated management and staff. They
continue to lead the company towards higher performance
and sustainable growth. My special thanks and gratitude to
our customers, shareholders and partners. Your continued
confidence in our company in these challenging times have
spurred us on to attain our goals together.
Edward Lee
Chairman
