16th Feb 2015 16:57
LONDON (Alliance News) - REA Holdings PLC Monday said total production of its own oil palm fresh fruit bunches and of externally purchased fresh fruit bunches increased in 2014.
The Indonesian crude palm oil producer said the crop of oil palm fresh fruit bunches harvested for 2014 amounted to 631,728 tonnes, up from 578,785 tonnes in 2013. External purchases of fresh fruit bunches from smallholders and other third parties totalled 149,002 tonnes for the year, compared with only 99,348 tonnes the year before.
"The record production levels achieved in 2014 reflect the increasing volumes flowing through from the now maturing estates of the group and from local smallholders," the company said in a statement.
REA said processing of its own fresh fruit bunches production and of the externally purchased fresh fruit bunches together totalled 780,730 tonnes in 2014, from which was produced 169,466 tonnes was crude palm oil and 35,764 tonnes of palm kernels.
In 2013 it processed a total of 678,133 tonnes tonnes.
"The group continues to make a steady recovery and to improve operational efficiencies. The directors are confident that crop levels and production will make good progress in 2015 and that the development and expansion planting programme will move forward at a good pace," the company said.
REA said that expansion of its third, newest oil mill at Satria, which will increase its capacity to 80 tonnes of fresh fruit bunches per hour, is also underway, and is expected to be completed during early 2016.
REA shares closed 1.8% lower Monday at 300.00 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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