Producing world class certified crude palm oil with sustainability and reliability
Palm Upstream Cluster is FGV’s largest revenue earner and forms the core of the company. With a total land bank of more than 450,000 hectares, Palm Upstream is responsible for FGV’s status as the world’s largest CPO producer which produces more than three million tonnes of CPO annually.
Palm Upstream Cluster forms the core of FGV and is our largest revenue earner. It is also the foundation for FGV’s global growth.
FGV is the world’s third largest oil palm estate operator, managing more than 450,000 hectares across Malaysia and Kalimantan, Indonesia.
We process over 15 million tonnes of fresh fruit bunches (FFB) annually; 5 million tonnes from our own plantations, the balance from FELDA settlers and independent suppliers.
We also output 3 million tonnes of crude palm oil (CPO) annually from 69 palm oil mills, more than any other producer worldwide, making us the world’s largest producer of CPO.
In Malaysia, the largest plantations are located in Pahang and Sabah. FGV owns Pontian United Plantations Berhad (PUP) which operates 15,161 hectares of oil palm plantation in Sabah.
In Indonesia, FGV’s activities are focused in Kalimantan through PT Citra Niaga Perkasa, a company that owns 14,385 hectares of land. Through our subsidiaries PT Temila Agro Abadi and PT Landak Bhakti Palma, FGV owns another 21,037 hectares of land in West Kalimantan.
Continuous expansion initiatives are embarked on to secure CPO and feedstock supplies for our downstream objectives. To date, FGV is at the tail end of upgrading all its mills to meet RSPO and other relevant world-class certification.
KEY GROWTH TARGET: FGV is on track to have the world’s largest land bank by 2020 and maintain its status as the world’s top CPO producer
As the world’s largest CPO producer and third largest oil palm operator, we are already well placed in the industry globally. Aligned with our efforts to drive continuous improvements in our plantations, we are rolling out best management practices. For example in harvesting and pruning, we are encouraging the use of new tools such as graphite harvesting poles and innovative ablation methods and tools.
New technologies such as Unmanned Aerial Vehicles (UAV) and a tablet-based Plantation Micro-Macro Programme (PMMP) will allow us to enhance estate management. These innovations assist us to monitor and improve efficiency and productivity in the field and increase FFB yield, while giving us the edge over those that are using traditional farm management practices.
Furthermore, having embarked on an aggressive replanting programme in 2007 we can expect that by 2020, we will achieve our target of 60 percent prime palm land thereby improving our yields significantly. We are expanding our landbank by acquiring brownfield plantations both within Malaysia and abroad.
Palm Upstream’s Subsidiaries
- FGV Plantations (Malaysia) Sdn Bhd
- Felda Palm Industries Sdn Bhd
- Pontian United Plantations Berhad
- Asian Plantations Limited
- FGV Kalimantan Sdn Bhd
* The list of subsidiaries is not comprehensive. Further details on the equity shareholdings of FGV in its subsidiaries can be referred to in the Financial Statements
# Joint ventures or Associated company