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FGV beefing up CPO trading

This is written by my colleague Zaidi Isham Ismail.

KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) wants to ramp up its crude palm oil (CPO) trading activities to consolidate its position as the world’s largest CPO producer, as well as to boost earnings.

FGV transport, logistics, marketing and others (TLMO) cluster head Datuk Khairil Anuar Aziz said the company will set up a marketing and trading company by year-end.

“It is a numbers game out there and we want to beef up our trading activities to drive revenue. We realise that other plantation companies are doing it and we don’t want to miss the opportunity.

“In fact, we are much better as we are backed by our own assets such as CPO from our own plantations, crushing mills and refineries,” Khairil told Business Times in an interview recently.

FGV, which produces about 3.2 million tonnes, or six per cent, of the world’s global CPO a year, reorganised its operations last month into six clusters with the aim of becoming a top 10 global agribusiness player.

The six clusters are upstream, downstream, sugar, rubber, research and development, and TLMO. The reorganisation is also part of FGV’s blueprint to rake in RM100 billion worth of revenue by 2020.

Khairil said 2.3 million tonnes of FGV’s output are for internal consumption, such as for its unit Delima Oil Products to make cooking oil and for its oleochemicals partner Procter & Gamble in Kuantan.

“We can only trade about one million tonnes, which is not enough to boost income. Thus, we will go into trading in a bigger way. We will buy CPO from Indonesia and other producers and market it overseas.”

He said FGV will put more effort in expanding its trade offices in Indonesia, United Arab Emirates, China and Turkey.

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