Anglo-Eastern Plantations PLC held its 39th Annual General Meeting, where the Chairman discussed the company's operational performance, development, and the outlook for the remainder of 2024. The company's own production of fresh fruit bunches (FFB) for the first five months of 2024 was 403,200mt, a 4% decrease compared to the same period in 2023. The production in Kalimantan in the second quarter of 2024 was slightly lower due to higher rainfall, affecting harvesting. However, crop production was up 2% against last year.
The FFB bought-in was 367,700mt, a 9% decrease compared to the same period last year. Excessive rain damaged roads, affecting the delivery of external crops to the mills in Tasik and Bengkulu, leading to a decrease in external crops. The CPO production for the first five months of 2024 was 154,400mt, 9% lower than the corresponding period in 2023 due to lesser bought-in crops and a drop in their own crop production.
The CPO ex-Rotterdam price averaged $1,014/mt for the first five months to 31 May 2024, 1% higher than the average price for the corresponding period in 2023. The average ex-mill price for the same period, however, was lower at $750/mt, a 2% decline compared to the corresponding period in 2023.
The company has plantations across Indonesia and Malaysia, with approximately 90,500 hectares, of which approximately 68,615 hectares including plasma are planted. The Group's new planting and replanting including Plasma for the first five months ended 31 May 2024 was 426 hectares, a decrease from the previous year. The HPP mill has commenced operation in the first quarter of 2024 but has only processed its own crop. It will start purchasing external crops once the effluent treatment plant is fully commissioned, expected to be in the third quarter of 2024.
The earthworks design for the eight mill in the KAP estate in Kalimantan has been completed, and the building permit is pending evaluation. The CPO price ex-Rotterdam closed at $1,018/mt on 5 June 2024, representing an increase of 9% from the start of the year at $935/mt. The demand for CPO is expected to remain weak and may decline in the near term, especially against the backdrop of a seasonal increase in soybean production in South America.