Review of Operations
Marketing
The Group’s revenue is principally derived from
the sale of two products: crude palm oil (CPO) and
palm kernel (PK). It is therefore imperative to enhance
the relationship between the Group and all CPO
and PK buyers to ensure smooth reception at
refineries, thus maximising revenue.
Sales Volume
In 2014, the Group sold 141,756 mt of CPO and
30,207 mt of PK. The sales volume in 2014
increased by 2% for CPO but decreased by 0.1%
for PK compared to the previous year.
Realised Price
The movement of CPO and PK prices were highly
dependent on the global oils and fats market.
The Group faced a major challenge in assessing or
forecasting the CPO price trend that is critical for
the sales strategy. The Group achieved an average
selling price of RM2,351 per mt in 2014.
Sales of by-products
In addition to the sale of CPO and PK, the Group
also sold the mills' by-products namely Sludge
Palm Oil (SPO) and Palm Kernel Shell (PKS).
In the year 2014, the sales of by-products amounted
to approximately RM1.7 million.
SARAWAK PLANTATION BERHAD
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Annual Report 2014
CPO
2010
2013 2014
2012
2011
110,575
138,990
136,524
141,756
129,783
200,000
150,000
100,000
50,000
0
MT
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Total Volume
Price
RM/MT
2,351
2,269
2,756
3,123
2,667
2010
2013 2014
2012
2011
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
MT
2,500
2,000
1,500
1,000
500
0
RM/MT
27,300
23,624
30,265
29,385
30,207
1,575
1,216
1,407
2,034
1,600
PK
Total Volume
Price
5 years sales volume and average selling price
