Cargill to boost palm oil investments

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Palm oil plantationUS food and agro-giant Cargill Inc. has said it will “aggressively” expand its palm oil holdings in Sulawesi, Indonesian Borneo and Sumatra in order to meet rising global demand.

“We are aggressively looking for new areas in Sulawesi, Central Kalimantan and South Sumatra that are environmentally safe to expand our oil-palm footprint,” Anthony Yeow, president-director of the company’s oil-palm plantations in Sumatra told Dow Jones Newswires.

Cargill currently produces roughly 300,000 tonnes of crude palm oil annually in Indonesia from 42,000 hectares of plantations under its direct control and another 27,000 hectares from smallholder affiliates.

The company is currently the process of acquiring 5,600 hectares of land in South Sumatra, boosting its plantation area in Indonesia by 13 per cent.

Indonesia is the world’s largest producer of palm oil, and Cargill is not alone among trading and plantation companies eying opportunities there to cash in on strong demand for a product used in processed foods, cosmetics and motor fuel, despite concerns over its environment cost.

Last month, Wilmar International Ltd., the world’s leading palm oil supplier by volume, announced it has taken a majority stake in a palm plantation venture in Indonesia’s Papua owned by Noble Group Ltd.

Indonesia’s annual palm oil output is now around 26 million tonnes, up from around 5.8 million tonnes in 1998.

While global demand for edible oils is rising by around 3 per cent annually, palm-oil consumption growth is as high as 7 per cent.

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Reading Time: 1 minute

US food and agro-giant Cargill Inc. has said it will “aggressively” expand its palm oil holdings in Sulawesi, Indonesian Borneo and Sumatra in order to meet rising global demand.

Reading Time: 1 minute

Palm oil plantationUS food and agro-giant Cargill Inc. has said it will “aggressively” expand its palm oil holdings in Sulawesi, Indonesian Borneo and Sumatra in order to meet rising global demand.

“We are aggressively looking for new areas in Sulawesi, Central Kalimantan and South Sumatra that are environmentally safe to expand our oil-palm footprint,” Anthony Yeow, president-director of the company’s oil-palm plantations in Sumatra told Dow Jones Newswires.

Cargill currently produces roughly 300,000 tonnes of crude palm oil annually in Indonesia from 42,000 hectares of plantations under its direct control and another 27,000 hectares from smallholder affiliates.

The company is currently the process of acquiring 5,600 hectares of land in South Sumatra, boosting its plantation area in Indonesia by 13 per cent.

Indonesia is the world’s largest producer of palm oil, and Cargill is not alone among trading and plantation companies eying opportunities there to cash in on strong demand for a product used in processed foods, cosmetics and motor fuel, despite concerns over its environment cost.

Last month, Wilmar International Ltd., the world’s leading palm oil supplier by volume, announced it has taken a majority stake in a palm plantation venture in Indonesia’s Papua owned by Noble Group Ltd.

Indonesia’s annual palm oil output is now around 26 million tonnes, up from around 5.8 million tonnes in 1998.

While global demand for edible oils is rising by around 3 per cent annually, palm-oil consumption growth is as high as 7 per cent.

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