PALMOILMAGAZINE, JAKARTA – PT Sampoerna Agro Tbk (SGRO) encountered challenges in palm oil production during the first semester of 2024 due to the effects of El Niño, which affected Sumatra in the latter half of the year.
Stefanus Darmagiri, Head of Investor Relations at Sampoerna Agro, expressed hope that crude palm oil (CPO) production would improve in the second half of 2024.
“For the fresh fruit bunch (FFB) would get the peak production in the second semester, we are optimist to realize the 2024 production targets,” Stefanus said, as Palmoilmagazine.com quoted from Kontan, Tuesday, (16/7/2024).
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SGRO predicted, CPO would remain stable in good level in 2024. It would be for other vegetable oils would get slow production, the implementation of B35 program to escalate CPO demands in this country, and geopolitical tension that would have something to do with crude oil price. But, Stefanus did not tell the detail of average selling price of CPO produced by SGRO in the second quarter of 2024.
“In the second quarter of 2024, we predict that CPO average selling price from SGRO would be better than it in the previous period,” he said.
To face the uncertainty, the company also formulated the strategies to escalate plantation productivity by having mechanism intensification, better water management, escalating infrastructures, and implementing digitalization to get more effective monitoring. These strategies would escalate production efficiently and operational in the company’s plantations. (T2)
