Business
Trading statement and possibl
Trading statement and possibl.
About this update from R.e.a. Holdings Plc
[{"type":"text","content":"\n RNS Number : 8562F R.E.A.Hldgs PLC 20 January 2010 \n \nTrading statement and proposed issue of additional dollar notes\nAgricultural operations\nThe crop of oil palm fresh fruit bunches (\"FFB\") for the year to 31 December 2009 amounted to 490,000 tonnes, slightly ahead of the budgeted crop of 486,000 tonnes and an increase of 8.6 per cent on the FFB crop for 2008 of 451,000 tonnes. In addition, the group purchased 13,000 tonnes of FFB from smallholders (2008 - 6,000 tonnes).\nProcessing of the group's own FFB production and the externally purchased FFB, together totalling 503,000 tonnes (2008 - 457,000 tonnes), produced 118,000 tonnes of crude palm oil (\"CPO\") (2008 - 106,000 tonnes) and 24,000 tonnes of palm kernels (2008 - 21,000 tonnes) reflecting extraction rates of 23.51 per cent for CPO (2008 - 23.17 per cent) and 4.72 per cent for kernels (2008 - 4.56 per cent). Production of crude palm kernel oil amounted to 10,000 tonnes (2008 - 8,000 tonnes) with an extraction rate of 40.04 per cent (2008 - 40.11 per cent).\nRainfall across the group's estates averaged 3,123 mm for 2009, compared with 3,504 mm for the previous year. Rainfall of in excess of 3,000 mm per annum is more than sufficient for oil palm cultivation provided that the rainfall is distributed reasonably evenly over the year as oil palm estate soil has limited capacity to retain water. During 2009, there was an extended drier period between August and October, probably reflecting the reported El Nino effect. Although this was of some concern to the group, an analysis of the rainfall received during this drier period suggests that the rainfall was just sufficient to avoid deficits in the moisture required by the group's palms for optimal development. If correct, this would mean that the reduced levels of rainfall between August and October should not have a negative impact on cropping in 2010. On that basis, the group is budgeting an FFB crop of 561,000 tonnes for 2010.\nAfter the collapse in the CPO price seen in 2008, when the price fell from a high in early March of just under $1,400 per tonne, CIF Rotterdam, to a low of $435 in October, the price recovered to reach $830 per tonne in May 2009. It then fell back to a level of just over $600 in July 2009 since when it has been relatively steady to firm trading for the most part in the range $650 to $...