Dekel Agri-vision Share Discussion Threads

[marab] 13/9/2013 18:56

An environmentally sound reputation must be important to at least some palm oil buyers as Malaysia and Indonesia seem to be putting ever greater efforts to clean up their reputations.

Indonesia to raise palm oil issue in APEC
'The Indonesian government would raise the issue of sustainable palm oil plantation during the APEC meeting in Bali in October, saying the country has implemented eco- friendly plantation, Coordinating Minister for Economy Hatta Rajasa said on Friday.

He said that Indonesia would prove that the country's palm oil plantation did not harm environment.

"We must keep fighting, we must prove scientifically that our palm oil does not damage environment and is not dangerous for health," he said.

Minister Hatta made the statement following black campaign on Indonesia's palm oil and its derivative products in Europe.

Indonesia has established its own standard known as ISPO ( Indonesian Sustainable Palm Oil) that must be met by every palm oil plantation firm to ensure that they have adopted eco-friendly practice.'
hxxp://www.globaltimes.cn/NEWS/tabid/99/ID/811117/Indonesia-to-raise-palm-oil-issue-in-APEC.aspx

[marab] 12/9/2013 20:01

'© 2013 The International Institute for Sustainable Development
RESEARCH REPORT
SEPTEMBER 2013

Europe's largest importer and processor of palm oil is the Netherlands use of
palm oil in this country doubled since 2006 to 1.3 million tonnes in 2012. The Netherlands is followed by Italy and Germany, each of which used slightly less than 1 million tonnes in 2012. In these three countries (as well as in Spain),
palm oil consumption has significantly increased, not only in the energy sector, but also in the food and other uses sector. France has also increased its palm oil consumption in both sectors, but at a more moderate pace (from 0.3 to 0.4 million tonnes)'.

hxxps://www.foeeurope.org/sites/default/files/publications/iisd_eu_biofuel_policy_palm_oil_september2013_0.pdf

[marab] 11/9/2013 16:37

'Every year about 13 million hectares of forest is cleared or lost globally. Just four commodities – soy, palm, paper and beef – drive over 50% of tropical deforestation.'
hxxp://www.unilever.com/sustainable-living/news/news/Unilever-participates-in-palm-oil-talks.aspx

[marab] 10/9/2013 17:04

'Biofuels policy faces critical European vote

In the latest salvo, Friends of the Earth said in a report that palm oil use had increased much more than predicted and was now at 20% of the biodiesel mix.'

hxxp://www.theguardian.com/global-development/2013/sep/09/biofuels-policy-faces-critical-european-vote

[marab] 09/9/2013 15:49

'Ivory Coast hopes to squeeze the profits from palm oil
Ivory Coast, home to Africa's largest oil palm refinery, is planning to double production by 2020.'

[marab] 08/9/2013 16:57

I did a search for pictures of beautiful Ivory Coast creatures and this was the first one.



The second one was of the Pygmy Hippopotamus

[marab] 07/9/2013 12:00

hamlette - I don't keep much track of PAL or PALM but it appears to me that they and DKL are all different. My general thoughts, which are worth very little, are as follows.

Equatorial Palm Oil (PAL) appear to be 3 or 4 years away from production and setting up their own 60tph mill, and are valued at £7.02m. They seem to be having problems from funding (as you mentioned) and also with local relationships. It appears that they might struggle for funding to get through to positive cash flow in a few years time.

Dekeloil (DKL) has bought and paid for its 60tph mill which should be up and running by the end of this year and is valued at £11.73m. DKL should have some cash flow from the beginning of next year and they seem to have no problem getting funding from local banks. By using local existing palm oil growers to supply FFB they have cut a few years of the normal route to production, but they also have a longer term plan to grow their own fruit in addition to their deals with local farmers.

Asian Plantations (PALM) have a 60tph mill in production and are valued at £102m. In 2013 they expect to process around 200,000 tonnes (25% from their own palm trees) of FFB but they have a large amount of debt (about £80m at the end of 2012. They don't appear to have much trouble raising cash.

All three companies are different in their approach, cash flow and scale. PAL looks to be struggling and PALM is a much bigger company with big numbers in MC, debt and hopefully cash flow. DKL seems to sit between the two and in general terms should be nearing the stage where it stops taking money and starts to make it, which is generally a good time to invest if all goes to plan.

Hope that helps and I would welcome your views on why you think PALM is the better investment. Always happy to hear about other opportunities.

[hamlette] 07/9/2013 09:55

Marab,
I see that Equatorial Palm Oil (PAL) are taking their dispute with their 50/50 JV partner Biopalm (part of Siva Group)to Arbitration. You will recall that in early July PAL gave written notice to Biopalm that, having failed to provide funding as required, they were in default of the joint venture agreement.

I have recently added Asian Plantations (PALM) to my watchlist of potential Palm Oil plays (which includes DKL and PAL). PALM seems to offer better value than DKL or PAL....what are your thoughts?

[marab] 06/9/2013 20:25

Overdue for a picture I think but it is educational illustrating the value of palm oil as a bio-fuel.

[marab] 04/9/2013 16:34

There is some interesting bits and pieces about the Ivory Coast here.

hxxp://www.our-africa.org/ivory-coast

[marab] 03/9/2013 09:46

Indonesia's production of crude palm oil (CPO) in the first six months of 2013 rose 25.64 percent compared to semester I-2012 to 14.7 million tons, which is a little over half of this year's CPO production target. Despite weak global demand for the commodity (accompanied by falling CPO prices), growth was accomplished due to new seeds that became productive and because the total size of Indonesian palm oil estates continues to expand. Productive estates now stand at 9.4 million hectares from 8.7 million hectares last year.

Of the total CPO production in Semester I-2013, four million tons have been consumed domestically for the production of food, oleo-chemicals and biodiesel. The domestic food industry is the biggest consumer of Indonesian CPO with 2.9 million tons, followed by oleo-chemicals (600 thousand tons) and biodiesel (480 thousand tons).

Total domestic consumption of Indonesia's CPO production in 2013 is expected to reach 7.8 million tons, while total production is assumed to rise to 29.4 million tons this year.
hxxp://www.indonesia-investments.com/news/news-columns/indonesias-production-of-palm-oil-grows-25.6-in-first-half-of-2013/item957

[marab] 02/9/2013 18:40

The European Union is the fourth largest market in terms of palm oil consumption globally. Palm oil is the second largest source of oils and fats in the EU-27, after rapeseed and before sunflower oil. It is part of a mix of oils and fats, which Europe partially imports to meet its domestic demand. In 2012 the EU palm oil consumption stood at 5,890,000 tons, including palm oil used in food and in many other non-food sectors.

[marab] 01/9/2013 14:20

DKL haven't added any new photos to the website since July so hopefully we are due a few more soon. There are 4 months to go before the mill is due to be up and running, so maybe share holders will get some good news for Christmas.

[marab] 31/8/2013 09:35

Only four months left until the end of 2013 and hopefully the beginning of mill production. The company has promised a bit more in the way of updates to the DKL web site regarding progress on the mill so I look forward to seeing some more photos in due course.

[marab] 30/8/2013 20:25

pigeon1 - I get paid a palm oil fruit for every post. Another 8,000 posts and I will have enough for a pint of palm oil ;-)

The new mill is expected to be running by the end of this year and will start to produce cash flow from then onwards as they do some test production to check the plant is working okay. If they finish the mill in December, and so far everything seems to be going to plan, they can start processing and making sure the delivery system is working smoothly. They will have two to three months making sure that everything is running as planned before the next peak season that starts in March. The great thing about palm oil trees is that they only grow well in the tropics which means non stop year long crops. The mill is rated at 60 tonnes per hour but is made up of two 30 tonnes per hour processing lines so can be run at either rate to increase cost efficiency.

[pigeon1] 30/8/2013 18:03

Marab you are persistent!

When does this new mill get into production?

When cashflows start coming in?

[marab] 30/8/2013 16:02

Sustainable palm oil newsletter for August
hxxp://www.cpet.org.uk/files/Palm%20oil%20newsletter%20-%20August%202013.pdf

You can also find older editions here
hxxp://www.cpet.org.uk/cpet-news/news%20stories/sustainable-palm-oil-newsletter-august-2013

[marab] 29/8/2013 12:39

This is why I don't play with commodity futures. Palm oil prices have been going up because the soy crop looks less than forecast, and now palm oil prices are going down because they went up (and the Indian rupee went further down).

'Palm Oil Snaps Best Run Since 2010 on Demand Slowdown Concern

Palm oil dropped on concern that a rally to the highest close in five months may erode demand for the most-used edible oil just as India, the biggest buyer, grapples with a record low currency that will raise import costs.

Palm for November delivery lost as much as 1.2 percent to 2,452 ringgit ($738) a metric ton on the Bursa Malaysia Derivatives, the biggest intraday decline for the most-active contract since Aug. 20, and traded at 2,454 ringgit at 12:13 p.m. in Kuala Lumpur. Palm for physical delivery in September was at 2,510 ringgit yesterday, data compiled by Bloomberg show.



Futures, which rallied for six days to yesterday in the best run since December 2010, ended at the highest level since March 22 as crude oil surged. India's rupee plummeted the most in two decades to a record as the surge in crude oil threatened to worsen a current-account deficit and push the economy toward its biggest crisis since 1991.

"There are worries that demand could slow as prices have been moving up a lot," Donny Khor, deputy director of futures and commodities at RHB Investment Bank Bhd., said from Kuala Lumpur. "Another point of concern is the fall in the Indian rupee as a weaker currency would mean they have to pay more."

Palm is still heading for the first monthly advance in Kuala Lumpur since May. Shipments from the largest producer after Indonesia rose 7.1 percent to 1.16 million tons in first 25 days August from the same period in July, Intertek estimates'.

[marab] 28/8/2013 11:03

Unrest in Syria means that oil prices are going up so biofuel from palm oil will be more profitable.

'Palm Oil Poised for Best Run Since 2010 on Crude Oil, Soybeans

Palm oil gained for a sixth day, heading for the best streak since December 2010, as crude oil climbed to a two-year high, boosting appeal of biofuels, and hot weather in the U.S. threatened the world's biggest soybean crop.

Palm oil for November delivery rose as much as 1 percent to 2,476 ringgit ($742) a metric ton, the highest level for a most-active contract since June 20, on the Bursa Malaysia Derivatives before ending the morning session at 2,473 ringgit. A sixth day of gains would be the best run since a seven-day streak through Dec. 28, 2010. Palm for physical delivery in September was at 2,500 ringgit, data compiled by Bloomberg show.

Very hot and mostly dry weather is expected for most of the U.S. Midwest in the next five days, adding stress to some crops, DTN said yesterday. Soybeans, which can be crushed to make soybean oil, touched a two-month high in Chicago yesterday. West Texas Intermediate crude surged to the highest since May 2011 on concern that conflict in Syria may disrupt oil supplies. A record 5.6 million tons of palm was used for fuel in 2012, according to Hamburg-based research company Oil World.

"Crude oil prices have gone up quite a bit and this would make biodiesel more attractive," Ivy Ng, an analyst at CIMB Investment Bank Bhd., said by phone from Kuala Lumpur. Concerns about the U.S. soybean crop are also helping palm oil, she said.'

[marab] 27/8/2013 18:53

Palm Oil Advances to Two-Month High on Ringgit, Soybean Outlook

Palm oil climbed for the fifth day to a two-month high on speculation that the U.S. soybean crop will be smaller than previously estimated and as the ringgit fell to a three-year low, boosting demand for Malaysian supplies.

Palm oil for November delivery rose as much as 1.4 percent to 2,468 ringgit ($741) a metric ton on the Bursa Malaysia Derivatives, the highest for the most-active contract since June 20, before ending the morning session at 2,443 ringgit. A fifth day of gain would be the best run since the five-day advance through May 29. Palm oil for physical delivery in September was at 2,490 ringgit, data compiled by Bloomberg show.

Soybean in Chicago gained the most since 2011 yesterday as hot, dry weather in the Midwest threatens to erode crop yields in the U.S., the top producer of the oilseed that can be crushed to make soybean oil. The soybean harvest will be 3 percent below the government's forecast on Aug. 12, Professional Farmers of America said Aug. 23, after a tour of crops in seven states last week. Soybean oil rallied the most since October 2010 yesterday.

[marab] 26/8/2013 17:49

Next year this sort of article will be of more interest as the poorer the soy bean crops the better the palm oil prices.

'Corn, soy crops likely smaller than forecast
CHICAGO - Corn and soybean production probably will be smaller than the government predicted after planting delays and unusually cool, dry weather stunted growth, field samples by the Professional Farmers of America showed.

The corn harvest will be 13.46 billion bushels, less than the 13.763 billion estimated this month by the U.S. Department of Agriculture, Pro Farmer said in an emailed report. The report was compiled after a four-day tour last week of 2,600 fields in seven Midwest states. Soybean output will be 3.158 billion bushels, below the USDA forecast of 3.255 billion.

The United States is the world's largest grower of both crops.

After a wet May and June delayed planting, the USDA cut its soy-crop forecast by 4.8 percent on Aug. 12 and reduced its corn estimate for a third straight month. July was the 20th coldest in 119 years in Minnesota, Wisconsin, Michigan and Iowa, the top U.S. grower, National Weather Service data show. Soybean futures are up 14 percent from an 18-month low on Aug. 7, and corn rose 5.4 percent from a 35-month low on Aug. 13
hxxp://www.dispatch.com/content/stories/business/2013/08/26/corn-soy-crops-likely-smaller-than-forecast.html

[marab] 25/8/2013 22:32

Maybe DKL should be concentrating on producing red palm oil. Claims for it include-
Prevention of heart disease
Added resistance to Parkinson's and Alzheimer's disease
Prevention of arthritis, cataract, osteoporosis, liver disease, and asthma
Reduce the risk of developing cancer
Heals old scars, including scars from acne and even stretch marks
Used on the face it keeps the signs of ageing at bay
Not only does it help premature hair loss, but several people have experienced that it has helped restore hair among those who had started showing signs of baldness

Unlike other cooking oils such as olive oil, that lose their nutrients upon heating, red palm oil retains all of its nutrients and is therefore popular as a cooking oil. In fact, in many government programs that are undertaken to eliminate nutritional deficiencies, the food is cooked in this oil. This gives the sufferers all the nutrients required by their body.

Read more at Buzzle: hxxp://www.buzzle.com/articles/red-palm-oil.html

[marab] 24/8/2013 12:48

Palm Oil - The oil is produced from the pulp or flesh of the fruit of the palm and is obtained by solvent extraction. Palm oil is to tropical African cooking what olive oil is to Mediterranean cooking and butter is to northern European cooking. It makes a nice hard bar when used in combination with other oils such as coconut and olive oil. The difference between palm kernel and palm oils is that Palm kernel is white and has a high melt point. Palm oil is yellow and has a low melt point, about room temperature. The higher the melt point, the harder the oil, and the harder your soap comes out, hence the slower it will melt in the shower

This solid oil is generally used in making soaps, lotions and creams. Palm is considered the tallow of vegetable soaps, it lends hardness and smooth creamy bubbles to soap. Palm oil is also used in the manufacture of soaps, detergents and other surfactants. Oleochemicals manufactured from palm oil and palm kernel oil are now popular for the manufacture of environmentally friendly detergents as they are readily biodegradable. It's hard to find a soap recipe that doesn't include palm oil. The usage rate is typically around 30% and sometimes is even 40% or more in some popular recipes. Palm oil imparts a creamy light golden or off-white colour and gives a very nice texture to your soaps.

hxxp://www.essential7.com/carrieroils/palm.html

[marab] 23/8/2013 10:17

I don't know if DKL will be going the composting route but the system described below is about the cheapest you can get. Various waste handling authorities in the UK use the same system for handling green waste like hedge clippings, grass etc.

'The composting system offers an effective solution to the oil palm industry's perennial problem of waste disposal. The composting system utilizes 100% POME and EFB and uses a technically advanced method to convert these waste matters into compost. EFB are firstly shredded using a high speed hammer mill and then stacked into windrows of 1.5 meter high by 45 meter length in an open field. POME with BOD levels less than 10,000 ppm is then pumped from the pond and sprayed onto these windrows at a specified rate at 3 days intervals. The windrows are turned regularly using a windrow-turner for better mixing and aeration. Composting accelerants are sprayed once at the start of the process to accelerate the composting process. Throughout the composting process, the windrows are covered by an air-permeable covering to avoid drenching by heavy rain and to prevent leaching of nutrients. The covering is crucial for the control of temperature and moisture content, two key factors that affect the speed of composting and quality if the end product. The compost is mature after 70 days and is ready for use. The compost, when used in sufficient quantity, is capable of replacing 66% of chemical fertilizes.'



Good Youtube video on the windrow composting method here -