FGV Annual Report 2016

FELDA GLOBAL VENTURES HOLDINGS BERHAD 46 CLUSTER PERFORMANCE: RESEARCH & DEVELOPMENT AND AGRI-SERVICES (RD&A) The RD&A Cluster was established in 2014 to enhance the performance of the Group's core businesses. With over 40 years in the industry, the Cluster runs the largest oil palm research centre in Southeast Asia, and is a leading innovator of new technologies in the oil palm industry. FGV has the largest oil palm research centre in Southeast Asia. These innovations are subsequently put to use throughout the Group thereby improving yields of agricultural activities. The Cluster aims at increasing yield and efficiency, reducing production costs, ensuring environmental sustainability and enhancing profits over time. One of the key focus areas of the Cluster is the development of new oil palm varieties through conventional breeding. Of particular note is the award-winning Yangambi ML161 variety, which commands 43% market share locally. The Cluster reported slightly lower revenue of RM439.04 million, but a substantially higher PBZT of RM56.76 million, compared to the RM14.03 million posted in 2015. MANAGEMENT DISCUSSION & ANALYSIS