Responsible Business Replanting We instituted a structured replanting exercise over the past years to improve the age profile of our oil palm plants and ensure that the age profile is within the prime range. This is a strategic imperative to mitigate declining yields associated with old and ageing plants. In 2012, the age profile of our oil palm plants was 16.2 years. Of that, about 49% were trees over 20 years old. The replanting exercise has significantly improved the age profile. Currently, young and prime aged plants amount to 54%, compared to 36% in 2012. while plants classified as old and very old have dropped to 29% from 49%. The higher proportion of prime aged plants complemented by increases in productivity and efficiency derived from our operational excellence initiatives have resulted in operational performance indicators that are above the national average. It is significant to note that the Oil Extraction Rate (OER) rose despite a fall in fresh fruit bunch (FFB) yield in the current year, a decline of 7% from 16.96 MT/ha in 2020 to 15.69 MT/ha in 2021, due to shortage of manpower, especially skilled harvesters, and COVID-19-related lockdown. Ensuring an optimal age profile for our oil palm plants is critical for the future sustenance of FGV and to provide assurance that the livelihood of those dependent on our business is not adversely affected. Age Profile 2019: 13.80 2020: 14.78 2021: 14.25 Immature (0-3) Young (4-9) Prime (10-20) Old (21-25) Very Old (>25) Immature (0-3) Young (4-9) Prime (10-20) Old (21-25) Very Old (>25) Immature (0-3) Young (4-9) Prime (10-20) Old (21-25) Very Old (>25) 19% 16% 17% 26% 26% 26% 5% 6% 7% 25% 26% 28% 25% 26% 22% FGV FFB Yield OER 16.96 (2020) 15.69 (2021) 20.32 (2020) 20.54 (2021) 56 FGV HOLDINGS BERHAD RESPONSIBLE BUSINESS ABOUT THIS REPORT RESPECTING HUMAN RIGHTS
RkJQdWJsaXNoZXIy NDgzMzc=