 Palm Oil Super Seedlings
There is currently a shortage
of palm oil seedlings in Malaysia
Earth & Garden plans to develop two existing palm oil plantations, one in West Malaysia and one in East
Malaysia, for the purpose of establishing 100% organic and environmentally
friendly palm oil seedling nurseries. The palm oil seedlings are freshly
germinated seeds that are cultivated for 9-10 months in the 100% organic and environmentally friendly EcoGrow and Mighty
Mulch mix. The young palm oil trees are then transferred to the palm oil
plantations for planting. The objective is to use the nurseries for continuous
supply of palm oil seedlings to
the palm oil plantations on a contract basis.
 Malaysia has approximately 3.7 million hectares of palm
oil plantations and at least 400 crude oil mills. The palm oil plantations will
continue to grow to achieve the target of at least 6 million hectares in the
next ten years. Currently there are plenty of incentives for investors coming
into the palm oil industry. In recent times European companies have been
entering into the palm oil market as well as some major players from the middle
east.
A variety of companies have gone into the palm oil
industry because of the quick return in investment, profitability and low risk.
Although Indonesia and other countries like Brazil may have a larger land mass
area of palm oil plantations, Malaysia has the highest production yield and the
total CPO production is the largest in the world. Palm oil is one of the largest
revenue earners in Malaysia and we believe that the Malaysian government will do
everything to protect the industry, especially the growers, as they are the real
producers of the raw materials.
 Therefore the palm oil industry
is relatively safe and low risk. The fluctuation of the commodity price in the
market is controlled by the government to maintain profitability of the
industry. There are extensive research facilities in Malaysia aimed at improving
the palm oil industry in all aspects. One of the most well-known, is
University Pertanian Malaysia (UPM), which is currently a leader of the
palm oil industry in terms of research and development.
Benefits of a palm oil plantation and nursery
-
 Palm oil demand in the world market has been good
for the last two decades and is expanding.
- Palm oil products are creating a continuous increasing market demand for both
the consumer and the industrial sector,
thus the Malaysian government has invested a lot of money and time in
research and development.
- Palm oil is predicted to become the biggest revenue earner in Malaysia within the
next 5 years. It will surpass the oil industry. Petronas, an oil company
owned by the Malaysian Government, is also planning to diversify into the palm oil sector.
- Palm oil and other biotech, organic and plant-based oil has increased its
usage many fold in contrast to mineral oil such as petroleum. With the current
high price, petroleum will lose its competitive edge in terms of usage when
compared to palm oil.
- Palm oil is a food base industry which never runs out of demand.
- Palm oil plantations have few viable competitors.
- Palm oil is one of the biggest industries in Malaysia, so there is a protection and
support mechanism put in place by the Malaysian Government to sustain the industry.
- Palm oil promotion will be extremely viable for the palm oil nurseries in both the short and the long term.
- Palm oil production has the support of the Malaysian government.
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