Oil Palm Land For Sale in Malaysia
Oil Palm Land
One of the many options of land for sale is oil palm land. While waiting the land to appreciate, one can generate income from harvesting the oil palm trees due to the increase of demand globally.
Increasing Demand in Palm Oil
Oil palm trees are rich in palm oil, which can be found in both the pulp and the kernel. It produces the highest yielding source of edible oil worldwide. At the moment, food industry is consuming 80% from the palm oil production. Research also shows that palm oil and its fractions offer a cheaper yet healthier oil option in Fast Food Restaurants.
In addition, palm oil is not only important in food industry, but also as the main ingredient in producing household and industrial products. We can find them in our daily used consumer products such as soap, cosmetics, shampoo, lip balm, candle, pharmaceuticals, etc.
Moreover, palm oil is crucial in creating biodiesel energy source. Malaysia, as one of the leading bio-fuel producing country, has approved 91 palm oil plants and many of them are already in operation since year 2007.
Palm Oil Plantation
In general, oil palm tree is grown in nursery from 1 to 1.5 years. The tree will start to bear fruit in 2 to 3 years’ time with the lifespan of 15 to 30 years. The initial modal needed to invest in seeds and supplies is roughly estimated at RM3,000 to RM3,500 per acre. According to best ratio, each acre could allow plantation up to 55 number of tree. In terms of yearly oil production, it could achieve up to 1 to 1.2 tonne per acre. Of course, the production volume is very much depends on how the plantation are being managed. After the lifespan of the trees, investor should also factor in the replantation cost which includes the cost of landscaping and replanting the trees. One can talk to MPOB (Malaysia Palm Oil Board) for more information.
Palm Oil Price
Dorab Mistry is forecasting a 16% surge in palm oil prices by mid-year. Some investor commented palm oil is a commodity worth investing in due to its potential of going through a bull market. Malaysia is now leading the position as one of the largest oil palm producing country and the dominant exporter, apart from Indonesia.
Nevertheless, all investment vehicles come with risk. Investment is not about how well one gains profit from it, but also how well one can sustain through volatile market. Oil Palm investing is definitely only for those who are ready to go out all for it.
Interested please call us at +6010-226 1608