Booming of CPO Business

Tuesday, April 22, 2008 0 comments

The Indonesian government has raised the Crude Palm Oil (CPO) benchmark export price for March 2008 shipments by US$44 from US$944 to US$988 per metric ton, according ANTARA News. Before that (In Jan 2008), export price shipment US$869 per metric ton only. This is very huge business, but of course to the people who has plantation before.

The price of pal oil plantation land increase significant also, imagine, one hectare land plantation before was about US $2,500 - US $3,500 per hectare depend on the area, the capacity Fresh Fruits Bunch (FFB). Now The average price for palm oil plantation is about US $6,000 per hectare and I heard in one of Indonesian are, there are people bought palm oil plantation land about US $ 10,000 per hectare.

Do you think still feasible to start CPO or FFB business now? Try to make analysis how the CPO price hold above US $ 600 per metric ton, because when the price will down, the people who buy sawit land more than US $ 5,000 per hectare will get a trouble because the Break Event Point of his business will more longer. I give you suggest and input about the trend of CPO price "as long as crude oil price increase and not down under US $ 85 per barrel, then the CPO price still hold on above US $600 per metric ton.

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