JAKARTA (TheInsiderStories) - Malaysia’s Felda Global Ventures Holdings Bhd (FGV) and PT Mitra Agro Servindo (MAS), an Indonesian company engaging in agriculture consulting services and analytical laboratory, have signed an agreement related to the sale of oil palm seeds and fertilizers produced, said the company in a statement to Bursa Malaysia. In the first year, the company expects to sell 1 million seeds.
“Today, MAS and FGV already signed the MoU as the first step of cooperation for the marketing of seed in Indonesia,”said Eko Dermawan, Commercial Director of MAS, in signing the MoU in Jakarta.
Syed Salim Syed Ali, Head of R&D FVG said, seeds being sold by Felda in Malaysia. Not only in Malaysia, said Syed Salim, FGV also sells seeds to a number of countries including Thailand, the Philippines and Papua New Guinea.
While, FGV Group President/Chief Executive Officer, Datuk Zakaria Arshad, said with the agreement will enable the oil palm seeds from FGV to be marketed commercially in Indonesia beginning in 2017. He said one million seeds were expected to be exported to Indonesia next year with projected growth to five million seeds by 2020.
“The potential market size in Indonesia is huge and demand from the industry for new estate development and replanting programs are expected to be between 60 and 90 million seeds per year,” he said.
Dudi Gunadi, Acting Director of the Seed Ministry of Agriculture, the government wants to help growers to deliver quality seeds at a competitive price.
For information, DXP ML 161 has characteristics of high productivity. The average yield of 29.83 tonnes of FFB per hectare, oil yield of 7.61 tons per hectare and OER of 25.9 percent.
FGV said currently its seed production capacity reaches 30 million seeds per year while export market was about 435,000 seeds in 2015 and expected to grow to 850,000 seeds in 2017. (*)