Asian Plantations Limited, a palm oil company with operations in Malaysia, is providing figures that demonstrate a staggering ROI for palm oil harvesting. The company’s directors refer to plantation land development as the “sweet spot of agricultural investing.” Developing a hectare of plantation estate in Malaysia costs approximately $6,250 per hectare over a thee year period. Comparatively, mature, harvested palm oil land is valued by public markets between $20,000 to $30,000 per hectare.
The return on palm oil plantations is likely to continue to grow as news of the potential benefits of the edible oil spreads West. Edible oils are a key component of the human food chain, like starch or protein, palm oil represents the lowest cost and smallest environmental footprint to produce of any edible oil. One hectare of mature palm oil produced the same amount of edible oils as 10 to 15 hectares of its soya, rapeseed and canola oil counterparts. This data comes as no surprise to Easterners who have long incorporated palm oil as a staple of their cooking, but many Westerners are only now discovering its economical nature and various uses.
Additionally, Asian Plantation’s palm oil is as beneficial to the global wallet and environment as it is for the human heart. Research has shown that the trans-fat free oil promotes heart health and is better for the body over all than many competing edible oils.
Assuming knowledge of palm oil’s many advantages will broaden, the company has begun looking toward expansion, hoping to double its plantation land by the fourth quarter of 2010, when they expect their first revenue.
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