Tuesday, 2 September 2014

How Much Is The Cost Of Production In CPO

Prices risk tumbling further to approach the cost of production, according to Dorab Mistry, director at Godrej International Ltd. Private-sector estates in Malaysia and Indonesia have costs of about 1,500 ringgit to 1,600 ringgit a ton, Mistry said in e-mailed comments to Bloomberg News.

Sime Darby Bhd’s average cost of production in Malaysia and Indonesia is about 1,400 ringgit a ton, according to Franki Anthony Dass, executive vice president of the Petaling Jaya, Malaysia-based company’s plantation division.

(So, what will happen if CPO Futures price really falls to such level???)

Source: Bloomberg News