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 Venturing into Agriculture & Aquaculture, Co-Ordination & Implementation is KEY

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Kg Teratai
post Feb 10 2012, 02:48 PM

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Hi Para,
I want to buy small tree, but I can not locate any nursery. I have go to mardi, their choice is limited. Mardi only has D168(IOI), M88, D24, D145, D2. My farm already have D168, D24, D2.

Currently I have ask my nephew in Penang to try to search the black thorn for me. I only manage to find the contact in
http://www.durianking.biz/shop/
If they don't sell the young tree, then I will try to get the clone from them.

Raja Kunyit young tree are hot demand. Most of the time are sold out in the nursery. Also, i am not sure which nursery have it now.


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Hi alaskanbunny,

Good thing about big company is that everythign will be ready for you. So, you don't have to worry about thing we mention, unless you have to stay in that vallage for your visit there.
I believe you have awared that transportation or logistic will be concern for you if you put 3000 workers into a centre area. The travelling time for worker to get to the work site is time consuming.
TSParaOpticaL
post Feb 10 2012, 05:41 PM

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i am sure muar should have Raja Kunyit. and also you can pre-order

if you cant get black thorn then i help you ask around
Kg Teratai
post Feb 13 2012, 02:25 PM

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Hi Para,

Yes, Should be able to get it near the area for Raja Kunyit, which is where my bro got it last time. I will try to get another batch.
If you have any news about the black thorn, please let me know. Thank you.


Added on February 16, 2012, 5:16 pmDue to the busy schedule and holiday in Jan and Feb, I am not able to visit my farm for whole feb. sad.gif

Here are the update from my Oil Palm farm,

Production
7 Jan : 0.81 ton
29 Jan : 1.4 ton
13 Feb : 0.78 ton

Fertilization applied at Feb
Zeolite 30 pack, NK 30 pack and Borex 2 pack.

Durian Farm,

Start flowering already. I don't have time to visit it and have details update yet.


This post has been edited by Kg Teratai: Feb 16 2012, 05:16 PM
insearching
post Feb 19 2012, 11:03 PM

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QUOTE(MrFarmer @ Feb 10 2012, 11:03 AM)
You may want to look @ East Kalimantan. The Russian is building a railway (about 180 km inland) to bring out coal, hence opening vast area of land for agriculture.

Since you shall have between 2K to 3.5K people working there, I'm sure the living condition shall not be too bad, unlike those that I visited, just a shed for us to stay overnight.

If you need a traveling companion, you can always look me up. Can accompany you on your field trip, traveling expenses on you  biggrin.gif .
In Jogjakarta now, back end of the month
*
Hello Mr Farmer,

It is possible for us as Malaysian to own a large scale of agriculture lands at Indonesia?

I would like to apologize in advance if I have offended you.

But if it is possible, I would like to buy some land at there as well with the condition that is the price of the agriculture land must be affordable.

Thank you

This post has been edited by insearching: Feb 20 2012, 12:12 AM
Michael J.
post Feb 20 2012, 08:16 AM

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As far as I know, any kind of investments in Indonesia these days require a local partner. For plantation, the partner needs to have at least a 30% share in the venture, and there is a minimum size for the plantation. It differs from place to place, but if I'm not mistaken, Kalimantan Tengah's requirement is minimum 10,000 acres for corporation, and 100acres for private. And yes, the land there is very cheap compared to Malaysia. Just make sure you get the right places, as some areas are of marginal value for agriculture.
MrFarmer
post Feb 20 2012, 10:00 PM

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QUOTE(insearching @ Feb 19 2012, 11:03 PM)
Hello Mr Farmer,

It is possible for us as Malaysian to own a large scale of agriculture lands at Indonesia?

I would like to apologize in advance if I have offended you.

But if it is possible, I would like to buy some land at there as well with the condition that is the price of the agriculture land must be affordable.

Thank you
*
Kindly refer to Michael J's post. Sorry am not familiar with Indonesia's requirement as I've never explored/ experience these in Indonesia.

Since you are willing to travel even to Kalimatan, you may want to consider land in Sarawak / Sabah first (at least it's part of Malaysia).
Maybe if you can be more specific on "some land", what acreage? and affordable, price $ (it's very subjective).
Coincidentally just spoke with a guy from Sepang, whom I just met this afternoon at the KFC outlet at the KK LCT. No we were not having a fight with the KFC staff biggrin.gif I arrived and am waiting for a cab to take me to Keningau and he just came out from his farm in Beautfort, waiting for his flight home. This gentleman bought a "share" of a land totaling 200 acres with a couple of friends and planted Palm oil. His "share" is for 20 acres and he paid 28K per acre (10K for land and 18K for the initial planting). He feels it's cheap and is very happy with his investment.
Kg Teratai
post Feb 29 2012, 02:46 PM

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Hi Micheal J,

I am planning to buy supergene seed to replace those male oil palm tree, what is your opinion regard supergene seed?

It is quite costly to buy it 30++ per 7 months old supergene oil palm tree.
Michael J.
post Feb 29 2012, 04:39 PM

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Kg Teratai:

This is an opinion shared by not just myself, but many plantation scientists: It is an unproven material, and it is simply too good to be true. Besides, those who has actually seen the palms do not endorse it.

Sure, the vendor may say "already planted for more than 15 years", but when I asked for a site visit with some plantation buddies, the fella disappeared. Never returned my enquiry, never replied my friend's enquiry either.

Furthermore, the photographs the vendor has been showing does not impress us at all. I mean, even the "biasa" type of tenera palms, when cared for properly, looked far better than what was depicted in those pictures. Heck, the very best materials, which are also readily available at about 60%-70% the price of Supergene, can produce equally as good, if not better than what they claim it to be.

As simple enough "test" is to ask how many mid-sized plantation companies have actually bought the materials from them. Don't need big plantations like Sime or IOI, just ask if MHC got buy or not, or United Malacca got buy. Say you want to verify with them. If really can produce their 45 tons a year and 35% OER at mill, why wouldn't any of these smaller guys buy from them? They don't produce their own seeds, so what's the harm buying from other source? Yea lar, pay 40% more, but return is nearly 60% above current average OER wor...

Put into $$ and cents:
Supergene planting material cost: 148 x RM30 = RM4,440
Regular planting material cost: 148 x RM20 = RM2,960

Supergene yield at peak 10 years: 45tons x 10 = 450tons
Regular yield at peak 10 years: 35tons x 10 = 350 tons

Supergene income: 450 x RM640 = RM288,000
Regular income: 350 x RM640 = RM224,000
*Returns @ 20% of RM3,200 CPO prices

Income difference between Supergene and Regular: RM64,000 or RM6,400 per year if sell only FFB.

If sell CPO, walao....

Supergene: 450 x 35% x RM3,200 = RM504,000
Regular: 350 x 22% x 3,200 = RM246,400

An income difference of RM257,600 per hectare!!! Which plantation with their own mill don't want?? I believe they will be willing to be put on waiting list for 3-5 years just to get their order filled man!

It makes no logical sense when you bring the facts together.

Ok lar, the vendor might claim all of us plantation scientists got "vested" interests, so sure biased. But then the planters don't give two hoots about whose science is right, as long the bottomline is increase in revenue. And yet, even they don't seem to endorse the materials either. So what gives? If I put myself as a businessman and I find out can really make RM200,000++ extra per hectare over the current materials, I don't mind sacking all my research guys and plant that material kow kow.

And yet, we all know for a fact this is not happening. So again, what gives?
Kg Teratai
post Feb 29 2012, 05:25 PM

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Hi Michael J,

Thank you. I agree with your points especially the calculation logic and the picture. smile.gif
You are right. If it is the proven trees, I believe those supergene tree will be out of stock when those big planter open big plantation.

I will find a reliable nursery to get the DxP trees to replace those male trees. I have no time to visit the farm this month. Hopefully, I can update something after I visit the farms this weekend.

TSParaOpticaL
post Mar 1 2012, 09:38 PM

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today had the opportunity to visit a Mushroom farm in TKPM Semenyih.

This farm averages 80kg output per day...which one really an EYE-OPENER...


SUSalaskanbunny
post Mar 1 2012, 11:19 PM

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QUOTE(insearching @ Feb 19 2012, 11:03 PM)
Hello Mr Farmer,
It is possible for us as Malaysian to own a large scale of agriculture lands at Indonesia?
I would like to apologize in advance if I have offended you.
But if it is possible, I would like to buy some land at there as well with the condition that is the price of the agriculture land must be affordable.
Thank you
*
how big of a land are you looking at? how much capital do u have?

yes, msians can own land there... as long as you're using a local company
QUOTE(Michael J. @ Feb 20 2012, 08:16 AM)
As far as I know, any kind of investments in Indonesia these days require a local partner. For plantation, the partner needs to have at least a 30% share in the venture, and there is a minimum size for the plantation. It differs from place to place, but if I'm not mistaken, Kalimantan Tengah's requirement is minimum 10,000 acres for corporation, and 100acres for private. And yes, the land there is very cheap compared to Malaysia. Just make sure you get the right places, as some areas are of marginal value for agriculture.
*
nope, new ruling max 95% foreigner 5%local which you can use proxy... for the plantation 20% must be plasma given to pioneers/cooperation and 80% inti/nucleus

no minimum size, but a max size of 100k Ha per company with 20k Ha per permit each time.. no private for foreigners

land is cheap, facilities and logistics is exp...
Michael J.
post Mar 2 2012, 09:56 AM

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alaskanbunny:

Sigh. Another change in their rules. A good one, I guess. The 95% foreign ownership makes it easier for Malaysian companies/individuals to invest there. And it is good that they now lifted that 10,000ha minimum. Sucks that the cap is at 100,000ha though.

Whoa! 20% plasma and 80% inti now? Hmmm..... Something to consider about... But I do agree, land is really really cheap, but the support system is pretty backwards. My former company had to build everything practically from scratch, including mills and refineries, roads, their own power grids and renewable energy plants etc. But it is worth it: 4 years down the road, and the Indonesia property is really bringing in the money for the group.


Added on March 2, 2012, 10:27 amGood day all, for your viewing pleasure:

http://switchup.tv/View.aspx?vid=8038&cid=20

This post has been edited by Michael J.: Mar 2 2012, 10:27 AM
MrFarmer
post Mar 2 2012, 06:54 PM

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http://switchup.tv/View.aspx?vid=8038&cid=20
*

[/quote]
Wow good life for that Mr Wong! Unfortunately over here the collection center don't pay cash. Payment once a month. Flat land some more, easy access road, makes me drool. Here, from no access road to ex-timber road. Need a 4x4 Farm tractor and 4x4 dumper to collect harvest. Still, lots of people are planting palm oil.
Was wondering, what's the minimum acreage to have a profitable Palm Oil Plantation (economy of scale that is).
Michael J.
post Mar 2 2012, 07:07 PM

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Mr Farmer:

Depends on what you mean by "profitable". Make RM1 profit also technically considered profitable lei... heheh...

But let's just say you're looking at RM3,000 monthly income generation. Assuming your monthly cost is about RM2,500 (for 1 harvester and 1 collector, plus quarterly weeding and fertilizer application), then you would need at least 3.5 hectares (about 9 acres). This is being conservative lar. If don't need to do much weeding, and can get better price for fertilizer, then maybe need lesser lor. Also, this is based on just 25 tons FFB a year; if your yield get 30 tons or more, that all considered bonus already lor.

But like Mr. Wong said, oil palm is lazyman's crop. Don't really need much care, and will still give acceptable yield.
MrFarmer
post Mar 2 2012, 10:22 PM

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QUOTE(Michael J. @ Mar 2 2012, 07:07 PM)
Mr Farmer:

Depends on what you mean by "profitable". Make RM1 profit also technically considered profitable lei... heheh...

But let's just say you're looking at RM3,000 monthly income generation. Assuming your monthly cost is about RM2,500 (for 1 harvester and 1 collector, plus quarterly weeding and fertilizer application), then you would need at least 3.5 hectares (about 9 acres). This is being conservative lar. If don't need to do much weeding, and can get better price for fertilizer, then maybe need lesser lor. Also, this is based on just 25 tons FFB a year; if your yield get 30 tons or more, that all considered bonus already lor.

But like Mr. Wong said, oil palm is lazyman's crop. Don't really need much care, and will still give acceptable yield.
*
Lol, good for Mr Wong. As he has more than 10 years' planting experience, he can term it as lazy man's crop. For newbie like me, am just starting to learn planting tapioca and sweet potatoes doh.gif

Michael, for the above that is to generate an income of 3K. What if you cost in initial investment like land cost, developmental (land preparation & planting) and transportation (higher over East Malaysia as access road is not as good), then what sort of acreage should we be looking at?

This post has been edited by MrFarmer: Mar 2 2012, 10:23 PM
SUSalaskanbunny
post Mar 3 2012, 12:31 AM

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QUOTE(Michael J. @ Mar 2 2012, 09:56 AM)
alaskanbunny:

Sigh. Another change in their rules. A good one, I guess. The 95% foreign ownership makes it easier for Malaysian companies/individuals to invest there. And it is good that they now lifted that 10,000ha minimum. Sucks that the cap is at 100,000ha though.

Whoa! 20% plasma and 80% inti now? Hmmm..... Something to consider about... But I do agree, land is really really cheap, but the support system is pretty backwards. My former company had to build everything practically from scratch, including mills and refineries, roads, their own power grids and renewable energy plants etc. But it is worth it: 4 years down the road, and the Indonesia property is really bringing in the money for the group.


Added on March 2, 2012, 10:27 amGood day all, for your viewing pleasure:

http://switchup.tv/View.aspx?vid=8038&cid=20
*
well, the 100k Ha cap is not really a problem as u can setup a holding company to hold several companies that can have 100k ha each... actually no1 now lump more than 20kha per company... risk management

yeaps.. money is good... and easy if u r good at buying land..

just buy cheap land next to big plantations and use the roads/facilities they build if it is on state land... kekeke


ytkwong
post Mar 3 2012, 07:18 PM

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QUOTE(Michael J. @ Feb 20 2012, 08:16 AM)
As far as I know, any kind of investments in Indonesia these days require a local partner. For plantation, the partner needs to have at least a 30% share in the venture, and there is a minimum size for the plantation. It differs from place to place, but if I'm not mistaken, Kalimantan Tengah's requirement is minimum 10,000 acres for corporation, and 100acres for private. And yes, the land there is very cheap compared to Malaysia. Just make sure you get the right places, as some areas are of marginal value for agriculture.
*
My mother's close friend purchased 200 acres of land at Kalimantan for oil palm plantation purpose in 2007. After slightly more than one year, someone else came to claim that he owns the land. So this guy had someone verified the certificate with land office, only to find out that it is a forged copy. He lost close to RM1.5mil total. He still claimed he's pretty lucky, because he purchased only 200 acres to try to learn the palm oil trade.


Added on March 3, 2012, 7:32 pmAnyway, let me introduce myself.

I was introduced to this thread by Michael J.

I own 20 acres of land at Lenggeng, Negeri Sembilan. To make the whole story short, it was a durian plantation back then, abandoned for about 10 years, most of the trees are dead. Thinking if I should venture into palm oil. Should I plant palm on that piece of land? Or should I sell it, and purchase cheaper land elsewhere. The land at Lenggeng is worth 80-100k per acre.

Michael J. happened to suggest aquaculture. So I'm doing my best to investigate and/or do my research on this matter.

Let's put it this way. This land was previously owned by my mother, but she gave me the full rights to do whatever I want with the land now.

A little bit of background about myself. I'm 29 years old. US Graduate with B.Engr Computer Engineering, worked for IBM at Rochester MN for 5 years, and received my part-time MBA from University of Minnesota. Came back to Malaysia in November 2010. Since then, I've started 2 of my own businesses, one which is a franchise restaurant outlet, and another recycling (pyrolisis) plant.

Now what I'm trying to do with the land. I'm thinking of "PASSIVE" income, where I don't have to get myself involved, as much as any traditional hands-on businesses. I just simply don't have the time to oversee the day-to-day operations for long term basis. I don't mind spending 3-6 months making sure my business goes on smoothly, but I can't be spending years on it day-to-day as I hope to venture into some other businesses.

So, I'm trying to figure what I should be doing with the land? Please recommend.

Thanks!

Sincerely,
Wilson

This post has been edited by ytkwong: Mar 3 2012, 07:32 PM
TSParaOpticaL
post Mar 3 2012, 09:13 PM

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Hi Bro,

i am also at lenggeng & mantin.

which part of lenggeng is your land ?
can i visit your place ?

thanks

ParaOptical

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SUSalaskanbunny
post Mar 3 2012, 10:36 PM

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QUOTE(ytkwong @ Mar 3 2012, 07:18 PM)
My mother's close friend purchased 200 acres of land at Kalimantan for oil palm plantation purpose in 2007. After slightly more than one year, someone else came to claim that he owns the land. So this guy had someone verified the certificate with land office, only to find out that it is a forged copy. He lost close to RM1.5mil total. He still claimed he's pretty lucky, because he purchased only 200 acres to try to learn the palm oil trade.
that's one of the big headache in buying land in indonesia.. a lot of con case... make sure you do you legal due diligence before buying the land.. and this is where my expertise comes in rclxms.gif offering freelance services for this kind of work.. kakaka
MrFarmer
post Mar 3 2012, 10:42 PM

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QUOTE(ytkwong @ Mar 3 2012, 07:18 PM)

So, I'm trying to figure what I should be doing with the land? Please recommend.

Thanks!

Sincerely,
Wilson
*
Welcome to the club ytkwong.

Just thinking out loud, assuming that the land is agriculture land, maybe can convert it to commercial/industrial or residential?
In the mean time, either set up a simple agriculture program with the least capital investment of a JV with a partner to manage the farm/plantation.

My personal opinion is that a land costing 80~100k per acre, does not justify to do agriculture as the ROI is not sufficient to cover it (?). I guess looking into capital gain (Land) is more feasible.

Let's share some ideas?

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