QUOTE(Michael J. @ Mar 4 2012, 02:17 AM)
Mr Farmer:
Land cost really depends on where you are located. Some land may be really cheap in Sabah or Sarawak, but the access roads and other logistics will literally kill you. More pricey land often has better access roads. I know Sabah Development Corporation is planning on clearing up massive tracks of land around the Ranau region, apparently they are also building access roads to the area. Maybe you could check with them on the Ranau area, or anywhere else they are currently targeting?
Exclusing land cost, according to some of the larger plantations in Sabah and Sarawak, their cost of development is something like RM18,000 + RM10,000 + RM10,000 for the first three years of land preparation and development, including planting cost, creating access roads etc. I can't name those companies, but they are really big, listed companies.
And as far as I can tell you, since Sabah and Sarawak don't have unions for plantations like we do here (I believe there are some push for this though), companies there are not "forced" to pay the wages in accordance to the MAPA-NUPW agreements. However, I believe the government-instilled minimum wage policy will also include plantation companies in Sabah and Sarawak. And on top of that, transportation costs is a lot more higher, and mills are far between, so I would say your minimum acreage should be at least double that in Peninsular. According to the same companies above, it normally takes them to begin earning clean profits after the 12th year of planting, compared to the 8 years in Peninsular (do bear in mind, this includes the cost of buying over the land).
Hi MJ, going back to my farm (back to the hills) this afternoon, sent off my guests last night.Land cost really depends on where you are located. Some land may be really cheap in Sabah or Sarawak, but the access roads and other logistics will literally kill you. More pricey land often has better access roads. I know Sabah Development Corporation is planning on clearing up massive tracks of land around the Ranau region, apparently they are also building access roads to the area. Maybe you could check with them on the Ranau area, or anywhere else they are currently targeting?
Exclusing land cost, according to some of the larger plantations in Sabah and Sarawak, their cost of development is something like RM18,000 + RM10,000 + RM10,000 for the first three years of land preparation and development, including planting cost, creating access roads etc. I can't name those companies, but they are really big, listed companies.
And as far as I can tell you, since Sabah and Sarawak don't have unions for plantations like we do here (I believe there are some push for this though), companies there are not "forced" to pay the wages in accordance to the MAPA-NUPW agreements. However, I believe the government-instilled minimum wage policy will also include plantation companies in Sabah and Sarawak. And on top of that, transportation costs is a lot more higher, and mills are far between, so I would say your minimum acreage should be at least double that in Peninsular. According to the same companies above, it normally takes them to begin earning clean profits after the 12th year of planting, compared to the 8 years in Peninsular (do bear in mind, this includes the cost of buying over the land).
I am only familiar on the western side of Sabah (inclusive of Ranau). I "heard" there are development in most major area towards agriculture in Sabah. The figures quoted above is acres/hectors? I remember reading from Lembaga Getah (Sabah) that their developmental cost is about $14,800 / hect. Land clearing, access road (within the land), and planting for rubber trees.
I guess we could do it at a much lower cost on a small holder basis (where the owner/partner is involve to minimize cost).
Sooner or later, the union thing / minimum wages shall take effect in Sabah too. At least I think it's easier to source for foreign labor here than in Penisular. Just applied for 5 person on my own, am still waiting for the final approval on 15th March. Applying the permit on our own saves a lot of $. Levi for plantation workers is only $510 per head.
Transport cost is definitely higher here, but over the western coast, the mills are quite close and lots of collection centers. The Only problem is they collect on credit, payment once a month. Most of the lands that I had seen, already have ex-timber trials, hence not too bad. Just need to maintain it. Just need to worry about the roads within your land.
I had been estimating that a minimum acreage of 70 acres (in 1 location) to be feasible commercially.
Shall try to find out more on Rubber Vs Palm Oil, maybe there is an opportunity in knocking.
Mar 9 2012, 10:34 AM
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