Sorry for bumping in like that, but I think there is no more land for sale as all have been snapped up. This is what I got from Andrew, but we'll have to wait for him to reply and clarify

In this case, my opinion is after 23 yrs, it is subject to CHGS whether to renew the agreement @RMxxxxx or to offer buy back the land @RMxxx ?

What if the offer price is too low ? And if you don't wish to sell it at low price, you can still keep the lease for 66 yrs, but CHGS decides to leave the land as it is, turn back into jungle ?

Just some questions in my mind... I know nothing is perfect in this world and there are a lot of risks on investment.

hi all, im one of the grower consultant in Kuantan those who interested also can contact me at 0129668830, can meet up if ur in ktn as well

greenland,
If I am not mistaken, he is only an AGENT (marketing person) for this CHGS scheme, not a certified oil palm industry consultant.
You need to get in touch with those that are IN the business themselves, and not those that markets an oil palm investment plan.

I juz want to share my understanding about oil palm. Oil palm does profitable during these years
Last year around JUNe 2007, I have made an investigation on OIL palm profit. Approximate can achieve 20k untung bersih a month for a land of 20acre. I'm calculated the cost and so on, But this is an approximate value.

Price of oil palm should be increasing gradually over the year, unless there is something that can be replaced oil palm like the case getah asli replaced by getah tak asli.

Oil palm have a life of 25years life span. First 4 years should be no income, since the tree still small. But when the time goes by, the older the oil palm tree, the oil palm will have much more higher quality, so as money value.

I have been notice this investment since a while of time. It should be profitable, and it SOUNDS guarantee. The main thing u need to concern is there is no any under table thing happen in this company management.

For my opinion, they provide a good investment scheme. But i have an opinion that, they need more capital at the starting to plant oil palm. since the anak pokok oil palm and land is expensive nowadays. The maintainance fee and baja is very expensive nowadays.

Update: iProperty fair or something at Mid Valley 24-27 July 2008. CHGS is there selling at RM8,000/plot now.
4 plots = 1 acre.

Depends on your soil type. Coastal soils are actually quite fertile, especially along the delta regions. However, they are also the perfect breeding ground for ganoderma, which can rapidly kill the oil palms. But the area you are referring to is actually of marginal fertility, so add that with possible ganoderma problems, and you have a pretty bad combination.

Just a few more things to add to your consideration:
(i) What's the average yield per hectare? At 136 stand per ha, you should be getting about 18tonnes per ha for that age profile on coastal soils.
(ii) Is it a low-lying area? Flood prone?
(iii) How's the sanitation of the field? If it is grassy, and the fronds are not stacked properly, you're gonna have a headache bringing it back to shine.
(iv) Could you tell more about the palms themselves? What materials are they from? Are they IOI, Guthrie, Sime, UP, Golden Hope OR any certified seed producers?
(v) Inspect the field: Check the sex ratio. How many male flowers are being produced vs. female flowers. Now the palms are in male cycle, so you need to wait a few more months before the cycle breaks.
(vi) Was the land planted with coconut before? If it was, chances are the ganoderma inocculum is already there, so no point buying it up.

250 acres (100ha) is a pretty sizeable investment. If ever in doubt, it's better to keep on the safe side, especially since you have noted that the palms do not look good. And RM30,000 per acre leasehold is too pricey.

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Added on July 30, 2008, 5:47 pm
I thought there has been a halt on forest to plantation clearing announced recently? Or does that only apply to East Malaysia?

Hmmm... a rough guide for replanting from old oil palm stands is about RM9,000 per ha. With prices now, you should increase that by another 30% to around RM12,000 per ha. But the total cost till maturity (assuming you do ablation like most major plantations) will cost you another 4-5k per year for a further two years, or a total of around RM22,000 till Year 3 per ha.

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Added on July 30, 2008, 6:02 pmLet me put it in this way: Agriculture has always been a low profit venture compared to other industries. With the exception of the cyclical booms, not all agricultural produce will give you good yields.

Certainly is the case with palm oil. Now, prices may look good, but in truth is it over-inflated. We in the industry are not making the "tonnes of money" claimed by many in the media. Because do not forget, other costs have also gone up as well: Fuel, fertilizers, labor, taxes (aka windfall tax....*grumble!*), and disease control. Those in East Malaysia are in a panic actually, as they are seeing their crude profits crashing to about 4-5k per ha recently with all the hikes taking place. 40-50million may seem a lot of earnings, but that is because the land and cultivation costs are charge out over a period of years. In fact, it appears that to recover the initial cost of cultivation, it will take up to the 10th or 11th year before the land and plantings costs are fully paid for with oil palm.

And don't forget to project in futures costs. Would you be able to survive in this venture if CPO prices fall to around RM2200? It really depends on the management of the plantation. A good management team can keep cost down to about RM900-1000 per ha per year. A not so good one would probably incur a RM1500 operation cost yearly.

Take it from the ironman of the palm oil industry:
In good times, anyone can make money from oil palms; it is the bad times that the goats get separated from the sheeps.

Just like in '97-'98.

I withdrawn and got back only what I paid for during the cooling-off. If I kept it until now, then i could sell at RM7,500 (lower than market) for a quick profit in trading of land, and nothing to do with oil palm yields But must be one of the early birds, those joined later, maybe the momentum will be slow.

Hi greenland,

First let me introduce myself. I'm the consultant for CHGS and we also have under our arm clients who exports palm to the USA in a region of 50,000 m/ton a month. Since you have many questions on CHGS, would you like to have yumcha session at our office in PJ? It would be easier to answer all your questions at one go. If you have technical questions on the oil palm industry we also have industry experts who are currently dealing in oil palm to answer your questions. Do pm me if you would like more information.

As to your question on what happens if the project becomes insolvent ie. if the company becomes insolvent? In this situation, it means that CHGS is exiting the contract prematurely (less than 23 yrs). Under the agreement/contract, BHLB Trustee will sell the land, fruits & redistribute it to all the investors. So in the worst case scenario, you will be compensated on the current land price at the particular year as well as proceeds from the palm oil. On current comparison with land value of palm oil land above 100 acres in Malaysia, it ranges around RM25,000-28,000 per acre for non-managed land (meaning cost without management co.).

To others who are interested to find out more, there will be a presentation and get together next week about CHGS and what is the latest developments. Do pm me if you wish to attend. Cheers and have a good day.