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The Plantation Division manages the plantations, and production and sale of CPO, PK, crumb and sheet rubber, sugar, tea, cocoa and other products, mainly for domestic consumption. It operates one factory each for the packaging of tea, cocoa and industrial chocolate products.

The Division operates 253,061 hectares of nucleus oil palm estates across Indonesia, of which 16% are immature estates, with average tree age of 16 years old. Fresh Fruit Bunches (FFBs) are harvested and processed by 27 mills across our estates, with a total combined capacity of 7.0 million tonnes annually. Rubber estates are located in North and South Sumatra, East Kalimantan and Sulawesi. The nucleus rubber estates occupied 15,976 hectares, of which 13% are immature estates, with average tree age of 16 years old. Rubber is processed by four crumb rubber and three sheet rubber facilities. An additional 90,325 hectares of oil palm and rubber estates are managed under the plasma programme.

The Division manages 14,153 hectares of cane plantings in Indonesia. It also operates an 8,000 tonnes of cane per day (TCD) sugar mill and refinery in South Sumatra, and an 4,000-TCD sugar mill and refinery in Central Java.

Planted Area - Indonesia

Nucleus 31 Dec 2020 31 Dec 2019 31 Dec 2018
Total 253,061 251,819 251,112
Mature 211,626 210,548 211,707
Immature 41,435 41,271 39,404
Nucleus 31 Dec 2020 31 Dec 2019 31 Dec 2018
Rubber 15,976 16,796 16,678
Sugar 14,153 13,543 13,595
Others 19,959 20.214 20,336
Plasma 31 Dec 2020 31 Dec 2019 31 Dec 2018
  90,325 89,930 89,662

Planted Area - Brazil

Nucleus 31 Dec 2020* 31 Dec 2019 31 Dec 2018
CMAA 106,945 94,851 79,267
* 46% of planted area are leased and planted by CMAA. The balance 54% belong to third parties

Oil Palm

The Division operates 253,061 hectares of nucleus oil palm estates across Indonesia, of which 16% are immature estates, with average tree age of 16 years old. FFBs are harvested and processed by 27 mills across our estates, with a total combined capacity of 7.0 million tonnes annually.

CPO prices (CIF Rotterdam) collapsed at the start of the year due to lower fuel and biodiesel demand as a combined result of global lockdowns and movement control measures and the oil price war between OPEC and Russia. However the perennial La Nina affected the production of soft oils, including soy oil, sunflower oil and palm oil, during the year. Coupled with the improved demand in China, this had contributed to the bullish price trend of soybean and CPO in 4Q 2020. On a full-year basis, average CPO prices (CIF Rotterdam) recovered to USD719 per tonne as compared with USD572 per tonne in FY2019.

In 2020, our total nucleus FFB production declined by 9% to 2,986,000 tonnes due to lower nucleus output as a result of adverse weather conditions and replanting activities.

The same weather conditions had affected our smallholders, leading to lower CPO production at 737,000 tonnes, at an oil extraction rate of 21.0%.

Rubber

Rubber estates are located in North and South Sumatra, East Kalimantan and Sulawesi. The nucleus rubber estates occupied 15,976 hectares, of which 13% are immature estates, with average tree age of 16 years old. Rubber is processed by four crumb rubber and three sheet rubber facilities.

In 2020, our rubber production fell by 5% to 7,800 tonnes due to weather impacts and replanting activities. Fifty-three per cent of rubber products, comprising sheet rubber and crumb rubber, were sold domestically, and the rest exported.

Sugar in Indonesia

The Division manages 14,153 hectares of cane plantings in Indonesia. It also operates an 8,000 tonnes of cane per day (TCD) sugar mill and refinery in South Sumatra, and an 4,000-TCD sugar mill and refinery in Central Java.

In 2020, our South Sumatra sugar cane estates produced 51,000 tonnes of sugar, a decline of 16% on lower sugar rendement caused by wet weather during the harvesting period, which severely affected cane ripening. In Central Java, our factory produced 19,000 tonnes of sugar, of which 4,000 tonnes was our share.

Sugar in Brazil

A legal restructuring exercise to consolidate all the sugar assets and operations in Brazil under CMAA, and all the freehold land assets under Bússola, was completed in end December 2020. Both CMAA and Bússola were 50.00%, 36.21% and 13.79% owned by JF Family, IndoAgri and Rio Grande, respectively. CMAA operates three sugar and ethanol mills in Brazil with a combined annual cane crushing capacity of 8.8 million tonnes.

In 2020, our Brazilian mills achieved a new crushing record of 7.7 million tonnes of sugar cane to produce 528,000 tonnes of raw sugar, 314,000m3 of ethanol and 548,000 MWh of electricity.

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