Tuesday, September 09, 2008

Can we make RM6,000/day?

(From a banker friend)

Can we make RM6,000/day?

Palm Oil Cultivation
It takes between RM9-12k/ha investment over three years to develop 1 ha of palm oil plantation, and will start to yield in year 3 initially at round 15-18 MT/ha/year.

FFB or fresh fruit bunches is about 20% of the price of Crude palm oil (CPO) or currntly you can sell the FFB at around RM400/MT (give or take, ball park figures).

Revenue in Year 4 = 15MT x RM400 = RM6,000
Less your expenses (say baja etc) = RM1,300
per hectar profit for you RM4,700 (about RM400/mth or RM13/day)

If you have mills than the profit is higher lah...

now compare this with chillies
Carrefour sell red chillies for RM7/kg
Their cost = RM3.5/kg (this is the selling price for you to Carrefour).

The fact is.... if you have 2 hactres of land, and planted with chillies, this will bring you 2,000 KG a day,

Now let's see;

Revenue/day = 2000kg x 3.5 = 7,000/day
Less lease of land = 100/day
Labour (5 indo/bangla) 200/day
Less fertliser etc 200/day
Less transport 200/day

believe it or believe it?


Narong2nd said...

Yes, the chillies figures look acceptable. So do other cash crops. I know because I've looked into a few.

Unfortunately, not coming from land-owning nor land-grabbing family nor having the "right connections" in the land office, nor the capital required, my proposal only looked good on paper.

I suppose, I'm not meant to be a farmer.

zomm said...

But when many people plant chillies, the price will drop. chillies usage is not as big as palm oil.
similar case to dokong. 10 years ago, the price was RM12 per kilo. Now, you can get RM10 per 3 kilo.