Sales of Palm Seeds in August Weakens

INDUSTRY.co.id - Medan - Director of Palm Oil Research Center, Hasril Hasan Siregar, said that the sales of palm seeds in August 2017 weakened due to lower crude palm oil selling price.

"Despite the weakening, PPKS Nasih is optimistic to sell palm oil sprouts as much as 13.5 million grains in the second half of 2017," he said in Medan, Wednesday (23/08/2017)

PPKS, he said, hopes that sales in the second semester will still be good as in the first semester of 2017 which rose slightly compared to the same period or as much as 8.9 million grains.

Sales in the first half rose slightly from the same period of 2016 which reached 8.6 million grains.

Hasril Hasan Siregar explained that after the first semester, sales have improved, in July demand is still improving and even increasing because PPKS can sell 1.5 million grains.

But in August, sales weakened so that the predicted sales of seeds in the month did not reach the target of 1.9 million grains.

According to him, still unstable demand for seeds follow the instability of the selling price of palm oil.

"However, although unstable, the price of palm oil in 2017 is still better than 2016 so it still excites the farmers," he said.

The price of CPO for example is still in the range of 600-750 US dollars per ton.

"Looking at the condition of better prices, then PPKS is still optimistic to realize the target of seed sales in the second half," he said.

Optimism, Hasril said, is also encouraged by the facts on the ground with many companies or farmers who are rejuvenating or replanting their palms.

The increase in replanting was triggered by the better selling price of fresh fruit bunches (TBS).

"Seeing the realization of a good first semester sales or 45 percent of total sales target in 2017 and the conviction that in the second semester remain good, then the total sales of 2017 is predicted to also be above the target of 20 millions grains," said Hasril. (Ant)