UVAN News

News Update : 18 Oct 2004

THAI OIL PALM SEEDS FIND WORLD MARKETS

Univanich Palm Oil PCL awarded ISO 9001 : 2000 for seed production

The recent award of ISO 9001 : 2000 to the seed production unit of Univanich Palm Oil PCL has opened new export opportunities for Thailand's leading oil palm breeder.

In announcing the ISO Certification the Company's Managing Director, John Clendon, commented that this was further recognition that Univanich has become a world class producer of high yielding oil palm seeds. He noted that the breeding programme had been a long term investment since the first pedigree palms were imported by the Company more than 30 years ago. During the 1980s more selected parent palms were imported in an exchange with Unilever's Plantations Group and other international breeding programmes.

Previously, local oil palm growers have had to import their hybrid seeds. But according to John Clendon, oil palms bred in other countries will not always be high yielding in Thailand's drier climate. "Only years of local selection trials over several generations of palms can give that assurance", he said.

The Univanich Research Department in Krabi Province has 1,453 rai planted in research trials and this area is increasing each year as new generations of hybrid palms are planted for yield testing. Sixty nine people are currently employed on this programme.

Head of Univanich R&D, Dr Palat Tittinachanon, announced that the Company produces five million hybrid seeds each year and this will increase to seven million seeds by 2007. "Our main priority is to supply high quality seedlings to Thailand's oil palm growers but we are also meeting
growing demand from overseas customers", he said. The
Company isnow exporting seeds to South America,Africa
and to neighbouring Asian countries. Dr Palat said that the reputation of Univanich seeds in these new markets had been strengthened by the award of ISO 9001 : 2000 Certification.

News Update : 29 April 2004

Univanich Palm Oil forecasts strong growth in Thailand's oil palm industry

In the first announcement of annual results since Univanich was listed on the SET in November 2003, Chairman, Mr Apirag Vanich, noted that strong growth in Thailand's oil palm industry has assisted the Company in achieving several new growth milestones. "Thailand's production of palm fruit increased to 4.8 million tonnes in 2003 with most of the growth in the small farmer sector.This enabled Univanich to also increase its production since the Company purchased 76% of its fruit from outside growers " said Mr Vanich. "Due to this increasing production from our fruit suppliers Univanich factories reached the significant milestone of more than 500,000 tonnes fruit processed in one year, an increase of 18.6% over the prevous year. This is the maximum of the Company's present capacity and a new factory is already under construction for opening in the 4th quarter of 2004" he said.

Mr Apirag Vanich noted that Thailand has now moved up into thirdplace amongst the World's producers of palm oil, behind the giant producers of Malaysia and Indonesia. In 2003 Thailand produced more than 860,000 tonnes of Crude Palm Oil, of which 86,000 tonnes, or 10% of production was exported. "When our first oil palms were planted back in 1969 it was intended to supply just the local market for cooking oil" said Mr Vanich, "But we have now developed into a competitive export industry. In 2003 Univanich exported about half its palm oil production, or more than 50,000 tonnes, to new customers in India and in Malaysia" he said.

"We expect this exporting will continue since Thailand's palm oil production easily exceeds local consumption. Furthermore, there is still strong interest from farmers to plant oil palms. In 2003 Univanich's oil palm breeding programme supplied 1.6 million hybrid seeds and seedlings to local growers. This high yielding material was enough to plant another 60,000 rai which will come into production in 2 or 3 years time. We estimate that Univanich supplies about one third of the local market for high quality seeds so this indicates to us Thailand's oil palm industry is still expanding at a rapid rate" said Mr Vanich.

World consumption of palm oil is about 28 million tonnes per year and demand is increasing due to population growth and higher vegetable oil consumption in developing economies like India and China. This growing demand has helped to keep prices firm especially during 2003 - 2004 as world stocks are low. "We expect Thailand's farmers to receive good prices for their palm fruit again this year and this will encourage a further expansion of oil palm plantings" said Mr Vanich.

Univanich Palm Oil PCL (UVAN) announced 2003 sales of Baht 1,955 million, an increase of 23% over the previous year. The Company's net profit increased by 80% to reach Baht 400.2 million or earnings of Baht 4.76 per share.

News Update : 06 Feb 2004

Univanich Palm Oil enters South American market for seed exports

Univanich 's Staff packing Univanich seeds for first export to Colombia

Univanich Palm Oil PCL announced that it has completed Thailand's first export of oil palm seeds to growers in Colombia. The consignment of 150,000 hybrid seeds was air freighted in January, with further orders received for shipment in February and March.

The Company's Managing Director, John Clendon, commented that obtaining export orders from South America is a breakthrough for Univanich. He noted that Colombia is South America's largest palm oil producing country and for Univanich to obtain seed orders in that competitive market is recognition that the Company's breeding programme is producing world class material.

Univanich imported its first selected breeding palms back in 1972 and since then has imported pedigree oil palms from breeding programmes around the world. John Clendon noted that some of the company's palm families can now be traced back several generations to selections made by Unilever in Congo and Cameroons more than 70 years ago. Univanich had acquired this valuable material through exchange with the international Plantations Group of Unilever PLC during the 1980s and 1990s, he said.

Loading the first consignment of oil palm seeds  from
                                                        Thailand to Colombia, airfreighted from Phuket
on 29th January 2004

The Company's head of Research and Development, Dr Palat Tittinutchanon, commented that since Univanich seed has been specially developed for the Company's plantations in Southern Thailand, it has attracted interest from growers in Colombia and Brazil as well as Philippines, Cambodia and other countries which have a similar growing season to Southern Thailand. He reported that in 2003 the Company sold 1.9 million germinated seeds and 450,000 seedlings and is the leading domestic supplier of seeds and seedlings to Thailand's rapidly growing oil palm industry.

Top