SELLING COMBS TO MONKS? IMPOSSIBLE!

If your company, Comb manufacturers assigned you to sell the comb to the monks in the temples? Can you do it?

What is your answer?
a) No Way , Impossible!
b) Crazy!
c) I will give it a try in order to follow my boss'instruction.
d) Well, I will try.
e) Ya, I think I can sell ??? (5pcs? 10pcs? 50pcs? or more...you name it)

Pick an answer above and read below to find out if you are/you are going to be a successful person or not at all.

The Story: SELLING COMB TO THE MONK

There was one company "manufacturing combs" which intends to expand its business and so the management wanted to employ a new Sales Manager.

The company ADVERTISED the vacancy in the newspaper . They are so many peoples turned up for the interview everyday....accumulated to almost a hundred peoples in just few days.

The Company now having the problem to choose the right candidate for this position . So, The Company interviewer had set A Difficult Task to whom who want to come for final interview.

The Task Is To : Selling Comb To Monks In Temples

Only 3 Applicants willing to stay on for this Final Interview challenge. (Mr A , Mr B , Mr C)

The Chief Interviewer instructed: "Now I want three of you here to sell these wooden combs to the monks in the temples. You only have 10 days to do it and report to me after that."

After 10 days, they reported.

The Chief Interviewer asked Mr A:"How many have you sold?"
Mr A answered:"Only One."
The Chief Interviewer asked: "How did you manage to sell?
Mr A answered: "The monks in the temples scolded me when I show them the comb . But on my way back to downhill I met a young monk who bought it to scratch his head due to dandruff."

The Chief Interviewer then asked Mr B: "How many did you sell?
Mr B replied: "10 pieces. I went to a shrine and noticed many devotees's hair was in bad shape due to strong wind outside the shrine. The monk in there listened to my advice and bought 10 combs for their devotees in showing respect to the Buddha statue."

Then, The Chief Interviewer asked Mr C:"How about you?"
Mr C replied: "1,000 units."
The Chief Interviewer and the other 2 interviews were astounded.
The Chief Interviewer asked: "How you did that?"
Mr C replied: "I went to a famous temple. After observing for few days I discovered that there were many tourists. I then told the Chief Abbot there. "Sifu, those who come here are much devoted. If you could give them a gift, it will be more elating to them. I told him that I have a bulk of combs here and ask him to raft his handwriting on the combs as a present to those visit here. He was very delighted and straight away ordered 1,000 pieces."

MORAL OF THE STORY ;

HARVARD UNIVERSITY had done a research that says :-

1) 85% of success is due to attitude and 15% is capability
2) Attitude is more important than intelligence , specials skills and luck .

In another word , professional knowledge only constitutes for 15% of success of a person and 85% is due to self-cultivation, public relation and adaptability ability.

Still remember the story of Selling Shoes to African ?
When 2 Salesmen were sent to that continent, one of them reported: "Can not do it. No one wears shoes there?"
The second salesman said: "It is good to market . A lot of opportunity."

Success and Failure is dependent on how we face problems.

Remember, when the economic is good, there are peoples going bankrupt .

When business is bad , there are many new millionaires produced as well. So , apply now the 85% right working attitude fully.

Something2Share:

I believe this basic principle of 85% right working attitude is also applicable to Plantation Management.

Many problems encountered by planters in their plantations can be overcome for they are not as difficult as "selling comb to monks in temples". Logically it's impossible for no monk will buy a comb because it is used for combing hairs. Monks in temples are simply not your customers!

Now with this story, we learn to "think out of the box" and even with 15% capability, we are confident to solve problems for nothing is impossible as long as we have the RIGHT WORKING ATTITUDE with COMMITMENT full of DISCIPLINE, DEDICATION and DETERMINATION. Every time when we watch MISSION IMPOSSIBLE movie, the ending is always POSSIBLE.

DO NOT FIND EXCUSES NOT TO DO THE POSSIBLE, BUT FIND WAYS AND MEANS TO DO THE POSSIBLE. That's the right working attitude!

Windfall taxes again for palm oil companies?

Oil palm plantation companies in Peninsular Malaysia could start paying windfall taxes again in May and June should the average price of crude palm oil (CPO) touch RM2,500 per tonne this month.

But renewed payment of the windfall tax could be shortlived as CPO prices were likely to retreat as production increased in the second half of the year, industry players and analysts said.

On Bursa Derivatives Exchange yesterday, the CPO price for the benchmark June contract gained RM150 to close at RM2,485.

The Malaysian Estate Owners Association (MEOA) president Boon Weng Siew told StarBiz that planters might pay windfall taxes, at the most, for two months.

“The uptrend in CPO prices can fizzle out with the start of the peak production season from May to November,” he said.

OSK Research plantation analyst Alvin Tai is also maintaining a cautious view on CPO prices as he expects a strong recovery in palm oil production in the second half this year.

The current decline in palm oil inventory had helped drive CPO prices higher, he said, adding that the current price rally was mostly due to weak production rather than strong exports.

Tai said inventory would again go up if production recovered and the rise in production was not matched by an increase in exports.

Maybank Investment Bank analyst Ong Chee Ting is also wary of the current high CPO prices, and is maintaining an “underweight” call on the plantation sector.

CPO futures could trade in the range of RM2,300 to RM2,400 per tonne on concerns over tight supplies, according to MEOA’s Boon.

Ong said with spot CPO prices increasing 18% month-on-month to RM2,351 per tonne, “we are looking at raising our 2009 CPO price assumption to RM1,800 from RM1,600 previously.”

This would raise the net profit forecasts of large-cap plantation stocks by 10% to 25% this year, Ong said.

Under the recent mini budget, the Government set RM2,500 per tonne as the new CPO price threshold for windfall tax collection for peninsula planters and RM3,000 for Sarawak and Sabah planters.

In 2008, an estimated RM260mil to RM300mil of CPO windfall taxes were collected by the treasury from oil palm plantation companies based on the then CPO threshold price of RM2,000 per tonne.

Planters stopped paying the windfall tax last October when CPO prices dropped below RM2,000 per tonne.

Something2Share:

Tan Sri Lee Shin Cheng (the owner-Chairman of IOI Corporation) thinks CPO prices could remain between RM 2,600 - 2,800 per tonne for the rest of 2009. Bullist or not, if prediction of my ex-boss comes true, then it's Win-Win situation for the plantation companies and the Government.

Malaysia’s IOI sees crude palm oil price rising to RM2,600-2,800 per tonne

Malaysia's IOI Corp (IOIB.KL), the world's third-largest listed palm oil producer, said that the price of crude palm oil would rise to 2,600-2,800 ringgit per tonne in the remainder of the year.

Malaysian crude palm oil futures hit a 7-month high on Friday as a slew of industry data warned of tightening domestic inventories, with the benchmark June contract KPOc3 on the Bursa Malaysia Derivatives Exchange closing at 2,299 ringgit ($636.3) per tonne.

"Six months ago I foresaw prices would likely surpass 2,000 ringgit a tonne," IOI's Executive Chairman Lee Shin Cheng told Monday's Business Times newspaper.

IOI shares have rallied along with other planters as palm oil prices have recovered. The stock closed at 4.30 ringgit on Friday, up from an Oct. 28 12-month low of 2.08 ringgit.

Something2Share:

Very good news to the planters. We hope Tan Sri Lee's prediction is absolutely correct, and then the plantation companies can be "laughing to the banks" again.

18,000 Oil Palm Trees Destroyed by Elephants in Malaysia

GUA MUSANG, (Bernama) - A company, which has been awarded a contract to plant oil palms near Pos Blau here, suffered huge losses when 18,000 of the one-year-old palm trees in the 600 hectare plantation were destroyed by elephants since a month ago.

Syarikat Pembangunan Ladang Khazanah Nadi Alam Enterprise manager, Mohd Khazanah Ab Rahman estimated the company losses at almost RM500,000.

He said a herd of five elephants entered the plantation almost every night and destroyed the oil palm trees, as well as banana trees grown as cash crop at the plantation.

The elephants had destroyed about 10,000 of the 75,000 banana trees in the plantation, he told Bernama here.

Mohd Khazanah said workers at the plantation had taken various measures, including burning old tyres at night, to keep away the elephants, but were futile, adding that replanting of the oil palms would be carried out only after the pachyderm returned to the forest area.

He said the attacks by the elephants also caused the 60 workers at the plantation to fear for their safety.

Until now, the pachyderm had not gone near the workers’ “kongsi” (quarters) and the workers also took turns to keep watch every night, he added.

He hoped that efforts would be made by the Wildlife and National Parks Department to catch the elephants.

– BERNAMA

Something@Share:

Just wonder whether any electric fence put up to deter elephant intrusion? Some plantations even dug trenches as a double precaution in addition to electric fencing along the perimeter along the jungle edge.

Crude palm oil futures at 6-month top on surging oil

Malaysian crude palm oil futures soared 5.1 per cent to a fresh 6-month peak yesterday, boosted by rising oil prices and fears of a supply squeeze, traders said.

The benchmark June contract rose as much as RM105 to RM2,175 per tonne before the close, a level unseen since September 29, 2008, before settling at RM2,159, up 4.3 per cent.
“The palm oil market is on a ball as all commodity complexes are looking at the G-20 meeting, taking a cue from the big jump in crude oil prices,” said a trader with a local commodities brokerage.

Oil rose more than US$2.50 per barrel to above US$50 yesterday as rising equities markets bolstered sentiment before a meeting of G20 global leaders which investors hope will deliver measures to restore global growth.

Traders said a recovery in Malaysian palm oil shipments could see domestic inventories in the world’s second-largest producerfall sharply. Cargo surveyor Societe Generale de Surveillance reported a 5.4 per cent increase to 1,223,716 tonnes in March.

Something2Share:

One of my planter friends said, "Now we can smile to the banks."

It's called Mindset!

As my friend was passing the elephants, he suddenly stopped, confused by the fact that these huge creatures were being held by only a small rope tied to their front leg. No chains, no cages. It was obvious that the elephants could, at anytime, break away from the ropes they were tied to but for some reason, they did not. My friend saw a trainer nearby and asked why these beautiful, magnificent animals just stood there and made no attempt to get away.

"Well," he said, "when they are very young and much smaller we use the same size rope to tie them and, at that age, it's enough to hold them. As they grow up, they are conditioned to believe they cannot break away. They believe the rope can still hold them, so they never try to break free." My friend was amazed. These animals could at any time break free from their bonds but because they believed they couldn't, they were stuck right where they were.

Like the elephants, how many of us go through life hanging onto a belief that we cannot do something, simply because we failed at it once before? How many of us refuse to attempt something new and challenging because of our so-called MINDSET?

Your attempt may fail, but never fail to make an attempt......
&
CHOOSE not to accept false boundaries and limitations created by the past.....

Something2Share:

I had come across some executives and staff in plantation management having mindset fixed with negative thinking formed by previous experience. Just like the chained elephants, their minds had been conditioned in such a way that they were stuck right where they were. “Last time we did like this also no problem what. Why change?” For years they had been running on the same spot and were just contented to remain as a Plantation Manager, an Assistant Manager or even a Field Conductor, as if there was no opportunity for personal growth and no chance for career advancement.

I used to encourage my subordinate to change their mindset from negative to positive and from passive to proactive; otherwise their performance would only be average even with the best estate practices, methods and tools. I told them,” Being average is either ‘the worst of the best’ or ‘best of the worst’. There is nothing to shout about being an average person.”

An average person having a fixed mindset is just like a “square”, resting on one surface and cannot move at all. On the other hand, a person having a growth mindset views past mistake or failure as a new challenge and takes it as a chance to improve himself. He will roll like a “ball” as and when he learns from his previous experience and moves on through hard work with a stronger willpower.

Do not fear failure and let the past mistakes bother you. As long as you keep on trying and insist on finding a way out to every problem, then you are able to perform much better than the last time.

Any planter having such a right mindset will surely perform well and with improved productivity he will eventually gain his promotion in his company.

Click on www.youtube.com/watch?v=6Nh49a8q2E4 and enjoy "Baby Elephant Walk" in YouTube.

Lower crude palm oil price forecast

KUALA LUMPUR: Crude palm oil (CPO) looks set to trade between RM1,500 and RM2,100 per tonne in the second half of this year, according to top international palm oil players.

They made the forecast at the end of the 20th Palm and Lauric Oils Conference/Exhibition 2009 (POC 2009) here yesterday.

The more subdued price forecasts, made by London-based LMC International Ltd chairman Dr James Fry and Godrej International Ltd director Dorab E. Mistry, took into account shrinking demand this year due to the global economic crisis.

But OilWorld executive director Thomas Mielke was slightly more upbeat, making a forecast of between RM2,000 and RM2,060 per tonne.

Fry said the local CPO futures were set for a soft landing by the middle of this year.

“CPO prices can fall back to RM1,500 per tonne following slower demand and lower crude oil prices,” he said. “I’m more bearish in view of the gravity of the deep recession, and I fear crude oil prices will fall further and if so, CPO will also follow suit.”

Mistry agreed that CPO prices could come under pressure by the second half of the year due to a strong pick-up in both palm oil and soybean oil production as well as weaker demand.

“The CPO price range from now to October will see a downward trend from RM2,000 to RM1,500 per tonne,” he reckoned.

But Mistry said he expected CPO futures on Bursa Derivatives Exchange to cross RM2,000 and “might briefly challenge at best RM2,100 per tonne” over the next few weeks.

Palm oil stocks in the next few months would tighten and “this will likely help palm oil prices,” he said.

Malaysian Palm Oil Board on Wednesday released its latest figures for February which indicated a further drop in palm oil stocks to 1.56 million tonnes from 1.83 million tonnes in January.

At POC 2008, industry players had made bullish projections of RM2,800 to RM4,500 per tonne for 2009.

Mistry, who had forecast that CPO could hit as high as RM4,500 per tonne by February this year during POC 2008, admitted he was too optimistic last year.

On a more positive note, Fry noted that “the prices of fertilisers have also gone down. This spells good news for oil palm planters as the fertiliser cost represents about 60% of their production cost.”

He expects the more efficient planters to still make a profit even if CPO prices drop to RM1,400-RM1,500 per tonne due to the lower fertiliser prices.

Mielke of OilWorld said via teleconferencing from Germany that globally, there could be increasing demand for palm oil, especially for food, this year.

He estimated that palm oil would account for about 56% of exports among 17 types of the world’s vegetable oils and fats from September 2008 to October 2009.

Mielke is optimistic that demand for global vegetable oils both for food and non-food items will exceed production this year.

Something2Share:

What goes up will come down and what comes down will go up. This is a repeated cycle but what matters most is the Time Factor: When? Hong soon? For how long?

It appears that the bullish projections of CPO prices in POC2008 have become bearish projections in POC2009 because of global economic crisis, as if there will not be bright price outlook this year.

We have to wait and see, and hope for the best for global economic recovery.

Thousands Of Plantation Vacancies, No Takers

Despite more than 3,000 vacancies in the plantation sector, there are no takers, Malaysian Agricultural Plantation Association (MAPA) executive director Mohamad Audong disclosed today.

He said MAPA had made provisions to give priority to retrenched local workers to fill the vacancies, but so far, there were no applicants.

Mohamad said Malaysians should change their mindset as working in plantations was a very lucrative alternative as the perks and salaries were also attractive.

The lowest category of worker, that is, general worker, was paid a clean monthly wage of RM600.

For skilled and semi-skilled workers, the pay would vary from RM2,000 to RM3,000 a month.

Besides this, the workers are provided with free housing, transportation, electricity and water.

They are also entitled to medical benefits, Socso coverage and Employees Provident Fund contributions.

Mohamad said that the 400 MAPA member estates were employing a total of 125,000 workers and almost half of them were foreigners.

“However, in line with government policy, we are reducing our dependence on foreigners,” he explained.

He hoped retrenched Malaysians would consider working in the plantations and help realise the government’s policy.

On the ongoing negotiations with the National Union of Plantation Workers (NUPW), he said MAPA was reviewing its collective agreement with the union for the benefit of members who were oil palm harvesters and mill workers.

The NUPW, the country’s oldest union, represents 40,000 local and foreign workers in the plantation sector.

Something2Share:

This is not surprising. For the past 30 years, plantations have been mainly dependent on foreign workers, majority of them are Indonesian workers, beside Thai and Bangladashi workers. The Malaysians especially the younger generation are not interested to work in plantations located far from towns.

Yes. Plantations provide free housing, electricity and water but there have been cases only the older men are working in the estates, whereas thier wives and children are working in factories in nearby towns.

How to change the mindset of the retrenched Malaysian workers remains a BIG question for Plantation companies, MAPA and NUPW to crack their heads.

FLIGHTING SPIRIT

To be successful in life, one has to acquire the fighting spirit and work diligently on his plan. A plan without action will lead to no way. That’s what the saying implies: Plan your work and work your plan. Taking action is to work the plan. A successful performance is the consequence of taking action and it must be fast action. Any delay may jeopardize the original plan.

What is FIGHTING SPIRIT? It’s associated with attitude towards achieving success in life, and it must be a positive attitude. There won’t be any fighting spirit if your attitude is negative. However, having a positive attitude is not good enough if without positive actions. If you are a NATO, no action talk only, then your so-called ACTION PLAN without actions is just a TALK PLAN.

In other words, having a positive attitude does not mean that you can get an instant success. It’s a long process of hours of hard work and it may take years of patience, endurance, tolerance, persistence and perseverance to be successful in life. One has to go through the process of making mistakes and gaining bitter experiences to prepare oneself to be on the route to SUCCESS. When you are brave in facing new challenges, good in problem solving, and wise in decision making, then you tend to focus on how to be successful rather than keep regretting on the past mistakes and allowing the past failures to keep bordering you. You will loss your fighting spirit if you focus on the wrong things.

When Muhammad Ali declared, “I am the Greatest”, he knew that he had that fighting spirit of a champion because he believed in his fighting style, which he described as "Float like a butterfly, sting like a bee".

Bruce Lee once said,"When you're talking about fighting, as it is, with no rules, well then, baby you'd better train every part of your body!” Apparently, he never failed to train himself days and nights because of the fighting philosophy that he believed in, “I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times.”

So anyone who wants to become a champion must posses a fighting spirit. You cannot win as a champion if you do not have the spirit to fight. You are what you think. Once you believe in yourself, you will discipline yourself with full dedication and determination. You will build up your self confidence to win as you train hard days and nights for the fight. A good fighter always thinks at least one step ahead of his opponent in order to beat him with a fast move to win the flight, becoming the champion.

Click on http://www.youtube.com/watch?v=MCEaz6ENgHY to watch and listen to Crazy Frog: 'We Are The Champions' on YouTube.

4 Traits Of Effective Leaders

The story:

A young officer in the Army discovered that he had no change when he tried to buy a soft drink from a vending machine. He flagged down a passing private and asked him, "Do you have change for a dollar?"

The private said cheerfully, "I think so. Let me take a look."

The officer drew himself up stiffly and said, "Soldier, that's no way to address a superior. We'll start all over again. Do you have change for a dollar?"

The private came to attention, saluted smartly, and said, "No, sir!"

Moral of the story:

Each of us commands some authority. There are or will be those we guide, supervise, rear, mentor or lead. Some of us will be effective and others will feel as if we're running a cemetery: we've got a lot of people under us and nobody's listening.

Much has been written and taught about leadership, but there are at least four traits which are common in all people of authority who effectively elicit cooperation and respect from those who look up to them. Whether you are a parent, whether you find yourself in the workplace, sitting on a volunteer committee or teaching some-one a new skill, these traits will help you effectively guide those who would seek to follow.

These good leaders are,
L isteners: They take time to listen to the suggestions and concerns of those they endeavor to lead.

E ncouragers: They don't try to do it all themselves. Neither do they motivate by force or guilt. They encourage others and help bring out their best.

A ssertive: They say what needs to be said without being unkind. They tell the truth as they see it, openly and frankly.

D ecisive: They know what needs to be done and they make timely, even difficult decisions when necessary. But they can also take charge without running over the people in their lives.

In short, good leaders L-E-A-D!

It's said that the trouble with being a leader today is that you can't be sure whether people are following you or chasing you. But those who will develop these four traits are sure to find that their authority will be valued and respected.

Something2Sure:

One thing is for sure, i.e. a good leader must be able to lead his team members. In other words, a good leader must earn the respect from his team members so that they respect the person and value his authority. If respect is to be demanded, then the respect is for the chair but not the person. His authority has not much of a value.

When a Plantation Manager humbles himself taking notes while listening to suggestions put forward by his respective Assistant Managers, and then have open discussion with them, then there will be free flow of ideas. Eventually, the manager will be respected as a good leader.

In order to become an effective leader, the Plantation Manager will have to lead by example and encourage his Assistant Managers by constant motivation, and then push them up the ladder to success. In other words, a good leader is able to make leaders out of his team members.

Fertiliser Importers Set To Drop Prices

FERTILISER importers are expected to drop prices by more than 15 per cent this quarter. This will benefit oil palm plantations as they use up some 3.5 million tonnes or 90 per cent of the country's chemical fertiliser imports.

Plantation Industries and Commodities Minister Datuk Peter Chin said fertiliser prices in the world market, except for potash, have fallen significantly and it is only logical to see these savings passed on to the plantations.

"In the last quarter, they've dropped prices by 15 per cent. They are now calculating the quantum of price drop for this quarter. It's likely to be more," Chin told Business Times after meeting with Agriculture and Agro-based Minister Datuk Mustapa Mohamed and Fertiliser Industry Association of Malaysia (FIAM) in Putrajaya yesterday.

To help reduce the country's fertiliser import bill, the ministry and Bank Negara Malaysia recently approved barter of US$70 million (RM253 million) palm oil for fertiliser with North Korea and Russia.

Last year, oil palm planters paid more than RM6 billion to fertiliser importers for an estimated 3.5 million tonnes at market pricing.

Apart from North Korea and Russia, Chin said, Malaysia wants more barter trade with other fertiliser producing countries like Morocco, Jordan, Syria and Iran.

Since 1992, Malaysia has been bartering palm oil for other commodities via the Palm Oil Credit and Payment Arrangement (POCPA) with Bank Negara as credit guarantor.

FIAM chairman Zainal Matassan said: "Although barter trade is an option that would involve extra steps and procedure, we'll strive to find ways to implement fertiliser purchase via the POCPA. We'll revert to the honourable ministers soon, before the end of this month."

On another note, Malaysian Palm Oil Board had, effective January 1 2009, reduced collection of price stabilisation cess from all oil palm planters to RM2 per tonne.

Asked if the reduction could hamper implementation of the B5 mandate where 5 per cent biodiesel is blended into regular diesel for use in the local market, Chin replied: "No, it will not, because this mandate will be carried out step by step."

Something2Share:

The drop prices of fertilisers is indeed a good news to the plantation companies and the planters.

We look forward for further drop and also reduced price of MOP (Muriate of Potash) in near future.

GRATITUDE IS POWER

When we are thankful for what we have - for the friends we have, and for the things we've got, we attract more good people and good things!

People, who always complain about what they DON'T HAVE, stay stuck. Complainers attract more things to complain about!

It is a law of life. It's hard to explain, but you can observe it around you. We get more of what we dwell upon.

That's why all the spiritual masters have taught the same lesson: 'Start by being thankful. Be happy with what you have now, and more will come your way.'

It's practical advice:
Every time you say a silent 'thank you' you become more peaceful – and more power... Keep Sharing!

Peace of mind rarely comes from getting more stuff. Getting more stuff usually leads to wanting even more stuff! Peace of mind starts with being grateful for what we have right now.

Something2Sahre:

In life, we have so many things to be thankful for. How true it is that we must be thankful for the things we have, such as having a happy family, owning a comfortable house and a family car, living harmoniously among the neighborhood, having friends who care and share good things with us, so on and so forth.

During the last Sunday church service at Charisma Assembly, Segamat, pastor Steven Wong reminded the church members that “Everyday is a miracle” and there are 5 things we should be thankful to God:

Thank God for FORGIVESS
Thank God for REDEMPTION
Thank God for HEALING
Thank God for LOVE and COMPASSION
Thank God for SATISFACTION and RENEWAL

Well, as for me, everyday is not just a miracle but a blessing from God. When we weak up in the morning, isn’t it wonderful that “God forgives our sins, redeems our lives from ruin, heals all our diseases, crowns us with loving, kindness and tender mercies and satisfies our desires with good things so that our youth is renewed like the eagle’s”?

Yes. When we are grateful for what we have right now, there will be peace of mind in us and that is the greatest satisfaction of all. Prais The Lord!

CPO prices to get full La Nina effect by end-May 2009

Crude palm oil (CPO) prices will get the full impact of the rising La Nina weather risks, which are threatening major oilseeds and grain growing areas in the US and South America, by end-May 2009.

La Nina, usually marked by wet weather and abnormal heavy rainfall, was expected to disrupt the 2009 planting season for oilseeds and grains like soybean and corn in the US in March and April, a plantation industry consultant told StarBiz.

He said La Nina could also affect the harvesting season for soybean in Brazil and Argentina from February to April.

“All will depend on the length (time frame) of the La Nina weather pattern in 2009,” the consultant added.

He expects any disruption in planting or harvesting of soybean crops in 2009 would help bolster the currently-weak prices in most agriculture-based commodities, including CPO.

The world encountered a lengthy La Nina phenomenon from 1998 to 2001.

In 2001, it was reported that US farmers planted 1.6% less acreage of soybean and 4.8% less acreage of corn due to the wet weather caused by La Nina.

An analyst with a bank-backed brokerage said that increasing weather volatilities worldwide such as heavy rainfall in South-East Asia and drought in Australia last year led world markets to raise the risk premium for agricultural commodities.

In Malaysia, he said, abnormal heavy rainfall early last year created floods in major oil palm plantation areas like Johor and Pahang, giving a short-term boost in CPO prices.

Meanwhile, plantation stocks were traded higher on Bursa Malaysia yesterday as the CPO price closed above RM1,600 per tonne in line with soybean oil gains on the overnight Chicago Board of Trade.

On Bursa Malaysia Derivatives, the benchmark CPO for March delivery closed RM81 higher at RM1,671 per tonne.

Something2share:

Obviously there will be a greater demand of CPO if there will be less soybean oil due to adverse weather of La Nina affecting soybean crop production and harvest in 2009. Let hope for the rebounce of CPO price as predicted.

Oil palm planters may get cess respite from Govt

I believe my planter friends working abroad will be glad to be updated if they have missed reading the news reported in today thestar online:

The Government is considering a reduction in the Malaysian Palm Oil Board cess payment or even suspend it for a certain period to assist planters in dire straits.

Primary Industries and Commodities Minister Datuk Peter Chin Fah Kui said the Government was willing to look into these options if there was justification that “the cess is truly burdening local planters” given the sharp fall in crude palm oil (CPO) prices.

“I am a reasonable minister. Give me the breakdown on the planters’ respective cost of production and at which CPO price level would these planters hit rock bottom. If necessary, we will audit them,” he told StarBiz in an interview.

Based on annual CPO production at 18 million tonnes and palm kernel production at two million tonnes, the total cess collection is estimated at RM220mil.

Local oil palm planters have been paying about RM11 per tonne in MPOB cess (see table for breakdown).

They also had to pay an additional cess of RM4 per tonne for the Palm Oil Price Stabilisation Fund.

MPOB’s revenue was mainly from cess collection (research and development and licensing enforcement) of RM9 per tonne of palm oil and palm kernel oil produced at the mills and crushers.

Chin, however, said: “To do away with the MPOB cess is like asking us to do away with MPOB, the central body, which takes care of the well-being of the local palm oil industry.”

Citing an example, he said a reduction of 13.3% in MPOB cess provided only about 40 sen savings for every tonne of fresh fruit bunches (FFB) produced.

This would mean the cess of RM11 per tonne of CPO will be reduced to RM9 per tonne while in FFB terms, the cess will be reduced from RM2.20 per tonne to RM1.80 per tonne.

However, Chin said, there was an imposition of a sales tax of 7.5% in Sabah and 5% in Sarawak.
In fact, a reduction of 13.3% in sales tax in Sabah, for example, would provide a higher savings of RM3 for every tonne of FFB produced, he added.

Chin said the Government was looking at various avenues to mitigate the plight of oil palm planters, especially smallholders, due to the weak CPO prices and excess palm oil inventory at 2.3 million tonnes.

“We have counteracted immediately by allocating RM200mil for replanting activities and RM200mil for biofuel initiatives,” he added.

Chin said the Government’s early intervention had stabilised the CPO prices at RM1,500 to RM1,600 per tonne currently.

SARAWAK OIL PALM PLANTERS SEEK RESPITE FROM GOVERNMENT

I believe my planter friends working abroad will be glad to be updated if they have missed reading the news reported in today thestar online:

Sarawak oil palm planters, badly hit by the sharp fall in crude palm oil (CPO) prices, want the Government to give them some breathing space by waiving the windfall profit tax, lowering the cess and sales taxes, and regulating high fertiliser prices.

They have also proposed that the unused portion of the cess collected for the Cooking Oil Subsidy Scheme by the Malaysian Palm Oil Board (MPOB) be refunded directly to Sarawak plantation companies.

A waiver is also proposed for Sarawak plantation companies which are still paying their outstanding cess instalments.

Sarawak planters have paid about RM157mil in cooking oil cess this year.

Sarawak Oil Palm Plantation Owners Association spokesman Paul Wong told StarBiz that Primary Industries and Commodities Minister Datuk Peter Chin Fah Kui had assured the association that its proposals would be studied. The association had a dialogue with the minister yesterday.

“The feedback to our proposals will be made known by January,” said Wong, who is also Sarawak Oil Palms Bhd chief executive officer.

Wong said the minister had also given an indication that Sarawak planters would be allowed to export their CPO tax-free, given the high national CPO stockpile.

About 10 Sarawak-based plantation captains attended the dialogue session, namely Sarawak Oil Palms, Sarawak Plantations Bhd, Solid Group of Companies, WTK Group of Companies, Rimbunan Sawit Bhd, Ta Ann Holdings Bhd, Seatex Development Sdn Bhd, Woodman Group, Rimex Group and KTS Group.

“We can also form a consortium to jointly set up our own refineries if the existing four refiners in Sarawak refuse to abolish the RM40 per tonne discount on our CPO price,” said Ta Ann Holdings managing director Datuk Wong Kuo Hea.

Sarawak Plantation group managing director Mohamad Bolhair Reduan said the Government should use the MPOB cess on research and development to assist Sarawak planters in sustainable management of peat areas as well as cultivating more efficient agriculture practices.

The Sarawak oil palm industry is still at an infancy stage with only about 20% of matured oil palm areas and low yields.

“Given our young plantations, the RM200mil replanting scheme and subsidy by the ministry recently will not benefit Sarawak,” he said.

With the CPO price currently at about RM1,500 per tonne, Wong said many Sarawak planters were incurring substantial losses and cash flow squeeze, given their high cost of production at RM1,800 to RM2,000 per tonne. Planters in the peninsula have a cost of production of about RM1,100 to RM1,200 per tonne.

Be Grateful: Everyday Is A Blessing

Everyday is a blessing, and in each moment there are many things that we can be grateful for. The world opens up to us when we live in a space of gratitude. In essence, gratitude has a snowball effect. When we are appreciative and express that gratitude, the universe glows a bit brighter and showers us with even more blessings.

There is always something to be grateful for, even when life seems hard. When times are tough, whether we are having a bad day or stuck in what may feel like an endless rut, it can be difficult to take the time to feel grateful. Yet, that is when gratitude can be most important. If we can look at our lives, during periods of challenge, and find something to be grateful for, then we can transform our realities in an instant. There are blessings to be found everywhere. When we are focusing on what is negative, our abundance can be easy to miss. Instead, choosing to find what already exists in our lives that we can appreciate can change what we see in our world. We start to notice one blessing, and then another.

When we constantly choose to be grateful, we notice that every breath is a miracle and each smile becomes a gift. We begin to understand that difficulties are also invaluable lessons. The sun is always shining for us when we are grateful, even if it is hidden behind clouds on a rainy day. A simple sandwich becomes a feast, and a trinket is transformed into a treasure. Living in a state of gratitude allows us to spread our abundance because that is the energy that we emanate from our beings. Because the world reflects back to us what we embody, the additional blessings that inevitably flow our way give us even more to be grateful for. The universe wants to shower us with blessings. The more we appreciate life, the more life appreciates and bestows us with more goodness.

Something2Share:

I like it that everyday is a blessing.

For a retiree like me just stopped working at the age of 62, every morning I give thank to God for another day when I wake up and able to go for brisk walking and continue other activities throughout the day.

I am grateful that I am able to learn how to adjust myself to retirement lifestyle.

I am grateful that I can now really relaxing after years of hard work in plantations.

I am grateful that I can now spend more quality time with my family.

I am grateful that I will have more free time for travelling abroad with my wife.

I am grateful that now I can spend more time with my friends in kopitiam or coffee shops.

I am grateful that I can now have more time to do things that I like to do.

I am grateful that now I have time to learn new things that I have not done before.

When I went to see an Urologist last week, he told me that my prostate enlargement was 3 times of its original size. The choice was on me: Do I want to continue medication and keep suffering the problems of urination or to go ahead for surgery to remove the unwanted benign prostate tissue which is causing obstruction to urine flow from my bladder? In fact I had already decided to go ahead with laser surgery to remove the obstructing prostate tissue instantaneously with minimal risk, blood loss and discomfort.

I am grateful that the surgery was carried out smoothly and I was discharged from the hospital the following day.

Boustead: CPO will rebound in first-half 2009

The major owner of the plantation Al-Hadharah REIT (Real Estate Investment Trust) expects palm oil prices to trade between RM2,000 and RM2,200 a tonne.

BOUSTEAD Holdings Bhd believes palm oil prices will bounce back to between RM2,000 and RM2,200 a tonne in the first six months next year, boosted by shipments to China and the government's effort to cut stockpiles.

Prices of the commodity have already fallen 66 per cent from their peak of RM4,486 a tonne in March, to RM1,510 for February delivery, yesterday.

The major owner of the plantation Al-Hadharah REIT is, however, convinced that prices will improve in the first half next year.

"Crude palm oil (CPO) is mainly used for food. We believe the buyers from China will continue to use palm oil because of the price difference - it's now at a US$300 discount to soya oil. That's quite attractive," Boustead group managing director Tan Sri Lodin Wok Kamaruddin said at a press conference in Kuala Lumpur yesterday.He blamed the current weak CPO prices on excess stocks due to high production, as well as the falling crude oil price which has dropped drastically from nearly US$150 (RM545) a barrel not too long ago to below US$45 (RM163) currently.

CPO prices have been tracking that of crude oil because it can be used to produce biofuel.

The government has also announced plans to boost the usage of palm oil, which will help to cut stockpiles, Lodin Wok said.

This includes getting government vehicles to switch to biofuel for power, a plan that will later involve industrial vehicles, he said.

The government has also set aside RM200 million to speed up the replanting of oil palm trees that are more than 25 years old.

Boustead is selling two more estates into the Al-Hadharah REIT, boosting the world's first Islamic plantation property trust to RM805 million.

The REIT, 60.5 per cent held by Boustead after the asset sale, is paying RM188.8 million for both the Malakoff and Bebar estates.

With a low gearing of 15 per cent, Lodin Wok said, the REIT aims to buy more assets to expand its size. A REIT cannot exceed 50 per cent gearing under the Securities Commission's rule.

Something2Share:

One morning I was talking to RS, a plantation owner, as we were doing brisk walking at the golf course in Segamat Country Club. He was puzzled why the drastic drop in CPO price was linked to falling crude oil price. Previously, the rise or fall of CPO price was linked mainly to soya oil price.

This morning as I was talking to Mr. Khor, a tractor dealer, he reminded me that the unusual escalating CPO price was in fact boosted up in the name of BIOFUEL due to the skyrocketing crude oil price. It reached the record high at USD 147.27 a barrel in mid-July 2008.

I think many plantation companies and owners can still be lauging to the bank if the CPO prices will be traded between RM 2,000 - 2,000 per tonne.

By rough calculation, if COP (Cost of Production) is estimated at RM1,500 per tonne of CPO, and the trading price is expected to be traded at RM2,200 per tonne, then the profit margin will be about 47%.

If COP is estimated at RM1,300 per tonne of CPO, and the trading price is expected to be traded at RM2,000 per tonne, the profit margin wii be about 54%.

Perhaps instead of focusing on how, where and when to cut cost, we should look at ways and means to increase oil yield per hectare in order to reduce COP. Any attempt to cut fertilizer input will affect the yield quite adversely 2 years later.

Higher palm oil prices expected in 2009

Global palm oil prices are likely to rise in 2009 as stocks in key exporters Malaysia and Indonesia fall, Hamburg-based oilseeds analysts Oil World said yesterday.

“The palm oil market is torn between the bearish outside developments, especially very weak crude mineral oil, and its own constructive longer-term fundamentals,” it said.

Palm oil prices have fallen by almost 60 per cent from a record high in March after the global economic crisis hit commodity markets.

“We expect appreciating palm oil prices in 2009 due to the prospective reduction in Malaysian and Indonesian palm oil stocks in December/June 2008/09 resulting from a decline in the biological yield cycle, seasonally lower production (and) higher demand for edible palm oil,” it said.

New government rules compelling more vegetable oil to be blended with fossil fuels to reduce pollution is also likely to generate extra demand for palm oil, it said. Indonesia, Malaysia and Colombia are among countries which are compelling more palm oil blending with fossil fuels.

“The current low palm oil prices, relative to other edible oils, will stimulate demand in the near to medium-term,” it said. “The decline in world exports of soy oil will shift demand to palm oil.”

But it warned the global economic crisis made physical palm oil demand difficult to assess. - Reuters

Something2Share:

With the recent sudden drastic drop in CPO price, everyone in the plantation sector in Malaysia and Indonesia has been very panic striken. Cutting cost has been the major issue for reviewing Budget 2009. In view of the high cost of fertilizers, the top management teams have been debating on reducing fertilizer input in 2009. The main concern is how to maintain the cost of production so as there will be still room for making profit. To the employed planters, they are most worried about “hair-cut” on their salaries and bonus since Christmas, 2009 New Year and Chinese New Year are around the corner.

The above news is, indeed, very encouraging and I believe it’s a booster jab for the plantation companies, the plantation owners and the planters. If what is expected (appreciating pal oil prices in 2009) comes true, at least we are able see light in a dark tunnel.

SPECULATION A THREAT TO OIL PALM PLANTERS

This write up by LOONG TSE MIN is downloaded from thestar online (Saturday December 6, 2008) and is of interest to all planters.

Speculation in the crude palm oil (CPO) futures market could pose a threat to the plantation industry under current market conditions.

Interband Group palm oil trader Jim Teh told StarBiz that there was a strong speculative element in CPO prices that shot up from RM1,488 per tonne to about RM1,600 last week on thin volume but had tapered off this week

He said importers from China and India had early this year defaulted on their contract orders partly due to speculation as “CPO prices were pushed up and then suddenly dipped”.

Many of the contracts were locked in at RM3,000 per tonne. When CPO fell to RM2,500 per tonne in August, importers in both countries lapsed on their contracts amounting to about 150,000 tonnes.

At the current CPO price of about RM1,500 per tonne, Teh said a further 300,000 to 400,000 tonnes worth of CPO futures contracts were defaulted in October.

“If prices are high but importers default on the contracts, what is the use to the planters?” Teh asked.

Fertiliser prices had shot up in tandem with the CPO price, he said, adding: “Planters, especially smallholders, will be hit in terms of high cost of fertilisers and left with excess stock.”

Teh estimates CPO to trade between RM1,300 and RM1,450 per tonne for the first half of 2009.

At an average price of RM1,400 per tonne, most plantation companies would still have a profit margin of about 25%, which was good, given the current market conditions, he said.

A chief executive officer with a major plantation group holds a differing view.
“I don’t think there is much speculation as most of the foreign funds have left the (CPO) market.

We can see that CPO prices have not dropped to RM1,200 as predicted even as crude oil falls below US$50 a barrel, which is a sign that CPO price is quite stable,” he said.

He also did not see how higher prices were bad for the industry as it gave better profit for plantation companies.

However, United Malacca Bhd CEO Dr Leong Tat Thim concurred with Interband’s Teh.
“Aggressive fluctuation in CPO prices is not good for the industry as it is bad for both buyers and sellers,” Leong told StarBiz.

“Prices between RM1,600 and RM1,800 per tonne will be good and viable to the industry.”

Leong said he expected the CPO price to hold at its current level and bounce back to RM2,000, by the end of next year.

This was due to measures taken by the Government to reduce the current high CPO stock through replanting subsidy and mandatory use of biofuel in all commercial vehicles, he said.

“There is another favourable factor which is the wide price disparity of US$300 per tonne between CPO and soya bean oil prices.

“This makes palm oil a very attractive alternative,” he added.

Leong said planters were trying to keep costs below RM1,000 per tonne of CPO.

“During these difficult times, I hope the Government at federal and state levels will not consider imposing additional taxes on the palm oil industry.”

GREEN GREEN GRASS OF HOME

I am learning to adapt myself to the retirement lifestyle after returning from Indonesia to Malaysia about a week ago. Being a planter for so many years, I have been so used to walking the fields in the plantations. However, when I stayed back in Tembung office, Medan, I did not even have the time for a morning walk. I had to leave my residence in Jalan Kartini the latest by 0715 WIB to avoid the traffic jam in order to reach office before 0800 WIB.

Now back in Segamat, Johor, I am able to join my friends for brisk walking in early mornings at Segamat country club. We walk across the green and fairway of the golf course for at least 30 minutes while breathing in the fresh air. This reminds me of the song “GREEN GREEN GRASS OF HOME” sung by Tom Jones. I totally agreed with my friends that walking on the soft grasses is much comfortable to our feet and exerts minimal impact to leg injury than walking on the hard and rough surface of tar road. Nevertheless, we have to be early before the golfers tee off and start hitting the golf balls. My friends are the regular walkers and seldom skip walking except on raining days or go out of Segamat town.

As we are all aware, regular morning walk improves our blood circulation and makes our hearts stronger thus it works more efficiently. My friends tell me that by doing regular brisk walking, they are able to keep fit and stay much healthier than others who fail to make brisk walking a habit. It needs to take initiative and commitment to wake up early to go for morning walk regularly and to stick with it for at least 6 month. There must be persistence full of determination, dedication and discipline if we want to make brisk walking a habit. I remember my late father used to go for morning walk very regularly during the good old days in Kuala Lipis, Pahang. He brought along a long walking stick with him to chase away any stray dogs coming near him. Well, since I am now a retired man, I am determined to treat morning walk as my daily routine too.

Oh Yes. I hope you can join me too to start “Chale Chalo” (brisk walking) from today onwards. And I hope you sing along with me and here are the lyrics of “GREEN GREEN GRASS OF HOME”:

The old home town looks the same,
As I step down from the train,
And there to meet me is my mama and my papa.
Down the road I look, and there comes Mary,
Hair of gold and lips like cherries.
It's good to touch the green, green grass of home.

The old house is still standing,
Though the paint is cracked and dry,
And there's the old oak tree that I used to play on.
Down the lane I walk with my sweet Mary,
Hair of gold and lips like cherries.
It's good to touch the green, green grass of home.

Yes, they'll all come to see me,
Arms reaching, smiling sweetly.
It's good to touch the green, green grass of home.

[spoken:]
Then I awake and look around me,
At the four gray walls that surround me,
And I realize that I was only dreaming.
For there's a guard, and there's a sad old padre,
Arm in arm, we'll walk at daybreak.Again,
I'll touch the green, green grass of home.

Yes, they'll all come to see me
In the shade of the old oak tree,
As they lay me 'neath the green, green grass of home.

Click on http://www.youtube.com/watch?v=hSajFnkUxQY to watch and listen to Tom Jones singing 'Green Green Grass of Home' on Youtube.