PROPOSAL OF DEVELOPMENT

OF 40 ACRES LAND TO

OIL PALM PLANTATION

ON
(1). Kg.Kumbatang XXX (7.65 acre)
(2). Kg. Kumbatang XXX (14.55 acre)
(3). Kg. Kumbatang XXX (7.00 acre)
(4). Kg. Dualog XXX (5.00 acre)
(5). Kg. Sampir XXX (10.00 acre)
(6). Kg. Indarason Laut XXX (10.00 acre)

DISTRICT OF KUDAT

OWNER

MRS. XXX
NO. K/P : XXX
1.0 Introduction

This paper is an introduction to the procedure and the cost to develop

approximately 40 acres vacant land into oil palm plantation at the commercial

value.

2.0 Land Area

An approximately 40 acres of vacant land were located at Kg. Kumbatang (Title

No. XXX), Kg. Kumbatang (LA XXX), Kg. Andap Sikuati (LA XXX), Kg. Dualog

(LA XXX), Kg. Sampir (LA XXX) and Kg. Indarason Laut (LA XXX) district of

Kudat will be developed into an oil palm plantation to its commercial value.

3.0 Cutting and Clearing

This proposed land area requires cutting of the existing trees and bushes and

clearing manually to the condition suitable for moving and working machinery.

4.0 Terracing

Five acres from this proposed land area is an undulating land. Hence, in order to

maximize planting oil palm, terracing is required.

5.0 Road Construction

A suitable and convenience accessible road will be carefully planned and

constructed to the transportation condition.

6.0 Schedule of Developing

The sequence of the schedule is strictly adhered in order to save time and cost

for the maximum yield.

7.0 Harvesting

The estimate first harvesting of fruit is around three years old oil palm tree after

planting. The quality and quantity of the oil fruit are very much depending on the

maintenance, weather condition and the application of the fertilizer.

8.0 Work Force

Generally one skill labour covers 15 acres of planted oil palm tree (55 trees per

acre) including maintenance and harvesting. Two workers would be able to

handle the task.

Estimate of Investment Breakdown

1) Land clearing RM 350.00 per acre

2) Terracing (5 acre only) RM 450.00 per acre

3) Road construction (soil road only) RM 150.00 per acre

4) Lining RM 30.00 per acre

5) Planting of young DXP oil palm tree

(55 trees/acre) RM 110.00 per acre

6) Spray of pesticide (weeding) RM 30.00 per acre

7) Purchase of young oil palm tree

(@ RM 10.00/tree) RM 550.00 per acre

8) Fertilizer (after planting oil palm tree)

First year @ 0.20kg/tree RM 25.00 per acre

Second year @ 0.50kg/tree RM 62.50 per acre

Third year @ 0.75kg/tree RM 93.75 per acre

Fourth year @ 1.00kg/tree RM 125.00 per acre

Fifth year @ 1.50kg/tree RM 187.50 per acre

(Fertilizer price @ RM 2200/ton)

9) Monthly labour salary

(2 labour @ RM 500) RM 1,000.00 per month

10) Tool (lump sum) RM 1,500.00

 CASH FLOW I (DEVELOPMENT STAGE) FOR 40 ACRES

MONTH / PERIOD 1 2 3 4 5 6 7 - 12 13 -18 19 - 24 25 - 30 30 - 36

LAND CLEARING 7,000 7,000
TERRACING 2,250
ROAD CONSTRUCTION 6,000
LINING & PLANTING 5,600
SPRAY OF PESTICIDE 1,200
YOUNG TREE 22,000
FERTILIZER 500 500 1,250 1,250 1,875
PURCHASE OF TOOLS 1,500
LABOUR SALARY 1,000 1,000 6,000 6,000 6,000 6,000 6,000
TOTAL EXPENSES 7,000 7,000 2,250 6,000 29,800 1,000 8,000 6,500 7,250 7,250 7,875
ACCUMULATED 7,000 14,000 16,250 22,250 52,050 53,050 61,050 67,550 74,800 82,050 89,925
EXPENSES
ESTIMATED INCOME NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
ACCUMULATED -7,000 -14,000 -16,250 -22,250 -52,050 -53,050 61,050 -67,550 -74,800 -82,050 -89,925
PROFIT/LOSS

CASH FLOW II (HARVSETING STAGE) FOR 40 ACRES

YEAR / PERIOD 4 5 6 7 8 9 10
MAINTENANCE OF ROAD 1,200 1,200 1,200 1,200 1,200 1,200 1,200
FERTILIZER 4,375 6,250 7,500 7,500 7,500 7,500 7,500
LABOUR SALARY 12,000 12,000 12,000 12,000 12,000 12,000 12,000
TOTAL EXPENSES 17,575 19,450 20,700 20,700 20,700 20,700 20,700
ACCUMULATED 107,500 126,950 147,650 168,350 189,050 209,750 230,450
EXPENSES
SALES OF FFB @RM 57,000 114,000 180,000 216,000 216,000 216,000 216,000
250/TON X 100
PROFIT/LOSS 39,425 94,550 159,300 195,300 195,300 195,300 195,300
ACCUMULATED -50,500 44,050 203,350 398,650 593,950 789,250 984,550
PROFIT/LOSS
FRESH FRUIT BUNCH PRODUCTION

Plant age 3-4yrs 0.25 ton/acre/month (assuming FFB price @250/MT)

Plant age 4-5yrs 0.5 ton/acre/month (assuming FFB price @350/MT)

Plant age 5-6yrs 0.75 ton/acre/month (assuming FFB price @400/MT)

Plant age 6-7yrs 1 ton/acre/month (assuming FFB price @450/MT)

Plant age 7yrs and above 1 ton/acre/month (assuming FFB price @450/MT)