By Aidila Razak
In what appears to be a stark contrast to the troubles looming over the Country Heights Growers Scheme (CHGS), a neighbouring farm-sharing scheme in Gua Musang, Kelantan says that it is right on track.
According to Golden Palm Growers Bhd chairperson Andrew Phang, the farm-sharing interest scheme has managed to overcome problems which CHGS founder Lee Kim Yew said has pushed him to seek the scheme’s termination.
This includes problems with soil fertility, terrain and pests–all of which Phang said, was dealt with through careful planning and execution.
“Gua Musang is a generally hilly area but this isn’t necessarily bad for oil palms. It depends on the steepness of the hills, which can make it difficult to plant.
“The area also has heavy rainfall, which is good for oil palm, but the steep hills and rain can be a recipe for disaster.
“Our plantation has gentler slopes, but we still need to employ good technique to control soil erosion through terracing and cover crop. Our terraces are well-constructed,” he said when contacted.
While Phang agrees with Lee that the plantation does face risks posed by wild animals, like elephants and wild boars, he claims that Golden Palm has managed to overcome this.
Wild elephants dealt with
“The area is heavily forested and the animals like to eat the young palms, so it’s a problem in the first few years. But we have dug up large trenches and set up an electric fence around the plantations.
“The elephants are intelligent animals and have stayed away from the fences. The fence also keeps wild boars out,” he said, adding that the Orang Asli community there also hunt the boars for food.
Golden Palm is located near the Pos Pasik Orang Asli settlement, a couple of hours from Gua Musang town.
Phang, however, conceded that soil quality can differ dramatically in Gua Musang, with land just 45 minutes away from Golden Palm’s plantation unsuitable for oil palm.
According to its prospectus, CHGS’s plantation–set up under Plentiful Gold-Class Bhd–is located close to Felda Airing, about 70 km from Gua Musang town.
Launched more than three years after CHGC, Phang claims that Golden Palm’s first batch has returned commendable yield at 8 tonne per hectare
“But this is only the initial 15 hectares. We would have a fairer estimate in 12 to 24 months when more of our palms mature,” he said.
Different structure
He also claims that CHGC, whose investors voted overwhelmingly for its termination at a meeting today, has a “different structure”.
He said that while Golden Palm also offers a guaranteed return for the initial years, it is careful to not take on too many investors too soon.
“When we collect the money, we start paying 6 percent for six years so we don’t want to open up too many plots as the palms need time to deliver yield,” he said.
According to Starbiz, 98.98 percent of CHGC’s investors today voted in favour to end the scheme at a one-to-one buyback, plus RM25 million “goodwill package” which Lee personally committed to dishing out.
The plantation land will be auctioned at a reserve price of RM170 million, with Lee’s company Bee Garden Holdings giving an enforceable undertaking to make up the shortfall between final price and total buyback if any.
You must be logged in to post a comment.