MP Evans crops 'progressively increase' in first half

Indonesian palm oil producer MP Evans reported crude palm oil production of 160,800 tonnes in its first half on Thursday, down slightly from 161,400 a year ago.

The AIM-traded firm said palm kernel production improved marginally, meanwhile, to 35,100 tonnes from 34,700 tonnes.

Its own crop expanded 4% year-on-year to 430,400 tonnes of fresh fruit bunches, while scheme smallholder crop was 5% higher at 126,400 tonnes.

The number of independent crops purchased, however, decreased 11% to 148,900 tonnes of fresh fruit bunches.

That made for total crops of 705,700 tonnes in the six months ended 30 June, up from 702,300 tonnes a year ago.

“After a seasonal, low-cropping period at the start of the year, crop from the group's own areas and that of its associated scheme smallholders progressively increased in the first half,” the MP Evans board said in its statement.

“Purchases of independent crops were deliberately restricted in May and June as a result of the temporary export ban in Indonesia, resulting in a small reduction in purchases from outside suppliers in the first half.

“Overall, total crop processed was similar to that achieved in the first half of 2021.”

In the period to the end of June, the group said it realised an average price at mill gate of $1,035 per tonne, up f43% from the $724 it reported in the first half of 2021.

Prices for palm kernels averaged $830 per tonne at the mill gate, higher than the $491 per tonne a year ago.

At 1508 BST, shares in MP Evans Group were down 0.61% at 815p.

Reporting by Josh White at Sharecast.com.