Page 34 - Annual Report 2021

Overview Leadership Message Business segment Moving Forward Our Resources Working for a Corporate Financial
review Plan Better Tomorrow Governance Statements

PrOPErTy & PLanTaTIOn

of its crops whereby the palms are Enhancing
in their 18th year of harvesting and technology adoption
therefore at the tail end of their prime, by implementing
which falls between the 10th and a well-planned
20th year. Like many other players and integrated
in the industry, UM Plantations was
also affected by the acute global mechanisation system
shortage of skilled harvesters, which during replanting for
was compounded by the challenges greater automation
and movement restrictions of the and reduced
COVID-19 pandemic. dependency on
manual labour.
Due to the ageing palms and the
labour shortage, UM Plantations’
production of fresh fruit bunches (FFB)
dropped by 2.5% to 6,480 MT in 2021
from 6,646 MT in 2020. However, the
high price of FFB throughout the year
which averaged RM939 in 2021 as
compared to RM549 in 2020 drove
UM Plantations to record a gross profit
of RM4.1m in 2021, an increase of
141.2% from RM1.7m in 2020.

34 UM Holdings Group