M.P. EVANS GROUP PLC
The annual general meeting of M.P. Evans Group PLC ("the Group") is being held in London today. The following statement
outlining an update on trading conditions and progress on the Group's activities, since the publication of the annual
report in early May, is being given at the meeting by the chairman, Peter Hadsley-Chaplin:-
1) Current trading conditions
a) Palm oil
i) Prices
The palm-oil price has held up well at around US$800 per tonne. This is an historically-high level. Prices have
remained at these levels despite improved soybean crops in South America and despite the recent weakening of mineral-oil
prices to around US$72 per barrel. Lower production growth in the second biggest producer, Malaysia, has contributed to
this strength.
ii) Crops
The crops of oil-palm fresh fruit bunches ("f.f.b.") up to the end of May 2010 from the majority-owned Sumatran estates
amounted to 60,200 tonnes (2009 - 57,800 tonnes). The crops from the associated companies (including Malaysia) for this
period were 132,400 tonnes (2009 - 135,300 tonnes). The Pangkatan mill has achieved an improved extraction rate of
around 23% compared with 22.3% for the same period in 2009.
The f.f.b. crop from the Bangka project amounted to 6,600 tonnes for the first five months of 2010. The crop for the
same period last year was 3,700 tonnes.
b) Australian beef cattle
Both Woodlands and all the NAPCo properties continue to enjoy an excellent season following the beneficial rainfall
earlier in the year. Pasture is therefore plentiful and, as a consequence, the number of cattle on Woodlands stands at
a record 8,000 head. It is anticipated that the NAPCo herd will now be able to be rebuilt from 160,000 head to its
"steady-state" capacity of 200,000 head more quickly than originally anticipated. World cattle prices continue to be
robust and the outlook appears positive for both the short and longer term. Woodlands has, for the time being, been
taken off the market.
2) New Indonesian oil-palm projects
Some 1,000 hectares in total have been planted on the new projects so far in 2010. Negotiations with smallholders to
agree compensation arrangements continue to be time consuming. It is hoped that planting will accelerate in the
remainder of the year.
As at the end of May, some 13,800 hectares in total had been planted of which just under 10,000 hectares belong to the
Group with the remainder allocated to the associated cooperative schemes.
3) Malaysian divestment
There have been no recent sales of land in Malaysia. However, some significant land sales by the Group's associated
company, Bertam Properties, are expected to be completed later this year. A dividend was recently paid by Bertam
Properties of which the Group's share amounted to some US$1.8 million.
11 June 2010
Enquiries:
M.P. Evans Group PLC Telephone: 01892 516333
Peter Hadsley-Chaplin, chairman
Philip Fletcher, managing director
Tristan Price, finance director
Hudson Sandler Telephone: 020 7796 4133
Charlie Jack