PLANTATION SECTOR

Shares mention in the forum are not the once being rocketed, see how BOPL,BALA, UDPL, MASK and HAPU have been reached to its apex. How come BOPL has no sellors even after 100 % appreciation within three  days, UDPL 350% etc .

KOTA and WATA and NAMU are promoting but not as such as above even having good technicals behind.

MarketGema wrote:Shares mention in the forum are not the once being rocketed, see how BOPL,BALA, UDPL, MASK and HAPU have been reached to its apex. How come BOPL has no sellors even after 100 % appreciation within three  days, UDPL 350% etc .

KOTA and WATA and NAMU are promoting but not as such as above even having good technicals behind.

In the long term, good shares will come to their real values. When the next quarterly reports are released all can see the value of NAMU WATA and KOTA.

cseguide wrote:

MarketGema wrote:Shares mention in the forum are not the once being rocketed, see how BOPL,BALA, UDPL, MASK and HAPU have been reached to its apex. How come BOPL has no sellors even after 100 % appreciation within three  days, UDPL 350% etc .

KOTA and WATA and NAMU are promoting but not as such as above even having good technicals behind.

In the long term, good shares will come to their real values. When the next quarterly reports are released all can see the value of NAMU WATA and KOTA.

Yes agreed with You and good potentials. But how these shares compared with low potentials ex. BOPL,UDPL, HAPU and MASK have reached 200% + within very short period of time whereas share with good potentials taking years to reach their fair value. I don't know how the quick interests being created among buyers on those shares unless or otherwise big fellows are behind the screen.

Finally tea time has arrived.

Sri Lanka Tea Sale Averages for the Month of January 2022 recorded Rs.704.67 (USD 3.50) vis-à-vis Rs. 645.02 (USD 3.39) (+Rs. 59.65) in 2021. High Growns for the month of January was Rs. 680.56 as against Rs. 613.29 (+Rs. 67.27) in 2020. Medium Growns fetched Rs. 626.73 vis-à-vis Rs. 585.37 (+Rs.41.36) in 2020. Low Growns recorded Rs.733.69 visà-vis Rs. 673.04 (+Rs.60.65) in 2020

Source: Ceylon tea brokers

Sale Averages - Auction 26.01.2022

Total Low Grown Rs.779.98
Orthodox Low Rs.796.92
Total High Grown Rs.714.57

Time for champion low grown, Uva, western grown tea and rubber plantations. elpl. kval, mask, tpl, namu, hopl, kaha.


https://web.forbestea.com/statistics/sri-lankan-statistics/24-monthly-elevation-averages/1180-monthly-elevation-averages-2021

2021 Yearly average

Western High Rs.611
Low grown Rs.644
Orth Low Rs.655

Sale Averages - Auction 26.01.2022

Total Low Grown Rs.779.98
Orthodox Low Rs.796.92
Total High Grown Rs.714.5


https://www.worldteanews.com/issues-trends/2022-hospitality-trends-inspire-tea-industry

Report: 2022 Hospitality Trends to Inspire the Global Tea Industry

Yes. Highest rupee value. Keep eye on Kotagala with financial reports.

Tea price recorded high as 725/- in february. Palm oil also in very good price. So this sector will active soon.

Plantation stocks will be more benefitted in this cricis as they will receive more than Rs.1000 per Kg of tea. Earlier it was rs 600/- levels. Other export crops also play the same way. Any expert idea?

Plantation was badly hit by lack of fertiliser and other resources coupled with heavy burrowing cost for several months now. I wouldn't touch this.

I have seen even today prices of MALhave gone up. One of the top gainers

MAL X

Mal N

I go with Rubber and Palm

Average tea price hit 1350/- per KG first tiem in the history in April.

I also think the market will go up  including the plantation sector

This is best time to collect

Tourism is the best and plantation is better sector than other sectors. Why I am putting tourism ahead of plantation is all the land plantations hold are belongs to the government. So there is no asset appreciation.

Sri Lanka’s Ceylon tea exports down 17-pct in May 2022

Sri Lanka’s Ceylon tea exports dropped by 17 percent to 19.72 million kilograms in May 2022 from a year ago and dollar earnings were down 14 per cent to 93.7 million dollars, industry data shows as the country grapples with the effects of a fertilizer ban and forex shortages.

In rupee terms export in May were up 54 percent to 33 billion rupees, Sri Lanka Tea Board data published by Ceylon Tea Brokers showed.

The average free onboard price for a kilogram of Ceylon Tea had risen to 4.75 US dollars in May 2022 from 4.59 a year ago.

The price of Tea in bulk per kilogram has increased to 1,521.57 rupees compared to 784.60 rupees in the same period last year.

Tea in packets price has increased to 1,560.23 rupees compared to 865.11 rupees.
Tea in bags’ prices doubled to 2,752.46 rupees from 1,562.06 rupees.
The average price of instant tea in May was 2,706.73 rupees, up from 1,946.78 rupees in 2021.

Green tea price had doubled to 4,033.54 rupees in May 2022, up from 2,124.14 rupees per kilogram in 2021.

Up to May 2022, Sri Lanka has exported 101 million kgs, down from 109.9 in 2021.
In dollars terms, the total value of export from January to May is 457 million dollars, down 13 percent.

Whereas in rupee terms, Sri Lanka has generated 122 billion rupees for the first five months of 2022 compared to 103 billion rupees in 103 billion rupees in 2021.

Up to May Iraq was the top buyer, consuming 19 million kilograms this year, recording an increase of 6.95 percent compared to last year’s 12 million kilograms. (Colombo/June19/2022)

Time for coconut.
https://www.matec-conferences.org/articles/matecconf/abs/2018/96/matecconf_d2me2018_02001/matecconf_d2me2018_02001.html#:~:text=Bio%E2%80%93oil%20is%20a%20liquid,content%20of%20the%20bio%E2%80%93oil.
Producing Bio-Oil from Coconut Shell by Fast Pyrolysis Processing

https://news.anz.com/new-zealand/posts/2021/03/unelco-making-sustainable-energy-from-coconuts

Coconut Biofuel Key to Vanuatu's Energy Future - ANZ News

A Vanuatu energy company is working on a biofuel project that is uniquely Pacific in its approach.

Plantations Policy and the factors of production

Plantations in Sri Lanka are a type of commercial farming where a single crop of tea, rubber, coconuts, sugarcane, cashew, cinnamon, timber, and oil palm is grown. This exercise is an attempt to understand the interventions required to harvest the untapped potential of the industry through the factors of production (land, labour, capital, and entrepreneurship) perspective to earn a tangible profit from the plantation industry.

The land as a factor of production includes the natural resources used to create a good or service. The resources can be renewable resources like forests or non-renewable resources like oil, water, precious stones, minerals, and precious metals.


Coconut plantation
The plantation companies are entitled to use only above-ground resources like the crops cultivated but the below-ground assets are remaining unutilized which is a great loss to the crisis-hit national economy. The haphazard policy decisions taken purely looking from the political point of view on the above ground cultivations have already created more than Rs.27 billion losses for the RPC sector alone. The suspected over 30% crop loss due to untimely stoppage of much-needed fertilizer for large scale and labour-intensive plantation agriculture has also lost a sizable income of forex due to the national economy.



Policy

It is not a secret that Sri Lanka is absent from important national policies when compared to many developed countries in the world. The agriculture policy, Biodiversity policy, Land policy, clean soil policy and national wage policy are a few that can be identified easily. If a common consensus can be arrived at by Parliament in identifying a reasonable GDP after due consideration of the budget deficits, then the national policies can be drafted to bridge the gaps by allocating resources meaningfully. We have had a stagnating GDP of 80 billion USD for several years and borrowing has been a deadly option. Sadly, the country is not short of resources.

The national policy of the plantation industry seems to be the biggest need of the hour of the industry as the policy has been absent from the aforesaid national policies since its very inception. The main aim of such a policy should be the sustainable growth of the industry. The plantation policy will also help to attract FDIs. The leasehold rights of the RPC sector could be increased to 99 years as tea, and rubber crop cycles alone are running into 30 years of each crop. Investor confidence must be looked at in business decisions.

The policy also will have to address issues arising from the life cycle analysis of all crops cultivated at present. We are happy that the ministry has started on this, but the exercise must be completed soon. The degree of the need for the plantation policy is well visible in the following Table. (See Table) Although the numbers published below speak of a very low level of around 2.7% contribution to the GDP, these numbers have been unable to capture the value addition component fully. The Ministry is trying its level best to get the relevant data collected for some time now.



GDP contributions

The labour is responsible for transforming resources into goods or services available for purchase. The outmigration trend of the RPC sector from 300,000 employees in 1992 to a little over 110,000 as of today is alarming. Once the policy is developed it is going to be easy to distinguish workable annual revenue goals. This will lead to the identification of the skill inventory of the employees of the industry. This will help the National Institute of Plantations Management to deliver objectively driven skill transfer programs to all categories of employees such as the daily paid category of employees and monthly paid categories. Also, the industry will be able to generate high-value jobs in the information age. With the residential workforce with plenty of talents and logistics inbuilt such as infrastructure, the Industry is a potential candidate for an influx of FOREX. In the modern world, human capital is an asset that can propel economies but an enabling environment must be created.

The capital is the company’s physical paraphernalia and the money it uses to buy resources. The need for a cash injection to gain from the transformation of the agriculture age to the industrialisation age is very much urgent. The industry needs funding for objectively driven R & D programmes to develop high market products with advanced technologies into attractive markets. Climate-smart agriculture is another area where huge investments are urgent.

Entrepreneurship is the secret sauce that combines all the other factors of production into a product or service for the consumer market. An example of entrepreneurship is the evolution of the social media behemoth Meta (META), formerly Facebook. Another example of entrepreneurship is Starbucks Corporation (SBUX). The retail coffee chain needs land (prime real estate in big cities for its coffee chain), capital (large machinery to produce and dispense coffee), and labour (employees at its retail outposts for service). Entrepreneur Howard Schultz, the company’s founder, provided the fourth factor of production by being the first person to realize that a market for such a chain existed and figuring out the connections among the other three factors of production.



Technology

While not directly listed as a factor, technology plays a vital role in influencing production. In this context, technology has a broad definition and can refer to software, hardware, or a combination of both used to streamline organizational or manufacturing processes. Plantations are heavily dependent on spatial information although such are not used objectively. Satellite-based monitoring is one such catalyst for sure. The Ceylon Planters Society which comprises working planters on the ground has submitted a wire frame indicating the 10 billion USD earning potential per year. The goal was set by considering the factors of production including the accelerator, and technology.

Our collective aim through the compilation of facts above was to lobby for the much-needed national plantation policy and regulation without which the industry cannot make a required impact on the GDP that is crying for forex. We believe that our appeal will be heard this time and acted upon as quickly as possible. The Ceylon Planters are always ready to shoulder the wheel. Let us put our best foot forward to regain Sri Lanka.

(The writer is a Senior Planter/Agricultural Adviser and consultant/Secretary General of the Ceylon Planters’ Society.)

what is the best plantation counter for now. open for discussion ?

target1 wrote:Finally tea time has arrived.

Sri Lanka Tea Sale Averages for the Month of January 2022 recorded Rs.704.67 (USD 3.50) vis-à-vis Rs. 645.02 (USD 3.39) (+Rs. 59.65) in 2021. High Growns for the month of January was Rs. 680.56 as against Rs. 613.29 (+Rs. 67.27) in 2020. Medium Growns fetched Rs. 626.73 vis-à-vis Rs. 585.37 (+Rs.41.36) in 2020. Low Growns recorded Rs.733.69 visà-vis Rs. 673.04 (+Rs.60.65) in 2020

Source: Ceylon tea brokers

Sale Averages - Auction 26.01.2022

Total Low Grown Rs.779.98
Orthodox Low Rs.796.92
Total High Grown Rs.714.57

Time for champion low grown, Uva, western grown tea and rubber plantations. elpl. kval, mask, tpl, namu, hopl, kaha.


https://web.forbestea.com/statistics/sri-lankan-statistics/24-monthly-elevation-averages/1180-monthly-elevation-averages-2021

2021 Yearly average

Western High Rs.611
Low grown Rs.644
Orth Low Rs.655

Sale Averages - Auction 26.01.2022

Total Low Grown Rs.779.98
Orthodox Low Rs.796.92
Total High Grown Rs.714.5


https://www.worldteanews.com/issues-trends/2022-hospitality-trends-inspire-tea-industry

Report: 2022 Hospitality Trends to Inspire the Global Tea Industry

Tea is too hot. Time for food.

Look HPL one of best growing share

cseguide wrote:what is the best plantation counter for now. open for discussion ?

Now too late.  But still two or three may go up overtaking all current runners. First of all we have to study types of crops in each plantation. 

Tpl, Mask= Western Tea
Wata= Palm oil
Namu= Palm oil + Low grown tea, Uva tea
Kgal= Rubber+Tea 
Udpl,Hapu,Elpl,Agal, Kota,Mal, Kval=crops are different to each other percentage wise
TSML=Low grown

For short term trading: Kaha (least appreciated share)
For Mid and Long term: Kgal 

DYOR to Pick the best plantation company.

target1 wrote:

cseguide wrote:what is the best plantation counter for now. open for discussion ?

Now too late.  But still two or three may go up overtaking all current runners. First of all we have to study types of crops in each plantation. 

Tpl, Mask= Western Tea
Wata= Palm oil
Namu= Palm oil + Low grown tea, Uva tea
Kgal= Rubber+Tea 
Udpl,Hapu,Elpl,Agal, Kota,Mal, Kval=crops are different to each other percentage wise
TSML=Low grown

For short term trading: Kaha (least appreciated share)
For Mid and Long term: Kgal 

DYOR to Pick the best plantation company.

What do u think about TSML

Chiranm wrote:

target1 wrote:

cseguide wrote:what is the best plantation counter for now. open for discussion ?

Now too late.  But still two or three may go up overtaking all current runners. First of all we have to study types of crops in each plantation. 

Tpl, Mask= Western Tea
Wata= Palm oil
Namu= Palm oil + Low grown tea, Uva tea
Kgal= Rubber+Tea 
Udpl,Hapu,Elpl,Agal, Kota,Mal, Kval=crops are different to each other percentage wise
TSML=Low grown

For short term trading: Kaha (least appreciated share)
For Mid and Long term: Kgal 

DYOR to Pick the best plantation company.

What do u think about TSML

You don't go wrong with good  balance sheets. No debt. Businesses with strong balance sheets are more likely to survive economic downturns and ready to thrive when the going gets good again. Good luck!

target1 wrote:

cseguide wrote:what is the best plantation counter for now. open for discussion ?

Now too late.  But still two or three may go up overtaking all current runners. First of all we have to study types of crops in each plantation. 

Tpl, Mask= Western Tea
Wata= Palm oil
Namu= Palm oil + Low grown tea, Uva tea
Kgal= Rubber+Tea 
Udpl,Hapu,Elpl,Agal, Kota,Mal, Kval=crops are different to each other percentage wise
TSML=Low grown

For short term trading: Kaha (least appreciated share)
For Mid and Long term: Kgal 

DYOR to Pick the best plantation company.

Thanks
Kgal
Rubber profit = 319 Mn
tea profit = 54 Mn
financial assets = 172Mn
profit from arpico Mattress and insurance company - 184mn

interest rates remain very high in the period. Tea prices are soaring. Rubber prices are slowly dropping.

rajini wrote:

target1 wrote:

cseguide wrote:what is the best plantation counter for now. open for discussion ?

Now too late.  But still two or three may go up overtaking all current runners. First of all we have to study types of crops in each plantation. 

Tpl, Mask= Western Tea
Wata= Palm oil
Namu= Palm oil + Low grown tea, Uva tea
Kgal= Rubber+Tea 
Udpl,Hapu,Elpl,Agal, Kota,Mal, Kval=crops are different to each other percentage wise
TSML=Low grown

For short term trading: Kaha (least appreciated share)
For Mid and Long term: Kgal 

DYOR to Pick the best plantation company.

Thanks
Kgal
Rubber profit = 319 Mn
tea profit = 54 Mn
financial assets = 172Mn
profit from arpico Mattress and insurance company - 184mn

interest rates remain very high in the period. Tea prices are soaring. Rubber prices are slowly dropping.

Keep eye on ASIY.
Last quarter EPS 0.30
undervalued strong share