Palm | Kelapa Sawit

Calculate Return on Oil Palm Land Investment

Revenue
Number of Acres X Tons of Palm Oil Fruit/Acre
= Output X Estimate 20% X CPO Price
= Revenue per Harvest X Number of Harvest/Year
= Revenue of The Year

Cost
Labor Fee = Labor Cost/Ton Monthly X Number of Labor X 12 Months
Weed Maintenance
Fertilizer

Revenue - Cost = Profit

Profit/Land Cost = Yield on Oil Palm Land Investment

Example:
1000 acres can harvest 1000 tons per month
Revenue: RM625,000/Month or RM7,500,000/Year
Labor fee: RM35/Ton = RM35,000/Month or RM 420,000/Year
Weed maintenance: Estimate RM20,000 /Month or RM240,000/Year
Fertilizer cost: 3 months once is approx RM200,000 or RM 800,000/Year
Profit: RM6,040,000/Year

Assume Land Cost = RM75,000/acre or RM75,000,000/1000 acres

Yield on Oil Palm Land Investment = 8%





Note:
1. Crude Palm Oil Price (CPO) and Costs is fluctuate and is depend on market demand and supply
2. The formula and example above is for reference and illustration purpose only
3. If you have any enquiry, please send an email to cyruschang.kl[at]gmail.com