Planning To Grow Palm Oil Trees

[jamescollister]

2) Is it possible to buy palm oil trees already 6 months old and at what unit costs and where.

( i have calculated that about 3'200 trees will be needed for a 100 rai plantation is

that right ? )

There is a nursery selling 6 month old palms on the main road out of Kantaralak towards Kao Prah Vihean, a couple of kms on the left, their price last year was about Bt70 each. They will also give you lots of advice re: planting densities, soil conditions, fertilisers etc. and have printed info. to help you.

Kantaralak ! is'nt that somewhere in Isaan ? If so, i have read that there is not enough rainfall (very important) in that area. Can someone please inform me on this one. I believe that the govt., did look at Palm Oil in Isaan, but dumped the idea as unsuitable. It appears that it is only viable from Chumpon south.

No there is palm oil in Issan, but it is mainly in the ares that rubber grows. That is along the Cambodia and Lao borders. From my understanding the short wet season means that trees in Issan produce about 30 kilos a months verses 50 kilos in the south. Jim

[oldsailor35]

2) Is it possible to buy palm oil trees already 6 months old and at what unit costs and where.

( i have calculated that about 3'200 trees will be needed for a 100 rai plantation is

that right ? )

There is a nursery selling 6 month old palms on the main road out of Kantaralak towards Kao Prah Vihean, a couple of kms on the left, their price last year was about Bt70 each. They will also give you lots of advice re: planting densities, soil conditions, fertilisers etc. and have printed info. to help you.

Kantaralak ! is'nt that somewhere in Isaan ? If so, i have read that there is not enough rainfall (very important) in that area. Can someone please inform me on this one. I believe that the govt., did look at Palm Oil in Isaan, but dumped the idea as unsuitable. It appears that it is only viable from Chumpon south.

No there is palm oil in Issan, but it is mainly in the ares that rubber grows. That is along the Cambodia and Lao borders. From my understanding the short wet season means that trees in Issan produce about 30 kilos a months verses 50 kilos in the south. Jim

Thanks for that info James, but personally i would'nt consider PO unless i was south of Chumpon. Malaysia & Indonesia are the best places due to high rainfall and soil type.

Also PO needs not less than 1800 mm per year or 150mm per month. Dry spells not longer than 60 days. Need 6 hrs sunlight per day.

[oldsailor35]

G'day Jim, Just as a matter of interest, do you know what the average rainfall in that Lao/Cambodian border area.

[pnustedt]

G'day Jim, Just as a matter of interest, do you know what the average rainfall in that Lao/Cambodian border area.

The prob is that from Jan to Apr there is next to no rain, then we get a deluge. However, there is plenty of water about, it just takes a bit of effort and ingenuity (not a common resource for Isaan farmers!) to get it onto the plants. I dug a pond on my palm orchard and pump water twice a week during the dry season. However, the pond is drying up this year, so I bought a tank and truck water in from a nearby river.

[jamescollister]

G'day Jim, Just as a matter of interest, do you know what the average rainfall in that Lao/Cambodian border area.

Can't say that I know the anwser to that, but the rain patterns seem to vary over a small area. Most of the rubber in my area is along the National park, which is the small mountain range along the Lao border. Don;t know wether it is the jungle plus rubbertrees or the mountians or both, but we get a longer wet season and less flooding than the rice fields a few km inland. We have had our first rain of the year and all the trees are leafy again. I guess you could add the that with water run off from the mountains keeping the area greener in the dry season. Jim

[likewise]

There seems to be more trouble in the palm oil world, tomorrow should have been harvest day but apparently the wholesalers are on strike because the factories have managed to get the prices to 4baht/kilo??

Anyone got any more info on this, I just heard vagely from wife after she contacted her father.

[Mosha]

Thailand is importing oil from Malaysia, they have to recoup the cost somehow, it's about 5.8/kg round here and still falling. My friend can't understand it as the futures markets are all high. he says.

[jamescollister]

There seems to be more trouble in the palm oil world, tomorrow should have been harvest day but apparently the wholesalers are on strike because the factories have managed to get the prices to 4baht/kilo??

Anyone got any more info on this, I just heard vagely from wife after she contacted her father.

Everything PO, oil, rubber, it's been a bad year so far. Hard winters in the Northern hemisphere, back summers in the south, trouble in the middle East add to that Japan and NZ. The markets are jumpy and unless the doomsday forecaste for 2012 comes about then it will settle again. If it is all coming to a close next year, so sad to bad. Jim

[likewise]

according to the latest update I got they opened again and today's price is at 5.30baht/kilo.

but indeed volatile times ahead.

[jamescollister]

according to the latest update I got they opened again and today's price is at 5.30baht/kilo.

but indeed volatile times ahead.

Just checked the rubber price, dropped 28 Baht over night. Down over $2 a kilo since last year. Having watched the rubber prices over the years I still can't fugure out what goes through the commodity dealers heads. Prices will go up next season ergo you would think now is the time to buy and stock pile it, but no once the fall starts everyone seems to run and or dump the stocks, strange. Jim

[likewise]

They work in mysterious ways

[yotspeed]

according to the latest update I got they opened again and today's price is at 5.30baht/kilo.

but indeed volatile times ahead.

Just checked the rubber price, dropped 28 Baht over night. Down over $2 a kilo since last year. Having watched the rubber prices over the years I still can't fugure out what goes through the commodity dealers heads. Prices will go up next season ergo you would think now is the time to buy and stock pile it, but no once the fall starts everyone seems to run and or dump the stocks, strange. Jim

Down here in Donsak (East Suratthani) / Khanom (North Nakhon Si Tamm) area Palm Oil is now down to 5.0 per kg.

Rubber (sheet) is 90 per kg, cup rubber is 50 per kg.

[likewise]

harvested plam today 4.5 tonnes sold at 4.80 baht/kilo

[oldsailor35]

G'day Jim, Just as a matter of interest, do you know what the average rainfall in that Lao/Cambodian border area.

The prob is that from Jan to Apr there is next to no rain, then we get a deluge. However, there is plenty of water about, it just takes a bit of effort and ingenuity (not a common resource for Isaan farmers!) to get it onto the plants. I dug a pond on my palm orchard and pump water twice a week during the dry season. However, the pond is drying up this year, so I bought a tank and truck water in from a nearby river.

No rain for 4 months, that gives the 60 dry day limit for Palm Oil a kick in the backside. But i suppose if the farmer has got big water storage dams he can irrigate, but they need an awful lot of daily water.

[oldsailor35]

quoting "jamescollister"

I looked at palm earlier this year when the local Government offered us 800 free trees and could not see it as a winner. At the prices you get per kilo. That was even though I have the land to spare and the equipment for planting,clearing etc.

I have no experience with palm trees, but figured it would be the same for maintainance etc as my rubber and said no thanks to the free trees

Dear jamescollister,

Very very interested in your opinion on this. Here are some rough numbers I have come up with. At 25 trees/rai, 60 kilos/tree, 6 baht/kilo, translates to 9000 baht/rai/month during growing/rain season, times say 6 months, is 54,000/year. I hear net is something like 60% of gross which would be 9000 baht profit/rai/year.

If these numbers are in the ballpark I would consider that to be a good investment.

Very very interested in your opinion on this.

Dave

Had a word with the brother in-law, he says palm is going for 2.5 to 3 baht a kilo around here. We are along way from any oil processing plants, so you are stuck with the price the middle men give. I guess if you had a lot of friut it would pay to buy a 20 ton truck yourself. By the way where are you getting 6 baht a kilo,as I may look into just that. Buy rubber now, so could buy palm if I bought a big truck. JIM

Last week , end of jan 2011, father inn law was getting 9 bht per kilo...............very profitable indeed.

Any ideas I had on palm oil have long gone. The price of land in my area has gone through the roof ergo it would take 10 to 15 years to recoup the costs. Luckily my rubber is doing fine and will pay for me to sit drinking beer for the rest of my l;ife. Jim

Yes Jim, think you have got things under control and PO land is now very expensive. Good luck with the rubber.

[oldsailor35]

quoting "jamescollister"

I looked at palm earlier this year when the local Government offered us 800 free trees and could not see it as a winner. At the prices you get per kilo. That was even though I have the land to spare and the equipment for planting,clearing etc.

I have no experience with palm trees, but figured it would be the same for maintainance etc as my rubber and said no thanks to the free trees

Dear jamescollister,

Very very interested in your opinion on this. Here are some rough numbers I have come up with. At 25 trees/rai, 60 kilos/tree, 6 baht/kilo, translates to 9000 baht/rai/month during growing/rain season, times say 6 months, is 54,000/year. I hear net is something like 60% of gross which would be 9000 baht profit/rai/year.

If these numbers are in the ballpark I would consider that to be a good investment.

Very very interested in your opinion on this.

Dave

Had a word with the brother in-law, he says palm is going for 2.5 to 3 baht a kilo around here. We are along way from any oil processing plants, so you are stuck with the price the middle men give. I guess if you had a lot of friut it would pay to buy a 20 ton truck yourself. By the way where are you getting 6 baht a kilo,as I may look into just that. Buy rubber now, so could buy palm if I bought a big truck. JIM

Last week , end of jan 2011, father inn law was getting 9 bht per kilo...............very profitable indeed.

Any ideas I had on palm oil have long gone. The price of land in my area has gone through the roof ergo it would take 10 to 15 years to recoup the costs. Luckily my rubber is doing fine and will pay for me to sit drinking beer for the rest of my l;ife. Jim

Errrrrrrrrrr perhaps mate, you might have a couple of those beers to spare for a 'struggling' farang !

[jamescollister]

Errrrrrrrrrr perhaps mate, you might have a couple of those beers to spare for a 'struggling' farang

Visitors are always welcome. Jim

[jamescollister]

Don't know about PO, but rubber up 19 Baht today. That has to be the shortest market crash in history, just hope it keeps climbing. Jim

[Mosha]

Glad to hear about the rubber James, we are just about to resume tapping in Ranong. The palm 2 days ago was 4.3 for FFB and 4.0 loose. The depots charging 0.34Bt /kilo to harvest

[likewise]

Any word on the plam oil prices lately? last time we cut it was down to 4.80.

[jamescollister]

Any word on the plam oil prices lately? last time we cut it was down to 4.80.

Likewise is there not a daily auction price published on the net like rubber. If not how would you know if you were getting ripped off. Jim

[yotspeed]

Any word on the plam oil prices lately? last time we cut it was down to 4.80.

Likewise is there not a daily auction price published on the net like rubber. If not how would you know if you were getting ripped off. Jim

P.O. Price yesterday around Donsak / Khanom (Surat/Nakhon); 4.30 per kg.

Big rain down here again over last week and forecast to last through the weekend. Usually seems to have an effect on PO and rubber prices! Started with a big storm front coming through last week that felled quite a few more rubber trees in this region! Seems like we've been in monsoon conditions for around 5 months now with relatively few, short, dry spells interspersed.

[likewise]

Any word on the plam oil prices lately? last time we cut it was down to 4.80.

Likewise is there not a daily auction price published on the net like rubber. If not how would you know if you were getting ripped off. Jim

When it's harvest time FIL calls the wholesalers and we get the price, on the net I haven't found reliable info about the PO prices.

[likewise]

Any word on the plam oil prices lately? last time we cut it was down to 4.80.

Likewise is there not a daily auction price published on the net like rubber. If not how would you know if you were getting ripped off. Jim

P.O. Price yesterday around Donsak / Khanom (Surat/Nakhon); 4.30 per kg.

Big rain down here again over last week and forecast to last through the weekend. Usually seems to have an effect on PO and rubber prices! Started with a big storm front coming through last week that felled quite a few more rubber trees in this region! Seems like we've been in monsoon conditions for around 5 months now with relatively few, short, dry spells interspersed.

Thanks, yep been pouring down here as well.

[strabel23]

2) Is it possible to buy palm oil trees already 6 months old and at what unit costs and where.

( i have calculated that about 3'200 trees will be needed for a 100 rai plantation is

that right ? )

There is a nursery selling 6 month old palms on the main road out of Kantaralak towards Kao Prah Vihean, a couple of kms on the left, their price last year was about Bt70 each. They will also give you lots of advice re: planting densities, soil conditions, fertilisers etc. and have printed info. to help you.

Kantaralak ! is'nt that somewhere in Isaan ? If so, i have read that there is not enough rainfall (very important) in that area. Can someone please inform me on this one. I believe that the govt., did look at Palm Oil in Isaan, but dumped the idea as unsuitable. It appears that it is only viable from Chumpon south.

No there is palm oil in Issan, but it is mainly in the ares that rubber grows. That is along the Cambodia and Lao borders. From my understanding the short wet season means that trees in Issan produce about 30 kilos a months verses 50 kilos in the south. Jim

30 kilos per month per tree x 300 trees = 9000 kg. x 7 bht/kg = 63,000 / month ??? 9000 kg x 9 bht./kg = 81,000 bht. / month. Is this right???? 50 kg. x 300 trees = 15000/month x 9 bht. = 135,000 bht. ????? ARE YOU SERIOUS????

[ttthailand]

Can anyone advise on the current prices for palm oil trees. I am looking for about 250 trees. I am in the Burram area. My wife has so far got prices from 120 baht to 200 baht per tree. All the trees are about 6 months old. The trees for 200 baht are said to produce 4 times more oil and grow about half the height.

Any info on the above would be helpful, phone numbers, contacts etc

[strabel23]

Can anyone advise on the current prices for palm oil trees. I am looking for about 250 trees. I am in the Burram area. My wife has so far got prices from 120 baht to 200 baht per tree. All the trees are about 6 months old. The trees for 200 baht are said to produce 4 times more oil and grow about half the height.

Any info on the above would be helpful, phone numbers, contacts etc

200 bht ea. 4 times the oil!!!

They must have seen you coming :-)

[ttthailand]

Can anyone advise on the current prices for palm oil trees. I am looking for about 250 trees. I am in the Burram area. My wife has so far got prices from 120 baht to 200 baht per tree. All the trees are about 6 months old. The trees for 200 baht are said to produce 4 times more oil and grow about half the height.

Any info on the above would be helpful, phone numbers, contacts etc

200 bht ea. 4 times the oil!!!

They must have seen you coming :-)

Why do you think I ask these questions. They see farang or know someone ( wife ) is new to the business and try to take advantage. I was not born yesterday !

However I don't want to just fine the cheapest price and buy. I want to get good value for my money. I have done some homework and understand that there are different types of trees that produce different amounts of oil, exactly how much I question as it depends on land and water.

I have read most or perhaps all the information on TV but have not found the current palm oil tree prices. I am taking a 2 hour drive today to check out a place that sells the trees. I would like to find something more near my place ( Non DIng Deang) as support is always needed but I have not found growers only middle men who are telling me all kinds of stories to make a sell, "4 times the oil" ..... The trip today will be a good start but any info from the Farang world is normally correct where from Thai it is sometimes slanted ( to their advantage).

Any info is welcomed...thanks !

[strabel23]

It depends.

If you have alot of cash lying around, doing palm or rubber is better than

having the money in the bank.

(Never borrow money to do this)

If you came and bought the land like 10-15 years ago, it was actually quite

a good investment.

I calculate that I got my whole investment back in about 5 years, back then.

Today I guess it'll take between 20-30 years, cause of the high land prices

and maintenance costs,(fertilizer etc).

10 years ago the oil palm price was exactly the same as it is today !

Most Thais don't seem to realize this, but what it means is, that the price has actually decreased over the years.

High land prices??

I can still buy land in the province of Nakhon Si Thammarat for 30 - 50,000 bht/rai.

[jamescollister]

It depends.

If you have alot of cash lying around, doing palm or rubber is better than

having the money in the bank.

(Never borrow money to do this)

If you came and bought the land like 10-15 years ago, it was actually quite

a good investment.

I calculate that I got my whole investment back in about 5 years, back then.

Today I guess it'll take between 20-30 years, cause of the high land prices

and maintenance costs,(fertilizer etc).

10 years ago the oil palm price was exactly the same as it is today !

Most Thais don't seem to realize this, but what it means is, that the price has actually decreased over the years.

High land prices??

I can still buy land in the province of Nakhon Si Thammarat for 30 - 50,000 bht/rai.

Ah , but us it land that will grow rubber or palm. Brother in-laws wifes family, big PO and rubber in Krabi come up looking to buy rubber land. After a week of looking they found nothing of interest at a good price. Jim