In Malaysia, around 1.4 million hectares (25% of total planted area) are nearing the end of their productive life. In Sabah alone, one in three trees is over 20 years old. Without aggressive replanting, yields will fall, costs will surge and the industry will stagnate. Replanting costs around RM30,000 per hectare with a maturity horizon of 3 years. In 2023 and 2024, only 132,000 HA and 114,000 HA were replanted respectively. Companies with ageing trees will be hit hardest when palm oil prices dip.
Source: The Star