Indofood Agri

Indofood Agri: mgt updates on pdtn plans. Area under palm oil cultivation to increase 16% by end-’11 to ~224k ha. Expects 4Q CPO pdtn to rise by ~12% qoq to ~225k mt. This compares 9M10 CPO at -3% yoy, due partly to adverse weather conditions and lower yields. Next year, CPO output is likely to rise about 5-10% due to expansion of plantations…

IndoAgri also plans to raise cane area by ~71% to 18.5k ha by the end ‘11, in response to strong domestic demand and supply shortages caused by heavy rains. Expects the sugar cane harvest from its plantations in South Sumatra to double to 800k tons next yr. Construction of an 8k ton sugar refinery in Sumatra is on track for completion next year, and a factory in East Java will complete its first full season this yr, likely producing 20k tons of sugar cane by Dec, vs negligible output last yr.