2. The world's largest producer of sustainable palm oil, with 82% of its production certified
sustainable, and is one of the world’s largest listed palm oil companies, producing about 2.47
million tonnes or 5% of the world’s crude palm oil (CPO) output annually
Upstream Operation
the development of oil palm plantations
cultivation of oil palm
management of estates
milling of fresh fruit bunches (FFB) for CPO and crude
palm kernel oil (CPKO)
Downstream Operation
encompassing the manufacture and distribution of oils and fats
products to biodiesels, oleochemicals, and nutraceuticals
Contributions in developing and pioneering best management
practices in the oil palm industry and in many instances, assisted in commercialising them
3.
4.
5. Porter’s Five Forces
Threat of
New Entry
Competitive
Rivalry
(sunflower oil, mustard
oil & olive oil)
Buyer Power
Threat of
Substitution
Supplier
Power
Give an importance to maintain the
relationship with customers by providing
products according to their needs and
necessary technical assistance. In the
palm oil industry the bargaining power
of customers is high, because the
product in different prices and quality
is available in the market.
• Degree of dependency upon existing channels
of distribution
• Buyer volume
• Ability to backward and forward integration
• Buyer price sensitivity
The existence of close substitute products increases
the propensity of customers to switch to alternatives in
response to price increases.
• Buyer propensity to substitute - The demand for palm oil is
declining due to availability of alternative edible oils, at very low
prices.
• Perceived level of product differentiation
SIME Plantation always maintains good
supplier relationship by providing a sense
of commitment to the supplier. It creates
a networking businesses with them for the
future needs and to determine how best to
satisfy those needs by working together.
• Economies of product differences - Palm oil is differentiated on
the basis of quality and price
• Learning curve advantages - SIME Plantation is a leader in
research & development (R&D) and always introduce new
technology to capture the market.
• Government policies
7. Code of Business
Conduct
defines the standards of
behaviour expected of
all Directors and
employees of SIME
Plantation, and where
applicable,
counterparts and
business partners
Anti-Corruption
takes a zero-tolerance
approach towards
bribery and corruption,
and are committed to
behaving professionally,
fairly and with integrity
in all our business
dealings and
relationships
Labour Practices
aims to be an employer
of choice. SIME
Plantation committed
to equal opportunity for
the workforce and do
not tolerate
discrimination on any
grounds. The company
respect its employees’
legal rights with respect
to freedom of
association and aim to
maintain an open and
effective relationship
with its employees
Human Rights
respect for fundamental
human rights, which
governs SIME
Plantations’ operations,
outlines the standard of
behaviour expected of
the Directors,
employees,
counterparts and
business partners, and
standards adopted by
respective business
divisions, such as the
Roundtable on
Sustainable Palm Oil
(RSPO) by its Plantation
Division.
Value Chain
