Since 1997, the Group has been cooperating with leading and highly reputable oil palm breeding centres in Africa and South America on its oil palm seed breeding program. The program uses the latest breeding technology together with our own highly qualified personnel. The best sources of oil palm germplasm are being developed consisting of various origins with the objective of providing high yielding planting materials. The Group sees the breeding of oil palm seed of high agronomic value, and high yielding as a core strategic initiative to ensure the continued high productivity of its own estates.

The oil palm seed breeding program of the Group is focused on improving the crude palm oil (CPO) yield and quality, together with controlling trunk height growth and producing drought & disease tolerant seeds.

Mature planting from such seeds should be expected to show improved potential CPO yields from current levels.

The Group has the capacity to produce up to 34 million high quality seedings.

The purpose of the program is for the Group to:

1. Be able to control the genetic purity of the seedlings planted, thus ensuring continually improving CPO yields.
   
   
2. Be self-sufficient in terms of oil palm seedlings for its planting purposes;
   
   
3. Produce additional high yielding oil palm seeds for sale to external parties thus generating additional revenue and profitability for the Group.
   

With 59.5% shareholding interest in Lonsum, the Group can further enhance its exisiting seed productions as Lonsum also operates dedicated research facilities that produce in excess of 25 million oil palm seeds annually with superior quality and high yielding potential.