August 27, 2009

HLH harvests corn crop in Cambodia

HLH Group, a Singapore-listed agribusiness and property development group, has successfully harvested its first corn crop at its 450-hectare plantation in Cambodia.

The harvest yielded six tonnes per hectare. HLH has already built its corn drying, processing and storage facilities at the plantation, and the corn processing plant is the largest in Cambodia.

One of Singapore's first agri-business companies to invest in Cambodia, HLH said it is expecting its second harvest by the end of the year.

Each corn harvest is expected to yield about six to eight tonnes per hectare. HLH's plantation is expected to produce 5,000 to 7,000 tonnes a year.

The group, which has invested more than US$12 million in Cambodia and has acquired more than 10,000 hectares of agricultural land in the country, expects to invest close to US$40 million for its entire corn plantation there.

HLH said it will fund its agricultural investments in Cambodia through internal funds and borrowings from financial institutions.

The corn will be sold to feed mills in Cambodia and used mainly for animal feed.

In March this year, the group also agreed with Cambodia's Ministry of Environment to develop 9,985 hectares concession lands at Oral District in Kampong Speu for its corn plantation business.

Land clearance and corn planting on these concession lands have begun, with the company expecting to reap its first harvest by the end of this year.