The year 2008 was an “extraordinary” year for the oil palm industry. Extraordinary, since it was in 2008

that CPO recorded its highest price throughout history.Referring to Rotterdam CIF price, CPO price achieved

over USD 1,200/ton.Unfortunately, the global economic crisis brought with it a drastic declinein demand for

CPO in the fourth quarter of 2008. As a result,global CPO price dropped sharply, almost touching its lowest

price belowUSD 500/ton. On the other hand, the increase in global oil price occurringsince 2007 was the

major cause of the significant rise in fertilizer price,resulting in a relatively high escalation of the

Company’s operational costs in 2008.