FGV HOLDINGS BERHAD | ANNUAL INTEGRATED REPORT 2023 57 NAVIGATING CHALLENGES GROUP BUSINESS REVIEW CHALLENGE RESPONSE Decrease in FFB yield • Continuous efforts in yield enhancement include expanding footprint to maximise presence in the field, improving crop recovery efficiency, implementing continuous GAP in prime areas and young mature regions, adopting mechanisation and digitalisation for productivity improvement, as well as quality replanting • Rehabilitating areas that are excessively under-pruned and under-weeded to enhance harvesting productivity Higher production costs result from increases in raw material prices, as well as costs of manuring and labour • Exploring alternative sourcing of suppliers for raw materials • Deploying trading initiatives to minimise the global impact • Continuously monitoring market trends and adjusting pricing strategies accordingly to maintain competitiveness while mitigating the impact of rising costs Manpower shortages at estates, particularly for harvesting and upkeep works • Enhancing ethical recruitment efforts through intensified exercises • Strengthening collaboration with recruitment agencies in diverse source countries • The integration of automation through mechanisation and digitalisation into estate operations Adverse weather patterns and reduced fertiliser application in previous years • Preparation of annual work programme following phases and timeline • Optimising planting material performance tailored to site suitability • Development of value-added and specialty fertiliser Increase focus on sustainability and environmental responsibility • Deploying the Remediation Plan as recommended by the appointed Independent Reviewer • Focusing on additional measures and improvements to existing policies and procedures on the welfare and rights of workers
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