Business

Monday May 7, 2012

Biomass products gain demand


They promote efficiency and are environmentally friendly

PREVIOUSLY, biomass was not a product that was sought after. In fact, companies used to pay third parties to assist in disposing it. However, in recent years as people and companies are getting more environmentally friendly, biomass products began to be high in demand.

All Cosmos Industries (ACI) group chairman and chief executive officer Datuk Tony Peng Shih Hao says: “Use of biomass helps to prolong the soil life for planting, and facilitates plants to grow stronger, resulting in them being more fruitful.”

This is strategic for ACI as it fits into the country's policy of boosting biomass, lowering the risk of pollution and reducing costly dependence on chemical imports in the agriculture sector.

The use of biomass promotes the efficiency of effective microorganisms (EMs). EMs are used to positively influence decomposing organic matter to maintain sustainable practices such as farming.

‘By collaborating with one another, we reap the benefits of sustainable profits and livelihood for everyone,’ says Peng.

“Biomass is used by ACI by integrating it with chemicals to increase the pH levels of the soil and thus increase the efficiency of the nutrient intake by the crop,” Peng says.

He adds that biomass also enhances the retention of chemical nutrients in the soil to improve soil quality.

On average, ACI consumes about 50,000 tonnes of biomass products, which ranges in price from hundreds of ringgit to the thousands per tonne. Sourcing of biomass products is carried out through sustained relationships, which usually have mutual benefits.

“By collaborating with one another, we reap the benefits of sustainable profits and livelihood for everyone,” Peng says.

The agriculture sector has the potential to grow exponentially as the demand for food grows.

In terms of the company's expansion plans, Peng says: “We are confident of the role that we play in enhancing food production. Plantation-related activities are natural business areas for ACI to explore. Our vast experience and in-depth knowledge of the various aspects of plant growth, nutrition and diseases give us the advantage.”

He adds that exposure to small, medium and large-scale plantations as well as varying crop types also provide ACI with the relevant expertise to further tap the agriculture sector.

Currently, the demand for ACI's fertiliser is largely in Indonesia and Vietnam. Both countries have excess land that can be used for planting. Peng says that as most countries in Asia are developing, the demand for food is also increasing.

Due to the insufficiency in food production, price and demand for many food staples have rapidly increased for reasons beyond just population growth.

The demand for fertiliser in Asia has grown especially since the global area planted for oil palm has grown eight-fold.

“Oil palm is 10 times more productive than soy beans. Over the past three decades, the price of palm oil in real terms have fallen by around 1% per annum, which represents a major improvement in food security for consuming countries,” Peng says.

“Research and development are lifeline activities of a growing company. It is considered a top priority here at ACI. In fact, we are the first company to have applied EM technology in Malaysia,” Peng says on the company's operational success.

He adds that the company believes that EMs play an important role in the promotion of green and environmentally friendly technologies that are being used in many advanced countries.

“We will endeavour to work with corporations locally and overseas to provide specialised technologies and formulas that meet their individual needs,” he says.

The increasing rally by governments around the world to promote new and safe technologies supports the use of EMs.

Another attribute of the company's success is the ongoing marketing efforts to secure the company's future. Despite hard times, when most companies move to cut spending, ACI continues to advertise both its existing and new products aggressively.

“Visionary and opportunity grabbing is part of the operational success of the company,” Peng says.

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