mp evans group plc said it expects the fullyear average benchmark price for crude palm oil to reach its highest level in years the total crop processed in the two months to august was 227500 metric tons bringing the yeartodate total to 929800 tons up 28 from the first eight months of 2020 the groups fifth palmoil mill began operation at bumi mas in august and cpo is now being transferred to the recently completed bulking facility on the estate ready for the first group dispatch from that location construction on a new palmoil mill at musi rawas is expected to start during the final quarter of 2021 at the start of july the cif rotterdam palmoil price was us1060 per tonne and increased during the two months to the end of august ending the period at us1235 furthermore the indonesian government announced a reduction in the export levy applied to cpo taking effect from 2 july 2021 which reduced the highest levy from us255 per tonne to us175 a combination of increasing prices and the levy reduction helped to increase exmillgate prices in the two months to august resulting in an increase in the groups average millgate price from the us724 in the first six months of the year to us738 for the first eight months of the year given the continued strength evident in the forward markets the fullyear average cif rotterdam price is likely to be at a multiyear high looking into 2022 much depends on the extent to which production in malaysia recovers if and when foreign labour restrictions are relaxed as covid19 is brought under control palm oil is also dependent on developments in the wider vegetableoil market in particular the soyaoil market which is likely to continue to be influenced by weather patterns in the americas in addition with regard to input costs there may be some upward pressure arising from increases in fertiliser and other costs however production increases will help to mitigate against any increases in unit costs of the groups production 54 is certified sustainable palm oil the group remains committed to significantly increasing its milling capacity processing ffb in its own mills and achieving certification for each one in the meantime all the groups crop and that of its associated scheme smallholders is produced in full accordance with the roundtable on sustainable palm oil standards following the announcement of changes to rspo rules the group paused planting at its musi rawas estate in late 2019 and subsequently provided all necessary documentary evidence to demonstrate compliance with the updated requirements the group received clearance from the rspo at the end of july 2021 that planting could restart there are 8000 planted hectares at musi rawas and based on the clearance now received the group remains confident of being able to reach a total of at least 10000 hectares elsewhere in the first half of 2021 the group undertook a small amount of new planting and replanting totaling 126 hectares