Malaysia’s Palm Oil Tops World Edible Oil Supplier

KUALA LUMPUR: Malaysia’s palm oil has attained a high level

branding internationally.


This is not only as a top quality edible oil but also due to

Malaysia’s reliability in supplying to a global market that continues to

face a severe shortage of oil and fats, a top industry official said.

Tan Sri Dr Yusof Basiron, the Chief Executive Officer of the

Malaysian Palm Oil Council (MPOC), said Malaysia was recognised as a key

supplier to food security globally.

It includes, he added, some Muslim countries where food security is a

major problem.


He said palm oil was also known as the solution to poor countries

meeting their oils and fats demand, due to its cheaper price when

compared to other edible oils.

“It is also the cheapest oil to produce and refine,” he said at a

roundtable discussion on palm oil organised by Bernama on Thursday.


The roundtable was moderated by Bernama Editor-in-Chief Datuk Yong

Soo Heong as well as Deputy Editor-in Chief, Puan Salbiah Said and

Assistant Editor, Cik Siti Hawa Othman.

“We are well-assured in terms of food access and also contribute to

global food security, especially to those Muslim countries concerned.

Oil Palm is also a crop that provides a solution to overcoming poverty,”

he explained.

Yusof said due to its availability and low cost, palm oil is an

important component to the increasing intake of oils and fats in the

developing world.

The world, Yusof explained, is forecast to require an additional six

million tonnes of oil and fats this year, but overall production can

only contribute another three million.

Malaysia and Indonesia, currently supply more than 85 per cent of

the world’s palm oil. Without the large volume exported by both

countries, there would be a major problem in meeting global demand for

vegetable oil.

Indonesia, however exports less compared to Malaysia, although its

produced more.


On the basis of the trade in oils and fats in 2008/09, Malaysia

supplied 29.1 per cent of the world’s total palm oil with Indonesia

providing 27.3 per cent.

Together, both contributed to over one half of the total trade in

vegetable oils, according to a research.

“Malaysia is helping the world to secure food security. In terms of

image, Malaysian palm oil has emerged tops in the vegetable oil

industry.


“The main markets like Japan, the United States and some others, buy

from Malaysia. About 80 to 90 per cent of their palm oil supply is from

Malaysia, thanks to our branding,” he noted.

According to Yusof, as a competitive crop, the oil palm yields 10

times more oil per hectare compared to other crops and its availability

at all times is guaranteed.

On concerns over a palm oil supply shortage due to the El-Nino

weather phenomenon, he said the drought caused by it, is expected have

no immediate impact on the country’s production.

“It doesn’t affect current production immediately. The impact of the

drought may be felt six months to a year later.

“However, in Malaysia, we don’t have a prolonged drought. That’s

why, we have become a very good producer country,” he stated.

Yusof said, he is optimistic Malaysia can achieve the production

target for this year of between 17.5 million tonnes and 18 million

tonnes, despite a labour shortage, uncertain weather conditions and slow

replanting targets.

He also indicated that the crude palm oil (CPO) price, is expected

to hover between RM2,600 and RM3,000 per tonne.

The CPO price, he said will likely breach the RM3,000 per tonne

level towards the second half of the year. – Bernama 

Source : New Straits Times

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