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
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,”
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
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
Indonesia, however exports less compared to Malaysia, although its
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
“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
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