https://opiej.mpob.gov.my Oil Palm Industry Economic Journal Tue, 28 Aug 2018 08:41:39 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 https://opiej.mpob.gov.my/accelerated-oil-palm-replanting-the-way-forward-for-a-sustainable-and-competitive-industry/ Tue, 28 Aug 2018 08:41:39 +0000 https://opiej.mpob.gov.my/?p=289 Read more]]> Accelerated replanting of old and unproductive oil palm is part of the government’s National Key Economic Area (NKEA) Transformation Programme. It will enable changes to be made within the oil palm supply chain, as the driver of the national high income strategy. Despite its vast potentials, the industry, however, is burgeoned by the issue of stagnating fresh fruit bunches (FFB) yield. Increasing prevalence of old palms resulted from low rate of replanting at only 1.18% per annum was attributed mainly to the economic reason of higher FFB prices. If this trend continues, there would be a likely situation of ‘the rush to replant’, which could affect the overall supply chain, starting from the demand for seeds/seedlings, and subsequently affecting the milling and refining sectors, culminating in the export sector. This article, in highlighting the significance of replanting, has elucidated that the country requires continued accelerated replanting at the rate of at least 155 000 ha/yr.

]]> https://opiej.mpob.gov.my/regional-comparative-advantage-and-competitiveness-of-malaysian-palm-oil-products/ Tue, 28 Aug 2018 08:40:35 +0000 https://opiej.mpob.gov.my/?p=287 Read more]]> This article examines the competitiveness of Malaysian palm oil products compared to other industrial plantation products (cocoa products, coconut, tea and pepper) in selected ASEAN countries (Indonesia, Philippines, Singapore and Thailand) and in China by using the revealed comparative advantage (RCA) and the revealed symmetric comparative advantage (RSCA) indices. The export data for seven groups of products based on the standard commodity categories as defined in the harmonized tariff system (HTS) at the four-digit level were employed. The results indicate that Malaysia has a comparative advantage in six products: palm oil (HS 1511), coconut (copra) and palm kernel oil (HS 1513), cocoa butter (HS 1804), cocoa powder (HS 1805), cocoa paste (HS 1803) and pepper (HS 0904), but a comparative disadvantage in tea (HS 0902). Based on the competitiveness position, Indonesia ranked first while Malaysia ranked second in oil palm products.

]]> https://opiej.mpob.gov.my/new-revenue-opportunities-arising-from-the-waste-streams-of-the-oil-palm-industry/ Tue, 28 Aug 2018 08:34:18 +0000 https://opiej.mpob.gov.my/?p=285 Read more]]> Pure Power owns an innovative lignocellulosic conversion technology, which enables lignochemicals to be extracted from non-food based feedstocks and biomass. It can be deployed across a broad spectrum of feedstock resources in plantation forests in the Americas, throughout Asia, and more specifically, in Malaysia and New Zealand. Suitable feedstocks include wood chips from eucalyptus, poplar, mesquite and willow, and especially empty fruit bunches from oil palm. The company’s technology produces new and profitable products for plantation owners, without disrupting the existing and proven methods for growing, harvesting and processing oil palm. The technology allows for the generation of multiple lignochemicals from oil palm waste, enabling owners and operators to diversify their revenue streams. Pure Power’s technology targets the global petrochemical market in providing substitute products based on renewable sources of lignocellulosic biomass, using a proprietary extraction process to produce high value lignochemicals from oil palm waste. Pure Power’s approach is founded on the simple principle of processing hardwood gently, leaving the long polymer molecules intact so that they can be used as chemical building blocks for high value applications.

]]> https://opiej.mpob.gov.my/indias-oils-and-fats-policy-production-of-oilseeds-towards-self-sustaining-level/ Tue, 28 Aug 2018 07:10:08 +0000 https://opiej.mpob.gov.my/?p=273 Read more]]> India is one of the largest producers of oilseeds in the world with a wide range of oilseed crops grown in different climatic zones. India accounts for an estimated production of about 28 million tonnes of nine cultivated oilseeds during the year 2007/2008, contributing about 6%-7% of the world’s oilseed production. Domestic vegetable oil production is about 8.2 million tonnes, which is not sufficient to meet local requirements because domestic consumption of edible oils is about 12.5 million tonnes. The deficit is met through imports, mainly refined, bleached and deodorized (RBD) palm oil from Malaysia and Indonesia. The surge in edible oil consumption is due to the increased purchasing power of the middle class, and the removal of the import duty. India has been the biggest driver of consumption growth this year. After the removal of import duty, we can state that the Indian vegetable oil market has integrated with the world market. Vegetable oil imports increased sharply due to a fall in prices of edible oils worldwide, while the zero import duty has encouraged the vegetable oil importers. Importers and traders imported oils in large quantity in anticipation that the government may re-impose the import duty at about 20% from zero percent, perhaps building up stocks with a view to making quick profits. Groundnut, rapeseed/mustard, sesame, safflower, linseed, niger and castor are the major traditionally cultivated oilseeds. Soyabean and sunflower have also assumed importance in recent years. Coconut is the most important amongst the plantation crops. Efforts are being made to grow oil palm in some of the states. Among the non-conventional oils, rice bran oil and cottonseed oil are the most important. In addition, oilseeds of tree and forest origin, which grow mostly in tribal inhabited areas, are also a significant source of vegetable oils.

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