https://opiej.mpob.gov.my Oil Palm Industry Economic Journal Tue, 28 Aug 2018 14:17:05 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 https://opiej.mpob.gov.my/economic-impact-of-ganoderma-incidence-on-malaysian-oil-palm-plantation-a-case-study-in-johor/ Tue, 28 Aug 2018 14:17:05 +0000 https://opiej.mpob.gov.my/?p=316 Read more]]> Crop losses due to pest and disease infestations are major threats to agricultural development. For export oriented commodities such as palm oil, the problem of pests and diseases (P&D) cannot be viewed in isolation because it can affect international cost competitiveness as well as revenue losses. The objective of this article is to estimate revenue losses due to FFB yield reduction as a result of Ganoderma attack. From the study, it was found that Ganoderma attack can lead to fresh fruit bunches (FFB) yield reduction between 0.04 t and 4.34 t/ha on 10 years to 22 years of planting respectively. Based on annual growth of Ganoderma incidence rate, it was estimated that in 2020, a total of 400 thousand hectares could be affected.

]]> https://opiej.mpob.gov.my/the-impact-of-renewable-fuel-standard-rfs2-on-palm-biodiesels-market-access-to-the-united-states-of-america/ Tue, 28 Aug 2018 14:15:44 +0000 https://opiej.mpob.gov.my/?p=314 Read more]]> On 26 March 2010, the Environmental Protection Agency (EPA) published final changes to the RFS2 programme as required by the Energy Independence and Security Act (EISA) of 2007. EISA has targeted 117 million tonnes (36 billion gallons) of renewable fuel to be blended into transportation by 2022. The Act also introduced new eligibility of volume requirements for the four categories of renewable fuel. The most significant aspect of the RFS2 programme is the inclusion of life cycle analysis for greenhouse gas (GHG) emissions to qualify as a renewable fuel. The life cycle analysis of GHG emissions must be lower than the 2005 baseline average for gasoline or diesel fuel that it replaces. Four different levels of reductions are required for the four different renewable fuel standards. These include 20% for conventional renewable fuels, 50% for advanced biofuel, 50% for biomass-based diesel and 60% for cellulosic biofuels. RFS2 regulation came into effect on 1 July 2010. For 2012, the statutory volume requirement is 3.25 million tonnes (1.0 billion gallons) and a minimum of 3.25 million tonnes/year (1.0 billion gallons) of biomass-based diesel is targeted from 2013 through 2022. The proposed volume for 2013 is 4.02 million tonnes (1.238 billion gallons). Currently, feedstocks for biodiesel already approved by EPA included soyabean oil, algal oil, biogenic waste oils/fats/yellow grease, corn oil from DGS and canola oil. Palm-based biodiesel, wood pulp ethanol and grain sorghum ethanol are still under review by EPA. Notice of Data Availability (NODA) for palm oil was published on 27 January 2012. Based on EPA’s analysis, palm-based biodiesel fails to meet the minimum requirement of GHG emission saving of 20%, thus, does not qualify as renewable biofuel under RFS2; palm-based biodiesel and renewable diesel only reduce GHG emission by 17% and 11% respectively. For palm-based biodiesel to be categorised under biomass-based diesel (D4 RIN), it must comply with 50% GHG saving compared to 2005 baseline of petroleum diesel. Malaysian government and other interested parties must submit their comments during the rule-making process to influence EPA on their modeling of palm pathway. Only one pathway will be approved for palm-based biodiesel regardless of its origin in the final rule-making process. If palm NODA is approved by EPA in the final rule-making process, the future for palm-based biodiesel and renewable diesel in the US renewable energy market are non-existence. The reinstatement of USD 1/gallon tax credit for 2011 has given a boost for the biodiesel industry in the US and the production of biodiesel in 2011 exceeded 3.25 million tonnes (1.0 billion gallons). The extension of biodiesel tax credit for 2012 is being debated after it expired on 31 December 2011 and the prospect of US biodiesel industry in 2012 will be more challenging without the extension of the tax credit.

]]> https://opiej.mpob.gov.my/internationalisation-of-malaysian-palm-oil-based-multinationals/ Tue, 28 Aug 2018 14:13:40 +0000 https://opiej.mpob.gov.my/?p=312 Read more]]> This article highlights the internationalisation strategies of selected Malaysian palm oil firms. These Malaysian palm oil multinationals which we call palm oil-based multinationals (POB MNE) are undertaking foreign direct investments (FDI) in developing as well as developed countries. The motives of their FDI are explained using the internationalisation theory. The internationalisation of POB MNE will require new roles for key institutions supporting the Malaysian palm oil industry. This is especially in the case of MPOB which undertakes research activities which are funded from cess levied on the palm oil industry.

]]> https://opiej.mpob.gov.my/a-study-on-inventory-management-of-malaysian-palm-oil-products/ Tue, 28 Aug 2018 14:12:09 +0000 https://opiej.mpob.gov.my/?p=310 Read more]]> Inventory management is important to balance organisational objectives, particularly on the appropriate level of stock for raw materials and production outputs as well. The amount of inventory has a direct impact on the responsiveness and efficiency of operations of a company. In general, it can reflect also on the performance of an industry. In the Malaysian palm oil industry, most of the processing activities are well-planned or geared towards fulfilling order as demanded or known as ‘back-to-back’ approach. Hence, the movements of palm products along the supply chain are rather fast to reach respective buyers on time. As a result, the inventory levels of palm products should be low but enough to meet the demand of processing activities.

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