Vol. 2 (2) September 2002 – OPIEJ

US Agricultural Subsidies and their Implications on Oilseeds and, Oils and Fats Trade

mpob_admin — Mon, 27 Aug 2018 08:32:52 +0000

Palm oil is today the leading edible oil traded in the world market, accounting for more than 40% of the total export trade of 17 oils and fats. Although oil palm is widely recognized as the highest yielding oil crop, this does not in any way guarantee that it is the most cost competitive. The reality is that trade distorting measures in the form of agricultural production subsidies and export assistance programmes continue to challenge the competitiveness of palm oil and subsequently, its position as the most competitive vegetable oil. In highlighting the implications of trade distorting agricultural subsidies, it is clear that farmers planting decisions in the US are related to the attractive loan rate rather than the market price, thus introducing potential production-influencing effects into the market place

Arbitration Issues in the International Vegetable Oil Trade

mpob_admin — Mon, 27 Aug 2018 08:31:17 +0000

This paper concerns settling commercial disputes in the oils and fats trade. The usual method is litigation before the courts and commercial settlements. However, between these two extremes are arbitration, coordination and mediations. The FOSFA system of arbitration offers the best for obtaining commercial justice, swiftly and at a reasonable price.

Malaysian Palm Oil Industry at Crossroads and its Future Direction

mpob_admin — Mon, 27 Aug 2018 08:29:09 +0000

Palm oil accounts for 20% and 46% of the global oil and fats production and trade respectively. Malaysia is the world ís largest producer and exporter of palm oil with a 50% share of world palm oil production and 61% of exports. This paper assesses the growth of the Malaysian palm oil industry and the limitations of land and labour on the future growth of the industry. The industry ís competitive edge will continue to be a vital factor for its future development. Thus, in order to remain competitive, the industry needs to improve on productivity, explore opportunities to diversity the income base, widen the end-use base for palm oil, explore new marketing approaches and intensify vertical integration.

Prospects of Elevating National Oil Palm Productivity: A Malaysian Perspective

mpob_admin — Mon, 27 Aug 2018 08:27:13 +0000

The expansion of oil palm plantings has been phenomenal: from 60 000 ha in 1960 to 3.50 million hectares in 2001 and an expected 5.10 million hectares in 2020. The increase in palm oil production has accordingly reflected the pattern of the planted area, i.e. 91 793 t in 1960 to 11.80 million tonnes in 2001 and an expected 18.81 million tonnes in 2020. The national oil yield average does not seem to increase in step with the advances made in science and technology. The national oil yield average was 3.63 t/ha from 1975 to 2001, while the last 10-year average (1992-2001)was only 3.50 t/ha. This is very low indeed with no significant difference from other competing countries. Oil palm breeding has improved the planting materials. The oil yield of duras has improved from 2.8 to 4.5 t/ha after four selections. The oil yield of teneras from subsequent dura selections and introgression with selected pisiferas has improved from 6.3 to 11.2 t/ha in the last four decades. Why then is the national oil yield average still low? There can be many macro-reasons. Some reasons can be that with the rapid expansion of oil palm area, the limited areas of Class 1 and 2 soils have been used up and plantings have extended to Class 3 (marginal) and 4 (unsuitable) soils. Some other reasons may be inadequate agronomic inputs (especially fertilizer, field maintenance, etc.), shortage of skilled labour, ineffective and inadequate estate management, low replanting rate, and imbalance of extension service capability vis-‡-vis increases in oil palm plantings. These factors can lead to a combination of low fresh fruit bunch (FFB) yield and oil extraction rate (OER) which will eventually lead to low oil yield. There is a need to have strategies and a plan of action to overcome these constraints in order to increase the national oil yield average to the target of 8.8 t/ha by 2020. Implementation of short-term strategies can lead to an immediate increment in oil yield. However, it would need the implementation of medium- and long-term strategies to eventually lead to achieving the target. The incentive for the industry to follow these strategies will be an increase in yield with a sustained cost of production, thus making the industry more profitable and competitive.