https://opiej.mpob.gov.my Oil Palm Industry Economic Journal Wed, 24 Sep 2025 04:51:10 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 https://opiej.mpob.gov.my/united-states-tariff-shockwaves-malaysias-palm-oil-in-the-crosshairs/ Tue, 23 Sep 2025 07:50:30 +0000 https://opiej.mpob.gov.my/?p=2489 Read more]]> This article presents an analysis on the implications of the 2025 United States (U.S.) tariffs policy introduced under President Donald Trump administration on Malaysian palm oil industry (when this article was written). It examines the multifaceted impact of the early slapped of 24% tariff by the U.S. before it was escalated to 25%, then reduced to 19% on August 2025 (after went through delicate trade negotiations and bargaining) necessitates discussion on the Malaysian exports through economic, political, and strategic lenses. The analysis reflects on the broader context of global trade tensions and protectionist trends, while also evaluating Malaysia’s policy responses and adaptive strategies. Drawing on current developments and historical parallels, the article offers a forward-looking perspective on the long-term viability and resilience of Malaysia’s palm oil industry in an increasingly uncertain trade environment.

]]> https://opiej.mpob.gov.my/from-local-to-global-examining-the-impact-of-pre-and-postinternationalisation-strategy-by-bursa-malaysia-of-global-oil-markets-to-the-futures-crude-palm-oil/ Tue, 08 Jul 2025 00:54:18 +0000 https://opiej.mpob.gov.my/?p=2466 Read more]]> This study investigates the level of cointegration between futures crude palm oil (FCPO) and competitor oils during the pre- and post-internationalisation strategy implemented by Bursa Malaysia Derivatives Berhad (BMDB). The Autoregressive Distributed Lags (ARDL) model is employed to analyse cointegration and causality among these variables using weekly data from January 1980 to December 2022. The empirical results show a reduction in the level of cointegration by 0.017% with soybean futures, 0.179% with exchange rates and no cointegration with Brent crude oil futures after implementing BMDB’s international strategy. The results from this study contribute to more robust financial models for the FCPO market and provide empirical input to authorities on how policy or strategy shapes the relationship between FCPO and competitor oils so that BMDB can maintain FCPO status as a global index reference.

]]> https://opiej.mpob.gov.my/challenges-and-opportunities-for-intensifying-oil-palm-cultivation-in-west-central-africa-using-a-case-study-of-ghana/ Fri, 02 May 2025 08:22:16 +0000 https://opiej.mpob.gov.my/?p=2453 Read more]]> The global demand for palm oil, an economically important product in tropical regions, continues to rise rapidly. To meet this demand, there is a focus on expanding oil palm production, particularly in Latin America and Africa. However, in West and Central Africa, biophysical constraints, such as sub-optimal climate conditions and poor management practices, limit yields. Socioeconomic issues, including a lack of skilled labour and disorganised industry expansion, further hinder production. Opportunities for intensification are thus considerable in West Africa, where fresh fruit bunch (FFB) yields are ~56% lower than those of major producers in Southeast Asia and ~47% lower than in Latin America. This study reviewed opportunities for yield intensification in oil palm cultivation, using Ghana as a case study, while considering both agronomic and socio-economic factors. Findings suggest that palm oil production increases can arise from increasing the fruit supply from smallholders, who are the dominant producers in Ghana (~95%) and promoting specific practices for yield intensification, such as improved harvesting and nutrient management. Increasing average yields to a biophysically achievable 21 t ha–1 could significantly boost national FFB production, potentially eliminating the need for additional land, and meeting Ghana’s current annual demand for crude palm oil without expansion. Yield intensification strategies could therefore underpin effective strategies for agricultural intensification in Ghana and the broader West-Central Africa region. Achieving this requires collaborative efforts between industry stakeholders, including plantations, smallholders and government intervention.

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