Vol. 3 (2) September 2003 – OPIEJ

Economics of Higher Planting Density in Oil Palm Plantations

mpob_admin — Tue, 28 Aug 2018 01:28:10 +0000

The aim of this paper was to study the financial returns from oil palm planted at different densities on mineral and peat soils in Malaysia. The method of analysis to achieve the mentioned objective was by the cost benefit analysis approach. Data for the analysis was obtained from oil palm planting density experiments at MPOB research stations at Hulu Paka in Terengganu and Teluk Intan in Perak. The analysis indicated that maximum income could be obtained from a planting density of 148 palms/ha, contrary to the conventional practice of 136-148 palms/ha. On peat soil, income is still on the increase when the density is at 200 palms/ha. It is recommended that on peat higher than the conventional planting density of 136-148 palms/ha is adopted in order to maximize net present value (NPV).

Palm Oil Products Exports, Prices and Export Duties: Malaysia and Indonesia Compared

mpob_admin — Tue, 28 Aug 2018 01:25:57 +0000

Malaysia and Indonesia are the largest and second largest producers and exporters of palm oil products in the world where together they contribute 83.5% of production and 89.6% of palm oil trade in the world. Both countries export crude palm oil (CPO) and processed palm oil(PPO). The trend in exports indicates Malaysia exporting increasing quantities of CPO in the new millennium when exports of CPO increased from 0.4 million tonnes to 1.3 million tonnes in 2000 and 2001, respectively, while exports of Indonesian CPO increased from 1.8 to 2.0 million tonnes. PPO contributed to the larger share of palm products exports of both countries. Monthly FOB prices for Malaysian CPO and PPO in 2001 and 2002 were lower than those of Indonesia but prices for the latter were lower in the international market indicating price competition. Tariffs are imposed on exports of palm products by both countries with the objective initially of raising revenue. In the case of Malaysia, the objective later shifted to that of encouraging downstream processing while for Indonesia, it reflected a goal of keeping cooking oil prices to consumers down during periods of high oils and fats prices. An evaluation of taxes imposed on exports of both countries indicated that there is a difference in the way the export duty payable in the two countries computed. The different manners of computing led to high duty payable in the case of CPO exports by Malaysia when compared to that of Indonesia. There is no duty on exports of PPO from Malaysia while Indonesian duty is very low.

Empty Fruit Bunches Evaluation: Mulch in Plantation vs. Fuel for Electricity Generation

mpob_admin — Tue, 28 Aug 2018 00:26:10 +0000

There are compelling reasons for supporting the use of empty fruit bunches (EFB) as a source of fuelfor renewable energy (RE) power generation. Although the current use of EFB as a mulch does have financial benefits, there are better financial gains, with a number of other advantages when used as a fuel for RE power generation. The rapid depletion of fossil fuel needs an alternative replacement and most developed nations are pursuing the development of biomass as an alternative method of power generation. In Malaysia, fortunately the country has a ready source of biomass in EFB. It is conveniently collected and available for exploitation in all palm oil mills. All that needs to be done is to convert the energy in the fuel in the most efficient manner and the country is well on the way to pursue this most important and sustainable renewable source of energy for the future. As the country has to meet the target of achieving 5% of its grid connected electrical energy from this source by the year 2005, it has to move fast. The main achievement will be the reduction in greenhouse gas emissions (GHG) if biomass-based RE power generation is used where there is a gain of substantial volume of carbon credits. This factor alone is a compelling reason to pursue. A deeper insight into the mechanism of EFB utilization with the financial analysis, if used as a mulch or fuel, is presented in this paper, without taking into account the capital investment involved in the RE power project.

Evolution of the Latin American Oil Palm Sector During the Last Decade (1991 – 2001)

mpob_admin — Mon, 27 Aug 2018 23:38:27 +0000

In the last decade, the oil palm planted area in Latin America has grown consistently, spurring the development of this sector during this period and making oil palm into one of the principal crops cultivated in this region. This dynamic performance can be attributed to the technical characteristics of palm oil, allowing its wide utilization in diverse industrial processes and its market to grow robustly. This document presents an overview of the development of the oil palm agro-industry in the world and subsequently analyses its behaviour in Latin America. It also looks at the economic and social situation of the major oil palm producing countries in the Latin American region. Likewise, the importance of palm oil within the total production and the consumption of oils and fats as well as the evolution of exports and imports of oils and fats in these countries are analysed. This is followed by a brief analysis of the potential market for palm oil in the whole American continent. Finally, Colombia’s vision for its oil palm sector up to the year 2020 is discussed.