https://opiej.mpob.gov.my Oil Palm Industry Economic Journal Tue, 28 Aug 2018 04:47:11 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 https://opiej.mpob.gov.my/palm-oil-derived-esters-an-environmentally-safe-drilling-fluid/ Tue, 28 Aug 2018 04:47:11 +0000 https://opiej.mpob.gov.my/?p=184 Read more]]> The rising world energy demand has led to exploration for oil and gas in increasingly difficult environments. Exploration is now extending into sensitive regions, in particular, offshore fields. Drilling in deep water in increasingly deviated and extended wells and borehole instability in challenging geological formations are some of the obstacles encountered. Oil-based drilling fluids are widely used in drilling, especially in highly technical wells. This is because oil-based drilling mud systems perform much better than water-based muds in bore hole stabilization and providing lubricity thereby give faster rates of penetration. However, they are a cause for environmental concern and with the potential long-term liability for damage caused by mud spills and problems in disposal of the oil-contaminated drill cuttings, changes are afoot. The industry has been replacing highly aromatic oils (e.g. diesel) with low aromatic mineral oils as well as synthetic oils. However, as environmental legislation and controls become more stringent, even the newer and less polluting mineral and synthetic oils in vogue now may be adjudged unsuitable because of their non-biodegradability. Indeed, today, in many parts of the world, including countries like the USA, United Kingdom, Holland, Norway, Nigeria and Australia, the use of diesel and mineral oil-based drilling fluids in offshore operations is already either severely restricted or banned because of their toxicity, persistency and bio-accumulation.

]]> https://opiej.mpob.gov.my/market-evaluation-of-phosphate-fertilizers-from-various-sources-for-matured-oil-palm-in-malaysia/ Tue, 28 Aug 2018 04:41:40 +0000 https://opiej.mpob.gov.my/?p=180 Read more]]> Fertilizers are one of the most important inputs in the production of palm oil. Their use is dependent on the price of palm oil (PO), the higher the price the more the fertilizers used. P fertilizers significantly increased fresh fruit bunches (FFB) yield and the rates to be used will depend on the costs and benefits afforded by them. This study determines the costs and benefits of utilizing various sources of phosphate fertilizers through partial budgeting and dominance analysis for gross return (GR), total variable cost (TVC), marginal rate of net return (MRNR), net return (NR) and return on investment (ROI).

]]> https://opiej.mpob.gov.my/market-potential-and-challenges-for-the-malaysian-palm-oil-industry-in-facing-competition-from-other-vegetable-oils/ Tue, 28 Aug 2018 04:40:37 +0000 https://opiej.mpob.gov.my/?p=178 Read more]]> The market potential for oils and fats remains good into the future considering the increases in population, income as well as per capita consumption especially in countries with currently low income and low consumption. However, the challenges are that most of the oils are inter-substitutable and therefore in competition with each other. Thus, countries impose support measures to gain markets for their products. This paper examines the market potential and challenges of the Malaysian palm oil industry in facing competition from other vegetable oils. There exists a relationship between vegetable oil prices in the longterm and short-term because they are co-integrated. The vector error correction model (VECM) was used to distinguish the long- and shortterm relationships between the vegetable oil price variables. This test determined the oils in close competition with one another as well as established the bi-directional causality between the oils. The former means that two or more oils can influence each other. In general, it was concluded that palm olein is a price leader to certain vegetable oils and the challenge lies in making it the main price leader in the vegetable oils and fats sector. This can be achieved by palm oil producing and exporting countries having their own market intelligence to confer an advantage in preparing better competing strategies.

]]> https://opiej.mpob.gov.my/the-role-of-research-and-development-strategies-in-food-safety-and-good-agricultural-manufacturing-and-distribution-practices-in-the-malaysian-palm-oil-industry/ Tue, 28 Aug 2018 04:38:58 +0000 https://opiej.mpob.gov.my/?p=176 Read more]]> Globalization has expanded the Malaysian palm oil export market to over 140 countries. Research and development strategies carried out by Malaysian Palm Oil Board (MPOB) continue to provide information to demonstrate proactively food safety with negligible risk in its global supply chains. By examining the factors of air, water, soil, agricultural input, raw material and human used in the production, processing and manufacturing operations, the sound knowledge of science and technology from the 209 MPOB innovations, when combined with business and application of the widely accepted rigorous and systematic method of assessing and controlling hazards through the food chain, has ensured that palm oil remains an agricultural product that is healthy and safe to the customer. Throughout the food supply chain, the general principles of hazard analysis by critical control points (HACCP) have been incorporated into food safety legislation, long before they were officially introduced, to check the hygiene requirement and to use as a practical means of standardizing international food quality control and assurance practices. Every stage of preparation, processing, transport and distribution of palm oil is examined so that the final palm oil products for retailing to customers indeed are safe and nutritious. An effort is made to communicate new R&D findings to retain the credibility and trust of customers who will understand what lies behind such a food safety assurance scheme. The value-add throughout the supply chain covers good agricultural practices (GAP), good manufacturing practices (GMP) and good distribution practices (GDP). Built into a database, the information gathered allows the effectiveness of the good practices in food safety management, detection of contaminants, toxicology, novel processing, packaging and application of risk management to be evaluated. The harmonization of these good practices towards standardization provides a high level of confidence to the operational entities and the customers. The auditors and assessors when benchmarked by accredited bodies that are internationally recognized, the industry will attain integrity by their assessment. Knowledge that Malaysian palm oil products are produced to an agreed standard will further boost consumer confidence by making them even more acceptable by people the world over.

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