OIL PALM INDUSTRY-Malaysia – OPIEJ

Internationalisation of Malaysian Palm Oil-based Multinationals

mpob_admin — Tue, 28 Aug 2018 14:13:40 +0000

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 ... Read more

World Palm Oil Supply, Demand, Price and Prospects: Focus on Malaysian and Indonesian Palm Oil Industries

mpob_admin — Tue, 28 Aug 2018 14:06:44 +0000

The oils and fats sector had shown that both its production and consumption had increased at almost the same rate in the past. Any differences between them will indicate either an oversupply or shortage situation of oils and fats in the world; oversupply occurred when production exceeded consumption and shortage when the situation was reversed. Thus, world production and consumption of oils and fats in 1976 were 45.9 and 47.3 million tonnes respectively (shortage) while in 2010 both were at about 171.2 million tonnes (almost equilibrium). Among the 17 oils and fats, palm oil has expanded the most in the production and consumption of the oils and fats. It began as one of the minor oils being produced and consumed in 1976 (1.6% and 6% of the world production and consumption of oils and fats respectively) and gradually surged to become the largest produced and consumed oil in 2010 (both at about 28% of the world production and consumption of oils and fats). Palm oil will continue to be the main oil produced and consumed due to its high productivity, cheaper price and healthiness. Its production in Malaysia is expected to be about 18.33 million tonnes while Indonesia will produce about 24.91 million tonnes in 2011. As Malaysia has a constrain to expand its oil palm area due to lack of suitable land, increase in future production is expected to be through increase in its productivity. Palm oil price is associated closely with its main competitor, soyabean oil, and lately crude petroleum price also had an influence. However, there are other factors that need to be considered in evaluating price of palm oil. Taking them into consideration, price is projected at RM 3217 t in 2011 with the first half of year being higher than the second half.

Management of the Malaysian Oil Palm Supply Chain: The Role of FFB Dealers

mpob_admin — Tue, 28 Aug 2018 06:37:50 +0000

The fresh fruit bunch (FFB) dealer sub-sector is part of the Malaysian palm oil supply chain. It is inter-related with other sub-sectors either directly or indirectly. It serves as a intermediary between the smallholders and the millers. FFB dealers need to be efficient so that the FFB sent to the mills within 24 hr after harvesting remain in good quality. Shortfalls may affect the efficiency of the other sectors as well as the whole industry. The study found that the dealers have found ways of making profits and have undergone several structural changes. Despite the challenges, there is still scope for their improvement.

Palm Oil: Nature’s Gift to Malaysia and Malaysia’s Gift to the World

mpob_admin — Tue, 28 Aug 2018 06:33:34 +0000

For Malaysia, oil palm is the golden crop that has helped to change the scenario of the Malaysia’s agriculture and the Malaysian economy. In 2007 at 4.17 million hectares, the oil palm performance is compared over the last 90 years from 1917 to 2007 and some projections are made over the next 100 years to 2107. The various phases undergone by the oil palm industry from the pioneering work with the determination to nurture the plant into a crop and to create a home for it in Malaysia, have been marked with several important milestones such as diversification from the over dependence on rubber in the 1950s and 1960s, strong support from well thought-out policies involving use of palm oil as food, fuel, fibre and feed in the 1970s and 1980s, through R&D move into processing and value-adding activities to improve the health and food safety aspects and finally in the 1990s and 2000s to tackle the environmental and sustainability development. The broadening of the scope and horizon for export of oil palm and its products into 11 areas of food, oleochemicals, energy, biomass, biotechnologically improved products, nutraceutical, pharmaceutical, farm machinery, research and advisory services, processing, livestock integration and feed production will strengthen the competitiveness of the Malaysian oil palm products that will take centre-stage in international oils and fats businesses. In so doing, the impact of such massive development of the oil palm has helped uplift the rural poverty, enhance social and economic life, and yet protect the very environmental and ecological bases on which the oil palm thrives. Truly the oil palm is a crop that nature gives to Malaysia and now it has evolved into Malaysia’s gift, thanks to continuous R&D with many innovations, to share the new discoveries on the uses of palm oil and its products with the whole world. In the future, the Malaysian oil palm industry will remain a major reliable supplier of vegetable oil for both food and non-food applications. It must be mentioned that the projections made here after deliberation are the views what the MPOB team members have wished for the industry. For a forecast of a hundred years, the reality will be dictated by events and the rate of progress of R&D.