https://opiej.mpob.gov.my Oil Palm Industry Economic Journal Tue, 28 Aug 2018 04:32:20 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 https://opiej.mpob.gov.my/impacts-of-cpo-export-tax-on-several-aspects-of-indonesian-cpo-industry/ Tue, 28 Aug 2018 04:32:20 +0000 https://opiej.mpob.gov.my/?p=168 Read more]]> To control domestic supply and price of crude palm oil (CPO) and cooking oil, the government of Indonesia has imposed CPO-export tax since August 1994. As the CPO industry plays an important role in Indonesian economy, the imposition of the tax is expected to have substantial impacts on various aspects of the industry, such as on investment, production, trade, farm income and welfare distribution. The main objective of this study is to assess these impacts using an econometric model of the industry. The results of the study reveal that the export tax policy has inhibited the growth rate of investment, production, export and farm income. On the other hand, this policy has been an effective instrument to control domestic CPO and cooking oil price. Moreover, this policy has caused a substantial welfare transfer from producers to consumers and the government. To compromise these conflicting impacts, an alternative CPO tax formula is also proposed in this paper.

]]> https://opiej.mpob.gov.my/palm-oil-the-driving-force-of-world-oils-and-fats-economy/ Tue, 28 Aug 2018 01:35:17 +0000 https://opiej.mpob.gov.my/?p=157 Read more]]> Palm oil accounts for 21% and 47% of the global oil and fats production and trade respectively. Both Malaysia and Indonesia together are the world’s largest producers and exporters of palm oil with 84% and 90% share of world palm oil production and export, respectively. The paper outlines the increasingly dominant role that palm oil has played in the world oils and fats supply and demand equation during the past 40 years. The ascent of palm oil as a powerhouse in the global oils and fats market has been achieved by leveraging upon the techno-economic advantages of palm oil vis-à-vis competing oils as well as positive developments arising from consumer concerns on health, environment and food security. In efforts to maintain continued market growth, the future direction of the industry relating to improving competitiveness, widening the uses of palm oil, eliminating trade barriers and exploring new innovative marketing approaches will be discussed. These positive developments augur well for palm oil in its role as the driving force of the world oils and fats economy.

]]> https://opiej.mpob.gov.my/us-agricultural-subsidies-and-their-implications-on-oilseeds-and-oils-and-fats-trade/ Mon, 27 Aug 2018 08:32:52 +0000 http://palmoilis.mpob.gov.my/prototype/opiej/?p=113 Read more]]> 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

]]> https://opiej.mpob.gov.my/palm-oil-and-its-global-supply-and-demand-prospects/ Mon, 27 Aug 2018 08:01:30 +0000 http://palmoilis.mpob.gov.my/prototype/opiej/?p=94 Read more]]> The paper outlines the global palm oil situation and highlights the developments in the Malaysian and Indonesian palm oil industry. Palm oil has played a positive role in the world oils and fats supply and demand equation largely due to its techno-economic advantages and versatility as well as some of the developments in the world in relation to security of supply, health and environment. The paper will also discuss the various challenges confronting palm oil in the world market, namely self-sufficiency policies by developing countries, crop subsidies by developed countries, stringent standards and quality for trade, non-tariff technical barriers and effects of exchange rate variations.

]]> https://opiej.mpob.gov.my/global-oils-and-fats-business-challenges-in-the-new-millennium/ Mon, 27 Aug 2018 00:40:52 +0000 http://palmoilis.mpob.gov.my/prototype/opiej/?p=33 Read more]]> This paper outlines the world oils and fats supply and demand situation focusing on production and disappearance, which is forecast to grow by 2.3% per annum respectively by the year 2020. Amidst this scenario of continued growth, the oils and fats industry is expected to encounter various challenges, namely resource constraints, lower productivity (yield), rising cost of production, impediments to market access arising from agricultural and export subsidies. In addition, in the effort to maintain continued market growth and increased market share, the oils and fats industry would have to intensify new product development and venture vigorously into more value-added products. Apart from this, the growing health concerns of consumers and how they have dictated food legislation/regulations will also be elucidated. Issues of concern in this category include the formation of trans-fatty acids arising from hydrogenation. Increasing pressure exerted by non-governmental organizations (third sector) will also be highlighted with respect to food standard formulations and environmental protection based on ecological balance. Finally, the paper advocates the need for closer co-operation amongst both producers and exporters of oils and fats so that benefits are mutually reaped

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