PALM OIL AND OIL PALM INDUSTRY-Malaysia – OPIEJ

The Production Cost of Oil Palm Fresh Fruit Bunches: the Case of Independent Smallholders in Johor

mpob_admin — Mon, 27 Aug 2018 08:35:08 +0000

Like in other perennial crops, the Malaysian oil palm smallholding sector can be broadly categorized into organized and independent smallholders. Despite the overall decline in oil palm smallholdings recently, there has been an expansion of the independent smallholdersí land from 287 000 ha in 1999 to 320 000 ha in 2000. However, due to the unorganized nature of the latter, updated data and information pertaining to the performance of such smallholdings are limited. This paper attempts to overview the economic performance of these smallholders based on a survey in Johor, which has the largest number of independent smallholders (45%) and the largest independent smallholdings (40%) in the country. The paper also discusses the production cost structures of the independent smallholders compared to their counterparts in the organized smallholder sector as well as with estates.

Malaysian Palm Oil Industry at Crossroads and its Future Direction

mpob_admin — Mon, 27 Aug 2018 08:29:09 +0000

Palm oil accounts for 20% and 46% of the global oil and fats production and trade respectively. Malaysia is the world ís largest producer and exporter of palm oil with a 50% share of world palm oil production and 61% of exports. This paper assesses the growth of the Malaysian palm oil industry and the limitations of land and labour on the future growth of the industry. The industry ís competitive edge will continue to be a vital factor for its future development. Thus, in order to remain competitive, the industry needs to improve on productivity, explore opportunities to diversity the income base, widen the end-use base for palm oil, explore new marketing approaches and intensify vertical integration.

Prospects of Elevating National Oil Palm Productivity: A Malaysian Perspective

mpob_admin — Mon, 27 Aug 2018 08:27:13 +0000

The expansion of oil palm plantings has been phenomenal: from 60 000 ha in 1960 to 3.50 million hectares in 2001 and an expected 5.10 million hectares in 2020. The increase in palm oil production has accordingly reflected the pattern of the planted area, i.e. 91 793 t in 1960 to 11.80 million tonnes in 2001 and an expected 18.81 million tonnes in 2020. The national oil yield average does not seem to increase in step with the advances made in science and technology. The national oil yield average was 3.63 t/ha from 1975 to 2001, while the last 10-year average (1992-2001)was only 3.50 t/ha. This is very low indeed with no significant difference from other competing countries. Oil palm breeding has improved the planting materials. The oil yield of duras has improved from 2.8 to 4.5 t/ha after four selections. The oil yield of teneras from subsequent dura selections and introgression with selected pisiferas has improved from 6.3 to 11.2 t/ha in the last four decades. Why then is the national oil yield average still low? There can be many macro-reasons. Some reasons can be that with the rapid expansion of oil palm area, the limited areas of Class 1 and 2 soils have been used up and plantings have extended to Class 3 (marginal) and 4 (unsuitable) soils. Some other reasons may be inadequate agronomic inputs (especially fertilizer, field maintenance, etc.), shortage of skilled labour, ineffective and inadequate estate management, low replanting rate, and imbalance of extension service capability vis-‡-vis increases in oil palm plantings. These factors can lead to a combination of low fresh fruit bunch (FFB) yield and oil extraction rate (OER) which will eventually lead to low oil yield. There is a need to have strategies and a plan of action to overcome these constraints in order to increase the national oil yield average to the target of 8.8 t/ha by 2020. Implementation of short-term strategies can lead to an immediate increment in oil yield. However, it would need the implementation of medium- and long-term strategies to eventually lead to achieving the target. The incentive for the industry to follow these strategies will be an increase in yield with a sustained cost of production, thus making the industry more profitable and competitive.

An Economic Analysis of the Malaysian Palm Oil Market

mpob_admin — Mon, 27 Aug 2018 08:08:11 +0000

The objectives of the study are to describe a national model of the Malaysian palm oil market and to identify the important factors affecting the Malaysian palm oil industry. The model is estimated by taking into account total oil palm area, oil palm yield, domestic consumption, exports and imports over the period of study between 1970 and 1999. The results show the importance of the Malaysian economic activity, the exchange rate and world population in affecting the palm oil industry. Other factors are palm oil stock level, price of palm oil, technological advancement in production technique and the price of soyabean oil

Palm Oil and Its Global Supply and Demand Prospects

mpob_admin — Mon, 27 Aug 2018 08:01:30 +0000

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.