https://opiej.mpob.gov.my Oil Palm Industry Economic Journal Tue, 28 Aug 2018 14:12:09 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 https://opiej.mpob.gov.my/a-study-on-inventory-management-of-malaysian-palm-oil-products/ Tue, 28 Aug 2018 14:12:09 +0000 https://opiej.mpob.gov.my/?p=310 Read more]]> Inventory management is important to balance organisational objectives, particularly on the appropriate level of stock for raw materials and production outputs as well. The amount of inventory has a direct impact on the responsiveness and efficiency of operations of a company. In general, it can reflect also on the performance of an industry. In the Malaysian palm oil industry, most of the processing activities are well-planned or geared towards fulfilling order as demanded or known as ‘back-to-back’ approach. Hence, the movements of palm products along the supply chain are rather fast to reach respective buyers on time. As a result, the inventory levels of palm products should be low but enough to meet the demand of processing activities.

]]> https://opiej.mpob.gov.my/regional-comparative-advantage-and-competitiveness-of-malaysian-palm-oil-products/ Tue, 28 Aug 2018 08:40:35 +0000 https://opiej.mpob.gov.my/?p=287 Read more]]> This article examines the competitiveness of Malaysian palm oil products compared to other industrial plantation products (cocoa products, coconut, tea and pepper) in selected ASEAN countries (Indonesia, Philippines, Singapore and Thailand) and in China by using the revealed comparative advantage (RCA) and the revealed symmetric comparative advantage (RSCA) indices. The export data for seven groups of products based on the standard commodity categories as defined in the harmonized tariff system (HTS) at the four-digit level were employed. The results indicate that Malaysia has a comparative advantage in six products: palm oil (HS 1511), coconut (copra) and palm kernel oil (HS 1513), cocoa butter (HS 1804), cocoa powder (HS 1805), cocoa paste (HS 1803) and pepper (HS 0904), but a comparative disadvantage in tea (HS 0902). Based on the competitiveness position, Indonesia ranked first while Malaysia ranked second in oil palm products.

]]> https://opiej.mpob.gov.my/palm-oil-products-exports-prices-and-export-duties-malaysia-and-indonesia-compared/ Tue, 28 Aug 2018 01:25:57 +0000 https://opiej.mpob.gov.my/?p=152 Read more]]> 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.

]]> 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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