https://opiej.mpob.gov.my Oil Palm Industry Economic Journal Tue, 28 Aug 2018 07:07:53 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 https://opiej.mpob.gov.my/an-analysis-of-indonesias-palm-oil-position-in-the-world-market-a-two-stage-demand-approach/ Tue, 28 Aug 2018 07:07:53 +0000 https://opiej.mpob.gov.my/?p=271 Read more]]> Indonesia and Malaysia are the major producers of palm oil in the world. Together they contribute almost 87% of the world production in 2007, while in the export market, they contribute 91% of the world palm oil export. This article analyses Indonesia’s palm oil position in the world market. A two-stage demand equation was constructed. The first equation analysed the world demand without considering the source of the product. Meanwhile, the second equation considered the source of the product using the almost ideal demand system (AIDS) approach. Considering the stationarity of the data, the error correction mechanism (ECM) was employed. The result shows that the increase in the world demand for palm oil is mostly contributed by the increase in world income. In addition, palm oil products from Indonesia and Malaysia are complementary to each other rather than competing. Therefore, both countries should co-operate in order to increase the world demand for palm oil in the future.

]]> https://opiej.mpob.gov.my/mpob-daily-ffb-reference-pricetowards-a-more-transparent-market/ Mon, 27 Aug 2018 07:41:36 +0000 http://palmoilis.mpob.gov.my/prototype/opiej/?p=85 Read more]]> The objective of this paper is to give a detailed explanation regarding the dissemination of the MPOB Daily Fresh Fruit Bunches (FFB) Reference Price. The paper will highlight the price formula used and the computation of the Reference Price according to the various regions. The Reference Price is meant as a guide to assist the smallholders in determining their FFB price in relation to crude palm oil (CPO) and palm kernel (PK) prices. The single reference price will create a transparent market in FFB trading, which will help towards ensuring a more harmonious relationship amongst smallholders, FFB traders and millers.

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