Malaysia’s palm oil world top edible oils

Malaysia’s palm oil has attained a high level branding internationally.

This is not only as a top quality edible oil but also due to Malaysia’s reliability in supplying to a global market that continues to face a severe shortage of oil and fats, a top industry official said.

Tan Sri Dr Yusof Basiron, the Chief Executive Officer of the Malaysian Palm Oil Council (MPOC), said Malaysia was recognised as a key supplier to food security globally.

It includes, he added, some Muslim countries where food security is a major problem. He said palm oil was also known as the solution to poor countries meeting their oils and fats demand, due to its cheaper price when compared to other edible oils.

“It is also the cheapest oil to produce and refine,” he said at a roundtable discusion on palm oil organised by Bernama on Thursday.

The roundtable was moderated by Bernama Editor-in-Chief Datuk Yong Soo Heong as well as Deputy Editor-in Chief, Puan Salbiah Said and Assistant Editor, Cik Siti Hawa Othman.

“We are well-assured in terms of food access and also contribute to global food security, especially to those Muslim countries concerned. Oil Palm is also a crop that provides a solution to overcoming poverty,” he explained.

Yusof said due to its availability and low cost, palm oil is an important component to the increasing intake of oils and fats in the developing world.

The world, Yusof explained, is forecast to require an additional six million tonnes of oil and fats this year, but overall production can only contribute another three million.

Malaysia and Indonesia, currently supply more than 85 per cent of the world’s palm oil. Without the large volume exported by both countries, there would be a major problem in meeting global demand for vegetable oil. Indonesia, however exports less compared to Malaysia, although its produced more.

On the basis of the trade in oils and fats in 2008/09, Malaysia supplied 29.1 per cent of the world’s total palm oil with Indonesia providing 27.3 per cent.

Together, both contributed to over one half of the total trade in vegetable oils, according to a research.

“Malaysia is helping the world to secure food security. In terms of image, Malaysian palm oil has emerged tops in the vegetable oil industry.

“The main markets like Japan, the United States and some others, buy from Malaysia. About 80 to 90 per cent of their palm oil supply is from Malaysia, thanks to our branding,” he noted.

According to Yusof, as a competitive crop, the oil palm yields 10 times more oil per hectare compared to other crops and its availability at all times is guaranteed.

On concerns over a palm oil supply shortage due to the El-Nino weather phenomenon, he said the drought caused by it, is expected have no immediate impact on the country’s production.

“It doesn’t affect current production immediately. The impact of the drought may be felt six months to a year later.

“However, in Malaysia, we don’t have a prolonged drought. That’s why, we have become a very good producer country,” he stated.

Yusof said, he is optimistic Malaysia can achieve the production target for this year of between 17.5 million tonnes and 18 million tonnes, despite a labour shortage, uncertain weather conditions and slow replanting targets.

He also indicated that the crude palm oil (CPO) price, is expected to hover between RM2,600 and RM3,000 per tonne.

The CPO price, he said will likely breach the RM3,000 per tonne level towards the second half of the year.