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MARKET DEVELOPMENT  
  14-10-2002

Papers from empty fruit bunches soon

IPOH, Oct 13: Malaysian pulp and paper mills will soon be able to producehigh quality papers using the abundant supply of locally produced emptyfruit bunches (EFB) from the palm oil sector.Malaysian pulp and paper mills will soon be able to produce high qualitypapers using the abundant supply of locally produced empty fruit bunches(EFB) from the palm oil sector.Primary Industries Minister Datuk Seri Dr Lim Keng Yaik said during hisvisit to the Fujian province in China last month, he brought alongshredded fibre from the EFB to experiment whether it the EFB could beturned into a viable alternative to wood-based raw material."The results were encouraging. Although the experiment produced lowquality papers, it gave us a positive indication that with improvedtechnology and improvisation our local pulp and paper mills will be ableto produce high quality papers using the EFB," he told the New StraitsTimes when attending the 10th anniversary celebration of Kampung JeringBeautification Committee near Ayer Tawar last night.Forest Research Institute of Malaysia, given the task to experiment theEFB, has rented a pulp and paper mill in China's Fujian province for aperiod of seven days one week to test the shredded fibre.Dr Lim said the experiment showed that mills in the capacity range ofabout 25,000 tonnes of pulp per year could be established locally toproduce papers.He said the next step in expanding the use of EFB as a viable source ofpaper manufacturing was to send locally shredded fibre to mills in Chinato be toll-manufactured into papers and then sent back to Malaysia."Although the local pulp and paper industry is almost 40 years, growth hadbeen slow," he said, adding that the 19 paper manufacturing companies inthe country needed to implement new technologies to be able to convert theEFB as raw material for manufacturing of papers.He said the FRIM had been given the task to acquire the technology and themethodology involved in the production of the papers using the EFB."Once we have the know-how, we will impart it to local pulp and papermanufacturers," Dr Lim said, adding that the local pulp and paper industryshould fully capitalise on the vast availability of fibre materials,especially from EFB.There are about 350 oil palm mills in Malaysia, producing 16.5 milliontonnes (wet weight) of EFB per year which is equivalent to about sixmillion tonnes of dry EFB based on a moisture content of 60 per cent.Dr Lim told delegates during a seminar on Pulp and Paper Seminar held inPutrajaya last month that the country had the potential to produce 1.7million tonnes of paper per year and at the rate of US$750 per tonne thevalue of the paper produced would be about US$1.27 billion.Other non-wood raw materials used in the paper manufacturing are ricestraws, corn stalks, wheat straws and bamboos.These sources have been successfully turned into pulp and paper in Chinaand India.

MARKET DEVELOPMENT  
  10-10-2002

India's domestic edible oil stocks running dry

09/30/2002 (Financial Times)The recent setback in kharif oil seeds production will lead to a 6-lakhtonne shortage of edible oils in India. Assuming that the kharif 2002edible oils output will last till Mar 2003, it is estimated that betweenNov 2002 and Mar 2003 about 20.75 lakh tonnes of edible oil need to beimported against 13 lakh tonnes imported during Nov 2001-Mar 2002. Theimport requirement will be 16.65 lakh tonnes of palm oil and 4.10 lakhtonnes of soft oils.

MARKET DEVELOPMENT  
  10-10-2002

India, Pakistan seen cutting palm oil imports on c

10/04/2002 (Financial Times) - Major consumers of palm oil such as Indiaand Pakistan may reduce their imports of edible oils in the next fewmonths, as they harvest their own crops. India may reduce its imports ofedible oils by about 200,000 tonnes, as harvesting of soyabeans,groundnuts and rapeseed begins in Oct 2002. Analysts opine that India mayimport about 300,000 tonnes of edible oil for Oct 2002.

MARKET DEVELOPMENT  
  10-10-2002

Kuala Lumpur conference to discuss dynamics of oil

KUALA LUMPUR, Oct. 7. (Asia Intelligence Wire) - THE Oils and FatsInternational Congress 2002 (OFIC 2002) to be held here this week isgetting ready for a great start with several hundred delegates from acrossthe world participating.Over the next three days, diverse issues covering oils and fats in humannutrition; agricultural biotechnology and novel oil crops; and globalbusiness in oils and fats will be discussed.In the module on global issues, presentations will cover dynamics of theglobal oils and fats trade, implications of post-Doha WTO on palm oilbusiness; latest developments in Codex Alimentarius; India's policy onliberalisation versus protectionism in edible oils; and several otherissues will come up for discussion.The meet will be inaugurated by Dr Lim Keng Yaik, Malaysia's Minister forPrimary Industries. The World congress on oleochemicals will also be apart of OFIC 2002.Organised by the Malaysian Oil Scientists' and Technologists' Associationtogether with various bodies for palm oil promotion, the meet will alsosee the launch of an international oils and fats technology exposition.Over 600 delegates including many fromIndia are expected to participate, the organisers said.

MARKET DEVELOPMENT  
  10-10-2002

Philippine trade group looking for investors in co

10/04/2002 (Financial Times) - The Philippine Coconut Authority (PCA) hasstarted to look for investors that would fund the commercialization of itscoconut diesel fuel, PCA regional director Lornito Orillaneda said.He said a committee has been created to handle investor participation inthe project."We will give it to a private company," Mr. Orillaneda said, adding thePCA laboratory has a daily output of only three drums, or 600 liters aday, of coconut diesel used in its vehicles.Earlier, the Department of Agriculture, where PCA is an attached agency,asked President Gloria Macapagal Arroyo to issue an executive order thatwill encourage investors to look at the viability of commercializing cocodiesel, which earns around 12% of the gross income in royalty fees.A report earlier said the three major participants in the petroleumindustry - Petron Corp., Pilipinas Shell Petroleum Corp. and Caltex(Phils.), Inc. - have expressed willingness to use coco diesel in dilutingsulfur content in their commercial diesel products.PCA has gone into a five-year research to perfect its coco diesel,scientifically referred to as the coconut methyl ester (CME), a chemicalcompound proven to have reduced smoke emission in vehicles.The World Association of Engine Manufacturers has endorsed a 5% CME ondiesel fuel.Francisco Fajardo, PCA bio-fuel program officer, said that a 1% CME blendon diesel fuel is enough to reduce to about 2.3% sulfur content in smokeemitted.Some groups have been batting for the lowering of sulfur content of dieselfuel because of its danger as this was specified in the Clean Air Act. ByJan. 1, 2003, the law specifies that sulfur content in diesel fuel must belowered to 1.2%.

MARKET DEVELOPMENT  
  09-10-2002

Iran expected to announce palm oil tender worth RM

06 October 2002 (Business Times) - IRAN, a traditional soyabean oilbuyer, seeks some 40,000 tonnes of Malaysian palm oil for delivery beforethe end of this year.

MARKET DEVELOPMENT  
  09-10-2002

LOCAL FIRM INTRODUCES SUPERIOR ANIMAL FEED

7/10/02 (New Straits Times) - A local company has come up with theworld's first enzymatic treatment that permits palm kernel expeller to befed to chicken and fish.

MARKET DEVELOPMENT  
  09-10-2002

Potential seen in Sabah biomass sector

09 October 2002 (Business Times) - SABAH’S plantation sector is capable ofproducing 10 million tonnes of biomass a year.Sabah Chief Minister Datuk Chong Kah Kiat said as such, the state’sprivate sector should consider exploiting the economic potential of thisorganic waste.“Biomass can be used as raw material for medium density particle boards,pulp and paper and decomposed organic fetiliser. It can also be used togenerate electricity,” he said at a luncheon hosted by the MalaysianInternational Chamber of Commerce and Industry (MICCI) Sabah branch inKota Kinabalu yesterday.He also said apart from just producing cooking oil from palm oil,manufacturers must explore opportunities in producing confectionary fats,creamers, emulsifiers and non-food products such as oleo-chemicals,bio-fuels, detergents, personal care items and lubricants.Chong said Sabah is strategically located to tap the consumer markets inBrunei, Indonesia, Malaysia and the Philippines.He said the state has the potential to become a centre to manufactureproducts such as electrical items.“Our small and medium industries have the capacity to match the needs ofthe spending power of the 60 million population in the region.“Manufacturers would not face problems in shipping the manufactured itemsconsidering Sabah location and the volume of business they could tap.”

MARKET DEVELOPMENT  
  09-10-2002

Rubber estates are planted forests: FAO

08 October 2002 (Business Times) - MALAYSIA has managed to convince theFood and Agriculture Organisation (FAO) to accord rubber plantations asplanted forest.

MARKET DEVELOPMENT  
  09-10-2002

Three Sarawak Companies Fined For Discharging Effl

KUCHING, Oct 7 (Bernama) -- Three companies involved in the manufacturingand palm oil industries in Sarawak have been charged so far this year withdischarging effluents without complying with the Environmental QualityRegulations.Sarawak Department of Environment (DOE) Director Dr Abdul Rahman Awangsaid Monday that in the latest case, a palm oil mill in Kuching divisionwas fined RM15,000 last month for not meeting the DOE standards for thedischarge of effluents.

MARKET DEVELOPMENT  
  03-10-2002

TNB To Buy Electricity Generated By Bio-Mass From

ROMPIN, Oct 2 (Bernama) -- Tenaga Nasional Berhad has agreed in principleto buy electricity generated by Felda using bio-mass technology.TNB chairman Datuk Dr Jamaluddin Jarjis said a TNB subsidiary, Tenaga SPLSdn Bhd, and Felda were experimenting the effectiveness of oil palm husksin power production."Soon we will sign an agreement to buy electricity from Felda so theproject can succeed," he told reporters after attending a Felda functionnear here Wednesday. Dr Jamaluddin is the member of parliament for Rompin.Felda chairman Tan Sri Dr Yusof Noor, who was present, said the agencywould construct four power stations powered by oil palm husks, as part ofFelda's downstream activities.Dr Jamaluddin said Felda would supply 20 megawatts of electricity to eachof the power stations.TNB will buy the electricity at 18 sen per unit. At present, it is paying12 sen for gas generated electricity and 13 sen for coal produced power."Even though we will buy from Felda at a higher price, we will only bedistributing to customers in the areas concerned...no grid cost isinvolved here," he added. -- BERNAMA

MARKET DEVELOPMENT  
  02-10-2002

Alami Vegetable Oil Products Plans To Set Up Proce

KUALA LUMPUR, Oct 1 (Bernama) -- Alami Vegetable Oil Products Sdn Bhd, amanufacturer of palm oil products, plans to set up a palm oil processingplants in Xian, China, with investments worth US$8.5 million.Chief executive officer, Mohamad Radwan Alami told Bernama recently thatthe company had teamed up with a Chinese party and the joint-venture waspending final approvals from the local authorities.Radwan was following the Malaysian External Trade Development Corporation(Matrade) trade and investment mission led by Minister of InternationalTrade and Industry, Datuk Seri Rafidah Aziz to Xian, Chongqing andShanghai, from Sept 22 to 29, 2002.He said his company would be holding a 70 percent stake in thejoint-venture and the plant would have a production capacity of 180,000tonnes a year.Alami has been exporting about 4,000 tonnes of palm oil products to Chinaa year but Radwan said it was difficult to expand his business furtherwithout having a joint-venture.There are currently three vegetable oil plants in Xian, of which oneprocesses palm oil. This plant is a joint-venture between Malaysia,Singapore and Chinese investors.Radwan had also followed the Matrade investment mission to Beijing, Dalianand Shanghai last May where an agreement was signed between Alami andChina's Guangdong Kanghui Group Company for the processing anddistribution of palm oil products.However, the deal had yet to materialise as the Chinese party is stillwaiting for the processing licence.Under this deal, Alami would be investing between US$800,000 to US$1.0million to modify an existing soya bean crusher plant in Wuhan into arefinery to process palm oil.He said the plant had not been running for three years and had been usedas a distribution centre with a storage capacity of 600,000 tonnes.Radwan has been involved in the palm oil business for the past 13 yearsand the company has eight vegetable oil plants in Africa, Sri Lanka aswell as some Asean countries.Alami also exports palm oil products to the Middle East and has beeninvolved in the "Oil for Food Programme" by exporting to Iraq since1997.-- BERNAMA