Archived News

KUALA LUMPUR, Dec 14 (Bernama) -- The World Wide Fund for Nature Malaysia(WWF Malaysia) Friday expressed its full support to Primary IndustriesMinister Datuk Seri Dr Lim Keng Yaik's call to the oil palm industry toadopt more stringent and sustainable practices in developing newplantations.

CHENNAI, INDIA (Business Line) Dec. 14. - MIXED cropping, increasingproductivity, on-farm processing, value added products diversification andmarketing are key to survival of coconut farmers and processors in thecompetitive environment, according to Dr P. Rethinam, Chairman, CoconutDevelopment Board (CBD) and Executive Director Designate, Asian andPacific Coconut Community, Jakarta.

NEW DELHI, Dec 13 (Bernama) -- India's edible oil industry is to explorethe possibilities of collaboration with Malaysian Palm Oil PromotionCouncil (MPOPC) in the field of technology transfer and joint ventures inpalm cultivation and processing.

KUALA LUMPUR, Dec 24 (Bernama) -- As the world's largest producer of palmoil, Malaysia has the potential to export more crude palm olein to India,said the immediate past president of the Solvent Extractors Association ofIndia (SEA) Sandeep Bajoria.

KUALA LUMPUR, Dec 11 - Our final estimate on CPO production shows anupward revision of 10,000 tonnes to 1.045 million tonnes. This representsa month-on-month decline of 95,000 tonnes or 8.4 percent. The upwardrevision reflected a much smaller than expected decline of around twopercent or less than 10,000 tonnes in East Malaysia. This compares with anestimated decline fo 12.5 percent in Peninsular Malaysia.Additionally, the oil extraction rate (OER) was somewhat better. Thiswas most evident in Sabah. Total production for the first 11 monthsamounted to 10.83 million tonnes. There is a fairly good chance the wholeof this year's output will reach 11.7 million tonnes. This would be860,000 tonnes or 7.9 percent higher than last year.Reflecting the upward revision in production, the final estimate onend-November stocks of palm oil is revised to 1.31 million tonnes. This is30,000 tonnes lower than a month earlier. This level of stocks is deemedmanageable, particularly as it marks the reversal of a rising trend with asubstantial drawdown expected at the end of this month. In contrast and inline with our projections, stocks of PKO maintained their uptrend andreached an all-time new record high of an estimated 370,000 tonnes or some15,000 tonnes more than October.Stocks had built up to this burdensome level following anunprecedented period of accumulation starting from March last year whenstocks amounted to 107,900 tonnes. We view the PKO stocks situation asworrysome although it may not be a matter of great concern to PK producersand crushers in terms of absolute prices and margins. It cannot be deniedthat anaemic export performance was the main cause of the stocks buildup.PKO exports in September-October fell to 82,500 tonnes from 111,000tonnes a year ago. This is not surprising given that domestic offtake ofPKO has reached saturation level. Offtake by the oleochemical sector inJanuary-September amounted to 606,000 tonnes or unchanged from the sameperiod last year. In the local market PKO price had been traded atincreasing discount to CPO - from an average of 10-23 ringgit in Octoberto 30-45 ringgit in November and 75 ringgit last week. Production of PKdropped 11 percent to around 288,000 tonnes in November.CPO futures price meanwhile displayed a whip-saw pattern in the pastthree weeks. The February contract gained 85 ringgit in the week endedNovember 23 but lost practically all of it the following week. Last weekit rebounded 72 ringgit to settle at 1,169 ringgit after posting anintraday high of ,1200 ringgit on Friday. The gains would have been muchmore had the market not reacted bearishly to India's raising of the tariffvalues on palm oil on Friday afternoon.The December 7 announcement of new tariff values came eight days afteran official from the Finance Ministry denied to a wire service thatchanges were forth coming. Speculation and rumours of a revision were notunexpected considering the last revision on October 9 was made somenine-and-the-half weeks after the introduction of tariff values on palmoil on August 3.The latest values (previous in brackets) in US$/MT are: CPO 314 (286),RBDPO 341 (295), RBD OLN 349 (307) and Crude OLN 334 (298). As we had saidpreviously, Indian authorities shoud avoid generating market uncertaintiesand confusion. It is left to be seen whether the Central Board of Exiseand Customs has settled down to reviewing and revising tariff values on afixed periodic basis. The market is also keen to know the base period usedin determining the values. Perhaps it is too much to expect tranparencyand good governance. The latest tariff values raise the import dutiespayable by $18.20 (for CPO) to $42.50 (for RBD PO).

KUALA LUMPUR, Dec 11 (Reuters) - China will use up all its palm oil quotain 2001 to make way for huge imports next year following its entry to theWorld Trade Organisation (WTO), traders said on Tuesday.The world's most populous nation is set to import 2.4 million tonnes ofpalm oil in 2002, up from this year's 1.4 million tonnes, as requiredunder the terms of joining the WTO.China, which formally entered the world body on Tuesday, buys palm oilmainly from Malaysia and Indonesia, the world's largest producers."There is nothing much left on the quota. I last heard some 30,000-40,000tonnes were still available," said one trader in Kuala Lumpur.Some traders say China holds the trump card as to whether Malaysia's crudepalm oil futures

GENEVA, Dec 6 (AFP) - The United States called Thursday for the speedyabolition of agricultural export subsidies but acknowledged that not allits trading parters are as eager as it to get rid of them.US negotiator James Grueff, addressing a press briefing here, recalledthat the World Trade Organization at a ministerial conference in Qatarlast month backed negotiations on the abolition of export subsidies.The conference was held in the Qatari capital Doha to approve an agendafor a new round of multilateral negotiations aimed at lowering globaltrade barriers."It is very clear to us from the language (adopted in Doha) that ministerscommitted to phasing out, ending, terminating -- however you want to callit, the phrasing in the text is 'phasing out' -- export subsidies," Grueffsaid."As for precisely when that happens, that is obviously a matter fornegotiations. We would like to see that happen sooner rather than later,of course."Obviously ... not all our negotiating partners have that view, so thatwill be something left for negotiations," said Grueff, who is assistantdeputy administrator for international trade at the US Department ofAgriculture.The WTO meeting in the Qatari capital Doha came close to collapse in a rowpitting the United States and its allies in the Cairns Group ofagricultural exporters against the European Union.US demands for language in a final statement calling for the eventualelimination of export subsidies were vigrously opposed by EUrepresentatives, who insisted that such a text would interfere with theirown timetable to reform the farming sector.EU officials have also argued that some form of government assistance isnecessary to preserve rural economies and culture.The dispute was finally resolved with the addition of language committingthe WTO to wide-ranging talks on agriculture with no "prejudgement" oftheir outcome."It is our hope we can begin aggressive negotiations in March, pursuingour mandate from Doha," Grueff said."The United States continues to have very ambitious objectives for thesenegotiations."

(Correction on para 2 &3 on earlier news. BERNAMA have been informed torectify the mistake. Thank you to Dr. Ariffin on the comments. )

USA, (Soyatech)12/10/2001 - Reaching the consumer is the goal of everycommodity group. Results of a sunflower seed phytochemical analysis arepaying off in national media attention. The October issue of Fitnesshighlights the nutritional benefits of seeds to its health consciousreaders with a paragraph entitled 'Small Seeds, Big Results' and directsreaders to the NSA web site for more information. In a piece entitled"Scoop the Party Nuts" in the November issue of Mademoiselle, sunflowerseeds are included in the list as a 'nut' and the 'not so nutty' reasonfor eating them is that they contain phytochemicals that may improvememory and ability to concentrate. The November issue of a baking tradepublication entitled Baking Management featured an article on "Nuts andSeeds Add Special Extras to Bakery Foods" and specifically listed thebenefits of seeds as an ingredient to bakers. The demand for kernels hasbeen growing providing the 'producer choices' defined above.

Monday, December 10, 2001(The Star) - CRUDE palm oil futures prices on theMalaysian Derivatives Exchange (MDEX) turned volatile and trended in abullish fashion last week as speculative short positions holder scrambledaggressively to covering their positions when the market broke upward fromits downward trend.The firmer prices in both the cash crude palm oil and product marketsprompted fresh hedge-buying and short-term buying interests.The February futures advanced from a week’s low of RM1,125 to RM1,200 andfinished the week sharply higher at RM1,169, up RM74 per tonne frompreviously.Based on chart, the February futures ended the week bullish and formed achart triple-top formation. From a technical point of view, the Februaryfutures are expected to remain buoyant in the coming sessions.An immediate chart resistance is seen for this week at the RM1,180-RM1,190levels, and a successful vault above this triple-top resistance wouldtrigger off another aggressive wave of technical covering and set themarket on a bullish course.Measurement of the chart-breakout target suggests that the next upwardmomentum could take prices to the RM1,250-RM1,265 levels. Chart supportfor this week stands at the RM1,150-RM1,140 levels. Violation of thesesupports would signal an end to the bullish trend.Technically, the daily stochastics ended the week bearish and indicatedthat the market is toppish or top-heavy. The daily stochastics sell-signalwas triggered during Friday’s close. The oscillator per cent K closed theweek below the oscillator per cent D and settled higher at 73.24% and75.33% respectively.The 12-day exponentially smoothed average price-line (ESA-line) remainedin uptrend and ended the week sharply higher at RM1,145. Closing pricesabove the ESA-line on Friday showed that the market’s immediate cycle isstill bullish.The moving-average convergence/divergence (MACD) turned positive last weekand closed on a positive note. The MACD ended above the trigger-line andsettled higher at 32.94 and 32.60 points respectively.The Momentum Index (MI) penetrated the 100-point mark last week andindicated that a bullish cycle is in place. The MI closed the week higherat 102.30 points.

New Delhi, Dec 8 (Bernama) -- The Indian Government has revised steeplytariff value on which import duty is levied on palm oil, taking intoaccount the international prices of the commodity.

Monday, December 10, 2001(The Star) - What will the fortune of the edibleoil business, in particular palm oil, be in the face if the abnormally lowwould price for some time now? This is the million-dollar question for theMalaysian Palm Oil Promotion Council (MPOPC). MPOPC chief Datuk HaronSiraj, a former secretary-general of the Ministry of Primary Industries,talks to LIM HOCK CHYE on the next charted course for palm oil.IF one were to ask Malaysian Palm Oil Promotion Council (MPOPC) when palmoil would regain its brilliance, it would say the answer relates to whenthe US-Afghan war will end.Even French astrologer Nostradamus’ prophecies may not provide the rightanswer, although elsewhere, predictions abound that the war may heightenin the middle of next year and hopefully, be over by year’s end.Speculation aside, the MPOPC is not dodging the question, but no one canexactly chart the prospects for the commodity, one of Malaysia’s toprevenue earners.Being the largest world producer of palm oil, the current development inPakistan and Afghanistan is certainly a concern for the industry, inparticular, its supply and demand.As MPOPC chief executive Datuk Haron Siraj said, the local palm oilindustry post Sept 11 was looking ahead only from month to month as theindustry was still reeling from the consequences.Any longer term projection will be too ambitious as many shippers arereluctant to move to the markets in Pakistan, Russia and the formerCentral Independent States.Haron said during an interview in Petaling Jaya recently that manyshippers were unwilling to move to that part of the world because of thehigh insurance due to risk factors.Currently, palm oil is still being transported by various lines such asMalaysian International Shipping Corp Bhd and Sutrajaya Shipping Sdn Bhd,and the war has added uncertainties to freight cost and landed prices ofpalm oil.But Haron argues that at the same time, the industry cannot let certainparties take undue advantage of the situation by hiking the rate ofinsurance.“I hope to have an understanding among the buyers and the shippers,” Haronsaid, adding the industry already had its fair share of its “war” inrespect of price and it could ill-afford more problems in the interest ofprice stability and consumption.He said further price war would disrupt the commodity from reaching itsdestinations.It certainly will not benefit any party, as oil is such a basic need andfor the foreign buyers, stocks are going to start dwindling soon inanticipation of the coming festive seasons, such as Hari Raya Puasa andChristmas.The shipment of the oil must come in November and that is the main worryfor the local industry as well as the buyers.There have been reports from Egypt and the north African states that thepassage of ship in this region can be affected due to the war and this hasfurther dampened sentiment. MPOPC, nevertheless, is not directly involvedin the shipping.As a promotional agency, it is responsible in ensuring that we are able todeliver things in respect of time, quality and quantity specified,” saidHaron. More importantly, Malaysia has to see that palm oil enjoys a goodreputation.He noted that the buyers appreciated the problem and that the MPOPC was afacilitating agency, and the government would have to spearhead therelevant move.It has come to MPOPC’s ears that in Pakistan, people are selling the oilsparingly as they are afraid stocks may be in short supply. The councilhas been told some 40,000 tonnes will be shipped to Pakistan.“The situation at Karachi and Lahore ports is quite all right...the worryis again on the shippers and the country wants to order more, some 140,000tonnes for the next few months,” said Haron.The Pakistan market demand for our oil has increased to more than 15% overlast year’s demand. The buying is now more on CIF and understandably, thepremium is many times more.“I think there is a solution. It has to be shared responsibility. We haveestablished a good relationship among the various parties. There areindications that certain parties are willing to share the responsibilityif trade is disrupted,” Haron said.Everyone was affected and palm oil prices had been quite low for a longtime, he said.The new markets may provide a breather to the industry. Malaysia isselling to 140 countries. Every effort has been made to penetrate theworld market and the furthest sale is to some parts of Africa.“We are selling to some new markets too,” said Haron.The MPOPC is looking at, for instance, China (mostly urban areas), theUnited States (some 200,000 tonnes) Canada, Vietnam, Bangladesh, Laos andKampuchea.Iran is also on the list, according to Haron, and the Malaysian Palm OilBoard has set up a representative office there recently.“Our presence in Iran, for instance, has shown results. From January toAugust this year, Iran bought 60,000 tonnes against some 3,000 tonnes overthe corresponding period last year. This is an encouraging jump,” he said.The increase is due to the greater understanding between the two nationsand Haron said his immediate concern was to increase the number ofcountries which could absorb the commodity, because “by the time we cometo the 141st or 142nd country, the volume will be quite marginal.”In his opinion, Malaysian businessmen are not that aggressive or keen onpushing themselves to the final frontier.Haron said they must use |the established contacts to further theirbusiness interest. If not for |the war, Malaysia would have expanded thepalm oil market and |be concentrating now on densely-populated countries.Haron also reflected on the American Soybean Association (ASA), which hesaid “things are all right now.”“I must emphasise the truce with the ASA in 1989 has helped both sides alot. We have been meeting on a regular basis and we have always remindedourselves not to hit below the belt. They are also quite gentlemanly. Wehave a complementary role and if we can do that (carrying on the goodties), we are doing a good service to the world,” he said.Haron met ASA officials in September in Australia. At the meeting, thepalm oil industry drew out the best of both ASA and Malaysia’s attributes.As Haron puts it, “we synergise and work out our different niches.”For instance, efforts have been made to combine soyabean and palm oil tomake a margarine called “smart balance” and this uses the good qualitiesof both oils. More importantly, the ASA has indicated its desire to workwith the palm oil industry and this could not have been a better piece ofnews.“We are always looking at less discriminatory treatment. Let’s talk aboutlevel playing fields in the true sense of the word. If some enjoy animport duty or a certain percentage of tariff, why can’t we enjoy thesame?” he asked, adding that things were not easy because of the differentamount of subsidies by the respective countries.Haron’s advice to the palm oil industry is that anything we can produce,we must be able to sell them.Traditionally, Malaysians are quite comfortable with people coming fromelsewhere to buy from us but the scenario has changed.“We must not be happy with a certain price. The industry must godownstream and get new products. And where palm oil is sold as an edibleoil the cost must be effective,” Haron said.He also said the industry must replant and with the help of research, itwould ensure Malaysia’s survival in the trade.“Don’t forget we have competitors but that aside, we can also cooperatewith neighbouring countries on market development and generic promotion,”Haron said.In this respect, Haron said, Malaysia could draw on different expertisetogether to cooperate on multi-level trade issues.In essence, the efforts will result in a stronger linkage and eradicateundercutting.“Remember, Malaysia can’t afford to sell below cost, likewise, othercountries,” he said.MPOPC: Industry well-positioned to face Afta challengesTHE Malaysian palm oil industry is well-positioned to face the challengesfrom the Asean Free Trade Area (Afta), said Datuk Haron Siraj, the chiefexecutive officer of the Malaysian Palm Oil Promotion Council (MPOPC).He said this was because the industry had gone downstream and was quitecompetitive. “Our research and development has created a lot ofopportunities for the industry.”Thailand is aggressively pursuing downstream processing but by virtue ofour relatively lower cost of operations in research and development,Malaysia still enjoys a competitive edge.Malaysia’s lower cost of operation and labour are its selling points andthe Asean market is there for it to tap.Giving his views on Indonesia, the world’s second largest palm oilproducer, Haron said its production would increase. Its cost is relativelycheaper and some 40% is consumed at home.“If they can get over whatever setbacks they have now, they will certainlygrow bigger and it is in our interest to work together with Indonesia,”said Haron. “I believe co-operation and co-existence are very important.There is a place for everyone.“The world needs edible oils and fats. There is a role for our productsand Indonesia’s. If both of us are efficient and happy with reasonableprofits, we can work together. But I believe it must be attractive forus.”In terms of value for money, palm oil gives premium health and nutritionalvalue.According to Haron, palm oil is the product for the poorer section of theworld community in particular.Malaysia has conducted 942 research projects worldwide to ensure palm oilis a “healthy” oil.“The relationship between the Malaysian and Indonesian palm oil industryis getting closer. We have been to China and India together to sell palmoil. We also want to appear to be responsible. We don’t want to be seen asganging up or pushing up prices as high as possible,” he said.Palm oil is suffering from tariff discrimination by some countries and itis in the interest of all that it enjoys better treatment compared withother oils.Malaysia and Indonesia will certainly want to see equal treatment of palmoil in some countries.“Transparency has to prevail, and with the quotas, we do not know whatthey are up to. The main objective in imposing a high tariff on importedoils and fats is because the country wants to raise its ownself-sufficiency in the industry,”said Haron.Notwithstanding this, he said, Malaysia felt it was still doing all right.But there is always room for improvement or for a more level playingfield.