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(Chemical Business NewsBase) 11/18/2002 - Industry representativesestimate Indonesia is adding 10-20 new palm oil plants of 30-60 tonnes/hcapacity each year. Over a half of output is being exported. Palm oilproduction rose from 5 M tonnes in 1998 to 8.3 M tonnes in 2001. 9 Mtonnes is expected in 2002 and 9.2 M tonnes in 2003. Driven by the highprice on world markets and export duty of 1-3%, exports are growing fasterthan production. Exports rose from 1.5 M tonnes in 1998 to 4.9 M tonnes in2001. 5.5 M tonnes is expected in 2002 and 5.7 M tonnes in 2003. The maincustomer is India, followed by the EU and China.

12/04/2002 (The Star) - KULIM (M) Bhd will be investing RM22mil over thenext three years to install total waste management systems at its palm oilmills in Malaysia and Papua New Guinea.Its managing director Ahamad Mohamad said that to date, only one of thecompany's palm oil mills in Johor had adopted the total waste managementtechnology.'We have 11 palm oil mills - seven in Malaysia and four in Papua NewGuinea - and will gradually install the system over the next three yearsat all our mills," he said.Ahamad said this at a press conference after the signing between Kulim andAsiaGreen environmental Sdn Bhd in Kuala Lumpur yesterday.To date, the company has oil palm operations in Malaysia, Papua New Guineaand Indonesia, with total planted area of 70,000ha. The signing was inconjunction with Kulim acquiring a 30% shareholding in AsiaGreen.The other shareholders of AsiaGreen are Bertam Holdings Plc 30% and otherindividual shareholders 40%Set up in 1997, AsiaGreen is a 'green' technology provider of total wastemanagement solutions.AsiaGreen managing director Steven Chong said the system that Kulim wouldbe adopting used bio-technology that enabled oil palm waste to beconverted into nutrient-rich organic fertilisers.'The system saves production costs and enables valuable organic compost tobe recycled back into the oil palm estates as well as improve soilproperties. It promotes better growth of oil palm and hence good potentialfor higher yield. Oil palm millers using the system can also expect areturn on investment of less than three years," Chong said.According to Chong, AsiaGreen will also be expanding its waste managementbusiness overseas.The company now has a compost plant in Papua New Guinea and is negotiatingto set up composting plants in Indonesia, Myanmar and China.He said the scope of the system's usage and its technology was huge inview of the fact that palm oil generated about RM15bil in foreign exchangefor Malaysia annually.

Jakarta, Dec 11 (ANTARA) - Crude palm oil (CPO) as one of Indonesia'sleading commodities outside natural oil is predicted to enjoy thefavourable position at least in the next ten years.General chairman of the Indonesian Plantation Companies Association (GPP),Bengkulu chapter, Sri Mulyono Herlambang said here Wednesday many factorscould make Indonesia's plantation produce to become leading commodities,such as the expansion of the existing acreage of oil palm plantations,especially in Sumatera and Sulawesi, the fact that the quality and volumeof production could still be increased by using superior seeds.In addition the increasing CPO consumption in line with the increasinglydiversified end-products like cooking oil, margarine, soap and cosmetics,while competitors in processed products of sunflower and soya bean arestill very few.He also said that as the result of intensive research work, at least 50derivatives can be produced from CPO. The latest discovery was made by ahealth researcher who had found that CPO can serve as an inhibitor ofcancerous cells, while in Malaysia, palmoil has been developed into fuelto replace natural oil.Other support factors include the location of the Indonesian archipelagobeing right on the equator with its tropical climate highly suitable forthe raising of oil palm crops.Herlambang, who happens to be a former Indonesian Air Force chief ofstaff, and now member of the People's Consultative Assembly (MPR), saidBengkulu Province alone has cultivated some 100,000 ha of its land withoil palm trees, and this acreage could still be doubled in the future. Notto mention those in some other provinces in Sumatera, Sulawesi and IrianJaya.To promote the quality and volume of CPO production in Bengkulu,Herlambang along with 22 members of the GPP have started socializing theuse of crop cards for each farmer who runs a smallholder plantation withthe use of Marihat superior seeds as recommended by the government.Through the GPP of Bengkulu, Herlambang also hoped some day he, along withthe Bengkulu administration, could build a cooking oil factory to meetdomestic needs, provide employment for the local people, and contribute tothe earnings of the local administration.

MANILA, Dec 6 (Asia Pulse) - A research team of the National Institute ofMolecular Biology and Biotechnology (BIOTECH) at the University of thePhilippines in Los Banos, Laguna (UPLB) has developed novel products fromcoconut oil such as specialty fats, flavor esters, and antibacterialagents.The team led by BIOTECH director Teresita Espino changed the chemicalproperties of the oil through catalysis using lipase, an enzyme that aidsin the breakdown of fats and oils.Lipase use is actually the output of the team's earlier research on thedeveloping the technology for large-scale low-cost lipase production.The specialty fat is called medium chain triglyceride (MCT), an excellentalternative for regular vegetable oils because it is easily absorbed bythe body and has lower calorie content.While regular oils contain nine calories per gram, MCT has only 8.3, andunlike regular oils, it does not stay in the body as fat because it isquickly used up as energy.The anti-bacterial beta monoglyceride (MG), another coconut oil-basedproduct, is an effective and safe fruit and vegetable protectant.The research team found out that when used as coating for fruits andvegetables, MG not only wards off bacterial infection but also preservesthe fruits' color, odor and firmness for up to two weeks.MG can also be used as an alternative to triclosan and triclocarban,strong anti-microbial agents in soaps and detergents. The project revealedthat MG fights bacteria that cause diarrhea and gastro-intestinal diseaseswithout any adverse effects to health.Food companies will also appreciate the coconut oil-derived flavor estersisoamyl acetate for banana flavor and ethyl butyrate for pineapple flavor,being natural components preferred by consumers."The production of high-value products from coconut oil is one way wherewe could help improve the competitiveness of the coconut industry," Espinosaid.Adoption of this technology would help raise the income of coconutfarmers, village level entrepreneurs and commercial coconut oil-basedindustries. It also offers an alternative application for the utilizationof coconut oil, he added.The research is undertaken through the Philippine Council for AdvancedScience and Technology Research and Development (PCASTRD), an agency ofthe Department of Science and Technology (DOST), which provided itsfunding.

12/9/2002 (Soybean Digest ) - For some, the start-up of the new SoybeanProducers of America (SPA) is a godsend. But many others, farmers andindustry folks alike, are puzzled by this new organization.What could make this group different from the old standby American SoybeanAssociation (ASA)?Talk with SPA's executive director and former ASA member Harvey Joe Sannerfrom Des Arc, AR."We're disillusioned with ASA and have been for some time," Sanner says."We believe its policies have had more benefits for industry than forproducers. It's just not producer-oriented enough."That's not a new theme by a long shot. In fact, you might think forming anew association that differs from mainstream groups is radical.But the American Corn Growers Association, for instance, provides anopposing view and alternative choice to the National Corn GrowersAssociation.Also, Ranchers-Cattlemen Action Legal Fund (R-CALF), a splinter group inthe beef industry, is picking up steam as another choice for cattleproducers rather than the age-old National Cattlemen's Beef Association.Initially, the R-CALF group was formed to fight Canadian border tradeissues.Now, even the National Pork Producers Council expects another porkproducer group could be in its not-so-distant future.So the idea of a new soybean association taking root isn't far-fetched.According to SPA's Sanner, a past president of the American AgriculturalMovement, going head-to-head with ASA "will be tough, but there's a need."And says SPA's president Dewayne Chappell, a soybean grower also from DesArc, "We won't let big agribusiness drive our policy."So far, SPA is comprised of a board of directors from Arkansas,Mississippi, Nebraska, Illinois and South Dakota.SPA's bylaws and policy state it won't accept money from seed and chemicalcompanies. Also, its core membership will be farmers.ASA, on the other hand, already has 26,000 dues-paying members and hasbeen operating over 80 years. "We have a grassroots process thatrepresents soybean farmers well," says Steve Censky, CEO of ASA. "Andwe're going to keep on doing what we're doing -- trying to increase farmerprofitability."Soybean Digest is a stalwart supporter of ASA. But if someone else can bea striking force for more profits, have at it. And if there's any way tomake you more money, then maybe there's room for someone else on theblock.

12/02/2002 (The Star) - Malaysian palm oil exports outlook for theremaining part of 2002 and 2003 is likely to improve, possibly by morethan 30%, due to anticipated acute shortages in the world's vegetable oilssupply during 2003. During 2001, palm oil exports increased by 16.7% to10.6 M tonnes compared to 9.08 M tonnes in 2000. The strong growthpotential in palm oil earnings is mainly due to the current steady rise inthe price of crude palm oil (CPO) now trading above Ringgit 1500/tonneagainst the average CPO price of Ringgit 894/tonne in 2001.According to the Economic Report 2002/2003, the targeted export earningsfrom both crude and processed palm oil is to increase by 35.5% to Ringgit13.56 bn for 2002 (Ringgit 10 bn in 2001). Plantation analysts still havepositive outlook for palm oil exports despite India's move to revise itsbase import price for different types of palm oil. India, which isMalaysia's largest palm oil importer, imported 1.4 M tonnes of palm oilfrom Malaysia, accounting for 15% of total palm oil exported during thefirst nine months of 2002.

IPOH, Nov 30 (NSTP): Felcra hopes to capture a slice of the the MiddleEast and African market by opening a palm oil refinery in Oman on ajoint-venture basis with a local company soon.Its chairman Datuk Hamzah Zainuddin said the refinery would be the firstto be set up by Felcra."It will be carried out jointly with a reputable public-listed company inthe Sultanate, he said yesterday.The Finance Ministry had given its approval and an agreement is expectedto be signed mid next month.Felcra will hold a 49 per cent stake in the project with an investment ofRM7.5 million, with the remaining stake be held by the Oman company.The total cost of the refinery is about RM100 million, 80 per cent to befinanced by Oman banks.Present was Perak Felcra regional manager Jahare Abu Bakar.Hamzah said the construction of the refinery would begin soon, and wouldbe completed by early 2004. The refinery would largely be managed byMalaysian personnel as Oman did not have the expertise, and would processcrude palm oil imported from Felcra's 150,000 hectares of plantations inMalaysia.The refinery would be located near Port Salalah to enable the palm oil tobe exported to countries like Yemen, United Arab Emirates (UAE), Dubai andQatar.Felcra is also studying the possibility of downstream activities in India,which is a major importer of the commodity.In Kuching, Felcra brought early Hari Raya cheer to 2,636 participants ofits land schemes in Sarawak, by paying them dividends averaging RM600 eachParliamentary secretary to the Rural Development Ministry Datin PadukaRohani Abdul Karim said the total dividends given out this year in theState was RM1.56 million."On the average, each participant gets RM600, but there is one participantis getting RM33,975 as his farm of 13 hectares was well managed," shesaid.Present was Felcra's general manager Juzilman Basir."Palm oil prices this year is good, and is expected to remain at the samelevel next year, Rohani saidShe also said Felcra does not focus its attention solely on plantationdevelopment, but also provided facilities such as skills developmenttraining and infrastructure development in its areas.Juzilman said dividends totalling RM84.8 million would be distributed tothe 77,000 land scheme participants nationwide this year.

IPOH, Nov 30 (Bernama) -- Felcra Berhad plans to set up a RM7.5 millionpalm oil refinery in Oman next year, said its chairman Datuk HamzahZainudin."This will be Felcra's first venture into the palm oil industry in WestAsia," he said after attending a breaking of fast function here yesterday.

New Delhi, Nov 27 (Bernama) -- The Indian Government has hiked the baseimport price or tariff value on the palm group of oils by nearly 10percent following rapid increase in the prices of vegetable oils in theglobal market during the last few months.The Government has, however, left the tariff values of crude soyabean oilunchanged, says a Chennai-datelined report in the financial daily, theHindu Business Line.

BUENOS AIRES, Argentina, Nov 22 (Reuters) - Argentina left its forecastfor 2002/03 soy plantings unchanged at 12.6 million hectares, up from 11.6million hectares last year, the agriculture department said Friday.Argentina is a major producer of grains and oilseeds and the world'sNo. 3 exporter of soybeans.Government and private analysts have said strong prices and low inputcosts compared to crops like corn led farmers to plant more of theoilseed.Rains and hail in the country's main farming region also helpedincrease soy area, the department said in its monthly report."Poor weather... across much of the plains, especially in the northernand northeastern sections of Buenos Aires province, meant some farmers hadto plant soy and sunseeds instead of corn; soy and sunseeds have greaterflexibility in terms of optimal planting times," the report stated.The government lowered its forecast for sunflower seed plantings to2.37 million hectares from its estimate of 2.46 million hectares lastmonth. Sunseed area is seen rising about 15 percent from 2.05 millionhectares a year ago.Farm analysts earlier this year predicted Argentina's economic crisiscould slash total 2002/03 crop production by as much as 10 million tonnesas farmers facing a credit crunch cut back on their use of technology.Early indications for soy, wheat, corn and sunseeds, which account foraround 90 percent of total crop output, suggest those predictions may havebeen too pessimistic.Though planted area for several crops is estimated to fall, governmentforecasts for planted area for the country's four main crops show areaplanted this season growing slightly to 24.08 million hectares from 23.8million hectares in 2001/02..The department left unchanged its forecast for corn plantings at 2.96million hectares, down from 3.05 million hectares in 2001/02.The government also maintained its estimate for wheat plantings thisseason at 6.15 million hectares, down from 7.1 million hectares last year.Argentina produced a record 69.6 million tonnes of grains and oilseedslast year.

SAO PAULO, Brazil, Nov 21 (Reuters) - Brazil's No. 3 soybean producerstate Rio Grande do Sul had planted 35 percent of its crop by Thursday,the state Agricultural Federation (Fecoagro/RS) said.Brazil's southernmost state is normally the last to plant and harvestin the world's second largest soy belt. Area planted to soy in the statethis season should grow 7.5 percent over last to 3.54 million hectares(8.75 million acres), said Fecoagro/RS in a statement."With El Nino, good yields are expected for soy and equally for corn,given the amount of precipitation expected during the growing season,"said federation crop engineer Valdir Bisotto.El Nino -- a global climatic anomaly associated with the warming ofsurface temperatures in the Pacific Ocean off the coast of Peru --typically causes heavy rains in Brazil's south from October throughDecember. The phenomena is believed to be responsible for the disruptionof world weather patterns, causing droughts and floods.Rio Grande do Sul accounts for about 17 percent of Brazil's soy output,which should reach a record 48 million to 50 million tonnes this season.Brazil's national planting had been estimated by analysts at around 50percent last Friday.Brazil is the world's No. 2 soy producer and exporter after the UnitedStates and accounts for about 24 percent of global soy supply.

HONG KONG, Nov 19 (Reuters) - China is looking to buy at least another 10U.S. soy cargoes for shipment early next year, with logistic problemshampering delivery of domestic oilseed from the north, traders said on Tuesday.