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KUCHING, July 8 (Bernama) -- A crude palm oil refinery complex costingRM50 million will be built at the Kidurong Industrial Area in Bintulu toenhance Sarawak's palm oil industry, said Austral Enterprises Bhd'smanaging director, Dr Radzuan Abdul Rahman.The refinery, which is expected to be in operation in 2004, would beundertaken by a joint venture company, Austral Edible Oil, to be jointlyowned by Austral and Lembaga Amanah Kebajikan Masjid Negeri Sarawak(LAKMNS).

Monday, July 8, 2002 - PALM oil producing region Sandakan, on the eastcoast of Sabah, is now able to cater for rapid expansion of oil palmplantations and subsequent increase in production following the recentcompletion of the new and better capacity mill, the Sepagaya palm oilmill.The mill, owned by the state’s leading oil palm-based Sawit Group, has amilling capacity of 45 tonnes of fresh fruit bunches (FFB) per hour.It replaces the Suan Lamba mill, which has a smaller operating capacity of20 tonnes per hour.In a statement on Saturday, Sawit Group said the Suan Lamba mill hasceased its operations and all palm oil milling have been taken over bySepagaya mill, effectively making it the sole milling operator in theSandakan region.“The opening of this mill coincides with Sawit Group’s business expansionprogramme for future requirement in crop processing,’’ it said.Sepagaya mill will be capable of milling up to 216,000 tonnes of FFB perannum. The capacity can be expanded to 90 tonnes per hour or 432,000tonnes annually to cater for increase in crop production in the future.Sawit Group is expected to process up to 1.4 million tonnes of FFB thisyear.“With the Sepagaya Mill, oil palm growers within the district also standto reap the benefits of the Sawit Group’s expanding milling activities asfair prices are offered for the harvest coupled with improved facilities,”Sawit said. – Bernama(The informations and opinions expressed in this article represent theviews of the author only. They should not be seen as necessarilyreflecting the views of Palm News)

Tuesday, July 2, 2002 - KUMPULAN Guthrie Bhd has defended its decision tostake its future in Indonesia as the kind of forward thinking that couldwell double its earnings per share (EPS) in the near future.Its group chief executive officer Tan Sri Abdul Khalid Ibrahimacknowledged that there were investors and shareholders who still viewedthe company’s foray into Indonesia as a folly that had ramped up itsgearing to 1.19 as at March 31.He said it had taken a while for the group to get its 200,000ha Minamasplantations – for which it paid RM1.4bil – into order, but gave anassurance that things were now in order; and should crude palm oil (CPO)prices hold around the US$350 to US$400 level, “Guthrie is poised for avery successful time’’.Khalid said the best EPS the company achieved in the past five yearsamounted to 20.3 sen, in 1997.“With the acquisition (of Minamas), we can target to achieve a two-foldincrease in EPS,’’ he told a briefing for analysts at the group’s officein Bukit Jelutong yesterday,Khalid also pointed out that the contribution from the group’s Indonesianoperations had turned around from a loss of RM37mil in the nine months in2001, to a profit of RM10mil for the first quarter of the year.Guthrie, he said, was now working to accelerate its total crude palm oil(CPO) production to one million tonnes annually from about 500,000 tonnesat present, with the Minamas plantations to contribute about two thirds ofoutput.However, Guthrie, which already has 11 mills in Indonesia, would have toinvest quite considerably in an additional eight to 10 mills over the nextfour to five years to meet its refining needs.But prior to that, it is committed to addressing its total borrowings ofRM2.88bil as at end-March.Khalid said that Guthrie was taking the necessary steps to reduce itsloans to RM2.39bil by the end of 2004, through a programmed disposal ofhigh value properties, such as its recent sale of the Haron Estates toGolden Hope Plantations Bhd for RM565mil, and the proposed sale of a 10%equity in Minamas for US$45mil to US$50mil, plus the sale of Group Acompanies shares for around the same price.(The informations and opinions expressed in this article represent theviews of the author only. They should not be seen as necessarilyreflecting the views of Palm News)

05 July 2002 (Business Times) - MALAYSIA’s palm oil market expects biggestbuyer, India, to go on a buying spree anytime soon as it stocks upsupplies in anticipation of the Deepavali celebrations in November.

03 July 2002 (Business Times) - THE world’s first pulp and paper mill thatuses oil palm biomass as feedstock is expected to start operations in thecountry by 2004.

08 July 2002 (The Star) - SUTRAJAYA Shipping Sdn Bhd, a shipping linecreated by the country’s single largest shipper, Felda, is continuing tomake waves.

JAKARTA, June 28 (Reuters) - Growth in Indonesia's crude palm oilproduction is seen slowing over the next few years as refining capacityfails to keep pace with the expansion of areas under cultivation, industrysources said on Friday. Refining capacity is already beginning to lagplantation output due to the lack of investment in the expensive refiningsector since the Asian financial crisis of 1997."On the other hand, production of fresh fruit bunches is rising as newtrees planted before and during the crisis mature," Nafis Daulay, chairmanof the Indonesian Edible Oil Industry Association, told Reuters.Indonesia is the world's second largest palm oil producer after Malaysia.The sprawling archipelago's total area under oil palm cultivation isestimated to have gone up to 3.3 million hectares in 2001, from slightlyover two million hectares in 1995, the Indonesian Palm Oil ProducersAssociation said.Indonesia is expected to produce 9 to 9.2 million tonnes of palm oil in2002, compared with 8.3 million tonnes in 2001, it said.Exports were seen rising to 5-5.5 million tonnes, compared to 4.9 milliontonnes in 2001 as Indonesia pushes exports as output exceeds domesticdemand.Industry sources said the shortage of refining capacity was most acute inKalimantan -- the Indonesian side of Borneo island -- and in Sumatra andeastern Indonesia, where many plans to build refineries have been on holdsince the late 1990s.Ethnic conflict in Kalimantan, between indigenous people and migrants, andsecurity problems in Sumatra have also delayed the building of manyfactories."In my estimation, there was around one million tonnes of fresh fruitbunches wasted last year because they could not be processed," said oneplantation owner in North Sumatra.A Jakarta trader said: "When prices are low, smallholder farmers, who donot have their own mills, make no margin by taking their crop to otherpeople's mills so they let the bunches rot."Even the main growing of Sumatra, where around 240 refiners operate, facesa shortage in refining capacity during peak output months.Industry sources say Sumatra has around 2.15 million hectares of matureplantations which yielded some 44-45 million tonnes of fruit bunches lastyear.And in turn they add this amount of oil requires a refining capacity of10,300 tonnes/hour, while current capacity at the refineries is onlyaround 9,640 tonnes/hour.

06/20/2002 (BusinessWorld) - The Philippines, the world's biggest coconutoil supplier, foresees a 36% drop in coconut oil exports this year due toan expected fall in local copra production.The United Coconut Association of the Philippines, Inc.'s (UCAP) revisedcoconut industry forecast shows that coconut oil exports is expected toreach only 900,000 metric tons in 2002. This is 36.1% lower than lastyear's export volume of 1.407 million metric tons.UCAP is the umbrella organization of local coconut oil millers, refinersand traders."Production deficit anticipated for 2002 will correspondingly reduce coprasupply for coconut oil milling and consequently, coconut oil volume forthe export market,"UCAP said.It also said preliminary data show coconut production for 2002 isanticipated to drop significantly to 2.161 million metric tons (in copraterms), down 23.6% from last year's all-time high of 2.828 million metrictons.The decline is due to two successive years of heavy fruiting at above-normal levels, which has stressed coconut trees and resulted in a declinein copra deliveries.Despite the uptick in coconut oil prices in the world market, the declinein export volume will continue to dampen export revenues.UCAP said revenues from coconut oil exports will continue to decline to$310.05 million, down 24.7% from last year's revenues pegged at $411.52million.The group also said it expects coconut oil prices to average $345 per tonof coconut oil, or 17.8% higher than last year's $292 per ton. Wirereports, however, show that coconut oil prices have gone up to $430 perton in the world market.UCAP, however, stressed that improved price levels during the year willnot offset the decline in revenues.For the first semester ending in June, UCAP expects coconut oil exports toreach only 465,000 metric tons, down 33.5% from 698,851 metric tons in thesame period last year.In the second semester, coconut oil exports are expected to reach only435,600 metric tons, posting a sharp 38.6% decline from 708,769 metrictons a year ago."The trend was based on the rainfall pattern in 2001 which showedbelow-normal levels in the second semester in many areas particularlyduring the latter part of the year. This export trend is replicated insubsequent projections for other products namely, copra, copra meal anddesiccated coconut,"UCAP said in its revised forecast report.BusinessWorld earlier reported that preliminary data from UCAP show thatfor May, total coconut oil exports totaled 81,950 metric tons, declining44.79% from 148,442 metric tons shipped abroad in the same month lastyear.Industry sources said the continued slowdown in copra production causedthe sharp drop in coconut oil exports, which may continue for the rest ofthe quarter.The UCAP revised report also said that with the expected decline in localcoconut production this year, other coconut exports such as copra, coprameal, desiccated coconut and oleochemicals are also expected to decline involume."With projected output in 2002 declining, export is likewise forecast todrop by 31.6% to 1.665 million metric tons from last year. A shortfall inrevenue is likewise expected for the year with total export valueamounting only to $404.72 million, down by 21% from last year,"it said.UCAP said it expects the volume of copra exports to decline by 55%, coprameal exports by 31%, and desiccated coconut by 6.5%.

KUALA LUMPUR, June 26 (Bernama) -- The loan credits incurred outstandingby four countries under the Palm Oil Credit and Payment Arrangement(POCPA) now totalled RM542.7 million or US$142.82 million, said he deputyfinance minister, Datuk Dr Shafie Mohd Salleh, Wednesday.The four were Algeria, Iraq, Sudan and Cuba and the government waspursuing the outstanding amounts, he said.

IPOH, June 27 (Bernama) -- Consumer products-based Yee Lee Corporation Bhdis looking for bigger export markets, especially in Thailand and itsMekong River Delta neighbours, once the Asean Free Trade Area (Afta) comesinto effect next year.Deputy chairman and managing director Lim A Heng said the company washoping that Thailand would liberalise its import duty on palm oil productsnext year.

AHMEDABAD, 06/13/2002 (Asia Intelligence Wire)- The Rs 1,165-crore AdaniWilmar Ltd, the 50:50 joint venture between Adani Exports Limited andWilmar Holdings Pte Ltd, is planning to expand its edible oil refiningcapacity at Mundra from the existing 800 metric tonnes per day (mtpd).The expansion is being done mainly in preparation for the company's forayinto the southern market, which includes the four southern states, andOrissa in 2003, Mr Gautam Adani, chairman, AWL, told newspersons here onTuesday. He, however, refused to divulge the total cost of expansion asdetails were yet to worked out.The company is also in the process of delinking and doubling its vanaspatirefining capacity from the existing 100 mtpd to enable manufacture ofvalue added products like bakery shortening and speciality fats likemargarine.The vanaspati refinery expansion is being done at a cost of Rs 12 crore,which is in addition to the Rs 100 crore that AWL has invested so far inits edible oil refinery at Mundra.Adani Wilmar's Fortune brand of edible oil has grabbed a 9.7 per centshare of the total 18 lakh tonnes per annum branded refined oil market asper the April 2002 data of AC Nielsen ORG-MARG made available by thecompany.Fortune is followed closely by Agrotech with its Sundrop brand ofsunflower oil, which has an 8.8 per cent market share. The other brands inthe segment include Marico's Sweekar and Saffola, NDDB's Dhara, amongothers.According to Angshu Mallick, general manager, sales and marketing,soyabean oil consumption had gone up from 62.9 per cent in first quarterof 2001-02 to 173 per cent in the fourth quarter of 2001-02.AWL is a player in the refined edible oil market with sunflower, soyabean,cottonseed and groundnut oils under the Fortune brand, vanaspati under theRaag brand and refined palmolein under the Jubilee brand.

6/21/2002 (Europe Intelligence Wire) - Airing their views at the secondinternational conference 'Russia's Oils and Fats Complex' on Tuesday inMoscow, representatives of Russia's fat-and-oil complex expressed disquietregarding the country's upcoming membership in the World TradeOrganization.Russia joining the WTO means expansion of trade ties, and for thefat-and-oil section more free raw materials exports and imports ofvegetable oils and fats, which will lead to tougher competition on theRussian market, director of the all-Russia scientific research institutefor fats (St. Petersburg) Alexander Lisitsyn announced.Lisitsyn said that in such conditions effective sector functioning ispossible only in the event that its products give no ground to non-Russian-made products in terms of quality and pricing, and that volume andvariety of goods are able to meet the population's and industry's growingneeds.According to the latest research, consumption of fat-and-oil industryproduct in Russia is pretty low. In particular, vegetable oil consumptionis a per capita ten kilos per year against a recommended 13.6 kilos. Bycontrast, that figure is significantly higher; in Britain it is 18 kilosper year, in the United States and the Netherlands 25 kilos.Lisitsyn said he thinks that Russian enterprises making such products haveto increase production efficiency and product quality by means oftechnological modernization and new equipment, as well as automatingproduction processes.In the opinion of the vice president at Rosselkhozakademiya, YevgenySizenko, the domestic fat-and-oil sector finds itself in a difficultsituation as Russia's WTO membership draws ever nearer. Insufficientinvestment, he said, is resulting in many enterprises having to make dowith out-dated equipment, which has a telling effect on product qualityand variety. However, the main problem is that there is not enoughdomestically-produced raw material to go around.The main oil-bearing crop in Russia is sunflower, from which around 85% ofall vegetable oils is produced in the country. Two years ago, Russiaposted a 10-year record level of oil production - 1.375 million tonnes.That figure was down 10% the next year to 1.238 million tonnes of oil.Russia joining the WTO requires of the fat-and-oil industry that it workout new state standards for product-making, noted president of the RussianUnion of Dairy Sector Enterprises Vladimir Kharitonov. This notablyconcerns products that have complex raw material formulation, which areknown in Russia today as 'combined butter', and as 'spreads' around theworld. As a result, the Russian consumer confuses 'combined butter'-theproduction of which involves the use of cheaper vegetable fats-with creambutter. The producers of the latter incur losses due to unscrupulouscompetition from producers of the former.Russia currently produces around 1.5% of the world's oilseed and 11% ofits sunflower. The country produces roughly 11% of the world's vegetableoil.