21/09/2012 (Bernama) - Romania is set to become the gateway for Malaysian palm oil to penetrate East European markets.

Plantation Industries and Commodities Minister Tan Sri Bernard Dompok said Romania had the potential to become the ideal gateway for Malaysian palm oil given its ideal location and port facilities.

He said this would allow further down streaming of palm oil products and exports to Bulgaria, Hungary, Moldova, Serbia and Ukraine.

"Romania is a key emerging market for oils and fats including palm oil. We believe the level of palm oil awareness can be expanded in this country," he told Bernama.

He added that oils and fats consumption patterns in Romania indicated a healthy growth over the past four years including the growing appetite for palm oil.

Dompok, who is currently leading an eight-day palm oil promotion mission to France and Romania, said this region has shown clear signs of having weathered the economic downturn with export figures registering a gradual rebound after having declined earlier in response to falling demand from Western Europe.

"With a total population of more than 292 million, Eastern Europe is seen as a pivotal stepping stone for Malaysian palm oil to further strengthen its market access," he said.

Members of the Malaysian delegation on the mission include Malaysian Palm Oil Council Chairman Datuk Lee Yeow Chor, its Chief Executive Officer Tan Sri Dr Yusof Basiron and Malaysian Palm Oil Board Director-General Datuk Dr Choo Yuen May.

Meanwhile, Lee said Romania was no longer a net exporter of oils and fats, unlike during the earlier years.

He said the demand for oils and fats, the past three years, surpassed local production capacity.

"Romania is unique as it is the only country in Europe where palm olein, which is available in consumer packs, is distributed in major hypermarkets.

"The demand is still growing," he said, adding that total vegetable oils production in Romania was about 350,000 tonnes per year, of which about six per cent was utilised for non-food purposes.

"The industry developed rapidly in the past few years, driven by the entrance of large international players, especially from the United States, which currently accounted for more than two-thirds of the country's production of edible oil," he said.

Romania's domestic edible oil market was estimated at 350 million euros.

Dompok said palm oil continued to feature strongly as a major food commodity and one that was highly affordable to the masses.

"Malaysian palm oil is also proud to be associated with certified sustainable palm oil, through the long association of our major producers with the Roundtable on Sustainable Palm Oil.

"This certification process using credible global standards and through engagement with multi-stakeholders proves that Malaysia is very much concerned about the pressing global call for sustainably-produced palm oil," he said.