27/11/2012 (New Strait Times) - Johor Farmers' Organisation (JFO) has invested RM120 million to set up a factory to produce cooking oil next year.   Its chairman, Datuk Saipolbahari Shuib, said the factory would produce cooking oil under the brand Peladang, which is basically for the export market.

He said JFO had already identified several overseas market for its cooking oil, which are in West Asia and Africa.

"It is our intention to set up the factory at Teluk Panglima Garang in Selangor, to process and produce cooking oil.

"All this while, we have been selling crude palm oil (CPO). Sending the CPO to the factory will enable us to produce our own cooking oil," he said.

Saipolbahari hoped the venture would encourage the growth of downstream industry and further strengthen the position of JFO and farmers in the state.

Like Felda which has its own brand of cooking oil, he said JFO also has the ability to produce its own cooking oil.

"This is because oil palm growing is our core business. Why not capitalise on this?

"We have assurance of abundant fruit supply from farmers and oil palm collecting centres.

"As we have a strength of 85,000 members throughout the country, we are not worried about the supply of oil palm fruits," he added.

He said if each farmer owned 1.21ha of oil palm land, this means the members will have a total of 102,850ha.

"This is on top of the 34,399ha owned by us, and another 12,950ha owned by Pertububan Peladang Kebangsaan," he said.

The factory is expected to process 1,500 tonnes of CPO daily.

Datuk Saipolbahari Shuib says JFO has the resources to produce the cooking oil