7/12/2004 Agra Europe - Malaysia hopes to sell up to 600 000 tonnes ofcrude palm oil (CPO) to emerging markets in Russia and Poland in the nextfew years, the Malaysian Palm Oil Association (MPOA) chairman Sabri Ahmadsaid after a recent visits to the two countries.

Exports to Russia would initially double to 300 000t and to rise to 500000t within the next three to five years, he said, pointing out thatRussia presently imports 150 000t and Poland 50 000t under the palm oilcredit payment arrangement (Pocpa) by Malaysia.

The increased exports would be facilitated through a combination of Pocpaand counter trade between Malaysia and Russia, said Sabri, who is also theMalaysian Palm Oil Promotion Council (MPOPC) regional market committeechairman (Europe).

US$50 million under Pocpa

"Palm oil is highly regarded in Russia. The margarine sold in the countrycarries the words palm oil promoting the health benefits of the product,"he said.

"We are also promoting the blending of oils. For instance, we are pushingfor the blending of sunflower and palm oil in Russia and in Poland, theblending of rapeseed and palm oil," he said, adding that Poland wasanother potential market.

He also disclosed that MPOA member companies would form a consortium tooperate tank facilities, possibly at Klaingard port, near Estonia, forstorage and distribution of oil to other parts of Russia.

He noted that Russian vegetable oil producers were limited in size oftheir markets, taking about 100t a year. "We have to support them thisway. They would not be able to buy such huge amount and the tank facilitywould be a good arrangement for their industries," he said.

The Russians had also requested for the MPOPC to set up a branch office inthe country to facilitate trade between the two nations.

The Russian per capita edible oil consumption was only 19.1kg comparedwith European consumption of 50.7 kg. This makes a good market with growthpotential and an important gateway to other former Soviet countries likeUzbekistan, Turkmenistan, Estonia and Ukraine, Sabri said.