MARKET DEVELOPMENT
Agro Titan Plans to Open Cooking Oil Plant
Agro Titan Plans to Open Cooking Oil Plant
21/12/2015 (Khmer Times) - Mong Reththy Group, the largest agro-industrial company in Cambodia and one of the largest in Southeast Asia, is planning to build a $20 million factory to produce palm cooking oil in the Kingdom soon, a senior executive of one its units said.
“We are sure that we will build it,” said Mong Reththa, vice chairman of the board of directors at Mong Reththy Investment Cambodia Palm Oil.
He added that the factory is still in the planning stage and that the proposal had yet to be submitted to the group’s board of directors for approval.
The plant would be the first of its kind in Cambodia. Mr. Reththy said it would produce cooking oil for the domestic market and for export, adding that it will reduce reliance on imported cooking oil and create jobs.
Cooking oil imported from Malaysia and Indonesia would not be a major challenge for the plant’s output, but cooking oil smuggling into Cambodia from Vietnam along the porous border would be.
Economist Srey Chanthty said such a factory would reduce Cambodia's need to export raw palm oil, substitute imported cooking oil for domestically manufactured cooking oil, create another export good and generate value.
The factory will perhaps let Cambodia substitute import of palm-oil-based cooking oil, and export jobs.
Mey Kalyan, senior advisor to the Supreme National Economic Council, welcomed the move, saying it is line with the government’s effort to promote agro-industry.
“I am happy to have the plant. It is good for the country, will boost incomes and jobs, enhance Cambodia’s image and generate exports, Mr. Kalyan said.
Cambodia should not be overreliant on rice because this creates problems if there is a fall in demand, he said, adding: “It would be great if we have pepper, palm oil and other crop productions to substitute [for rice].” Mr. Kalyan, however, said there are environmental concerns about biodiversity if the palm oil production expands too much. It will be sufficient to grow enough to meet domestic demand, he added.
Ke Sothea, owner of Tang Laysy Import Exprt Co. Ltd, said his company imports 20 tons of premium cooking oil from Australia each month.
The market for premium cooking oil is expanding because consumers see the health benefits in it, Mr. Sothea said. His company distributes the cooking oil in Siem Reap, Sihanoukville, Battambang and Phnom Penh.
“I decided to import cooking oil from Australia because this product is certified by Australia’s food safety laboratory to ensure the quality,” Mr. Sothea said, adding that he would continue to import from Australia even if cooking oil was produced here because the quality is unlikely to be as high.
“We are sure that we will build it,” said Mong Reththa, vice chairman of the board of directors at Mong Reththy Investment Cambodia Palm Oil.
He added that the factory is still in the planning stage and that the proposal had yet to be submitted to the group’s board of directors for approval.
The plant would be the first of its kind in Cambodia. Mr. Reththy said it would produce cooking oil for the domestic market and for export, adding that it will reduce reliance on imported cooking oil and create jobs.
Cooking oil imported from Malaysia and Indonesia would not be a major challenge for the plant’s output, but cooking oil smuggling into Cambodia from Vietnam along the porous border would be.
Economist Srey Chanthty said such a factory would reduce Cambodia's need to export raw palm oil, substitute imported cooking oil for domestically manufactured cooking oil, create another export good and generate value.
The factory will perhaps let Cambodia substitute import of palm-oil-based cooking oil, and export jobs.
Mey Kalyan, senior advisor to the Supreme National Economic Council, welcomed the move, saying it is line with the government’s effort to promote agro-industry.
“I am happy to have the plant. It is good for the country, will boost incomes and jobs, enhance Cambodia’s image and generate exports, Mr. Kalyan said.
Cambodia should not be overreliant on rice because this creates problems if there is a fall in demand, he said, adding: “It would be great if we have pepper, palm oil and other crop productions to substitute [for rice].” Mr. Kalyan, however, said there are environmental concerns about biodiversity if the palm oil production expands too much. It will be sufficient to grow enough to meet domestic demand, he added.
Ke Sothea, owner of Tang Laysy Import Exprt Co. Ltd, said his company imports 20 tons of premium cooking oil from Australia each month.
The market for premium cooking oil is expanding because consumers see the health benefits in it, Mr. Sothea said. His company distributes the cooking oil in Siem Reap, Sihanoukville, Battambang and Phnom Penh.
“I decided to import cooking oil from Australia because this product is certified by Australia’s food safety laboratory to ensure the quality,” Mr. Sothea said, adding that he would continue to import from Australia even if cooking oil was produced here because the quality is unlikely to be as high.