Africa is emerging as new market for palm oil
10/09/2002 (Financial Times) - KUALA LUMPUR, Oct. 8. AFRICA could be nextbig market for Malaysian palm oil because of low per capita consumption inthat continent and large population.This was revealed by the Chief Executive Officer of Malaysian Palm OilPromotion Council, Mr Haron Siraj, during his presentation at OFIC 2002 ondynamics of global oils and fats trade. "Over 228 million people in thewhole of Africa consume less than five kg per capita and this provides amajor market opportunity," he noted.Malaysia, he claimed, was facing technical barriers to trade, objectionson environmental grounds and market access restrictions. "We will take upthe market access issue with China and India for a level playing field,"Mr Siraj said.Malaysians have been unhappy with India because of large difference incustoms duty between soyabean oil (45 per cent) and crude palm oil (65 percent).They have been lobbying for parity of duty between palm and soya oils.Referring to the impact of madcow disease in Europe, the MPOPC chief saidmany consumers have converted from tallow to vegetable oil because of theBSE crisis and demand for palm stearine - a substitute to tallow - forindustrial application was rising. Other challenges palm oil facedincluded logistics (freight space and cost); regulatory impact of shipping(previous cargo restriction); labelling; food safety clearance by FDA andso on, he said.