COMMERCIALISATION of genetically-modified (GM) palm oil will depend verymuch on customer acceptance, said Dr Cheah Suan Choo, a researcher fromthe Malaysian Palm Oil Board (MPOB).This is due to the fact that palm oil is still a 100% natural product andgenetically-modified organism-free (GMO-free) a selling point in marketingthe commodity.However, further research on GM palm oil was necessary to ensure thefuture competitiveness of the Malaysian palm oil industry, she said in apaper, Current Issues in the Genetic Modification of Crop Plant, at the2001 International Palm Oil Congress (2001 PIPOC) in Kuala Lumpuryesterday.“For the Malaysian industry, the competitiveness of the oil isprogressively being undermined by increasing production cost,’’ she said.Therefore, she said, the usage of GM palm oil would be able to reduceproduction cost and increase yield such as with its main competitors,soyabean and canola.In addition, she said it was apparent that the second-generation of GMproducts from these crops would have altered oil compositions.Changeability in the use of oils and fats posed an additional risk to palmoil, she added.Besides cost effectiveness and high yield through GM, Cheah said, changestaking place in the trade environment would create more competitiveness.The implementation of the World Trade Organisation (WTO) agreements andthe regional trade policies, namely, Asean Free Trade Area and the NorthAmerican Free Trade Agreement, would inevitably lead to liberalisation.Hence, the ability to change the storage oil composition in plants wouldbe of particular relevance, she argued.“With reduced restrictions on trade, there will be much more competitionamong the producing countries, more so with the availability of thetechnology to change the composition of oils at will, as made possiblethrough GM technology,’’ said Cheah.She stressed that it was essential for the industry to strategise thesechallenges in order to sustain competitive advantage and keep pace withthe latest developments.

21/8/2001Bernama