18/08/2007 (The Star Online), KUALA LUMPUR - The Malaysian Palm Oil Board (MPOB) is bullish on the palm oil industry and does not expect the current global market meltdown to affect the industry.

Director-general Datuk Mohd Basri Wahid said supply squeezes arising from developments in the US, Europe and Indonesia would contribute to growing demand for palm oil globally, which in turn would be “favourable” for the Malaysian palm oil industry.

He cited the Indonesian crude palm oil export tax and the US requirement that the level of trans fatty acid in foods be declared in nutrition labels as catalysts that would spur demand for palm oil.

“They are no longer using soybean to make margarine in the US while some American states are introducing legislation to ban the use of soy oil, a move which favours demand for palm oil,” he said.

He said palm oil prices, averaging RM2,500 per tonne currently, would remain at high levels for the year and this would boost palm oil export earnings. 

For the first half of 2007, Malaysia exported some 6.04 million tonnes of palm oil. 

“We expect prices to stay at high levels on the back of increased demand from major consumers like China, India as well as Europe for use of palm oil as feedstock for bio fuel,” he told a press conference on the upcoming Palm Oil International Congress (PIPOC) yesterday. 

MPOB is organising the five-day PIPOC 2007 from Aug 26-30 at the Kuala Lumpur Convention Centre. 

The congress, which comprises five conferences, will discuss strategic research and development(R&D) findings, new technologies, strategies and market trends in the palm oil industry.

Over 1,800 participants from more than 30 countries are expected at the event, themed Palm Oil – Empowering Change.