25/07/2008 (The Edge Daily), Kuala Lumpur - Malaysia’s crude palm oil (CPO) production may increase to 17 million tonnes this year from an initial forecast of 16.2 million tonnes due to improved palm oil production, Plantations Industries and Commodities Minister Datuk Peter Chin said.

For the first six months to June 30, 2008, the country produced close to 8.2 million tonnes of palm oil, according to the Malaysian Palm Oil Board’s (MPOB) report on the industry’s performance.

“We are revising that (initial target) as more matured oil palms are coming on stream and barring any major storms towards the end of the year,” he said.

Malaysia is targeting to raise CPO production to 20 million tonnes by 2020.

Last year, production declined to 15.8 million tonnes due to heavy floods in Johor, which is one of the country’s main producers of palm oil and rubber. In 2006, Malaysia produced 15.9 million tonnes of palm oil.

On another matter, Chin said Roundtable for Sustainable Palm Oil (RSPO) accreditation would be a positive move for the country’s plantation industry and Malaysia had big plantation players which had endorsed RSPO criteria and principles.

The Edge Financial Daily reported yesterday that four plantation firms —IOI Corporation Bhd, Sime Darby Bhd, United Plantations Bhd and Kulim (M) Bhd were likely to be RSPO-certified in the next few weeks.

“RSPO is a forward-looking scheme between the planters and consumers. As long as both parties have a clear path on maintaining sustainability, this should be the way for the industry.

“Where the RSPO certificate is concerned, my only worry is that the smallholders have to be given time to catch up, which I am sure they could, because the plantation industry is moving in this direction (to produce certified palm oil). Eventually, those who want to come into this industry would have to comply with RSPO standards,” Chin said.

The RSPO certification would enable planters to tap into the European market and major importing nations demanding for palm oil that adhered to good agricultural practices.

“This would also send out a message to the non-governmental organisations. They would have to take note of what has been achieved by the plantation sector,” he said.

Chin was speaking at a ceremony to mark the signing of a memorandum of understanding between the MPOB and Asiatic Centre for Genome Technology Sdn Bhd (ACGT) to collaborate and conduct research on oil palm genetics.

ACGT chief executive officer Derrik Khoo Sin Huat said the company would develop an oil palm genetic map to identify its markers and genes. The genetic map would enable scientists to address concerns such as the dura contamination and oil palm-related diseases such as ganoderma to improve yields.

ACGT is a wholly owned subsidiary of Asiatic Development Bhd, which is involved mainly in the commercial application of genome technology to improve oil palm and other crops.