03/03/2009 (The Star Online) - EVERY year, it is safe to say that there will be at least eight to 10 conferences on palm oil held worldwide. So far this year, there have been at least five confirmed international palm oil conferences.

The attendance to these conferences is growing by the year, with some attracting more than 2,000 participants from 58 countries for a single day event! Palm oil has indeed attained celebrity status among the global oils and fats fraternity.

While the number of palm oil conferences this year may be fewer, indicative of the global economic slowdown, some quarters still expect the level of attendance to remain impressive.

Traditionally, palm oil conferences are held in Malaysia and Indonesia, which control almost 90% of the world’s palm oil production. However, massive interest in the commodity has resulted in conferences being held in India, Europe and the United States over the years.

It is worth mentioning that at least one palm oil conference will be held each month until June. Last month, Thailand held a conference on The Future of Palm Oil in exotic Phuket island.

Next week, international industry players will be heading to Kuala Lumpur for Bursa Malaysia Bhd’s world renowned Palm and Lauric Oils Conference & Exhibition Price Outlook (POC 2009) conference, which will see the presence of regular palm oil gurus like Dorab E. Mistry of Godrej International Ltd, Dr James Fry of LMC International Ltd and OilWorld publisher Thomas Mielke.

Britain-based SCI Lipids Group is also holding the two-day Palm Oil - The Sustainable 21st Century Oil conference in London later this month while the International Conference & Exhibition on Palm Oil 2009 in Jakarta will be held in May.

One must also not forget the biennial Palm Oil International Palm Oil Congress (PIPOC 2009) organised by the Malaysian Palm Oil Board this November. Why are palm oil conferences such a hit among industry players?

Perhaps it has to do with the fact that palm oil is currently the world’s most widely produced and traded vegetable oil. It is predominantly used in food, oleochemicals and more recently as a feedstock for biodiesel.

Apart from its mainstay role in the food business, palm oil also commands the interest of nutritionists, environmentalists, NGOs, shippers, traders, buyers and politicians alike.

Many will also agree that the key highlight to any palm oil conference is the future price direction of the commodity, which is a major attraction for industry players.

However, most of the gung-ho price predictions ranging from RM2,800 to RM4,500 per tonne for 2009 made during palm oil conferences in 2008 fell short of expectations due to the global financial and economic crisis.

Many palm oil experts in early 2008 had failed to grasp the intensity of the impact of the global economic meltdown on the demand for palm oil. CPO is currently trading at the RM1,800-RM1,850 per tonne range.

While conference organisers ride on the popularity of palm oil conferences and make profits, it is important to exercise caution so that conference participants are not misled with overly bullish CPO price projections.