12/05/2011 (Daily Express) - The crude palm oil (CPO) price is expected to trade above RM3,000 per tonne in the second half of this year despite falling commodity prices following a slowdown in global economic growth.

Plantation Industries and Commodities Minister, Tan Sri Bernard Dompok, said demand would not decline and the CPO price often moved in tandem with that of crude oil.

"The increasing utilisation of CPO as an alternative source of energy and food product will support the price," he told Bernama after launching the Kuala Selangor Sustainable Oil Palm Planters Cooperative, here Tuesday.

The current CPO price is hovering at RM3,300 per tonne.

According to the Malaysian Palm Oil Board (MPOB), palm oil exports in April this year rose to 1.332 million tonnes from the 1.235 million tonnes in March.

Dompok said the participation of smallholders in local cooperatives that implement best farming practices, is important to the sustainable CPO production certification.

He said the effort contributes to Malaysia's commitment towards sustainable palm oil development as overseas environmental friendly consumer demand is increasing.

"The involvement of all parties in ensuring sustainable palm oil production will guarantee higher CPO prices and wider market opportunities," he added.

The Kuala Selangor Sustainable Oil Palm Planters Cooperative is the sixth smallholders cooperative to be established in the country on the basis of sustainable palm oil production.

The other cooperatives are in Tongod and Kunak in Sabah, Saratok in Sarawak, Jasin in Melaka and Kluang in Johor.

The cooperatives are an initiative of the MPOB and an extension of the Sustainable Palm Oil Cluster (SPOC). - Bernama