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CPO price forecast to climb for rest of the year
CPO FUTURES HIT TWO-YEAR HIGH ON BULLISH SENTIMENT, STRONG EXPORTS
CPO price strength could dissipate through end-2024, says BMI
Positive growth for plantation sector, amid rising CPO prices
Russia's WTO bid worries domestic oils & fats indu
6/21/2002 (Europe Intelligence Wire) - Airing their views at the secondinternational conference 'Russia's Oils and Fats Complex' on Tuesday inMoscow, representatives of Russia's fat-and-oil complex expressed disquietregarding the country's upcoming membership in the World TradeOrganization.Russia joining the WTO means expansion of trade ties, and for thefat-and-oil section more free raw materials exports and imports ofvegetable oils and fats, which will lead to tougher competition on theRussian market, director of the all-Russia scientific research institutefor fats (St. Petersburg) Alexander Lisitsyn announced.Lisitsyn said that in such conditions effective sector functioning ispossible only in the event that its products give no ground to non-Russian-made products in terms of quality and pricing, and that volume andvariety of goods are able to meet the population's and industry's growingneeds.According to the latest research, consumption of fat-and-oil industryproduct in Russia is pretty low. In particular, vegetable oil consumptionis a per capita ten kilos per year against a recommended 13.6 kilos. Bycontrast, that figure is significantly higher; in Britain it is 18 kilosper year, in the United States and the Netherlands 25 kilos.Lisitsyn said he thinks that Russian enterprises making such products haveto increase production efficiency and product quality by means oftechnological modernization and new equipment, as well as automatingproduction processes.In the opinion of the vice president at Rosselkhozakademiya, YevgenySizenko, the domestic fat-and-oil sector finds itself in a difficultsituation as Russia's WTO membership draws ever nearer. Insufficientinvestment, he said, is resulting in many enterprises having to make dowith out-dated equipment, which has a telling effect on product qualityand variety. However, the main problem is that there is not enoughdomestically-produced raw material to go around.The main oil-bearing crop in Russia is sunflower, from which around 85% ofall vegetable oils is produced in the country. Two years ago, Russiaposted a 10-year record level of oil production - 1.375 million tonnes.That figure was down 10% the next year to 1.238 million tonnes of oil.Russia joining the WTO requires of the fat-and-oil industry that it workout new state standards for product-making, noted president of the RussianUnion of Dairy Sector Enterprises Vladimir Kharitonov. This notablyconcerns products that have complex raw material formulation, which areknown in Russia today as 'combined butter', and as 'spreads' around theworld. As a result, the Russian consumer confuses 'combined butter'-theproduction of which involves the use of cheaper vegetable fats-with creambutter. The producers of the latter incur losses due to unscrupulouscompetition from producers of the former.Russia currently produces around 1.5% of the world's oilseed and 11% ofits sunflower. The country produces roughly 11% of the world's vegetableoil.
ARGENTINA SOYOIL MAY HIT PALM OIL TRADE
SINGAPORE, June 19 (Reuters) - Asia's palm oil trade may see a drop involumes in coming weeks, with Indian buying gradually running out of steamand rising Argentine soy supplies making soyoil increasingly attractive,traders said on Wednesday.While improved U.S. weather has boosted U.S. soy crop prospects,pushing down Chicago Board of Trade soyoil prices, Argentine farmers areslowly but surely pushing more sales after the peso weakened against thedollar in the past few sessions."If we weigh the factors for palm oil, I think the situation is not allthat bullish. The Indians are in an overbought situation. China's demandis uncovered but they could look either way -- to Malaysia for palm or toSouth America for soyoil," a regional edible oils trader said.Another trader added: "Indian buying may not continue at the same paceand Pakistani traders feel the prices are too high."This echoed views of some India-based traders who said India's palm oilimports in July were expected to dip to 250,000-300,000 tonnes from320,000 tonnes in the same month last year.On June 6, Malaysian palm oil prices hit three-year highs, hoveringjust below the 1,500 ringgit a tonne mark, on hopes of tight globalsupplies and surging demand from China and India. But they have sincegiven up some of their gains.At 0733 GMT, the benchmark third-month September contract was up nineringgit at 1,433 ringgit ($377.11) a tonne after trading as low as 1,407ringgit.CBOT soyoil on Tuesday closed down 0.18 to 0.27 cent per lb, with Julydown 0.27 cent at 17.86 cents.Traders said palm oil may see fierce competition from soyoil as sellersin South America seek to unload stocks before new U.S. soy arrivals."We may not see that kind of rally again in palm oil prices which wesaw recently," said an edible oils trader. "We know that Argentina cannotafford to go on holding onto their stocks forever. They have to sell itbefore the U.S. hits the market."
Austral's Agronomic Innovation Boost Yields On Oil
KUALA LUMPUR, June 21 (Bernama) -- Austral Enterprises Bhd is hoping thatits innovative agronomic practice of mixing water and fertilser trapped insilt pits will help enhance the production of fresh fruit bunches (FFB) onoil palm estates.The company has embarked on marrying its expertise in water and fertilisermanagement by mixing both water and fertiliser in the silt pits which hadbeen dug on hilly terrain to prevent water run off.
I&P To Set Up Refinery And Fertiliser Plant In Bin
KUALA LUMPUR, June 21 (Bernama) -- Island & Peninsular Bhd (I&P) hasproposed to set up a palm oil refinery and fertiliser plant, both inBintulu, Sarawak as part of its plantation expansion plans.Both initiatives would be undertaken via joint ventures involving Sarawakparties.I&P managing director, Dr Radzuan Abdul Rahman, said with theestablishment of the palm oil refinery it could add another RM100 millionto the group's turnover annually.Speaking to reporters after the I&P's AGM and EGM and Austral EnterprisesBhd's AGM Thursday, Radzuan said he hoped that the refinery could beginoperations in 2004 with a capacity of 1,000 tonnes a day.Radzuan said the refinery would cut down on the group's refinery costsinvolved when selling its palm oil.I&P could also gain the processing margin from the venture, he said.Currently, there is only one refinery operating in Sarawak, leavingsellers without much choice but to use them for processing, he said."The refinery would add value to our plantation portfolio. Currently, weare the net seller. Once we set the refinery, we can process on our own,"he said.Radzuan said I&P will have the majority stake in the refinery.--BERNAMA(The informations and opinions expressed in this article represent theviews of the author only. They should not be seen as necessarilyreflecting the views of Palm News)
Oil palm growers urged to lower production costs
18/6/2002 (The Star) - MALAYSIA’S position as the world’s largest palm oilproducer is under threat and might not last for very long if planters donot lower production cost and increase yields, a national seminar inKuching was told yesterday.“Our production cost is too high and yet our production per hectare islow.“Although researchers and smallholders have consistently proved that onehectare can produce up to 40 tonnes of fresh fruit bunches (FFB), thenational average is still below 20 tonnes,†according to the IncorporatedSociety of Planters (ISP) chairman Emerson Liau.He said the industry’s survival was at stake as Malaysia’s competitors hadvast tracts of good land, cheap labour and low production cost.“When the crude palm oil (CPO) price fell below RM700 per tonne last year,alarm bells were ringing everywhere,†he added at the opening of ISP’snational seminar.More than 500 participants from Malaysia and Indonesia are attending thetwo-day event themed Plantation management – back to basics.Liau attributed the country’s low yields to poorer soil, poor plantingmaterials and poor management.He said good management required more than just technical expertise andexperience; it needed close supervision of managers on the ground.“Managers need to walk the fields to see for themselves the realsituation.“Basic estate practices, like proper fertilising, regular harvesting,loose fruit collection, maintaining good field conditions, and repairingbroken bridges and bad roads, require the managers’ personal attention onthe ground.“Vehicle maintenance and repairs is another costly item that needs to beaddressed and cannot be done by remote control,†said Liau.Sarawak Chief Minister Tan Sri Abdul Taib Mahmud said in his openingspeech that the dismal national average yield of 19 tonnes of FFB and 3.5tonnes of oil per hectare had remained stagnant for the past 20 yearsalthough many private firms had achieved more than 23 tonnes per hectare.He said the government’s target was to increase the national average oilyield to 4 tonnes per hectare by next year, and 5.5 tonnes by 2010.
Oleochemical firms investing RM300mil
Saturday, June 15, 2002 (The Star) - OLEOCHEMICALS manufacturers currentlyoperating in the Pasir Gudang industrial estate will make investments ofabout RM300mil under their expansion programme within the next two years.Pasir Gudang local council president Tan Sri Muhammad Ali Hashim said theadditional investments were for downstream activities to cater for a risein demand for palm oil by-products.He said there were at present five to seven oleochemicals manufacturersproducing fatty acids, crude and refined glycerine, stearic acid andcuprylic acid in the area.Among the major manufacturers are Kulim (M) Bhd’s Natural OleochemicalsSdn Bhd and Pan Century Oleochemicals Sdn Bhd.Ali, who is also Johor Corp chief executive officer, said the palm oilby-products had wide applications including in food and beverageproduction and health and beauty products.“Demand for palm oil by-products has been strong as more and moreconsumers worldwide go for non-animal fats in their foods and otheritems,†he said after an appearance on a radio talk show in conjunctionwith the 25th anniversary of Pasir Gudang.He said most of the major food and beverage companies and beauty houses inthe world had been using the locally-produced palm oil by-products intheir finished goods.Ali added that the Pasir Gudang–based oleochemicals makers also cateredfor the domestic market, especially the food-based industry.He said Pasir Gudang had developed from a small fishing village into awell-planned industrial estate housing about 300 factories with 30,000employees.He said the Pasir Gudang local council covered an area of 8,923ha andthere was still a further 1,500ha slated for industrial development,including 1,000ha in the nearby Tanjung Langsat area.The 1,887ha Tanjung Langsat industrial park is being developed into apetrochemical hub at a cost of RM501mil by Johor Corp subsidiary,JohorTechnopark Sdn Bhd.The park envisages that petrochemical plants would account for 60% of itsactivities, with gas production, steel-making and marine andmarine-related industries accounting for the balance 40%.(The informations and opinions expressed in this article represent theviews of the author only. They should not be seen as necessarilyreflecting the views of Palm News)
Agong Visits Primary Industries Ministry
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Esterol To Double Its Emulsifier Production Capaci
SHAH ALAM, June 17 (Bernama) -- International flavours and foodingredients manufacturer, Quest International and its joint venturepartner, Kuala Lumpur Kepong Bhd, are doubling the production capacity intheir Malaysian emulsifier plant as a long term strategy to meet globaldemand for an alternative to soybean oil and animal fat-based foodemulsifier.Chairman of the board of directors of the joint venture company, EsterolSdn Bhd, Declan MacFadden said that the company was now in the finalstages of commissioning an expansion of production capacity to 30,000metric tonnes per annum."The total investment for the Esterol plant amounts to RM57 million todate," he said at a press conference after the official opening of EsterolSdn Bhd.The food emulsifier produced by Esterol is mainly used to enhance thetaste and quality of food."Our biggest drivers for growth have been the bakery, dairy andconfectionery markets," he said.Fadden said the company's main raw material was palm oil which wasaccepted in many countries due to its nutritional benefits as opposed togenetically modified types of vegetable oils."Some 90 percent of the emulsifier that Esterol produces are for exportswhile the balance are for local consumption in Malaysia," he said.The main export markets are in Europe, North America, Australia and China.Chairman of Quest, Paul Drechsler said the Esterol plant was the onlymanufacturing site for the production of emulsifier in Asia.Quest has another two plants, one in Canada and the other in theNetherlands. -- BERNAMA
Go For Large Scale Production, Lim Tells Palm Oil
SHAH ALAM, June 17 (Bernama) -- Palm oil producers have been urged to gofor large scale, lower cost productions to take advantage of the high palmoil price currently.In making this call, Primary Industries Minister, Datuk Seri Lim KengYaik, said that Crude Palm Oil (CPO) price had risen steadily to RM1,450per tonne from RM700 per tonne a year ago.
