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MARKET DEVELOPMENT  
  19-02-2003

M'sia Seeks Parity In Duty On CPO And Soyabean Oil

NEW DELHI, Feb 18 (Bernama) -- Malaysia aims to secure parity in importduty imposed by India between that of crude palm oil (CPO) and soybeanoil.The parity could be achieved by reducing duty on CPO. India's duty on CPOand soybean oil are 65 percent and 45 percent, respectively.

MARKET DEVELOPMENT  
  19-02-2003

Soybean oil becomes sunblock, in new formula from

2/18/2003 (Delta Farm Press) - SOYBEAN OIL is the main ingredient in anew, all-natural skin and hair care product formulated to block the sun'sultraviolet light. The product, SoyScreen, is the invention of Joe Laszloand Dave Compton, Agricultural Research Service chemists in Peoria, Ill.,who are exploring new, value-added uses for commodities, especially soyoil.Soy oil itself doesn't offer sun protection, so the researchers figuredout how to chemically connect it to ferulic acid, an antioxidant abundantin oat bran and other natural sources that absorbs ultraviolet (UV) light.Their approach also makes ferulic acid more lipid-like, so it doesn'tdissolve in water, such as during a swim.SoyScreen is also environmentally benign, and the method for making it --biocatalysis -- uses recyclable enzymes instead of harsh solvents, notesLaszlo, at ARS' National Center for Agricultural Utilization Research inPeoria.In studies there, the scientists ran Sun Protection Factor tests comparingSoyScreen to four commercial sunscreens: oxybenzone, dioxybenzone, octylmethoxycinnamate and padimate-O. The latter two scored highest for UVBabsorbency at wavelengths of 290-320 nanometers, a range that can causeshort-term exposure problems, such as sunburn from a day on the beach.SoyScreen, however, offered the best overall protection against both UVBand UVA, another type of sunlight radiation that can cause long-termexposure problems, such as skin cancer.ARS, which patented SoyScreen on behalf of USDA, is negotiating anexclusive license with a company.

MARKET DEVELOPMENT  
  19-02-2003

WTO Mini Ministerial Meeting Fails To Narrow Gap

TOKYO, Feb 18 (Bernama) -- The Informal Mini Ministerial Meeting on WorldTrade Organisation (WTO) Issues held here over the weekend failed tonarrow a huge gap over the controversial farm trade issue and cheaperdrugs for poor countries, thus further clouding the prospect of meeting aself-imposed March 31 deadline.Further negotiations are expected to take place in Geneva, but the Tokyotalks is the last ministerial one before the March deadline.

MARKET DEVELOPMENT  
  13-02-2003

Pakistan to grow more oil palm trees

KARACHI, Feb 10 Asia Pulse - Federal Industries Minister Liaquat Ali Jatoisaid the government wanted to reduce the import bill of edible oil byincreasing the cultivation of palm oil trees in Pakistan.He said that Pakistan is currently spending about Rs24 billion (US$413.4million) annually on the import of edible oil including palm oil, soybean,and sunflower oil in order to meet domestic demand.He was speaking at the national conference on palm oil at a local hotel."The local cultivation of palm oil trees will give a better price to ourgrowers as well as provide a raw material for our industry withoutspending foreign exchange," he added.Later, talking to reporters, Jatoi said the government wanted to encourageinvestment and industrialization in the country by reducing tariffs.

MARKET DEVELOPMENT  
  28-01-2003

Lim Wants Plantation Companies To Embark On Replan

PANTAI REMIS, Jan 27 (Bernama) -- Primary Industries Minister, Datuk SeriDr Lim Keng Yaik on Monday said that the high price of palm oil shouldencourage plantation companies to embark on replanting of oil palm treesas the price could fetch RM2,000 per tonne in future.Lim said that at the moment, he was not happy with the slow replantingexercise and warned the plantation companies and smallholders the dangerof depending on old and unproductive trees.He said when the Government offered incentives of RM1,000 per hectare forreplanting between end of 2001 and July, 2002, a total of 170,000 hectaresof oil palm trees, aged some 25 years, had been felled and replantednationwide.Lim said replanting had pushed up the price of palm oil in the globalmarket to about RM1,600 per tonne now and it could even achieve theRM2,000 mark if the process was continued."But I am not happy with the progress now...how long you want to extractfrom 25 old trees. Plantations should get clones with higher yield so thatwe can stay ahead of our competitor, Indonesia in terms of cost," he saidafter attending a temple ceremony in Ladang UIE near here.He said the ministry was monitoring the situation but had not decidedwhether to reintroduce the incentive scheme for replanting although somefunds were still available.The minister said big plantation companies and smallholders should emulatethe success of Teluk Intan-based United Plantations Bhd (UP) in optimisingtheir production, minimise production costs and taking care the welfare ofits workers.He said UP's production cost was about RM500 to RM520 per hectare and forother firms between RM650 and RM700 and in Felda as high as RM900."They should also not just look at bank accounts when the price is highbut instead look after the welfare of workers. A satisfied worker is ahighly productive worker," he added.Lim also said he would be visiting India, Myanmar and Bangladesh from Feb17 to explore new market for palm oil, source for foreign workers andnegotiate with the Indian Government to reduce the import tariff on palmoil.He said at the moment there was discrimination against palm oil as importduty for crude palm oil and process palm oil stood at 65 percent and 85percent respectively compared to soya's 45 percent and 50 percent only."They want to look after their local farmers but oil palm is limited toKerala only. Because of the difference in tariff rates, our palm oil isabout US$90 higher than soya oil in the Indian market," he added.Besides the discrimination in tariff, Malaysia is also facing competitionfrom Indonesia as the neighbouring country was selling palm oil at US$10to US$20 cheaper to India and shipping the product faster as it is nearer,he added.He said India should give priority to Malaysia as the country had beengiven the contract to build the northern section of the double trackrailway project between Ipoh and Padang Besar.-- BERNAMA

MARKET DEVELOPMENT  
  28-01-2003

New crude palm oil terminal to be built at Indones

SURABAYA, E Java, Jan 23 Asia Pulse - The construction of a CPO terminalin Bumiharjo, Kumai, Central Kalimantan, will be started soon followingthe signing of a cooperation agreement between PT Pelabuhan Indonesia IIIwhich operates the Kumai port, and PT Tapian Nadenggan and PT GunungSejahtera Pertiwi as investors.President of PT Pelabuhan Indonesia III Bambang Darwoto said in Surabayaon Wednesday the two companies will be using their port management rightfor 20 years for CPO cargo handling.He said Central Kalimantan is known as a major CPO producer in Indonesia,but the distribution of the product still faced many problems in view ofthe lack of terminals and port piers.Therefore PT Pelabuhan Indonesia III along with ther investors will bedeveloping the existing facilities in Kumai district to supoort thedistribution of crude palm oil.Previously, PT Pelabuhan Indonesia III has already cleared some 60hectares of land, including 12 hectares ready for crude palm oil cargohandling.The CPO which will be distributed through the Kumai port amounted to650,000 tons, and by 2005 the CPO production in the area will increasesubstantially since the existing oilpalm estates in the area now reaching125,000 ha will continue to expand, because Kota Waringin Barat alone has722,000 hectares of oilpalm trees.Meanwhile Bambang Darwoto also hoped the profit of PT Pelabuhan IndonesiaIII will increase to Rp 420 billion compared to 2001.Most of the company's gain came from the port and business units inSurabaya and Semarang. Tanjung Perak and Tanjung Emas ports and theircontainer terminals contributed some 80 percent of the company's income.

MARKET DEVELOPMENT  
  25-01-2003

Ghana's president to launch initiative on oil palm

Accra, Jan 22, 2003 (COMTEX) --The President's Initiative on Oil Palmwould be launched nation-wide in April, this year.The venue and other logistics are being worked out by a four-memberCommittee headed by Nana Otuo Siriboe II, Juabenhene.This was disclosed to the press by Mr Kwabena Agyapong, Press Secretary tothe President after the Committee had presented its Interim Report toPresident J.A. Kufuor at the Castle, Osu on Tuesday.Mr Agyapong said the Committee was of the view that the Oil Palm Industryhad great potential and could make a tremendous impact on the economy. Hesaid the Committee had initiated nursery plantations to cultivate 100,000hectares over the next three years to make up for the shortfall of 940,000tonnes in local consumption of palm oil, which individuals had to importannually in addition to 1.2 million tonnes in the sub-region.The Committee noted that 300,000 hectares of oil palm plantations wouldsatisfy this demand but would require support from the government.Mr Agyapong said nucleus farms, small-holder farms and out-grower schemeswould be established to feed oil mills in areas known to be viable for oilpalm plantation in the country.To mitigate land litigation, the Committee suggested that reclaimed landsin mining areas should be used as the stock of land.Other members of the Committee are Mr Ishmael Yamson, Chairman, UNILEVER,Mr Kwasi Poku a Chemical Engineer and Dr J.B. Wonkyi-Appiah, formerDirector of the Oil Palm Institute.

MARKET DEVELOPMENT  
  25-01-2003

Sateras Still Waiting For Reply On Palm Oil Refine

KUALA LUMPUR, Jan 23 (Bernama) -- Sateras Resources (M) Bhd Thursday saidthat the company was currently waiting for reply from all partiesconcerning the development of a joint venture agreement (JVA) for the setup of a palm oil refinery in Egypt.It said this in an announcement to the Kuala Lumpur Stock Exchange (KLSE)here Thursday.

MARKET DEVELOPMENT  
  24-01-2003

EU unveils new plans to reform farm subsidies

BRUSSELS, Jan 22 (AFP) - The European Commission Wednesday unveiledrevised plans to reform subsidies to EU farmers, aiming to reconcilefierce disputes over funding the hugely expensive system.The EU executive said farmers had to become more business-like, but deniedit was abandoning them to market forces."Dear farmers, we are not going to abandon you. Nobody is going to abandonyou," Agriculture Commissioner Franz Fischler told a news conference.Rows over reforming the Common Agricultural Policy (CAP) have also becomemore heated as the 15-member bloc prepares to expand next year to take in10 mostly rural states.Europe's reluctance to phase out massive subsidies for farmers has alsosparked international criticism that the CAP gives Europe's agriculturalproduce an unfair advantage on world markets."This reform proposal is intended to provide farmers in both existing andfuture member states with the long-term stability they need," Fischlersaid."It is high time that our policy tools should be reformed so as to bestserve the interests not only of farmers, but also of consumers andtaxpayers," he said.The CAP swallows up nearly half the EU's current annual budget of 95billion euros (101.7 billion dollars), and has long been a subject ofbitter dispute.Farmers' champions, such as France, have complained the reform plan wouldharm EU agriculture, while other countries and groups have protested thatthe proposals are nowhere near radical enough.The new plan suggests that the link between farm subsidies and productionlevels should be severed, with funds progressively transferred to bonusesfor farmers for developing their land.The commission's revised proposals notably include a cut in subsidies formilk production and an increase in milk quotas for the planned 25 EUmember states by one percent annually in 2007 and 2008.Fischler however proposed delaying to 2007, from 2004, plans toprogressively reduce direct aid to farmers.But the core element of the reform remains the controversial idea of"decoupling" the link between the level of direct aid to farmers and theirproduction, and the introduction of a single payment independent ofproduction levels.Aides say Fischler hopes that the new CAP reform can be agreed by the endof the current Greek EU presidency in June, in order to be implementednext year.The EU executive was forced to review its initial proposals for CAPreform, presented last July, after EU leaders struck an accord in Octoberaimed at resolving long-running rows.French President Jacques Chirac, whose country is by far the biggestbeneficiary of EU farm aid, reached the deal with Chancellor GerhardSchroeder of Germany, the main EU paymaster.British Prime Minister Tony Blair was reportedly incensed by theFranco-German deal, which effectively put off real CAP reform for severalyears.The October deal did however agree to put an overall ceiling on farm aidfrom 2006, allaying fears of an explosion in the CAP budget after the EU'senlargement next year to countries including heavily agriculturalheavyweight Poland.Fischler said the new proposals would go some way to calming criticismfrom Europe's international partners that CAP subsidies run counter toWorld Trade Organization (WTO) rules."The Commission proposal would strengthen our negotiating handimmeasurably in the Doha Round" of world trade talks, launched in theQatari capital in November 2001 and due to last three years.

MARKET DEVELOPMENT  
  22-01-2003

Assocham asks Govt to reduce import duty on crude

New Delhi, Jan 19 (PTI) Assocham Sunday asked Government to reduce importduty for crude palm oil to 25 per cent from the current 65 per cent ashigh duty for a product used as a raw material was an anomaly which neededto be corrected."The duty provision of 65 per cent on raw material used by the vansapatiindustry against 30 per cent for the finished imported product was ananomaly and needs to be rationalised," Associated Chamber of Commerce andIndustry (Assocham) said in a statement here.Pointing the customs duty had drastically reduced the industry's capacityof competing with the cheap vanaspati coming from Nepal, it noted domesticindustry had to absorb higher customs duty of 65 per cent while theNepalese manufacturers did not have to pay any duty for the same oil,giving them a cost advantage of Rs 10,000 per tonne.The chamber said Government should also restrict the import of crude palmoil to vanaspati industry against actual user provision to check anymalpractice and asked it to withdraw the permission given to refiners andtraders as they were not equipped to hygienically process and hydrogenateit.Describing the increase in import duty of crude palm oil as a retrogradestep, the Chamber said the annual growth rate of the industry was notkeeping pace with the rise in demand due to increase in population andhigher disposable income with the consumers.

MARKET DEVELOPMENT  
  22-01-2003

Exporters Encouraged To Countertrade

KUALA LUMPUR, Jan 21 (Bernama) -- Despite being the 17th largest tradingnation, many Malaysian exporters are yet to fully exploit countertrading,which could increase access to some potential markets in the region.This is due to ignorance of the works of countertrade, lack of knowledgeon how to negotiate contracts or to cover risks, Malaysian External TradeDevelopment Corporation's (MATRADE) chief executive officer Merlyn Kasimirsaid Tuesday.

MARKET DEVELOPMENT  
  21-01-2003

'Massive expansion' of coconut industry proposed b

Chito A. Fuentes, PDI Visayas Bureau 01/14/2003TAGBILARAN CITY-While the coconut industry in Bohol faces seriousproblems, it still remains a viable source of livelihood for most of theprovince's farmers.This claim was made in a concept paper prepared by Bali Farms and CropsResearch Center submitted to the provincial government.Bali Farms, a Cagayan de Oro-based research and production institution,and the Bohol-based People's Fair Trade Assistance Center, is proposing aprogram for the "massive, comprehensive and sustained rehabilitation,expansion and development of the coconut industry in Bohol."The center is offering its expertise and resources to serve as one of themain catalysts for the development of the coconut sector.It offers assistance in the introduction of high-yielding andearly-maturing coconut hybrids and "the most modern farm productiontechnologies" in facilitating the development of new products andcoconut-based industries.High-yielding varieties include those certified by the Philippine CoconutAuthority (PCA) that bear flowers and fruits starting on the 18th and 30thmonths after planting.If promoted and distributed, the paper claimed that five years afterplanting, they would be yielding four to six tons of nuts per hectare peryear, "up to six times the present average production," which is half totwo tons per hectare per year.The center said that among the technologies it will promote is theintercropping of fruit trees, annuals (such as bananas), and cash cropswith the coconut trees."This shall maximize the use of the land planted to coconut, while at thesame time provide interim and supplementary income to the farms," thepaper noted.It also offered the propagation of modern coconut farm managementpractices, including organic fertilizer production and usage."This ensures fast growth of palms and trees, while reducing the cost offarm inputs," the paper said.It pointed out that the development of organic coconut sugar productioncould mean a big increase in the income of coconut farmers.The paper noted that coconut sugar, or muscovado, from coconut has a highnutritive value. It is derived from coconut toddy (or the coconut winewithout the dreg).Aside from sugar, the center identified other products that can bedeveloped from coconut, such as virgin oil (a high value product fromcoconut), oleo chemicals (from coconut crude oil) and consumer productslike coco nectar soup, coco sap concentrates (100 percent fruit juicesweetener) and many others.