MARKET DEVELOPMENT
REPORT: Oil Palm Sub-sector Value-added Rises 8.1 Per Cent In 1h14, Rubber Falls 13.3 Per Cent
REPORT: Oil Palm Sub-sector Value-added Rises 8.1 Per Cent In 1h14, Rubber Falls 13.3 Per Cent
11/10/2014 (Bernama) - The value-added of oil palm sub-sector in the first half of this year (1H14) increased by 8.1 per cent versus 7.6 per cent in the same period of last year, due to higher crude palm oil (CPO) production.
In the 2014/2015 Economic Report, the Ministry of Finance (MOF) said the CPO production rose 6.6 per cent to 10.7 million tonnes during 1H14 on the back of higher fresh fruit bunches (FFB) yield per hectare and expanded matured areas in Sabah and Sarawak.
"Average FFB yield increased to 10.09 tonnes per hectare amid improved weather conditions in the second quarter," it said.
The report is issued in conjunction with the tabling 2015 Budget in Parliament today by Prime Minister Datuk Seri Najib Tun Razak, who is also Finance Minister.
The report said the average CPO price has strengthened to RM2,542 per tonne during January-August 2014.
However, with the production rising sharply in the second quarter, coupled with higher inventory level which stood at 2.1 million tonnes as at end-August, the price of CPO moderated to RM2,162 per tonne as at end-August.
This was due to a surge in global supplies of edible oils which could have been control if the El-Nino weather phenomenon had taken place, it said.
"Hence, the CPO price is expected to moderate in the second half to register an average of RM2,400 per tonne in 2014," it said, adding the average price in 2013 amounted at RM2,364 per tonne.
Meanwhile, on rubber sub-sector, it said the value-added for January-June period declined 13.3 per cent due to lower prices and output, which dropped 13.2 per cent to 300,000 tonnes mainly due to the hot weather conditions and prolonged wintering season during the 1H14.
During January-August, the natural rubber price for SMR 20 remained subdued at RM5.83 per kg, dropping to a low of RM4.65 per kg on Sept 25.
This was partly due to sluggish demand from China's automobile industry following measures to restrict production of new cars to reduce air pollution and traffic congestion, it said.
It said the rubber prices were expected to remain low and average RM5 per kg this year.
In the 2014/2015 Economic Report, the Ministry of Finance (MOF) said the CPO production rose 6.6 per cent to 10.7 million tonnes during 1H14 on the back of higher fresh fruit bunches (FFB) yield per hectare and expanded matured areas in Sabah and Sarawak.
"Average FFB yield increased to 10.09 tonnes per hectare amid improved weather conditions in the second quarter," it said.
The report is issued in conjunction with the tabling 2015 Budget in Parliament today by Prime Minister Datuk Seri Najib Tun Razak, who is also Finance Minister.
The report said the average CPO price has strengthened to RM2,542 per tonne during January-August 2014.
However, with the production rising sharply in the second quarter, coupled with higher inventory level which stood at 2.1 million tonnes as at end-August, the price of CPO moderated to RM2,162 per tonne as at end-August.
This was due to a surge in global supplies of edible oils which could have been control if the El-Nino weather phenomenon had taken place, it said.
"Hence, the CPO price is expected to moderate in the second half to register an average of RM2,400 per tonne in 2014," it said, adding the average price in 2013 amounted at RM2,364 per tonne.
Meanwhile, on rubber sub-sector, it said the value-added for January-June period declined 13.3 per cent due to lower prices and output, which dropped 13.2 per cent to 300,000 tonnes mainly due to the hot weather conditions and prolonged wintering season during the 1H14.
During January-August, the natural rubber price for SMR 20 remained subdued at RM5.83 per kg, dropping to a low of RM4.65 per kg on Sept 25.
This was partly due to sluggish demand from China's automobile industry following measures to restrict production of new cars to reduce air pollution and traffic congestion, it said.
It said the rubber prices were expected to remain low and average RM5 per kg this year.