Monday June 21, 2004 - MALAYSIA hopes to sell up to 600,000 tonnes ofcrude palm oil (CPO) to emerging markets in Russia and Poland in the nextfew years, according to Malaysian Palm Oil Association (MPOA) chairmanSabri Ahmad.

Sabri, who led a delegation to the two countries earlier this month, saidcurrently Russia imported 150,000 t0onnes while Poland bought 50,000tonnes under the palm oil credit payment arrangement (Pocpa).

We see good response to palm oil in Russia and we hope to further helpdevelop the market through some technical assistance and development ofthe new products, he told StarBiz in an interview.

Sabri, who is also the Malaysian Palm Oil Promotion Council (MPOPC)regional market committee chairman (Europe), said exports to Russia wouldinitially double to 300,000 tonnes following this mission, and to rise to500,000 within the next three to five years.

He said the export would be facilitated through a combination of Pocpa andcounter trade between Malaysia and Russia.

Sabri said the Pocpa arrangement had been concluded with a credit facilityof US$50mil at Vnestorg Bank in Russia.

Malaysia has purchased defence equipment worth RM2.5bil and RM500,000 hasbeen allocated for counter trade. Poland is also selling RM2bil worth ofthe T-92 tank, and part of the settlement would be allocated for countertrade.

He said Poland, now no longer part of the European Union, was anotherpotential market.

Sabri said that in order to reach such high volume in Russia, the MPOPCwould step up efforts to facilitate the exports.

Palm oil is highly regarded in Russia. The margarine sold in the countrycarries the words palm oil promoting the health benefits of the product.

We are also promoting the blending of oils. For instance, we are pushingfor the blending of sunflower and palm oil in Russia and in Poland, theblending of rapeseed and palm oil,” he said.

Sabri added that such a promotion (for oil blending) was important toprevent any resistance from their farmers who might not favour the openingof their markets to other oils.

He said some companies within the MPOA would form a consortium to operatetank facilities, possibly in Klaingard, a port near Estonia, to store theoil before distributing it to other parts of Russia.

We have to support them this way. Most of the factories in Russia areprivately owned with consumption of about 100 tonnes. They would not beable to buy such huge amount and the tank facility would be a goodarrangement for their industries, he said.

At present, Russian importers buy their palm oil from Europe, and by usingKlaingard, we should be able to bring palm oil right to theirmanufacturers.

He said the Russians had also requested for the MPOPC to set up a branchoffice in the country to facilitate trade between the two nations.

Sabri said prospects for Russia were tremendous as the per capitaconsumption was only 19.1kg compared with European consumption of 50.7 kg.

He said the success in Russia was important, as it was an importantgateway for access to other former Soviet countries like Uzbekistan,Turkmenistan, Estonia and Ukraine.

Sabri, who is also the Malaysian Palm Oil Promotion Council (MPOPC)regional market committee chairman (Europe), said exports to Russia wouldinitially double to 300,000 tonnes following this mission, and to rise to500,000 within the next three to five years.

He said the export would be facilitated through a combination of Pocpa andcounter trade between Malaysia and Russia.

Sabri said the Pocpa arrangement had been concluded with a credit facilityof US$50mil at Vnestorg Bank in Russia.

Malaysia has purchased defence equipment worth RM2.5bil and RM500,000 hasbeen allocated for counter trade. Poland is also selling RM2bil worth ofthe T-92 tank, and part of the settlement would be allocated for countertrade.

He said Poland, now no longer part of the European Union, was anotherpotential market.

Sabri said that in order to reach such high volume in Russia, the MPOPCwould step up efforts to facilitate the exports.

Palm oil is highly regarded in Russia. The margarine sold in the countrycarries the words palm oil promoting the health benefits of the product.

We are also promoting the blending of oils. For instance, we are pushingfor the blending of sunflower and palm oil in Russia and in Poland, theblending of rapeseed and palm oil, he said.

Sabri added that such a promotion (for oil blending) was important toprevent any resistance from their farmers who might not favour the openingof their markets to other oils.

He said some companies within the MPOA would form a consortium to operatetank facilities, possibly in Klaingard, a port near Estonia, to store theoil before distributing it to other parts of Russia.

We have to support them this way. Most of the factories in Russia areprivately owned with consumption of about 100 tonnes. They would not beable to buy such huge amount and the tank facility would be a goodarrangement for their industries, he said.

At present, Russian importers buy their palm oil from Europe, and by usingKlaingard, we should be able to bring palm oil right to theirmanufacturers.

He said the Russians had also requested for the MPOPC to set up a branchoffice in the country to facilitate trade between the two nations.

Sabri said prospects for Russia were tremendous as the per capitaconsumption was only 19.1kg compared with European consumption of 50.7 kg.

He said the success in Russia was important, as it was an importantgateway for access to other former Soviet countries like Uzbekistan,Turkmenistan, Estonia and Ukraine.