MARKET DEVELOPMENT
FGV Confident Of Strengthening Position In Asian Palm-Based Downstream Sector
FGV Confident Of Strengthening Position In Asian Palm-Based Downstream Sector
15/07/2015 (Bernama) - Felda Global Ventures Holdings Bhd (FGV) is confident of strengthening its market position as the leader in the palm-based downstream sector in Asia.
It aims to achieve this by further diversifying products and integrating with the group's upstream oil-palm plantation division.
Head of Palm Downstream cluster Datuk Zakaria Arshad said by collaborating with leading industry giants in the downstream and upstream sector, FGV can better control supply and diversify into new products.
"We aim to be an integrated player for both the upstream and downstream sector in the palm-based industry.
"To achieve this goal, we must collaborate to grow and dominate the market," he told Bernama.
Zakaria said an integral component for FGV towards achieving this goal is to expand its plantation landbank, and have better control of supply, as well as profit margin.
He added that to offset volatile palm oil prices which continue to weigh on oil palm plantation companies, FGV plans to go further downstream and penetrate new markets.
"Vietnam, the Philippines, China, India and Myanmar have been identified as those countries for FGV to focus on as the production and marketing base for the downstream sector in Asia.
"We have started discussions with big players in the Philippines and hope to start downstream operations there soon," Zakaria said.
He said India and the Philippines will be new markets for FGV in the downstream palm-based sector, while in Myanmar, the group hopes to further expand its presence there.
In China, FGV is involved in refining and processing activities through a joint venture company with IFFCO Holdings Ltd, UAE's leading producer and distributor of consumer, industrial goods and food products.
In the Indo-China region, he said, FGV would be expanding market presence in specialty oils and palm-based consumer goods through the hub in Vietnam.
FGV recently announced a collaboration with Vietnam's leader in the confectionery industry, Kinh Do Corporation, and regional solutions provider for integrated logistics, Indo Trans Logistics Corporation (ITL).
This enables it to tap Vietnamese consumers in the packaged oils and food and flavour markets segment, which is a cornerstone for FGV in diversifying its products base.
Zakaria said FGV is also confident of being able to compete effectively in the consumer vegetable oils market, as palm oil is now the major vegetable oil import in most ASEAN countries, based on its health benefits and price competitiveness.
FGV, he added, as a founding member of the Roundtable on Sustainable Palm Oil (RSPO) - an international body to promote environmentally sustainable palm oil - will also be able to create strong brand awareness based on its initiatives to support the environment.
FGV is renowned as the first company globally to organise RSPO Fresh Fruit Bunch (FFB) certification for a smallholders group.
It aims to achieve this by further diversifying products and integrating with the group's upstream oil-palm plantation division.
Head of Palm Downstream cluster Datuk Zakaria Arshad said by collaborating with leading industry giants in the downstream and upstream sector, FGV can better control supply and diversify into new products.
"We aim to be an integrated player for both the upstream and downstream sector in the palm-based industry.
"To achieve this goal, we must collaborate to grow and dominate the market," he told Bernama.
Zakaria said an integral component for FGV towards achieving this goal is to expand its plantation landbank, and have better control of supply, as well as profit margin.
He added that to offset volatile palm oil prices which continue to weigh on oil palm plantation companies, FGV plans to go further downstream and penetrate new markets.
"Vietnam, the Philippines, China, India and Myanmar have been identified as those countries for FGV to focus on as the production and marketing base for the downstream sector in Asia.
"We have started discussions with big players in the Philippines and hope to start downstream operations there soon," Zakaria said.
He said India and the Philippines will be new markets for FGV in the downstream palm-based sector, while in Myanmar, the group hopes to further expand its presence there.
In China, FGV is involved in refining and processing activities through a joint venture company with IFFCO Holdings Ltd, UAE's leading producer and distributor of consumer, industrial goods and food products.
In the Indo-China region, he said, FGV would be expanding market presence in specialty oils and palm-based consumer goods through the hub in Vietnam.
FGV recently announced a collaboration with Vietnam's leader in the confectionery industry, Kinh Do Corporation, and regional solutions provider for integrated logistics, Indo Trans Logistics Corporation (ITL).
This enables it to tap Vietnamese consumers in the packaged oils and food and flavour markets segment, which is a cornerstone for FGV in diversifying its products base.
Zakaria said FGV is also confident of being able to compete effectively in the consumer vegetable oils market, as palm oil is now the major vegetable oil import in most ASEAN countries, based on its health benefits and price competitiveness.
FGV, he added, as a founding member of the Roundtable on Sustainable Palm Oil (RSPO) - an international body to promote environmentally sustainable palm oil - will also be able to create strong brand awareness based on its initiatives to support the environment.
FGV is renowned as the first company globally to organise RSPO Fresh Fruit Bunch (FFB) certification for a smallholders group.