MARKET DEVELOPMENT
Calibrate Policies To Support Growth, Palm Oil Industry Policy Makers Urged
Calibrate Policies To Support Growth, Palm Oil Industry Policy Makers Urged
12/10/2015 (Bernama) - Palm oil industry policy makers must calibrate policies to support growth in the near term and must implement fundamental changes to achieve healthy growth in the medium and long term, said Malaysian Palm Oil Board (MPOB) Economics and Industry Development Division Director, Balu Nambiappan.
"In order to stay ahead and be competitive in global business, companies must be able to manage the price risk of the production, or purchase of upstream commodities, inventories and sale of downstream products as well as to improve efficiency by optimising and arbitrating on the logistics and seasonal cycles," he said at MPOB International Palm Oil Congress and Exhibition on Friday.
He said palm oil exports are the largest among the world's vegetable oils, and its competitiveness among vegetable oils remains unchallenged.
"Palm oil's share in total edible oil consumption has constantly gone up in the last decade and the trend is expected to continue in the future.
"The sheer increase in the consumption in the last decade, both in the food and industrial sectors, is proof of the competitiveness of palm oil as a vegetable oil," Balu said.
For the palm oil industry, sustainability is key to success, he said, adding corporate stewardship and good agricultural practices should be incorporated as part of the business outcome or culture in companies.
He said palm oil is projected to be even more dominant in the years to come, due to its productivity and competitiveness.
"However, it will also face even more negative campaigns, and the declining trend in prices as well as trade restrictions imposed by importing countries have necessitated the repositioning of palm oil in the global oils and fats context," Balu added.
"In order to stay ahead and be competitive in global business, companies must be able to manage the price risk of the production, or purchase of upstream commodities, inventories and sale of downstream products as well as to improve efficiency by optimising and arbitrating on the logistics and seasonal cycles," he said at MPOB International Palm Oil Congress and Exhibition on Friday.
He said palm oil exports are the largest among the world's vegetable oils, and its competitiveness among vegetable oils remains unchallenged.
"Palm oil's share in total edible oil consumption has constantly gone up in the last decade and the trend is expected to continue in the future.
"The sheer increase in the consumption in the last decade, both in the food and industrial sectors, is proof of the competitiveness of palm oil as a vegetable oil," Balu said.
For the palm oil industry, sustainability is key to success, he said, adding corporate stewardship and good agricultural practices should be incorporated as part of the business outcome or culture in companies.
He said palm oil is projected to be even more dominant in the years to come, due to its productivity and competitiveness.
"However, it will also face even more negative campaigns, and the declining trend in prices as well as trade restrictions imposed by importing countries have necessitated the repositioning of palm oil in the global oils and fats context," Balu added.