KUALA LUMPUR, June 13 (Bernama) -- Malaysian palm oil can effectivelycompete with other edible oil in the international market, PrimaryIndustries Minister Datuk Seri Dr Lim Keng Yaik said here Thursday.He said that this could be done by decreasing production cost, increasinglevel and undertaking innovative marketing and packaging.

Dr Lim said that there were many Malaysian traders who were onlyinterested in selling palm oil in bulk, but not keen in packaging thecommodity in attractive forms and market it direct to consumers.

He said this when briefing the Yang di-Pertuan Agong Tuanku SyedSirajuddin Tuanku Syed Putra Jamalullail who visited the Ministry hereThursday.

Dr Lim had talked about the performance of the Malaysian commodities inthe international market and its contribution to the country's exports,apart from challenges and important issues facing each sector of thecommodities market.

"Malaysians must change their mindset from being only a commodity traderand expand further to market palm oil direct to consumer throughinnovative packaging to boost earnings further in view of the currentuptrend in palm oil prices," Dr Lim said.

Dr Lim also said that the current oil extraction rate (OER) which stood at3.6 tonnes to 3.8 tonnes per hectare could be increased further to five toeight tonnes in order to increase production level.

"This can be achieved through a planting programme which encourages theuse of oil palm clones that can produce high rate of oil," he explained.-- BERNAMA