Saturday, February 16, 2002 (The Star) - EXPORTS of local palm kernelexpeller cake (PKC) will likely witness renewed demand this year fromtraditional markets such as Europe, South Korea and Japan as well as newones such as China and India, according to major PKC exporter and shipperPalm Base Sdn Bhd.Palm Base managing director Daniel Cheow said PKC – an oil palm fruitby-product – held strong export prospects based on its performance lastyear, when Malaysia successfully exported almost its entire PKC productionof about 1.8 million tonnes.PKC, which is a main ingredient for nutritional animal feed production,particularly in cattle and hog feed, is currently traded at US$70 pertonne (CIF basis) compared with US$40 per tonne in the first quarter oflast year – the lowest historical level to-date. At its peak in mid-1996,the PKC price reached a high of US$200 per tonne.Malaysia is the world’s largest producer of PKC, followed closely byIndonesia.Palm Base is believed to be the only Asian PKC exporter and shipper, andcurrently competes with two other European companies to export PKC underCIF (cost, insurance and freight) basis.The company exports some 300,000 tonnes of PKC annually on a CIF basis,and these are shipped directly to major international ports such asAmsterdam and Rotterdam as well as smaller ports such as Sanpander andBilbao in Spain.At the same time, there are about 20 major local PKC manufacturers whichsell their products under FOB (free on board) to both local andinternational traders and exporters.Cheow expressed confidence that PKC, which is being traded at a US$20 toUS$25 discount to its substitutes such as corn gluton, sugar bit pulp andcitrus pulp from the US and South America, could in the near future fetchbetter prices.“I believe this can be achieved if more efforts were put in by local PKCmanufacturers to improve the quality of their products,’’ he said.There had been cases of adulteration in PKC, such as manufacturers addingpalm fruit shells and increasing moisture content to increase its weight,he claimed.He also stressed the importance of diversifying the export markets for PKCto enhance its pricing. Currently, more than 90% of Malaysia’s PKC exportsgo to Europe.Cheow said there had been too much emphasis on exports to Europe and therecent mad cow and foot and mouth diseases could dampen purchase of PKCthere. He added that China and India could be good alternatives.Meanwhile, Malaysian Palm Oil Promotion Council, which has been focusingon the export and promotion of palm oil, is believed to have recentlystarted promoting PKC.