KUALA LUMPUR, Aug 21 (Bernama) -- Malaysian Palm Oil Promotion Council's(MPOPC) director of marketing and promotions, Dr Ahmad Ibrahim, isconfident that palm oil consumption worldwide will continue to increase.

He said that for this year consumption could increase up to 16.5 milliontonnes compared to 15.2 million tonnes last year.

This is due to the growth in world population and purchasing power, Ahmadsaid, he told Bernama here after presenting a paper on "Global MarketProspect for Palm Oil" at the three-day 2001 International Palm OilCongress (2001 PIPOC) which began here yesterday.

"And another fact is that many countries are still not consuming enoughoil. The richer they get, the more developed they are and the more oilthey want," he said.

People are also now more health conscious, and as such "we are also takingsome share away from the animal fats consumption," Ahmad said "They wantvegetable fats and palm oil is a fat which has the same texture and taste.So we have a better chance," Ahmad said.

He said that MPOPC had demonstrated and promoted the nutritional value ofpalm oil in many countries like Pakistan, Egypt, India and other MiddleEast countries.

Ahmad said that Palm oil could also replace hydrogenated soft oil as soonas people recognise that hydrogenated soft oil is not really that healthyand this will increase the market share of palm oil.

The hydrogenated soft oil is mainly consumed in countries where it wasproduced namely the US and Brazil.

Besides that, he said that the Malaysian palm oil prices now are betterand very competitive.

He pointed out that price is a parameter for the export market. Forexample Bangladesh is price sensitive, however it had increased its palmoil import tremendously this year.

Ahmad said that this year, exports to Bangladesh may even touch 300,000tonnes compared to last year at less than 100,000 tonnes.

As for Europe, it is already a big market for palm oil. Although theregion's local palm oil producers are given subsidy, they are unable toproduce enough supply for its market requirement, Ahmad said.

Malaysia contributes 60 percent of palm oil exports worldwide, followed byIndonesia at some 25 percent.

Malaysia produces 50 percent of the total palm oil production withIndonesia at 22 percent.

-- BERNAMA