25/2/06 KUALA LUMPUR (Bernama) -- Overseas markets for palm oil and palm-based products have been developing well and this has prompted the Malaysian Palm Oil Promotion Council (MPOPC) to put in a new wave of promotional efforts.

Its newly-appointed chief executive officer Tan Sri Dr Yusof Basiron said market expansion was more prominent in the "big six" palm oil and palm-based products importing countries, namely China, the European Union (EU), Pakistan, India, Egypt and the United States.

"These countries or groupings are already importing 500,000 tonnes or more palm oil. They accept palm oil as a food raw materials. They will continue to be big importers as their populations expand," he told Bernama in an interview.

Hence, he added, MPOPC would give priority to this marketplace, continuing to have its presence with the core functions of enhancing exports to these countries.

Yusof said besides these countries, Bangladesh last year emerged with the potential of becoming a major market for palm oil and palm-based products.

Bangladesh imported 510,727 tonnes of palm oil last year, up by 40 percent when compared with 364,752 tonnes in 2004.

As for China, it bought 2.961 million tonnes in 2005 compared to 2.799 million tonnes in 2004, while imports to the EU amounted to 2.285 million tonnes (1.965 million tonnes in 2004) and to India 634,994 tonnes (941,863 tonnes in 2004).

Pakistan imported 957,012 tonnes in 2005 as compared to 953,772 tonnes in 2004, while the US took 559,940 tonnes (349,136 tonnes in 2004) and Egypt 608,816 tonnes (335,225 tonnes in 2004).

Yusof said the European region recorded an all-time high import of nearly 2.71 million tonnes from Malaysia, mainly due to higher demand, including for biodiesel.

As for the US, the volume last year was remarkable, with the major products in the form of refined, bleached and deodorised (RDB) palm olein, RBD palm oil and RBD palm stearin, he said.

"The new food labelling laws (introduced in the US) have been favourable for palm oil imports," said Yusof who was previously director-general of the Malaysian Palm Oil Board (MPOB). He replaced Datuk Harun Siraj, 62, who retired on Jan 6, 2006.

Going forward, MPOPC planned to conduct at least three Malaysian palm oil trade fairs.

"MPOPC will become the catalyst and intermediary to link up buyers and sellers via the planned trade fairs," he said.

Declining to give further details, he said the trade fairs would be conducted in collaboration with the MPOB.

To further enhance MPOPC's role in the industry, its marketing communication department has been changed to the promotion and branding division.

"We want to be more focused on promotions at improving sales," Yusof said.

Sales of palm oil products would be the division’s key function, he said, adding that it would also be in charge of branding activities.

"This is to ensure that palm oil products are continuously appreciated with an enhanced image of better quality and nutritional value. Palm oil's positive attributes should be strongly highlighted," he said.

According to Yusof, there will be a new wave of efforts to promote palm oil.

"We want to enhance the export volume and make sure that palm oil continuously reaches various destinations in the world," he said.

To promote the nutritional value of palm oil, MPOPC planned to conduct a "feeding trial" for schoolchildren in South Africa.

This will be in the form of muffins made of red palm oil, which has a high level of Vitamin A and E, Yusof explained.

"It's a contribution to society via health food," he said.

"Palm oil is the only oil that can contribute towards the improvement of Vitamin A of the population. Other oils do not have this type of unique properties," he stressed.

He also said that it would be good if the feeding trial received acknowledgement from the World Health Organisation (WHO).

On its representative offices worldwide, Yusof said MPOPC has no plans as yet to open more of them.

Currently, there are nine representative offices, based in Shanghai, China; Dhaka, Bangladesh; Lahore, Pakistan; Mumbai, India; Dubai, United Arab Emirates; Brussels, Belgium; Cairo, Egypt; Durban, South Africa; and Los Angeles, US.

"We are going use our website to disseminate information on the industry, hence there are no plans to open more representative offices," he said.

-- BERNAMA