15/12/2008 (Mysinchew.com), Kota Kinabalu - Oil palm mills operating at an oil extraction rate of 18% and below need to improve their performance through stringent fresh fruit bunches grading and adopting new technology.

In stating this Monday (15 dec), Plantation Industries and Commodoties Minister Datuk Peter Chin Fah Kui said the oil palm industry needed to make concerted efforts, including improving agricultural practices, in order to push yields and productivity to new heights.

"We cannot be complacent as the competitive edge, which is the driving force behind the production and market expansion of palm oil, will continue to be a vital factor for the future development of the industry," he said.

"Plantation companies should embark further on adopting good agricultural practices and replanting of unproductive oil palm trees with superior planting materials," Chin said.

"And they should also carry out preparation of land with mechanisation in mind in order to reduce dependence on foreign labour," he said at the opening of the 2008 National Seminar on Palm Oil Milling, Refining Technology, Quality and Environment here.

The text of his speech was read by Deputy Minister Senator A. Kohilan Pillai.

According to Chin, the palm oil industry showed tremendous growth in the first 10 months of this year, particularly in terms of export earnings of oil palm products.

"High palm oil prices during the first half of the year contributed to increased export earnings by 60.3% to reach RM56.5 billion as against RM35.2 billion recorded during the corresponding period last year," he said.

In terms of volume, Chin said exports of palm oil products increased by 10.8% or 1.7 million tonnes in the first 10 months this year to 17.7 million tonnes compared to 15.9 million tonnes during the same period last year.

"As at October, the total oil palm planted area increased to 4.45 million hectares and the total production of crude palm oil during that period increased by 14.21 percent to 14.59 million tonnes," he said. (Bernama)