Why lift ban on importation of palm oil?

23/03/2009 (Business Day) - Malaysia, which for a long time was the leader in oil palm business in the world ( Indonesia is now the world leader), got its first seedlings from Nigeria .

Malaysia knew long ago the potentials palm oil production had and therefore took the cultivation very seriously in an effort to boost its economy.

Malaysia has over 3.2 million hectares of oil palm plantations, milling out nine million tons of palm oil with earnings up to $7 billion from its export.

Malaysia has gone beyond fabrication of mills to the addition of value to the products by refining and fractionating oil in order to produce chemicals like the fatty acids, fatty alcohols and intermediates.

It would be recalled a Malaysian minister was quoted by Bernama news agency as saying Indonesia would likely overtake Malaysia as the world’s top palm oil producer in 2007, due to dramatically increased planting there, “From preliminary figures in 2007 it looks like Indonesia has already overtaken us in terms of production,” Plantation and Commodities Minister Peter Chin told reporters.

Chin said Malaysia was still the world’s top exporter but that Indonesia was “very close behind” and would probably claim top status in 2008. “We do not aspire to be number one all the time,” he said on the sidelines of a conference on sustainable palm oil production, in Sabah state on Malaysia ‘s Borneo Island .

Malaysia produced 15.82 million tonnes of crude palm oil in 2007, and earned 45.2 billion ringgit ($14.1 billion) in export revenue. Palm oil plantations account for 1.2 million hectares (2.97 million acres) of Malaysia ‘s 4.2 million hectares of land allocated for agriculture. Some 30 percent of the country’s palm oil is in Sabah . Malaysia and Indonesia together produce 85 percent of the world’s palm oil which is enjoying a boom on the back of strong global demand and tight supply.

Chin said with limited opportunities to expand agricultural land, palm oil producers will focus on increasing yield from existing crops by efficient growing techniques and replanting with better seedlings.

In an attempt to restore the oil palm to its prime position as well as agriculture as the mainstay of the economy the federal and state governments started revamping and establishing oil palm agencies. For example, states like Anambra, Abia, Cross River , and Rivers States established oil palm agencies while the federal government increased its funding to the Nigerian Institute of Oil Research (NIFOR) Benin . Anambra State Oil Palm Development Agency, established in 1989 by the Robert Akonobi Administration in the old Anambra State, was charged to execute the small holder oil palm development scheme of the state government as well as Oil Palm plantations, nurseries and Oil Mills amongst others.

Similarly, the oil palm development effort of other states has received priority attention. Specifically, the Anambra oil palm development agency was charged to execute the small holder oil palm development scheme of the state as well as to establish and expand oil palm produces among others. But this is now history. The agency has wound up and the assets/ liabilities inherited by the State Ministry of Agriculture shortly after the creation of Anambra state in 1992.

Only recently, the Federal Government lifted the ban on importation of crude palm oil. The Plantation Owners Forum of Nigeria (POFON) kicked against it. POFON found it illogical for the Federal Government to lift ban on importation of crude palm oil “when palm oil is now grown in 24 states of Nigeria” and wondered why Government was taking this step when that “there is no shortage of palm oil in the country”.

Federal Government has made provision for importation of crude palm oil at 35 per cent import duty. This has now replaced the former regime of total ban on the importation of vegetable oil into the country. POFON is not comfortable with this, and rightly so. It has petitioned the Presidency, the Federal Ministry of Agriculture and Water Resources and the Federal Ministry of Commerce and Industry.

POFON’s argument is that the investments made by indigenous and foreign investors in the oil palm industry, occasioned by the ban on the importation of vegetable oil, was monumental and unprecedented in the history of private sector investments in plantation agriculture in Nigeria . It argues the lifting of the ban on the importation of vegetable oil has not just exposed and threatened the investments of plantation owners given the long gestation of their investments, that it has also brought to the fore the critical issue of policy inconsistency, which has been the bane of our agricultural development.

The trend has been established and the reality is that the new import regime has put the fortunes of plantation owners in jeopardy as traders and end users now prefer to buy cheap imported crude palm oil. The result is that plantation owners are being forced to sell below their cost of production.

For POFON, “The reality is also that the big oil palm estates have started to cut back on their workforce. This is untoward for rural employment. Suffice it to say that plantation agriculture remains the largest creator and provider of rural jobs. For instance, it is bad omen for Presco Plc that has just upgraded their processing capacity, just as Okomu Oil Palm Company Plc has had to put on hold further construction work on their new 60 tons FFB per hour palm oil mill, which is intended to be the largest in Africa .

“All these investments have been made in the quest by plantation owners to improve the supply and availability of palm oil in the country. We are therefore surprised and disturbed that a policy has been put in place that is mindless of the gains that have been recorded and is set to take the oil palm industry back to the doldrums. We are afraid that if the present situation is not arrested, it will spell the death knell of the oil palm industry. The oil palm industry may not rise again and the dream and aspiration of the federal government to put the country back on the World palm oil trade shall remain a mirage.”

POFON believes that weakening the country’s agricultural production base and threatening rural employment will not be in tandem with the seven point agenda of Mr. President, neither will it serve the objectives of “Vision 20/20:20”.

If Malaysia could make it, if Malaysia that started off with palm oil seedlings it got from Nigeria could excel in the production of palm oil. And if Indonesia which was number two world producer could beat Malaysia to it to become number one, Nigeria should be able to establish the same feat. In fact we should know better now that we need not depend solely on petroleum as revenue earner; what with its pricing unpredictability.

It is the season of non-oil products, nothing else. We must key into it now.

Low oilseed yield to keep cooking oil prices burning - The Economic Times

22/05/2009 (The Economic Times), Kolkata - The way vegetable oil prices in the global market are rising by the day, chances of any further drop in cooking oil prices at home are remote. Cooking oil prices are ruling at no less than Rs 70 per kg at the retail-end.

Global oil prices are up on reports of a decline in oilseeds output in several countries.

Riding on a bullish sentiment, palm oil prices shot up $250 per tonne, while soya oil and sunflower oil were up by $100 per tonne each in the past one and a half months. Now, the minimum price level is feared to touch a new high following a fresh bout of increase in global oil prices over the past couple of days, when palm oils prices flared up $10-15 per tonne. Moving in tandem, soya oil prices too moved up.

Analysts feel that the bullish sentiment in the global market will get reinforced with reports pouring in from Malaysia about a fall in palm oil production. The latest report suggests that palm oil production in Malaysia is likely to be at 17.8 million tonnes in the current oil year (October 2008- September 2009) as against the previous estimate of 18 million tonnes. This has expectedly raised palm oil prices above the $700-mark.

As a result, the landed price of refined, bleached and deodorant (RBD) palmolein in India has increased $10 to $850 a tonne as of now. While crude palm oil (CPO) is up $20 to $800 a tonne. Traders feel that an upward revision in domestic prices will take place as soon as stocks from earlier imports, which were at lower rates, dry up.

Apart from crop in Malaysia, soyabean crop in Argentina has turned out to be much lower than expected. In early March, the estimate was at 43 million tonnes, whereas the best estimates today are almost 10 mt lower, according to industry analyst Dorab Mistry. The US has also reported a drop in soyabean cultivation this year.

According to the US department of agriculture (UDA), soybean plantings were spread over 76 million acres against an expected coverage of 80-81 million acres. Canola acreage in Canada has shrunk and rapeseed output is estimated to drop from 2.8 mt to 1.4 mt.

Did Malaysia cancel plans for palm oil development in the Amazon? - Mongabay.com

21/05/2009 (Mongabay.com) - The Malaysian government's federal land agency (FELDA) is now denying its well-documented plan to develop oil palm plantations in the Amazon rainforest, reports Ecological Internet, a forest advocacy group that carried out a campaign against the project.

"In a positive yet puzzling development, a spokesperson for the Malaysian government's federal land agency (FELDA) now denies plan for Malaysian government controlled oil palm development in the heart of the Amazon ever existed," Glen Barry, founder of Ecological Internet and organizer of the campaign, wrote via email. "Wan Zaleha Wan Embong, from FELDA's Public Relations Department, has been responding to our network's protest emails, disavowing the plans."

Barry speculated that the apparent change of plans could be "an attempt to save face" in response to more than 100,000 protest emails, economic difficulties caused by a dramatic fall in the price of palm oil, or simply an attempt to mask the government's involvement by reorganizing the project with private, rather than government, capital.

Last July Deputy Prime Minister Datuk Seri Najib Razak (now Malaysia's Prime Minister) announced that FELDA would immediately establish 100,000 hectares (250,000) of oil palm plantations in the Brazilian Amazon.

"As a start, 20,000ha in Tefe will be opened for oil palm planting. After that, between 3,000ha and 5,000ha will be opened yearly," he said. "Felda wants to emulate Petronas as a global player," he added, referring to Malaysia's national oil company.

At the time FELDA said it would partner with Braspalma, a local company, to form Felda Global Ventures Brazil Sdn Bhd. FELDA would have a 70 percent stake in the venture.

The deal appeared to still be in the works up until at least late March 2009, according to a post on the from Palm Oil Truth Foundation, a web site run by a palm oil marketing firm. But now, per the comments from FELDA's spokesman, the deal has been shelved.

"Something has changed over the last 8 weeks," said Barry. "It appears our protest by 3,082 people from 78 countries, in which 101,611 protest emails were sent, seems to have deeply embarrassed the Malaysian government. Immediately after our alert launched, references to plans by Malaysia‘s federal land agency to establish up to 100,000 hectares of oil palm plantations in the heart of Brazil's Amazon rainforest were systematically removed from FELDA's Internet servers. And Streamyx, the monopoly Internet service provider in Malaysia, stopped delivering emails referring to Malaysia's global rainforest for oil palm land grab."

Barry says he won't be surprised to see the project re-emerge under a different name without direct government involvement of the Malaysian government.

Ecological Internet and other environmental groups have been campaigning against the conversion of natural forests for oil palm plantations, which in recent years has become a significant driver of deforestation, especially in Malaysia and Indonesia.

Getting a grip on oil palm issues - The Star Online

23/05/2009 (The Star Online) - THIS month didn’t start well for the plantation industry. Over the first two days, British newspaper The Independent ran several hard-hitting articles, anchored by a front-page editorial on May 1, that blamed the expansion of oil palm area in Malaysia and Indonesia for ills caused by deforestation.

The allegations – that the current clearing of land to make way for estates is crowding out indigenous people and wild animals, and is contributing to global warming – are not really news. We have heard these many times before.

However, the newspaper, known for its forceful campaigns on environmental issues, has adopted a relatively fresh angle that’s meant to lay a guilt trip on readers.

The Independent says it has discovered that many of Britain’s best-selling products, particularly food items, contain palm oil and therefore, consumers are part of the problem.

It relies on the name-and-shame tactic, listing manufacturers and retailers who use palm oil, and highlighting their policies on the commodity. These companies include Unilever, Cadbury, Mars, Kellogg’s, Procter & Gamble, Nestle and Kraft.

“At breakfast, when millions of us are munching toast, we’re eating a small slice of the rainforest,” reminds an article. In other words, The Independent is saying the cookies, crisps and candy bars that the British love are laced with the blood of orangutans, the symbol of the victims of deforestation in Borneo and Sumatra.

The intent is clear – the newspaper wants to shape popular opinion into a market force that will pressure businesses into halting the opening of oil palm plantations in Malaysia and Indonesia. The tool of choice is the threat of a consumer boycott.

Here’s how the May 1 editorial concludes: “The destruction wrought by the palm oil industry is no longer a distant problem. Its bitter fruits can be found in our shopping trolleys. We need to send a clear message to the food industry by removing them without delay.”

It is interesting that the package of articles in The Independent includes one written by Greenpeace forest campaigner James Turner.

The non-governmental organisation (NGO) has long pushed for a moratorium on oil palm expansion into Indonesia’s rainforest and peatland areas. This stance is increasingly relevant as we approach the United Nations Climate Change Conference in Denmark in December.

The conservation of forests is expected to be a hot topic at the talks, and a strident consumer lobby against products with palm oil will definitely be a valuable bargaining chip.

There have been some attempts to counter the newspaper articles. In his latest blog entry, Malaysian Palm Oil Council chief executive officer Tan Sri Yusof Basiron says The Independent is “telling lies” and disputes several points raised in the stories.

A little-known outfit called the Palm Oil Truth Foundation also pooh-poohs the reports, saying The Independent has “joined the ranks of the integrity-challenged witch-hunters”.

Yusof is doing his job, of course, and The Independent articles are indeed more about putting across certain views than it is about presenting a balanced picture. So, there is much in the stories that can and should be contested.

However, the plantation industry must go beyond refuting untruths and inaccuracies. It should also come clean about its shortcomings and commit to plans to remedy these. There must be a willingness to strictly enforce the law and weed out the black sheep of the industry.

There is a sense that not all the oil palm growers and policy-makers in Malaysia quite grasp the nature and extent of the challenge the industry faces on the environmental front. For one thing, it’s wrong to liken this to the anti-palm oil lobby of the 1980s.

The opposition today is a different beast from that of 20 years ago, when the soybean farmers waged a turf war with the palm oil producers. Back then, the focus was palm oil itself and its effect on the health of consumers.

Today, the practices of the oil palm industry are being targeted, and those attacking are NGOs and the media, organisations that are widely seen as altruistic and trustworthy. It’s difficult to be dismissive when they are talking about saving the planet and its natural resources.

Fighting the anti-palm oil lobby of the 1980s required some savvy wielding of science and cold, hard facts. That won’t work well this time around because the issues raised are often emotional and abstract. Furthermore, the audience in the West are thousands of kilometres away. They will never get the ringside view that the plantation industry and we in Malaysia and Indonesia have. Merely presenting our side of the story will do little to help our case.

The best solution is to mature quickly into a well-regulated industry that deeply understands its impact on people and the environment.

To do this, the industry and the authorities have to first ask themselves some tough questions. Do we have our hearts in the right place? Are we united in what we stand for and in what we need to do to fight this? Are we ready to penalise those that do not play by the rules?

Have we done enough to ensure that the industry does as little harm to the world as possible, particularly by subscribing to the principles of sustainable production of palm oil? Are we transparent and open to engagement with all stakeholders?

Without honest answers to these questions, the palm oil industry will be hard-pressed to come up with a solid game plan that can lead to an enduring position of trust and respect among buyers, consumers and NGOs.

RSPO standard to be improved further - The Star Online

23/05/2009 (The Star Online) - THE Roundtable on Sustainable Palm Oil (RSPO) aims to continue to improve the RSPO standard, which it feels is among the best for any agricultural production in the world.

Secretary-general Dr Vengeta Rao agrees the RSPO standard is tough but points out that first achievers (of the certification) have received an encouraging premium for RSPO-certified palm oil and this is a helpful incentive for others to go for certification.

RSPO is a non-profit association that unites stakeholders from seven sectors of the palm oil industry – oil palm producers, palm oil processors or traders, consumer goods manufacturers, retailers, banks and investors, environmental or nature conservation non-government organisation (NGOs) and social or developmental NGOs – to develop and implement global standards for sustainable palm oil.

However, Rao foresees more work to be done on the standards, more widely known as the principles and criteria, under the RSPO to encourage more certification and also to dispel further criticism heaped on the roundtable by environmental groups and NGOs.

He says the roundtable is currently looking into issues such as deforestation and biodiversity loss without losing sight of the relevance of national development plans and increasing global edible oil needs which palm oil is best placed to meet due to its natural high productivity.

Plantation companies in Indonesia and Malaysia, which together produce 87% of all palm oil, have come under fire for fuelling deforestation that contributes to the demise of animals such as orang utans and elephants.

There will also be opportunities for smallholders to obtain RSPO certification.

The roundtable is coming up with rules and criteria for the certification of smallholders due to their large numbers in Indonesia and Malaysia. The RSPO encourages the participation of smallholders through lower membership fees.

Smallholders need not be certified individually to lower costs – instead they can be audited for compliance and obtain group certification.

“We are also looking at ways to reduce green house gas emissions in producing palm oil, in particular where palm oil expansion is into high carbon-stock soils.

“All the issues are being addressed by expert multi-stakeholder working groups and there will be periodic public consultation in the course of the work,” Rao says.

So far, plantation groups that have entered RSPO certification include United Plantations Bhd, Kulim Bhd, Sime Darby Bhd, Perlis Plantations Bhd, IOI Corp Bhd and Kuala Lumpur Kepong Bhd in Malaysia; PT Musim Mas and PT Hindoli in Indonesia and New Britain Palm Oil and Hargy Palm Oil in Papua New Guinea.

According to Rao, most of the large palm oil players have had some if not most or all of their mills certified with certified volumes just over 1.5 million tonnes and possibly rising to about two million tonnes by June. He expects certification to continue with volumes of RSPO-certified palm oil rising but “the pace will depend on demand and price.”

“The demand for RSPO-certified palm oil and premia have reduced recently with the global economic downturn but the markets may pick up again,” he says.

However, the roundtable may have its hands full in promoting sustainable palm oil, especially in the European Union (EU), where there appears to be controversy about palm oil.

According to WWF International, only 1% of the sustainable palm oil available on the global market has been bought.

In a bid to speed up the “sluggish performance”, WWF said in a recent statement that it would assess the world’s major users of palm oil over the next six months and publish a Palm Oil Buyer’s Scorecard highlighting companies that support sustainable palm oil and exposing those who have not fulfilled their commitments to buy it.

The scorecard will rank the commitments and actions of major global retailers, manufacturers and traders that buy palm oil. Companies will be scored on a variety of criteria relating to their commitments to, and actions on, sustainable palm oil.

WWF helped set up the RSPO as an international body for the industry to develop sustainability standards.

WWF is asking all companies buying palm oil to make public commitments that they will use 100% certified sustainable palm oil by 2015; to make public their plans with deadlines to achieve this goal; and to begin purchasing certified sustainable palm oil immediately.

To add to the problem, the EU’s Renewable Energy Directive sets strict sustainability criteria on materials used to produce biofuels.

The directive, to be made into national law within the next 17 months, is perceived by many trade industry observers as a tactical unfair business practice and a non-tariff trade barrier move by the EU.

Rao, however, remains unfazed. He says the benefits of being RSPO certified should continue to encourage industry players to strive towards the certification.

“It provides palm oil players with premium prices and market preference,” he says. Going forward, Rao expects more companies and volumes to be certified.

“The standards and auditing will continue to be robust. We are also working towards more certification opportunities for smallholders.

“We are aiming towards a smaller footprint than previously for each drop of oil in an ever shrinking world,” he says.

Sarawak Will Have Biggest Oil Palm Area Under Felcra By 2010

25/05/2009 (Bernama), Kuching - Felcra will develop another 11,000 hectares of land in Sarawak for oil palm cultivation by 2010, its chairman Datuk Tajuddin Abdul Rahman said here today.

With the completion of the project, he said, Felcra Berhad would have developed 55,000ha for oil palm, the biggest for Felcra as this made up 36 per cent of the total area in the country developed by the agency for oil palm, compared to 52,000ha in Pahang currently.

"We see that Sarawak still has a lot of land banks with the potential of being developed into oil palm plantations compared to the peninsula, and this will also help the government develop its (Sarawak) rural areas," he said after attending a briefing at Felcra's Sarawak office.

Tajuddin said 44,000ha of land in Sarawak had so far been developed by Felcra, out of which 22,000ha had started producing.

He said the three new areas to have agropolitan projects would be Batang Sadong, Batang Lupar and Pulau Beruit, involving 6,534ha and 3,700 participants altogether.

Besides that, he added, Felcra would also set up two people's estates, involving 4,571ha, this year.

"Felcra's current focus is on economic, physical and human capital development as part of efforts to overcome the effects of the global economic slowdown."

Felcra now has some 94,000 project participants, including 5,544 in Sarawak, with accumulated dividends given out amounting to RM3.5 billion of which RM72 million went to the participants in Sarawak.

Tajuddin said Felcra was also working at attracting more participants and encouraging their family members to work in the oil palm estates developed by Felcra so as to reduce the country's dependence on foreign labour for work, such as harvesting the oil palm fruits.

He said Felcra was now hiring 20,000 people for plantation work, including 8,000 foreigners whom it aimed to reduce to 4,000.

High Foreign Labour Cost Jeopordising Sabah's Palm Oil Industry

25/05/2009 (Bernama), Sandakan - The dependence on foreign labour has resulted in high operations cost for the country's palm oil industry, says Minister of Plantation Industries and Commodities Tan Sri Bernard Dompok.

At the end of last year, there were 525,000 foreign workers in the country's plantation sector and from that, 274,523 workers were in Sabah and Sarawak.

"In Sabah, there are many foreign workers for the palm industry from Indonesia and the cost of getting their services is high.

"If this is not dealt with, it will jeopordise the oil palm industry of the state, which is the most important state for Malaysia in the industry," he told reporters after a dialogue with the East Malaysia Planters Association here today.

Also present at the dialogue was the Chairman of EMPA Othman Walat and Chief of the Malaysian Palm Oil Board (MPOB) Datuk Dr Mohd Basri Wahid.

Dompok said the high cost problem was brought up by EMPA during the dialogue session which he had attended to hear out the problems being faced by the industry in Sabah.

He said he will bring up the matter to the federal government and state government and identify the factors that would need study, and find a resolution for it.

Dompok said Sabah was the main palm oil producing state in the country with its total oil palm planted area coming to 1.33 million hectares or 30 percent of the country's total oil palm planted area.

RI CPO competitiveness under threat - The Jakarta Post

26/05/2009 (The Jakarta Post) - Despite Indonesia being the world’s largest producer of crude palm oil (CPO), its competitiveness in overseas markets is being eroded due in part to burdensome levies – both by central and local governments – and to poor infrastructure.

Indonesia exports around 70 percent of its annual CPO production, but the commodity’s exports could be hit by weakening competitiveness, according to the Indonesian Palm Oil Association (Gapki).

Gapki chairman Susanto said last Friday that many local administrations imposed levies which
overlapped with other levies and taxes laid down by central government.

“We do not mind extra levies from regions. Some of them are in fact reasonable, but many others simply do not make sense. In addition to poor infrastructure, in particular the ports to handle CPO shipments, the burdensome levies are eroding our competitiveness,” Susanto said in a discussion with The Jakarta Post.

The levies are additional to other taxes, such as income tax, which are also applied more generally to other non-palm oil firms by the central government.

Susanto pointed to one example of local governments requiring companies in the sector to pay a non-PLN (state utility company) electricity fee, although CPO firms normally generate their own electricity from their own power stations and distribute excess power to neighboring communities.

There are also regencies requiring the palm oil companies to be responsible of the use of public roads by paying “special road tax” or requiring them alternatively to build their own roads and not to use existing public roads. Some also apply taxes based on the size of the palm oil plantations, to optimize local government revenue from larger plantations.

On infrastructure, Indonesia has too few port facilities designed to handle large CPO shipments, sometimes resulting in overcapacity and congestion in existing ones. Susanto gave the example that in Belawan and Dumai ports, two of the largest ports for the commodity, the congestion is such that this often leads to delays of up to four days to secure shipping clearance.

Joko Supriyono, GAPKI general-secretary, echoed these sentiments.

“This is not to mention the overlapping of concessions between the palm oil plantations and mining projects in the same areas, although the palm oil concessions had already been approved previously,” he said.

Joko said other factors potentially weakening the competitiveness of Indonesian palm oil included low productivity per hectare, as Indonesia was only able to produce an average of 2.5 tons of CPO per hectare, only about a third of the average Malaysian output.

In addition unfair campaigns against the industry by international environmental activists had a negative impact, alongside the fact that many Indonesian companies did not yet have RSPO (Roundtable on Sustainable Palm Oil) certificates required for exports, which were the result of joint action internationally by some (mostly) larger producers, NGOs and other stakeholders.

Moreover, the government may now re-impose a 3 percent tax on palm oil exports next month, as the price of CPO, which had previously bottomed out after a major decline, has now significantly risen again.

Susanto pointed out that the increasing price of palm oil on the international market has not necessarily raised the margins of the palm oil firms as they are subject to a variable export tax, which depended on the movement of international base prices.

As the prices on the international market have averaged US$773.1 a ton during the last 20 days this month, the government will likely increase the base price for taxing exports to $700 a ton from $560 a ton.

The government tries to adapt its base base price for tax purposes according to international market trends, but the industry felt this mechanism was clumsy and could lead to negative impacts of volatile price fluctuations on company sales and prices.

The central government export tax regulation is aimed at securing the supply of palm oil for cooking oil industries and at keeping cooking oil prices stable. This is an important social priority for government, illustrating the problem, experienced also in other export industries, of how to balance domestic demand with export demand, especially for a food product with major social policy ramifications.

“I think to secure the stability of the cooking oil price on the local market, the government should do it by providing a form of subsidy and not by slapping on export taxes every time prices increase on the international market,” Susanto said.

CPO price jump spurs complaints about speculation - The Star Online

18/05/2009 (The Star Online) - TOGETHER with a recovery in global commodity prices, crude palm oil (CPO) futures for three-month delivery shot up to above RM2,600 a tonne at Friday’s market closing from RM2,000 on March 31.

The jump in CPO prices has prompted some to complain about speculation in the market, while Bursa Malaysia said speculators played an important role in the market and that prices reflected true supply and demand.

“High prices will hurt consumers, and cakes, detergents and other products will be more expensive. We are not against a high margin for producers but prices have to go up slowly,” a trader told StarBiz.

He pointed out that from March 31 to April 29, the CPO three-month futures jumped more than RM400 a tonne on not very high volume, which he said meant speculation.

Bursa chief market operations officer Devanesan Evanson responded that based on its analysis, the recent price changes were due to sustained interest by the market in ringgit-denominated CPO futures (FCPO) and were in tandem with the movement in prices of other edible oils and crude oil.

There were also fears that the current high price of above RM2,600 was creating risks for smallholders, because if prices were to fall to RM2,100 or RM2,200, large CPO importers like China and India would begin to default.

“We are not in a position to comment on the risk of default by importers like China and India in the underlying physical CPO markets. However, in the futures market, investors are able to hedge the price risk of the underlying physical CPO market,” Devanesan said.

He also explained the importance of speculative buyers in the market.

“Speculative buyers and sellers create the vibrancy of a market. For a futures market to succeed, it is imperative that there are both speculators and hedgers.

“Purely long and short hedgers may not be sufficient to create a liquid CPO futures market. The participation of speculators willing to take the risk on the other side of hedgers adds liquidity and thus makes it easier for hedgers to hedge,” he said.

However, with the highest daily volume for the CPO three-month futures of 20,000 lots traded in the past 12 months, some do not consider it high enough.

Should there be higher volume in the futures market to reflect the real price based on supply and demand?

“The FCPO in April 2009 recorded an all-time high of 442,220 contracts with a daily average of 20,101 contracts traded. The year-to-date May 12, 2009 trading volume was 1,420,139 contracts,’’ Devanesan said.

“We believe the prices reflect the existing supply and demand. Nevertheless, market liquidity can always be improved with participation from more investor types in the CPO futures,” he said.

In an effort to boost trading volumes, Bursa has introduced Direct Market Access (DMA) to facilitate trading access by overseas participants. DMA contributed approximately 7% of market trades in the first quarter of 2009.

Bursa’s futures brokers have also started introducing routing of trades from overseas and Internet trading to increase retail participation. “This will increase access to the market and hence improve the profile of our CPO futures among local and foreign investors,” Devanesan said.

Unusual market activity queries are issued when share prices shoot up without market leads, and the trader that spoke to StarBiz said that there should be a similar system for commodity futures.

Devanesan responded that Bursa conducted queries on unusual price movements on futures broker representatives or trading participants if the situation warranted such a need.

“Investors are aware that trading in FCPO is subject to price limits of 10% from the previous day’s settlement price. If this price limit is triggered, either by price falling or rising significantly, then trading will be conducted within the price limit for 10 minutes.

“After which, the market will be halted as a ‘circuit breaker’ for five minutes. Trading will then resume with the price limit increased to 15%,” he explained.

Late last month, the economic crisis prompted the Organisation of Petroleum Exporting Countries (Opec) and 13 Asian countries meeting in Tokyo to urge for greater oversight of oil and other commodity markets to prevent a surge in prices after the global economy recovered.

However, Devanesan said this question was related to crude oil and even though Malaysia is one of the 13 Asian countries, there was no relevance to palm oil.

“The statement is more in reference to crude oil and the ‘calls for greater oversight of oil and other commodity markets to prevent a surge in prices’ by imposing position limits, reviewing over-the-counter trading, etc,” he said.

Safeguards to manage speculation appear to be in place at Bursa.

All traders were subject to position limits for trading in the FCPO to ensure that speculative trading was conducted in a fair and orderly manner, he said.

“The exchange does not attempt to influence prices as that is purely a function of the market, where trading activities are usually affected by economic indicators, changes to government policies (e.g. palm oil import duties imposed by other countries), as well as trading indicators such as prices of other correlated commodities like crude oil and soyoil,” he added.

Crude palm oil may surge 20% - Business Standard

19/05/2009 (Business Standard) - “Prices of crude palm oil (CPO) are expected to surge 20 per cent to surpass 3,000 ringgit later this year, on falling output in the mainland production centres that are Malaysia, Indonesia, Argentina and Ukraine,” a paper presented by Dorab Mistry, director of Godrej International said in Jakarta on Monday.

Production of CPO should begin to recover in Malaysia and Indonesia from August onwards thereby, prolonging production recovery. Mistry estimated 2009 Malaysian CPO production at around 17.5 million tonnes (MT), about 250,000 tonnes lower than the previous year. However, production in Indonesia may also marginally confine to 21.5 MT from the earlier estimates of 22 MT.

Moreso, soy crop in Argentina is estimated to reduce by 10 MT from the previous estimates of 43 MT. This means the supply may remain constraint till actual scene emerges in August this year.

“Given the fact that production will begin recovery in August, we must conclude that in second half of 2009, palm will be a part of the solution and not part of supply problem,” Mistry said.

The paper estimated lower than threshold stocks limit of 1.4 MT of palm oil, equivalent to 25 days of global consumption. Lower stocks will continue to hound market sentiment resulting in price escalation until replenishment of inventory by November 2009. Even beyond November, the Malaysian palm oil inventory is unlikely to exceed 1.8 MT, Mistry said.

Palm oil exports at risk from overseas buyers boycott - The Jakarta Post

19/05/2009 (The Jakarta Post) - Indonesia's palm oil business, already hit by lower prices, risks an overseas buyers boycott, with NGOs saying government plans for huge plantations in Kalimantan may mean big environmental damage.

The Indonesian Palm Oil Board (DMSI) said last week that fears about the government's proposed palm oil expansion program for north Kalimantan - which ironically has been postponed - has triggered calls for a boycott of Indonesian crude palm oil (CPO), particulary in European Union countries.

DMSI is a grouping of palm oil stakeholders including the palm oil farmers, palm oil corporations, biodiesel producers and associoated food oil corporations.

Derom Bangun, DMSI deputy chairman, said that the calls -- largely initiated by non-governmental organizations (NGO) -- have undermined the image of the Indonesian palm oil business by claiming that the palm oil companies will destroy 1.8 million hectares of forest in Kalimantan.

"This black *publicity* campaign has caused a decline in palm oil exports to Europe since 2006," added another chief deputy of DMSI, Sahat Siahaan.

In 2006, the palm oil export volume to the Netherlands, the main importer in Europe, reached 1.5 millions ton. However, the figure only reached 1.3 million tons last year.

"European palm oil exports actually only made 15 percent of the country's total *CPO* export. However, Europe has high political influence and other countries may follow its example," said Sahat.

The claim about the danger of destruction to Kalimantan's forests was made referring to a statement from Agriculture Ministry Anton Apriyantono in 2005 about a proposed program to develop massive oil palm plantation developments across Northern Kalimantan.

At that time, the Minister said that the government planned to build an oil palm plantation zone along the 840-kilometer Malaysia-Indonesia border in northern Kalimantan. He said the plantations would be built to raise the level of economic development in the border area and to promote a belt of development alongside the border. This was to improve security for local residents and to help improve border supervision, along the land border between Malaysia and Indonesia. .

"However, the program proposal was never implemented but the industry is still feeling the damage *from the fall-out* even until now," said Derom.

After doing further research, the Agriculture Ministry found that the geographic and soil conditions of the borderline less suitable for the establishment of palm oil plantantions than first thought, and eventually the government decided to stop the plan, according to Derom.

Though the plan was called off, many people in foreign countries thought that the Kalimantan proposal was still to be implemented. Foreign media have still been questioning DMSI officials regarding the proposal, said Derom.

In addition to the potential negative impact on the proposed expansion of export volume, fears that the program might still go ahead may make it more difficut for Indonesian companies to obtain required Sustainable Palm Oil certificates which are needed to acquire permission to import into countries with high environmental protection standards.

The certificate is given by the Round Table on Sustainable Palm Oil (RSPO), a multi-stakeholder international organization aiming to ensure that the palm oil industry meets environmental standards.

"Last month a Malaysian company application for an SPO *certificate* was rejected because RSPO thought the company involved in the Kalimantan program," said Dorum. Malaysia and Indonesisa share Borneo island also known as Kalimantan to Indonesians.

He added DMSI was worried the same thing could happen to Indonesian companies in future, blocking their exports to the EU.

Catch 22 for sustainably grown oil palm

COMMENT By TAN SRI DR YUSOF BASIRON

EVEN as European economies scramble to regain their foothold from the economic and financial quagmire, palm oil exports to the EU remains a Catch 22 for Malaysia’s palm oil industry as sustainably grown and certified sustainable oil palm remains a target for lawmakers in the EU.

Hastily shaped and rigorous sustainability standards specifically aimed at palm oil appear to be designed to shrink the import of the vegetable oil into Europe.

Malaysia’s palm oil industry, already inundated with onerous sustainability standards and requirements, has to recognise that the path to the large and growing EU market may prove a tougher challenge this year.

For instance, in trying to live up to their commitment to sustainable planting practices, top palm oil producers have found that the take-up rate and demand for sustainably produced palm oil have not met expectations.

This is despite going through the rigorous planting and accreditation processes that the planters have painstakingly adopted and adhered to.

Assuming the 27 oil mills have been given the go-ahead by the Roundtable on Sustainable Palm Oil (RSP0), the certification body, annual production of this premium crude palm oil and palm kernel oil can potentially approach 1.3 million tonnes.

However, these green credentials have yet to entice buyers which include top-end large retailers.

Although biofuel represents a small portion of sales of palm oil in Europe, nonetheless it is an important aspect which must be protected in the wake of the potential legislative threats.

Rubber-stamped last month, the 27 EU member states are working vigorously to produce the final text of the “climate and energy package” which includes a target of 20% reduction in greenhouse gas (GHG) emissions and 20% share of renewable energy in total energy consumption by 2020 and also a 10% target for renewable energy in the transport energy consumption.

Brussels is also determined to go ahead with its Renewable Energies Directive (RED), and the Fuel Quality Directive (FQD) which includes a set of sustainability criteria for biofuels, again placing palm oil in an unfavourable position.

The ongoing work on technical details of the sustainability criteria, which include indirect land use change (ILUC) and default values for GHG emissions savings for palm oil, would also pose a challenge for palm-based biofuels in gaining entry into the European market.

A default value for palm oil at 19% is clearly to discredit the vegetable crop in comparison to the 35% threshold level while the ILUC imposes a heavy penalty on palm grown on forest-converted land.

During implementation, some countries may favour national industries with better incentives and subsidies, which may place demand for palm oil at a disadvantage.

Challenges are probably going to be many-fold for Malaysia in the coming months. For one, Malaysia has to continue to address concerns over sustainability of palm oil, be it for biofuel or non-biofuel use.

In their clean energy pursuit, EU officials have been quick to say that the new policies would not constitute a trade barrier although it is hard not to construe it as such.

The placing of cleverly disguised trade barriers through the imposition of unduly onerous biodiesel standards such as the cold-flow-plug-point (CFPP) standard could have kept out palm oil. Fortunately, for Malaysia, a timely new technology introduced overcame the CFPP problem.

The popularity of palm oil usage in consumer products has also raised the ire of many European-based non-governmental organisations and calls are becoming louder for consumers to switch to non-palm oil based products.

With only 15% of palm oil buyers across the globe signing up as members of the RSPO, there is very little Malaysian palm oil producers can do.

Certification can mean an additional US$50 per tonne for palm oil in the market, but few are willing to fork that out, given the deepening economic crisis in Europe.

For sure, more scorecards will roll out to check the flow of the palm oil despite its traceability.

This would only mean that producers with serious intent of expanding their palm oil trade in Europe may find themselves still at the inner gates of the market, waiting for the lights to change.

Despite the tough stance on palm oil, the EU is actually a major net importer of oils and fats – even before embarking on an ambitious biodiesel development target. EU’s demand can only be met by palm oil from Malaysia and Indonesia as both countries are the only major net exporters of oils and fats.

Traditional soybean oil exporters such as the United States and Brazil are fast becoming net importers of oils and fats due to local biodiesel consumption. To increase soybean oil supply, 10 times more forest land would have to be opened for cultivation compared to palm oil.

Oil palm grown on legitimate agricultural and non-forested land in a sustainable manner will ultimately help to avoid deforestation – due to growing low-yield soybean – to meet world chronic shortages of oils and fats.

The upshot of this is that Malaysia is a net importer of EU finished goods and products. The country, therefore, requires market access for its exports if Malaysia is to continue to be a valued trading partner. Surely fair trade practices and World Trade Organisation rules call for that!

·Dr Yusof is chief executive officer of the Malaysian Palm Oil Council

RSPO certified plantation companies

At this moment there are 10 oil palm plantation companies get CSPO certification from RSPO.

- United Plantations Bhd (Malaysia)

- Kulim Bhd (Malaysia)

- Sime Darby Bhd (Malaysia)

- Perlis Plantations Bhd (Malaysia)

- IOI Corp Bhd (Malaysia)

- Kuala Lumpur Kepong Bhd (Malaysia)

- PT Musim Mas (Indonesia)

- PT Hindoli (Indonesia)

- New Britain Palm Oil (Papua New Guinea)

- Hargy Palm Oil (Papua New Guinea)

RSPO standard to be improved further

By ELAINE ANG
http://biz.thestar.com.my/news/story.asp?file=/2009/5/23/business/3956983&sec=business

THE Roundtable on Sustainable Palm Oil (RSPO) aims to continue to improve the RSPO standard, which it feels is among the best for any agricultural production in the world.

Secretary-general Dr Vengeta Rao agrees the RSPO standard is tough but points out that first achievers (of the certification) have received an encouraging premium for RSPO-certified palm oil and this is a helpful incentive for others to go for certification.

RSPO is a non-profit association that unites stakeholders from seven sectors of the palm oil industry – oil palm producers, palm oil processors or traders, consumer goods manufacturers, retailers, banks and investors, environmental or nature conservation non-government organisation (NGOs) and social or developmental NGOs – to develop and implement global standards for sustainable palm oil.

However, Rao foresees more work to be done on the standards, more widely known as the principles and criteria, under the RSPO to encourage more certification and also to dispel further criticism heaped on the roundtable by environmental groups and NGOs.

He says the roundtable is currently looking into issues such as deforestation and biodiversity loss without losing sight of the relevance of national development plans and increasing global edible oil needs which palm oil is best placed to meet due to its natural high productivity.

Plantation companies in Indonesia and Malaysia, which together produce 87% of all palm oil, have come under fire for fuelling deforestation that contributes to the demise of animals such as orang utans and elephants.

There will also be opportunities for smallholders to obtain RSPO certification.

The roundtable is coming up with rules and criteria for the certification of smallholders due to their large numbers in Indonesia and Malaysia. The RSPO encourages the participation of smallholders through lower membership fees.

Smallholders need not be certified individually to lower costs – instead they can be audited for compliance and obtain group certification.

“We are also looking at ways to reduce green house gas emissions in producing palm oil, in particular where palm oil expansion is into high carbon-stock soils.

“All the issues are being addressed by expert multi-stakeholder working groups and there will be periodic public consultation in the course of the work,” Rao says.

So far, plantation groups that have entered RSPO certification include United Plantations Bhd, Kulim Bhd, Sime Darby Bhd, Perlis Plantations Bhd, IOI Corp Bhd and Kuala Lumpur Kepong Bhd in Malaysia; PT Musim Mas and PT Hindoli in Indonesia and New Britain Palm Oil and Hargy Palm Oil in Papua New Guinea.

According to Rao, most of the large palm oil players have had some if not most or all of their mills certified with certified volumes just over 1.5 million tonnes and possibly rising to about two million tonnes by June. He expects certification to continue with volumes of RSPO-certified palm oil rising but “the pace will depend on demand and price.”

“The demand for RSPO-certified palm oil and premia have reduced recently with the global economic downturn but the markets may pick up again,” he says.

However, the roundtable may have its hands full in promoting sustainable palm oil, especially in the European Union (EU), where there appears to be controversy about palm oil.

According to WWF International, only 1% of the sustainable palm oil available on the global market has been bought.

In a bid to speed up the “sluggish performance”, WWF said in a recent statement that it would assess the world’s major users of palm oil over the next six months and publish a Palm Oil Buyer’s Scorecard highlighting companies that support sustainable palm oil and exposing those who have not fulfilled their commitments to buy it.

The scorecard will rank the commitments and actions of major global retailers, manufacturers and traders that buy palm oil. Companies will be scored on a variety of criteria relating to their commitments to, and actions on, sustainable palm oil.

WWF helped set up the RSPO as an international body for the industry to develop sustainability standards.

WWF is asking all companies buying palm oil to make public commitments that they will use 100% certified sustainable palm oil by 2015; to make public their plans with deadlines to achieve this goal; and to begin purchasing certified sustainable palm oil immediately.

To add to the problem, the EU’s Renewable Energy Directive sets strict sustainability criteria on materials used to produce biofuels.

The directive, to be made into national law within the next 17 months, is perceived by many trade industry observers as a tactical unfair business practice and a non-tariff trade barrier move by the EU.

Rao, however, remains unfazed. He says the benefits of being RSPO certified should continue to encourage industry players to strive towards the certification.

“It provides palm oil players with premium prices and market preference,” he says. Going forward, Rao expects more companies and volumes to be certified.

“The standards and auditing will continue to be robust. We are also working towards more certification opportunities for smallholders.

“We are aiming towards a smaller footprint than previously for each drop of oil in an ever shrinking world,” he says.

Malaysia- Bursa Malaysia launches new palm oil stock indices

Bursa Malaysia, the country's stock exchange operator, has launched three palm oil plantation indices, as it wants to tap growing interest in Asia's palm oil industry, Reuters reports.

The FTSE Bursa Malaysia Palm Oil Plantation Indices include two regional indices tracking Asian listed palm oil companies such as Singapore-listed Wilmar International and Golden Agri-Resources. "These three indices which include the world's liquid and large cap companies will allow investors to track the performance of listed companies which derive their substantial revenues from palm oil related activities," Bursa’s CEO told a news conference.

Further, the exchange operator may launch futures contracts based on the new indices but no timeframe has been set, he said. (19 May 2009)

New Zealand: budget 2009 provides biodiesel boost

In a PR, the Energy and Resources Minister of New Zealand said that a new grants programme for bio-diesel production will kick-start the bio-diesel industry in New Zealand, US Fed News reports.

As part of Budget 2009, $36 million will be allocated to the programme over three years. The grants will be available from July 1, 2009 and will be available to domestic bio-diesel producers selling their product for a range of end uses.

Some bio-diesel is already produced in New Zealand from waste cooking oil, tallow (and oil seed rape.

The Minister said the initiative fulfilled the government's pre-election promise of providing incentives for bio-diesel producers, in recognition of the advantage that bio-ethanol already enjoys. (19 May 2009)

Australia- “1st integrated soybean processing and bio-diesel plant”

The go ahead has been given for a $243 million soybean processing and bio-diesel production facility at Port Kembla, ABC News reports.

New South Wales’ Minister for Lands, said: "This is the first integrated soybean processing and bio-diesel production facility in Australia and is a major boost to the Illawarra.

The project is expected to generate $977 million in revenue and in addition to the 235 new permanent full-time jobs, will provide approximately 725 jobs in related industries and a further 500 jobs during construction of the facility.

The plant will produce 288 million litres of bio-diesel a year; along with 850,000 tonnes of soy bean meal for poultry and livestock feed”.

"In July 2007 the NSW Government implemented legislation to mandate the blending of all diesel fuel blended with 2% bio-diesel, the mandate will increase from two per cent to five per cent in 2011," he added. (19 May 2009)

US-Hearings on biofuel issues this week

Environment & Energy Daily reports that the US House Agriculture Committee is holding a hearing on Thursday to discuss the recent California Air Resources Board decision on low-carbon fuels, as well as efforts to impose low-carbon fuel standards on a national level.

Panel members will also discuss indirect land use and the ethanol blend wall, according to committee aides. At the same time, the House Small Business Committee will hold its own hearing on bio-fuels and will take a broader look at regulatory issues that affect the domestic industry.

The House Energy and Commerce Committee also marks up its climate bill this week but has decided to remove a requirement for low-carbon fuels that had been in previous drafts of the legislation as part of their concessions to moderate and conservative lawmakers. However, some lawmakers are still concerned the LCFS could surface again in the continuing climate debate in the House and Senate. (19 May 2009)

Brazil – Petrobras aims to be global bio-fuels player

Petrobras aims to be a global player in bio-fuels, in which it plans to invest $3.3 billion between 2009 and 2013, said the Petrobras Biocombustíveis director, AE Brazil- Financial and Corporate News reports.

Of that total, 80% will be invested in ethanol. According to him, Petrobras is getting ready for "a world without oil" and the company aims to be among the top-five global bio-fuel leaders by the end of 2020. He also said Petrobras has been in talks for a bio-diesel production project in Africa and noted the company has ethanol projects under development in some Latin American countries.

"Petrobras' strategy is to be a global player, with a relevant role in the world markets for bio-diesel and ethanol," said the executive. (19 May 2009)

SUMMARY OF THE MALAYSIAN OIL PALM INDUSTRY 2009

	Dec 08	Jan 09	Feb	Mar (r)	Apr (p)	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
PRODUCTION (TONNES)
Crude Palm Oil	1,482,769	1,330,195	1,187,381	1,275,822	1,286,059
Palm Kernel	385,802	353,352	318,601	345,485	336,866
Palm Kernel Oil	198,789	165,300	160,284	161,305	159,450
Palm Kernel Cake	217,977	183,050	176,073	178,153	175,726
CLOSING STOCK (TONNES)
Palm Oil	1,994,710	1,832,847	1,565,532	1,365,582	1,292,303
Palm Kernel	142,098	138,903	114,566	109,166	103,871
Palm Kernel Oil	349,171	357,555	334,211	309,624	302,251
Palm Kernel Cake	302,278	252,479	223,633	210,747	268,593
EXPORT (TONNES)
Palm Oil	1,614,720	1,355,455	1,258,531	1,260,797	1,187,170
Palm Kernel Oil	121,875	88,417	94,430	105,068	79,047
Palm Kernel Cake	239,327	230,694	203,075	181,031	142,199
Oleochemical	143,455	162,662	174,811	166,452	188,645
Biodiesel	20,186	12,732	16,330	19,888	16,688
IMPORT (TONNES)
Crude Palm Oil	77,589	27,397	18,840	3,671	32,984
Processed Palm Oil	694	2,467	8,584	12,022	9,595
Palm Oil	78,282	29,863	27,423	15,693	42,579
PRICE (1% OER) (Local Ex-Mill)
Fresh Fruit Bunches (1% Equivalent)	14.83	17.90	18.58	19.97	24.28

PERFORMANCE OF THE MALAYSIAN PALM OIL INDUSTRY, APRIL 2009

PERFORMANCE OF THE MALAYSIAN PALM OIL INDUSTRY, APRIL 2009

Prestasi Industri Minyak Sawit Malaysia, APRIL 2009

	MARCH(r)	APRIL(p)	DIFFERENCE
			QUANTITY Kuantiti	(%)
PRODUCTION (Tonnes) / Pengeluaran
CRUDE PALM OIL / Minyak Sawit Mentah
P. Malaysia	742,718	756,225	13,507	1.82
Sabah	396,228	390,533	(5,695)	(1.44)
Sarawak	136,876	139,301	2,425	1.77
Total	1,275,822	1,286,059	10,237	0.80
PALM KERNEL / Isirong Sawit	345,485	336,866	(8,619)	(2.49)
CRUDE PALM KERNEL OIL / Minyak Isirong Sawit Mentah	161,305	159,450	(1,855)	(1.15)
PALM KERNEL CAKE / Dedak Isirong	178,153	175,726	(2,427)	(1.36)
STOCK (Tonnes) (s) / Stok
CRUDE PALM OIL / Minyak Sawit Mentah
P. Malaysia	287,161	289,835	2,674	0.93
Sabah	300,617	252,936	(47,681)	(15.86)
Sarawak	66,402	63,140	(3,262)	(4.91)
Total	654,180	605,911	(48,269)	(7.38)
PROCESSED PALM OIL/ Minyak Sawit Proses
P. Malaysia	359,572	363,194	3,622	1.01
Sabah	247,372	221,974	(25,398)	(10.27)
Sarawak	104,458	101,224	(3,234)	(3.10)
Total / Jumlah	711,402	686,392	(25,010)	(3.52)
TOTAL PALM OIL / Jumlah Minyak Sawit
P. Malaysia	646,733	653,029	6,296	0.97
Sabah	547,989	474,910	(73,079)	(13.34)
Sarawak	170,860	164,364	(6,496)	(3.80)
Total / Jumlah	1,365,582	1,292,303	(73,279)	(5.37)
PALM KERNEL / Isirong Sawit	109,166	103,871	(5,295)	(4.85)
CRUDE PALM KERNEL OIL / Minyak Isirong Sawit Mentah	199,356	194,696	(4,660)	(2.34)
PROCESSED PALM KERNEL OIL / Minyak Isirong Sawit Proses	110,268	107,555	(2,713)	(2.46)
TOTAL PALM KERNEL OIL / Jumlah Minyak Isirong	309,624	302,251	(7,373)	(2.38)
PALM KERNEL CAKE / Dedak Isirong	210,747	268,593	57,846	27.45
EXPORT
PALM OIL / Minyak Sawit	1,260,797	1,187,170	(73,627)	(5.84)
PALM KERNEL OIL / Minyak Isirong Sawit	105,068	79,047	(26,021)	(24.77)
PALM KERNEL CAKE / Dedak ISirong	181,031	142,199	(38,832)	(21.45)
OLEOCHEMICAL / Oleokimia	166,452	188,645	22,193	13.33
BIODIESEL / Biodiesel	19,888	16,688	(3,200)	(16.09)
IMPORT (TONNES)(q) Import
CRUDE PALM OIL / Minyak Sawit Mentah	3,671	32,984	29,313	798.50
PROCESSED PALM OIL / Minyak Sawit Proses	12,022	9,595	(2,427)	(20.19)
PALM OIL /Minyak Sawit	15,693	42,579	26,886	171.32
PRICE (1% OER) (Local Ex-Mill) / 1% Kadar Perahan) (Di pintu Kilang)
FFB (AVERAGE RM/TONNE) /BTS (Purata RM/Tan)	19.97	24.28	4.31	21.58

Explanatory Notes:
(p)	Preliminary
(q)	The import and export figures are based on information extracted from Customs No. 1 and 2 (Rev. 8/89) received up to 10.00 a.m., 11 May 2009. The export date refers to that as authorised by the Customs Department.
(r)	The figures for the month of March 2009 are revised by taking into account corrections made by the licensees and from late receipt of Customs No. 1 and 2 (Rev. 8/89) after 10 April 2009.
(s)	It refers to the total physical amount of crude and processed palm oil kept at the premises of mills, refineries, bulking installations, and oleochemical plants as at 30 April 2009.

Nota
(p) :	data awalan
(q):	Data import dan eksport adalah data yang diambil dari borang Kastam 1 dan 2 (Rev (8/89) sehingga jam 10.00 pagi, 11 Mei 2009
(r):	Angka bulan March 2009 dikemaskini mengambil kira pembetulan yang telah dibuat oleh pelesen dan borang Kastam No. 1 dan 2 yang diterima lewat iaitu selepas 10 April 2009.
(s)	Data termasuk jumlah pisikal minyak sawit mentah dan proses yang disimpan di kilang buah, penapis, pusat simpanan dan oleokimia sehingga 30 April 2009.

Dicetak pada May 20, 2009, 12:42 pm