Palm oil planters get wise with bird of prey pest control

21/04/2011 (Reuters) - The palm oil industry has gone bird crazy by drafting owls to combat the menace of rodent pests, hoping in the process to burnish its green credentials and save money.

Leading Southeast Asian producers of the vegetable oil have tried different pest control schemes over the years, from snakes to poisons, but the high success rate -- and low cost -- of owls has prompted more planters to turn to them for help in reducing damage.

Some even have designated "owl trainers" who tend the birds from when they are still in the shell.

"We are using owls in our South Sumatra estates," said Michael Kesuma, head of investor relations at Indonesian palm oil producer Sampoerna Agro, which has taken such pains to introduce the birds that houses have been built for them in some areas.

"In those problem areas, I personally have seen the results of having owls. At the bottom of the owl houses, which are on a trunk, you see rat or rodent bones -- they are doing their job."

Malaysia and Indonesia account for more than 90 percent of the world's supply of palm oil, while other smaller producing nations include Colombia, Benin, Kenya and Ghana.

The edible oil, which originates from Africa, is used to make everything from biscuits to ice cream.

But according to the green group Deforestation Watch, crop losses caused by rats feeding on the palm fruit has been estimated to be around 5 percent of the oil yield.

Enter the owl, usually a nocturnal bird of prey, which eats mainly small mammals like mice, voles and shrews -- prime palm oil pests.

Barn-owls, the breed most commonly used on palm plantations, have a large heart-shaped face but have suffered declines over the past fifty years due to intensive agricultural practices.

They first appeared on palm plantations more than 20 years ago and have proved quite effective, palm associations say.

THREE TO FIVE RATS PER DAY

"The (plantations) say it's cheaper because they can decrease costs by 50 percent compared with using chemicals," said Chaerul Saleh, a biologist at WWF-Indonesia.

"They are barn-owls ... they can eat three to five rats every day. It is using a natural predator."

Indonesian palm oil producer BW Plantation (BWPT) says owls now save the firm about $300,000 each year that would otherwise have been spent on poisons.

"We have an owl trainer who takes care of our owls, starting from the egg until they mature and are then released into the field," said Kelik Irwantono, corporate secretary at BWPT.

"When an owl egg is found, the owl trainer will monitor this and eventually take the young owl to be placed in our owl training camp," added Irwantono.

The firm introduced owls in 2009 and now has about 250 barn owls on its estates.

"After being released into the field, the owl is naturally free to control the rat population," Irwantono said.

And there's an additional side benefit unseen with either snakes or poisons, palm associations said.

"Investors who visit our plantation all want to take an owl home with them," said Sebastian Sharp, head of investor relations at BWPT. "They are very beautiful."

Barn owl 

 

Neiker-Tecnalia research to obtain more productive, resistant and sustainable oil palms

12/04/2011 (Basque Research) - (Neiker-Tecnalia (the Basque Institute for Agricultural Research and Development) is carrying out research, the objective of which is to improve oil palm crops through genetic enhancement. Its Biotechnology Department is currently working on the development of the technique known as Marker-Assisted Selection (MAS) with the goal of optimising the production and quality of this crop. This technique enables detecting new genes which have important characteristics, such as resistance to diseases, greater production of best quality oil and better adaptation to biotic and abiotic stress.

The research is being undertaken within the remit of the international Oil Palm Genome Project, which Neiker-Tecnalia is performing together with the International Cooperation Centre in Agronomic Research for Development (CIRAD), located in Montpellier, France.

The Most Produced and Consumed

Palm oil has become, over the past decade, the largest source of vegetable oil worldwide, in terms of production and consumption. Thus, it is necessary to complement the traditional improvement of crops with new biotechnological techniques which enable important genetic enhancements of the plant. The selection and use of new varieties adapted to market demand enables a more efficient use of the resources required for the growing of oil palm crops. In this way, more sustainable plantations (requiring less water and fertiliser) are enabled and, at the same time, higher production is achieved, thus avoiding extending areas under cultivation. Moreover, molecular genetic enhancement is seen as a very efficient alternative to using transgenics, which has sparked considerable social controversy.

The goal of the Oil Palm Genome Project, in which companies from Malaysia, Indonesia, Brazil and Colombia are participating, is to develop molecular tools for obtaining genomic resources, such as complementary DNAs and useful genes, molecular markers and functional genetic maps. To this end, the researchers at Neiker-Tecnalia used the Marker-Assisted Selection (MAS) technique. The wide-ranging international collaboration in this project opens up great possibilities for collaboration in other fields.

DNA-based Molecular Markers

The MAS method involves identifying a coding DNA sequence within a gene of agricultural interest, or at least near to this gene. These DNA-based molecular markers are relatively simple to use in any state of development of the plant and enable predicting the agricultural behaviour of a genotype, thus accelerating genetic breeding programmes.

Genetic selection enables detecting new disease-resistant genes, genes involved in the quality and production of oil, and genes related to the development of the plant and its tissues. Likewise it makes it possible to detect genes involved in the processes of water stress and fertiliser use; i.e. requiring less water and fertiliser for their sustainable cultivation.

In order to obtain molecular markers and their use in Marker-Assisted Selection, scientists at Neiker-Tecnalia used the differential cDNA-AFLP expression technique (Amplified Fragment Length Polymorphism). The specialists are also working on the construction of a reference functional genetic map, the idea being to optimise the efficiency of oil palm improvement programmes.

Food and Industrial Use

90 % of palm oil is employed for food purposes (margarines, cooking oils, fats), while the remaining 10 % is used for soap and manufacturing oleo chemicals (fatty acids, methyl esters, surfactants, detergents, and so on). Also, with the increase in energy prices, palm oil-based diesel fuels are increasingly being considered as an alternative source of renewable energy.

Oil palm has a yield of four tons per hectare a year, much greater than other oleaginous plants such as soy bean, rapeseed, sunflower or cotton. Given the increase in the world demand for this oil, both plantations and experimental stations are attempting to optimise their crops with the aid of new biotechnological tools, developing solutions for various factors limiting production.

New technologies are being acquired and implemented within the remit of this project, using the oil palm as a crop model species. These technologies will also enable the development of applications for other traditional Spanish crops.

Genetic Enhancement

 

Palming Palm Oil Profits

14/12/2010 (Money Show) - A London-listed operator of plantations in Papua New Guinea looks cheap given the soaring prices of its main product, writes Peter Shearlock in The IRS Report.

Next time you fill up a supermarket cart, check how many items contain palm oil. If your shopping includes soap, detergents, bread, pizzas, and other processed foods, you will probably see palm oil listed among the ingredients. Where only “vegetable oils” are listed, chances are that palm oil is among them.

The growth of demand for palm oil over the past decade has been dramatic. In part, that’s because of its newfound use as a feedstock for biodiesel. But it is the food industry worldwide that accounts for the lion's share of the near-50 million tons of the stuff currently being produced.

La Nina Pumps up Prices

According to the publication Oil World, global demand for eight key vegetable oils will exceed supply this year for the first time in eight years. A La Nina climate event has resulted in excessive rain in Indonesia and Malaysia, which produce 90% of the world palm oil crop. Estimates for production of soybean oil—a competitor to palm oil—have also been cut.

Given this backdrop, it is not surprising that the price of crude palm oil recently pushed back over the $1,100-per-ton mark. That compares with a pre-crisis high of close on $1,400 per ton in 2007 and a low of $435 in 2008.

While the shares of the world's leading palm oil producers have all performed strongly this year, one still stands out as offering real value: New Britain Palm Oil (London: NBPO). After a big acquisition earlier this year that expanded its plantations by about a half, it now has more than 75,000 hectares, or 185,000-plus acres, of plantations, largely in West New Britain, which is part of Papua New Guinea (PNG).

The Grower with the Greenest Thumb

NBPO is a high-quality producer in every sense. First, it is among the most efficient. The yield on plantations that have been within the company's ownership for any length of time is an industry-leading 28.4 tons per hectare. That compares with returns of less than 20 tons per hectare for the two most recent acquisitions. NBPO is also expected to become one of the most efficient upstream producers in the industry.

All told, NBPO is set to generate the highest earnings growth of any of the leading palm oil producers over the next few years. One reason is the company's position as the largest producer of certified sustainable, segregated and traceable, palm oil in the world. NBPO is reaping dividends from its investment in sustainable production.

In the first nine months of this year, NBPO lifted production by 22% and revenue and profits before tax by 49% and 42% respectively. The company has been making forward sales of palm oil at prices ranging between $820 and $863 a ton but is likely to achieve significantly more for the bulk of its 2011 output. It also produces a small amount of sugar, whose price has been generally strong in the past year.

Hidden Value on the Books

Despite this good news, NBPO has been trading at a discount to most of the big Malaysian producers. Macquarie recently lifted its price target to 933 pence, which compares with a current share price of 835p. Liberum Capital, NBPO's other broker, forecasts a rise in earnings from around 37p this year to 46p next and 52.5p in 2012. That puts the shares on a 2011 price/earnings ratio of 18.

However, the figures assume an average palm oil price of just $820 a ton next year. And NBPO shares are better value than these numbers would suggest.

The last accounts show net worth of around £330m, but taking the price per hectare paid for the last acquisition puts a value of well over £400m on the company's plantation land alone.

At the time of its latest acquisition, which was financed with around £130m of borrowings, the company said it was to suspend dividends for a year. They will recommence in the second half of next year. NBPO has about £170m of debt, which is easily manageable.

Clearly, much depends on the future price of palm oil. Demand from China and India, two of the biggest markets for palm oil, shows no sign of slackening. Western food producers are using more and more vegetable oils, palm oil included, and are being pressed to show that those oils are responsibly sourced.

The recent price action looks soundly based, while NBPO's credentials as a “green” producer leave it ideally positioned at the fastest-growing end of the market.

Vegetable Oil

Pakistan to Buy More Palm Oil, Rapeseed to Meet Ramadan Demand, Group Says

05/08/2010 (Bloomberg) - Pakistan, the world’s third-biggest importer of palm oil, will increase purchases of the vegetable oil and rapeseed from overseas this year as demand climbs during the holy month of Ramadan, a refiners’ group said. 

Imports of palm oil may climb to as much as 1.85 million metric tons from 1.75 million tons in 2009, Rasheed Janmohammad, vice chairman of the Pakistan Edible Oil Refiners Association, said in a phone interview from Karachi. Incoming shipments of rapeseed may jump 20 percent to 1.2 million tons, he said. 

The CRB Commodity Yearbook 2010

Palm oil has rallied 14 percent from a seven-month low on July 7 on optimism consumption will increase in Asian nations, which mark festivals in the September quarter, and on concern that weather may disrupt output in Indonesia and Malaysia, the biggest producers. Imports may beat forecasts if Pakistan’s cotton crop is damaged by the recent floods, said Janmohammad. 

“Demand is quite good in view of Ramadan and most mills are short of stocks,” he said yesterday. “August will see strong imports and buying will only slow in the third quarter.”

Pakistan’s deadliest floods in eight decades may lower the country’s farm production by more than the 15 percent estimated by the nation’s agriculture chamber of commerce, Luigi Damiani, senior emergency and rehabilitation coordinator at the United Nations’ Food and Agriculture Organization said on Aug. 3. 

October-delivery futures added 1.1 percent to 2,590 ringgit ($817) a ton on the Malaysia Derivatives Exchange yesterday, the highest close since April 9. India last year overtook China as the biggest buyer of the tropical commodity. 

Pakistan imported 231,000 tons of refined palm olein in July, compared with typical monthly purchases of 125,000 tons, Janmohammad said. Imports in August may be 175,000 tons, he said. 

Duty Cut

A reduction in tax on purchases of crude palm oil to 8,000 rupees a ton from 9,000 rupees announced June 5 has helped refiners operate their plants at higher capacity than before, Janmohammad said. 

Pakistan, which consumes about 3 million tons of vegetable oils, buys palm oil from Malaysia and Indonesia, and rapeseed from Canada, Australia and Europe. Cotton and sunflower seeds are the main sources of the nation’s local cooking oil supplies. 

“Rapeseed import deals have slowed in the past two weeks after prices shot up because of suspected damage to crops in the Black Sea region and Europe,” Janmohammad said. “We covered a lot of our needs at the right time.” 

Temperatures in most parts of central Russia will be 8 degrees Celsius above average through Aug. 12, rising as high as 42 degrees Celsius (108 degrees Fahrenheit), according to the state weather service. “High” or “extreme” fire danger will persist in the central and Volga federal regions, where most wildfires are burning, the service said.

Cutback on palm oil exports to India likely

By HANIM ADNAN

India may reimpose import duties on vegetable oils, analysts said

PETALING JAYA: Malaysia’s palm oil exports to India will likely register a cutback in the second half of this year due to India’s huge edible oils reserves and a possible re-imposition of import duties on vegetable oils, analysts said.

India had scrapped import duties on vegetable oils in April last year to keep prices at bay after inflation soared and oilseeds production declined.

Analysts said the latest development in the world’s second-largest edible oil consumer after China could disrupt the current healthy flow of local palm oil exports to India, especially during January to April.

“All will depend on the degree of the import tax re-imposition on palm oil. I believe if it is just 5% or 10% (import duty), it will still be manageable.

“However, if it goes beyond 20% on top of the current crude palm oil (CPO) price of RM2,600 per tonne, then exports in the coming months will definitely come down,” said CIMB Investment Bank Bhd analyst Ivy Ng.

Prior to India’s zero import duties regime, palm oil had been slapped with a 20% import duty.

According to the Malaysian Palm Oil Board (MPOB), local palm oil exports to India surged to 970,000 tonnes in 2008 compared with 511,167 tonnes in 2007.

Indian vegetable oil importers were seen increasing their uptakes over the past seven months, far beyond their normal requirement.

“This has resulted in huge edible oils reserves for end-May estimated at 1.7 million tonnes, exceeding the normal level of 1.1 million tonnes,” said an analyst with a foreign-based research house.

Last month, India was believed to have purchased over 800,000 tonnes of cooking oil, of which the bulk of about 700,000 tonnes were refined palm oil and CPO.

The analyst said: “This confirms our view that India’s astounding 76% edible oil import surge in the first four months this year has been for stockpiling rather than for consumption.”

He said Indian importers were busy stocking up on both crude and refined edible oils on fears that the recently-elected government in New Delhi would levy export and import taxes in the upcoming budget to be presented in parliament next month.

“If these taxes are imposed, the price of the commodity will increase more than the levy,” he added.

Meanwhile, a market observer said the export slowdown had started with the local palm oil shipment to India down to 121,000 tonnes in May from 163,000 tonnes in April.

MPOB is expected to release the latest May figures on palm oil export, production and inventory early next week.

Sainsbury's double sales of basics fish fingers

07/05/2009 (International Supermarket News) - Sainsbury's only uses certified palm oil in it's frozen fish range. This industry leading commitment to sustainable palm oil is credited with helping to more than double sales of basics fish fingers over the past 12 months. Certified sustainable palm oil was introduced to basics fish fingers last May when Sainsbury's was the first food company to purchase the oil on a large scale.

Following this move, almost 14m basics fish fingers have been sold, meaning the UK is now consuming sustainable palm oil in large volumes for the first time.

Fiona Wheatley, Sainsbury's sustainability manager, said: "We are firmly committed to the use of certified sustainable palm oil and are currently looking for new products in which we can use it. Sales of basics fish fingers have risen sharply and one of the reasons for this is that customers respond favourably to the sustainability of the product."

The supermarket was the first major company to purchase RSPO certified palm oil when it became available for the first time last year and is currently the only retailer to have purchased it at scale.

In addition to being the only retailer to buy the oil in large volumes, Sainsbury's is also the only retailer to set a target date by which to switch to 100 per cent certified sustainable palm oil, aiming to reach this goal by 2014.

Fiona added: "We need to support the workers, farmers, families and communities that rely on palm oil while making sure that tropical forests are protected for everyone's future benefit.

"In order to achieve this, we are dependent not only on widespread take up of certification at plantation level, but also adoption of certified sustainable palm oil sourcing by the companies that trade and process palm oil."

To ensure that customers know that the products they are buying contain certified palm oil, Sainsbury's has created a ‘made with sustainable palm oil' icon that is displayed on front of packs. This is supported with a text box that explains that the palm oil used in the product does not contribute to illegal deforestation, and is sourced with consideration to the environmental, social and economic aspects of palm production.

Sainsbury's is also committed to changing labelling on all products so that they name palm oil (and other vegetable oils) specifically, and no longer use the generic description 'vegetable oil'. This will be completed by July, although as some of the products have a long shelf life it may take some time to sell through the products with the ‘old-style' labelling.

Sainsbury's support of sustainable palm oil is such that the company's CEO, Justin King is a member of the Prince's Rainforest Project (PRP) steering group. The project was set up by HRH The Prince of Wales and seeks to 'make rainforests worth more alive than dead'. The PRP team works with Governments, businesses and non-profit organisations to find solutions to deforestation.

Malaysia – Palm prices to surge as Asia chases cargoes

A top industry analyst said Malaysian palm oil futures could soon surpass a key psychological level of 3,000 ringgit as Asian buyers hunger for more of the vegetable oil at a time of low stocks and weak output, Reuters reports.

The head of vegetable oil purchasing at Indian conglomerate Godrej International, said orders from the world's top two buyers of vegetable oils -- China and India -- were set to jump as the world economy recovers.

Palm oil supplies are dwindling in top producers Indonesia and Malaysia due to weak output arising from lack of fertiliser use when prices fell dramatically last year, coupled with volatile weather and yield stress after months of good harvests.

In addition, the top two soy exporters, the United States and Brazil are experiencing low stocks after a supply shortfall in third largest soy producer Argentina, which may result in a powerful bull market emerging for vegetable oils, he said. (18 May 2009)

Palm oil buyers face green scorecard, WWF says - Reuters

12/05/2009 (Reuters), Singapore - Major palm oil buyers face being graded for their green credentials after figures showing they have bought only a fraction of the sustainable palm oil available, environmental group WWF said on Tuesday.

About 1.3 million tonnes of certified sustainable palm oil has been available since November last year, but only about 15,000 tonnes have been bought, WWF said.

Palm oil is used as a vegetable oil for cooking, in chocolate bars and margarine, as well as in soaps and cosmetics and in biofuels for transport. Buyers include Unilever (ULVR.L), Colgate-Palmolive (CL.N), L'Oreal (OREP.PA) and Cadbury (CBRY.L).

WWF, in a statement, said it would assess the world's major users of palm oil over the next six months and publish a "buyer's scorecard" that would show companies that support sustainable palm oil and those that have not fulfilled commitments to buy it.

"We don't have a lot of information about what's happening in the market yet," Carrie Svingen, forest conversion programme coordinator, WWF International, told Reuters from Bali, Indonesia.

"That's why we're doing this scorecard exercise so we can see what companies are doing and motivate some more activity in the market."

She said the issues appeared to be cost and uncertainty of supply.

"Buyers have a lot of excuses at this point we just need to drill down and figure what's actually happening."

WWF helped set up the Roundtable on Sustainable Palm Oil (RSPO) in 2002 for the industry to develop greener standards after criticism plantations were leading to large-scale deforestation and loss of habitat for endangered species.

Certified sustainable palm oil has been available since November 2008. It is meant to assure buyers that tropical forests have not been cleared and that environmental and social safeguards have been met during production.

But certification can add a premium of around $50 a tonne to palm oil in the wholesale market.

Benchmark palm oil prices KPOc3 closed on Monday at 2,660 ringgit ($758) a tonne.

RSPO president Jan Kees Vis said last month that uptake of certified palm oil had been slow because of the economic crisis.

"Companies are not really willing to pay the premium -- anything that increases cost is out of the question," said Vis.

WWF said the scorecard would rank the commitments and actions of major global retailers, manufacturers and traders that buy palm oil.

But the lack of demand for certified palm oil could undermine the RSPO, Rodney Taylor, director of WWF International's Forests Programme, said the statement.

"It threatens the remaining natural tropical forests of Southeast Asia, as well as other forests where oil palm is set to expand, such as the Amazon."

Malaysia - CPO may stay at MYR1,800-MYR2,000/mt

Suggesting that the market has bottomed out, Malaysia’s Minister for Plantation Industries and Commodities said in an interview that crude palm oil prices may stay firm around MYR1,800-MYR2,000 a mt for the next few months, after rising almost 43%, Dow Jones reports. Prices will be steady due to a slowdown in production, decline in inventories and an increase in its use for making bio-diesel, the minister said, adding that output is now expected to be lesser than what was initially projected. He didn't rule out a possibility of CPO prices rising above MYR2,000/mt if crude oil recovers and there is speculative buying. Still, many investors may not take such a risk at a time of volatility and the recession, he said. He added that rising demand for palm oil in countries such as India and Pakistan is likely to support prices.

An ongoing oil palm replantation program, heavy rains and floods, may ensure Malaysia's palm oil production in 2009 is little changed or even slightly lower than last year's 17.8 million tons, he said. Further, he expected between 150,000 tons and 200,000 tons of CPO to be turned into bio-diesel for 5% blending with diesel in 2009, though reaching the target of consuming 500,000 tons would not happen anytime soon because logistics, including a distribution network, needs to be established.

Separately, according to the Minister, Malaysia is likely to consume 150,000-200,000 metric tons of palm-based bio-diesel in 2009, but bio-diesel is unlikely to be used in commercial and private vehicles for a year. Finnish refiner Neste Oil said its S$1.2 billion ($776 million) renewable diesel plant in Singapore is on track to be completed by June 2010 and production will start in Q3, Reuters reports. The 800,000 mt per year NExBTL plant will use feedstock such as animal fat, palm oil and other types of vegetable oils. The firm plans to hire up to 60 people by the end of this year for the Singapore plant, rising to a total of 100 people by mid-2010. (6 March 2009)

Activists: Palm oil co's grabbing land in Asia - Forbes

12/05/2009 (Forbes) - Scores of communities in Malaysia and Indonesia are being uprooted by rapidly expanding palm oil plantations as companies try to meet the expected demand for biofuels, environmentalists alleged Tuesday.

Speaking at a two-day seminar on palm oil, the Borneo Resources Institute of Malaysia and the World Wildlife Fund in Indonesia said land disputes were emerging as one of the biggest problems associated with palm oil.

Environmentalists say palm oil production has already caused the loss of vast tracts of tropical forest - the natural habitat of scores of animals and other wildlife - and peatlands, which are known to store vast amounts of carbon.

Indonesia and Malaysia, the world's top two palm oil producers, have aggressively pushed to expand plantations amid a rising demand for biofuels, which are considered cleaner burning and cheaper than petrol.

In the wake of that push, hundreds of communities have filed complaints with courts in both countries about either being forced off their land or pressured to sell it at cheap prices, the groups said. Many of those affected are impoverished or indigenous communities whose ownership of the land is often not recognized by local authorities.

"The situation is getting critical at the moment. The companies are expanding more and more," said Kalyana Bujang, director of the Borneo Resources Institute of Malaysia, which has documented 200 court cases in the state of Sarawak alone. "The communities are caught unaware. They don't know what to do, or where to go."

Kalyana Sundram of the Malaysian Palm Oil Council, an industry group, acknowledged that court cases have been filed in Sarawak, one of the few places left in Malaysia with plentiful land available for plantations.

"There has been a lot been said, a lot of debate," Sundram said. "Let the courts decide. There is a legal process ongoing at the moment. Let them decide."

Gandi Sulistiyanto, managing director of Indonesian company Sinar Mas Group, which manages hundreds of thousands of acres (hectares) from Sumatra island in the west to Kalimantan in the east, said his company follows all necessary regulations.

"Because we are a big company, we have been managing the factory and plantation in line with government regulations," he said in a phone interview.

Together, Malaysia and Indonesia provide 87 percent of the world's palm oil. The industry has argued that it only attempting to meet the booming demand for vegetable oil in places like China and India and biofuels in Europe and that its plantations are much more sustainable than critics contend.

Palm oil plantations represent only 1 percent of all agriculture land planted, Sundram said, and are four times more productive than any other vegetable oil being considered for use in biofuels like rape seed or soy beans.

India Vegetable Oil Imports May Reach Record, Association Says - Bloomberg

13/05/2009 (Bloomberg) - India, the world’s biggest buyer of vegetable oils after China, may import a record quantity in the year to Oct. 31 because of higher demand and duty-free purchases amid a decline in local oilseed output.

Imports may increase to 8 million metric tons in the 12- month period, up from an earlier estimate of 7.5 million tons, the Solvent Extractors’ Association of India said in an e-mailed statement today.

Increased purchases by India may further boost palm oil prices that have risen 89 percent in the past six months. India relies on overseas purchases to meet almost half its cooking oil demand.

Palm oil for July delivery on the Malaysia Derivatives Exchange rose for a second day, gaining as much as 2.7 percent to 2,799 ringgit ($795) a metric ton. It traded at 2,792 ringgit at 4:23 p.m. local time.

India’s oilseed output may drop to 28.12 million tons in the year ending June, down from 29.75 million tons a year earlier, the agriculture ministry said yesterday.

India’s palm oil imports rose 68 percent to 3.37 million tons in the six months ended April 30 from a year earlier, the association said.

India’s vegetable oil purchases in April more than doubled to 699,396 tons from 347,332 tons a year earlier, the association said.

Vegetable oil imports in the six months ended April 30 surged 64 percent from a year-ago period to 4.29 million tons, the association said.

India’s government in March scrapped a 20 percent duty on imports of crude soybean oil four months after it was imposed to shield oilseed growers.

Research and Markets: Global Palm Oil Industry, Opportunities and Challenges - China, India and Indonesia Consume More than 80% of Palm Oil - BUSINESS

12/05/2009 (BUSINESS WIRE), Dublin - Research and Markets (http://www.researchandmarkets.com/research/3b3e67/global_palm_oil_in) has announced the addition of the "Global Palm Oil Industry: Opportunities and Challenges" report to their offering.

The vegetable oil industry has witnessed significant growth over the past few years on account of a growing population as well as the rising demand for alternative energy sources. Among the various types of vegetable oil, palm oil (including palm kernel) accounted for the largest share of the global production in 2007, followed by soybean and rapeseed oil. Of the available vegetable oils, palm oil is the most productive and has the lowest cost of production, thus accounting for the major share of the global vegetable oil output. In recent years, the rising health concerns have also accelerated the demand for palm oil, particularly in the developed markets.

Palm oil use is broadly separated into food and non-food categories. The product is mainly used as cooking oil but is also increasingly being used in the preparation of other food articles. As a non-food ingredient, the product finds application in the production of cosmetics, toiletries, soaps and detergents. Although, FMCG is the largest market, the utilization of palm oil for the production of biodiesel has been growing steadily. Apart form this, the switch of consumers from loose oil to packed oil, particularly in emerging markets, is also expected to boost the palm oil industry's growth in the future.

Geographically, Indonesia and Malaysia are the largest producers of palm oil, while China and the EU are the largest consumers. In Europe, Germany is the largest producer of palm oil, followed by France and Italy. The emerging markets, like China, India and Indonesia consume more than 80% of palm oil. Due to rising population and increasing income, the emerging markets including China and India are anticipated to record an increase in demand for palm oil.

On the whole, the report analyzes the growth drivers and challenges of the palm oil industry and assesses opportunities available for the players. The report focuses on the production capacity, government initiatives, challenges and future potential of the three large producers of palm oil - Indonesia, Malaysia and Colombia. Further, the report analyzes the top palm oil companies - PT Astra Agro Lestari, IOI Corporation and Wilmar International.

By combining SPSS Inc.'s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the industry. We employed various significant variables that have an impact on this industry and created regression models with SPSS Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.

Edible oil imports rise over 100% - Business Standard

14/05/2009 (Business Standard) - Imports of edible oils are flooding the country even as the government has revised crop estimates for oilseeds for the current season. Solvent Extractors’ Association (SEA) of India has revised upward its estimate of the country’s vegetable oil import in 2008-09 (November-October) to 8 million tonnes against 7.5 million tonnes earlier.

This means edible oil imports would be over 25 per cent higher compared to last year’s imports. The April data shows over 100 per cent rise in imports of oil. During the current oil year, imports have jumped to 64 per cent in the first half, said a statement released by the SEA.

In 2007-08, India’s vegetable oil imports had touched a record high of 6.3 million tonnes while in the first six months of 2008-09 (November- April) imports have crossed 4-million-tonnes mark.

The reasons for the rise in imports are “lower-than-expected production of oilseeds in 2008-09 (October-September), increasing domestic consumption due to reduced local prices, decline in international cooking oil prices, and zero import duty on crude edible oil”, said BV Mehta, executive director of SEA.

Of the total vegetable oil imports, edible oil imports are seen at 7.5 million tonnes, while non-edible oil imports are expected to be 500,000 tonnes, the association said.

Industry players have doubted the upward revision in oil seed crop estimates announced by agriculture ministry on Tuesday. Ministry released the third crop estimates and total oil seeds crop has been revised 5.5 per cent upward from 28.12 million tonnes to 29.76 million tonnes. In the first estimate, oil seeds crop was estimated at just 25.96 million tonnes.

An industry player said that a sharp increase in imports suggest that crop is not that high and ministry might have to revise crop size downwards in final revision. Higher crop must see an increase in crushing and more supply of refined oil as well as in exports in some or the other way.

No such signals have been seen. Rather higher imports of refined oil mean crushing mills that are suffering from lower crop and lower availability of seeds would be further affected as more imported oil comes in, refineries will also have less to refine as imports of refined oil is rising.

Though prices of palm products have increased by $250 a tonne since November, imports are still attractive due to nil import duty on crude palm oil, SEA said.

Hence for the next six months, import of palm oil may continue to be over 500,000 tonnes a month, while import of soft oils — soyoil and sunflower oil — is likely to be 100,000-125,000 tonnes a month, the association said.

On the contrary, BV Mehta of SEA said, “The share of refined oil in total imports is rising fast and had the crop been higher the imports would not have gone up. This suggest that zero duty structure need not continue for long.”

Import of refined oil during November 2008 to April 2009 is reported at 614,000 tonnes (15 per cent of total imports) compared to just 92,967 tonnes last l year (4 per cent) and crude edible oil is reported at 3.47 million tonnes (85 per cent) compared to 215,000 tonnes (96 per cent) for the same period last year.

Sime Darby maps oil palm genes, looks to boost output - Reuters

12/05/2009 (Reuters), Kuala Lumpur - Planter Sime Darby, Malaysia's largest listed firm, has created the first genetic blueprint of oil palms, saying on Tuesday the map will lead to higher output and planting of drought resistant trees.

Sime Darby is the first to map and use the oil palm sequence as Malaysia, the world's second largest producer of the vegetable oil, runs out of land to plant oil palms and is suffering a spell of dry weather that could hurt production.

The head of Sime Darby's Plantation division Azhar Abdul Hamid said the new sequence will lead to growing new varieties of oil palms and could see yields doubling to 10-12 tonnes of crude palm oil per hectare from Sime's current 5 tonnes.


"We assembled the largest genome in history using the latest technology and with this breakthrough... Sime Darby is ready to lead and change the future of the oil palm industry," Azhar told reporters.

At least 15 percent of the firm's estates in Malaysia will be planted over the next decade with new varieties of oil palm seeds with a view to making oil palms shorter to facilitate harvesting and to be more disease resistant, Azhar said.

"In 30 years, we are looking at all our Malaysian estates to be planted with new varities of oil palm," he said. Sime Darby has 329,470 hectares in the Southeast Asian country, with about another 200,000 in Indonesia.

Malaysia is running out of additional land apart from the 4.5 million hectares currently under palm oil. Production could also suffer from dry weather that could see benchmark palm oil prices climb higher.

Sime Darby initiated the project in 2003 with Synamatix, a biotechnology firm and 454 Life Sciences -- a unit of Swiss drugmaker Roche to map and analyse the genetic markers in the tropical oil palm.

They discovered the oil palm genome contains 31,000 genes, much higher than the human genome which holds 25,000 genes.

Prime Minister Najib Razak said the discoveries could help to stablise price volatility and ease fears of tight supplies in the industry which contributed about 10 percent of Malaysia's total export earnings of 663.5 billion ringgit ($188.8 billion) in 2008.

"Food supply needs will never be an issue again and we will be able to feed the need for alternative fuels as well with increased palm oil production," Najib said at the press conference.