Search
LIST OF ARTICLES

PDF of individual article can be purchased from Palm Information Centre, MPOB
Tel: 603-8769 4928 Fax: 603-8925 4213 Email: palmoils@mpob.gov.my

Article Info

Vol 17 no. 2 (2017) p34-43
An Analysis of Malaysian Palm Oil Exports to Selected TPPA Member Countries
Nur Nadia Kamil*; Balu, N*; Nazlin Ismail*; Kamalrudin Mohamed Salleh* and Ain, H*

Download PDF

Abstract


An Analysis of Malaysian Palm Oil Exports to Selected TPPA Member Countries

Malaysia officially signed the Trans-Pacific Partnership Agreement (TPPA) in February 2016. The trade partnership between Malaysia and 11 other participating countries is expected to enlarge Malaysian trade volume and consequently help the country leap-frog towards becoming a high income nation. A study to assess the potential economic impact of TPPA on the Malaysian economy has been done, but none on an in-depth empirical analysis of its impact on the Malaysian palm oil industry. This ex-ante study shows that the Malaysian palm oil industry will gain via TPPA. The elimination or reduction of trade barriers offered under TPPA will allow Malaysia to expand her palm oil market share internationally. The largest export increment due to TPPA was found in the study to be in the palm oil exports to Mexico, followed by Canada. However, no significant change was found in the exports of palm oil to Peru and the United States of America as both countries have currently imposed zero import duties on processed palm oil from Malaysia.

Keyword(s): TPPA, economic impact, Malaysian palm oil

Download PDF

Article Info

Vol 17 no. 2 (2017) p25-33
Factors Affecting Palm Oil Demand in India
Kalsom Zakaria*; Kamalrudin Mohamed Salleh*and Balu, N*

Download PDF

Abstract


Factors Affecting Palm Oil Demand in India

India is the world’s leading importer of edible oils and is likely to remain a prominent importer in the future. Her large population and steady economic growth are important contributing factors for her increasing consumption and imports. In the late 1980s and early 1990s, India pursued self-sufficiency in vegetable oil production. However, domestic production was then stagnant and unable to meet the growing demand. This caused the government to allow the import of edible oils under open general license (OGL), particularly of palm oil due to its price competitiveness. With the increasing demand for imported oils and fats, especially palm oil, a study on India’s palm oil demand is deemed important. This study aimed to determine factors influencing the demand for palm oil in India by using the Autoregressive Distributed Lag (ARDL) models over the period 1980- 2015. The result of the bound test indicates that there is a long-run relationship between the studied variables and palm oil demand. The empirical result reveals that population has a significant positive relationship with palm oil demand in India in the long-run. However, domestic income measured by gross domestic product (GDP) and the price discount of palm oil over soyabean oil was found to have a significant negative relationship with palm oil demand in India. The negative relationship between GDP and palm oil demand shows that palm oil is perceived by Indians to be an inferior goods. Meanwhile, the negative relationship between the difference between soyabean and palm oil prices and palm oil demand shows that not only are soyabean and palm oils close substitutes, but also that palm oil has the characteristic of a giffen goods.

Keyword(s): palm oil, demand, India, ARDL, bound test

Download PDF

Article Info

Vol 17 no. 2 (2017) p8-24
Competitiveness of the Rapeseed Industry in China
Khairina Ahmad Khir*; Nazlin Ismail* and Balu, N*

Download PDF

Abstract


Competitiveness of the Rapeseed Industry in China

The purpose of this article is to discuss the competitiveness of the rapeseed industry in China by focusing on the current situation of rapeseed and developments covering production, yield, crop area, trade, consumption pattern and infrastructure as well as government policy. The method of SWOT (strengths, weaknesses, opportunities and threats) analysis was used to gain an understanding of the strengths, weaknesses, opportunities and threats of the Chinese rapeseed industry. The information in this article was collected from various secondary sources. China was chosen for this article based on the fact that this country is one of the largest rapeseed producers and the world’s largest importer of rapeseed. In 2016, rapeseed production continued to decline in response to a further reduction in planted area for the fifth consecutive year due to limited arable land and policies that favour grain crops, thus affecting domestic crushing volume and rapeseed oil production. The situation of palm oil in China was also discussed as palm oil continues to dominate China’s vegetable oil imports. In such a scenario, palm oil has an advantage in gaining more share in China’s vegetable oils market. China will continue to be the world’s major importer of oilseeds, particularly soyabean and rapeseed, in view of the limited oilseeds production in the country and growing domestic demand.

Keyword(s): rapeseed, production, imports, consumption, policy, competitiveness, China

Download PDF

Article Info

Vol 17 no. 2 (2017) p1-7
Labour Productivity of Harvesters by Country of Origin: A Case Study in Peninsular Malaysia
Siti Mashani Ahmad*; Azman, I*; Ali Zulhusni Ali Nordin*; Kamalrudin Mohamed Salleh* and Balu, N*

Download PDF

Abstract


Labour Productivity of Harvesters by Country of Origin: A Case Study in Peninsular Malaysia

This study aims at estimating labour productivity in the oil palm harvesting activity in Peninsular Malaysia among workers from different source countries. This study used a case study approach, which involved three estates. This study also utilised a qualitative research approach which is primary exploratory research. The information gathered was used to better understand the underlying reasons, opinions and motivation of the estate management in their decision to employ foreign labour for the harvesting activity sourced from various countries. In Peninsular Malaysia, most of the foreign workers employed for harvesting and fresh fruit bunch (FFB) collection are from Indonesia, Bangladesh and Nepal. Based on the study, there is no significant difference in productivity among workers according to source country

Keyword(s): labour productivity, source country, harvesters, foreign labour

Download PDF

Article Info

Vol 17 no. 1 (2017) p32-50
Competitiveness of the Rapeseed Industry in the European Union
Nazlin Ismail*; Kamar Nor Aini Kamarul Zaman* and Balu, N*

Download PDF

Abstract


Competitiveness of the Rapeseed Industry in the European Union

This article is aimed at discussing the competitiveness of the rapeseed industry in the European Union (EU) in terms of production, trade and consumption in both the edible and non-edible sectors, especially for biofuels. For the purpose of analysing the information gathered, a SWOT analysis was used to evaluate the strengths, weaknesses, opportunities and threats of EU’s rapeseed industry. In fact, the information in this article was collected primarily from various secondary sources. Nevertheless, not all of the information in this article was the latest because of the difficulty in sourcing for the most up-to-date data. The competitiveness of EU’s rapeseed industry depends on its usage (as rapeseed oil) in the biodiesel sector and on EU’s policy implementation with regard to crop-based biofuel post- 2020. It is hoped that this article will assist Malaysian oil palm industry players to have a better understanding of the developments pertaining to the EU rapeseed industry as well as gauge the challenges,if any, posed by EU.

Keyword(s): EU, rapeseed, biofuel, competitiveness

Download PDF

Article Info

Vol 17 no. 1 (2017) p16-31
An Economic Study on Technical Efficiency among Independent Oil Palm Smallholders in Sabah and Sarawak
Ali Zulhusni Ali Nordin*; Siti Mashani Ahmad*; Ainul Shazwin Sahidan*; Norhidayu Abdullah* and Ain, H*

Download PDF

Abstract


An Economic Study on Technical Efficiency among Independent Oil Palm Smallholders in Sabah and Sarawak

Malaysia was once known as the largest producer and exporter of palm oil until its position was taken over by Indonesia. The limitation in Malaysia in terms of land availability for new planting of oil palm has pushed the focus on technology and resources to efficiency and productivity in oil palm cultivation. At present, Malaysia is the second largest palm oil producer in the world, and may well be the third in future if no holistic strategy is charted to maintain her premier position in the industry. Rapid development and the increasing trend in the number of smallholders planting oil palm have posed another challenge to maintaining high productivity of fresh fruit bunch (FFB) production. Therefore, studies on social perception and factors affecting efficiency among the independent oil palm smallholders are deemed important. The present study found that the FFB yield achieved by independent smallholders in Sabah and Sarawak can be further improved. Among the factors that contributed to inefficiency among these independent smallholders are inadequate fertiliser application, Ganoderma disease, high pest infestation, deficiency of nutrients in the oil palm, increasing cost of production and the unpredictable extreme weather conditions. The study focused only on Sabah and Sarawak as it is an extension of a previous study which had been carried out on smallholders in Peninsular Malaysia. It is recommended that the government continues its policy of assisting independent oil palm smallholders in order to maintain or increase their productivity.

Keyword(s): technical efficiency, independent oil palm smallholders, productivity.

Download PDF

Article Info

Vol 17 no. 1 (2017) p7-15
Crop-livestock Integration among the Oil Palm Smallholders
Zaimah, R*; Novel Lyndon*; Sarmila, M S*; Mohd Yusof Hussain*; Kamil Azmi Tohiran**; Raja Zulkifli Raja Omar**; Nursuhana Dahari** and Hasmiza Desa**

Download PDF

Abstract


Crop-livestock Integration among the Oil Palm Smallholders

This study attempts to analyse the extent to which integration in oil palm will continue to be practised by the smallholders and the extent to which integration will be able to increase their income. Data from a total of 140 oil palm smallholders were analysed in this study, using descriptive statistics. The findings show that the majority of the smallholders intend to continue integration in their oil palm in the future. On average, they are satisfied with the integration carried out over the years. However, only half of the smallholders agree that the integration is able to increase their family income. It is expected that the findings from this study will be used to enhance the practice of integration in oil palm smallholdings.

Keyword(s): smallholders, crop-livestock integration, continuity, productivity, income

Download PDF

Article Info

Vol 17 no. 1 (2017) p1-6
The Effect of Soyabean Oil Price Changes on Palm Oil Demand in China
Kalsom Zakaria*; Kamalrudin Mohamed Salleh* and Balu, N*

Download PDF

Abstract


The Effect of Soyabean Oil Price Changes on Palm Oil Demand in China

China is the biggest market for oils and fats, with consumption indicating a steadily increasing trend from 25.7 million tonnes in 2005 to 36.6 million tonnes in 2015. Palm oil is one of the largest volume of oils and fats consumed by China, representing 8.0% of the total consumption for 2015. Palm oil is thus the largest component of the oils and fats imports, particularly for the instant noodles industry. The price of palm oil substitutes, especially soyabean oil, highly influences the demand for palm oil. China’s huge crushing capacity to satisfy the demand for soyabean meal also means that there is a necessity to import large quantities of soyabean, which subsequently increases the local supply of soyabean oil, thus affecting the demand for palm oil. This study attempted to examine the short-run and the long-run relationships between China’s palm oil imports and palm oil prices, soyabean oil prices, soyabean meal prices and domestic income, using the Autoregressive Distributed Lag (ARDL) method with data from 1980 to 2015. The result of the bound test indicates that there is a long-run relationship between the studied variables. The empirical results reveal that domestic income, measured by the gross domestic product (GDP), and the difference between soyabean oil and palm oil prices have positive significant relationships with palm oil demand in China in the long-run. At the same time, soyabean meal price show a significant negative relationship with palm oil demand in China. The result indicates that GDP, the difference between soyabean oil and palm oil prices, and soyabean meal price play important roles in determining palm oil demand in China.

Keyword(s): palm oil, soyabean, China, ARDL, GDP

Download PDF

Article Info

Vol 16 No.2 (2016) p19-27
Total Factor Productivity: How Productive is the Palm Oil Milling Sector in Malaysia?
Norhidayu, A*; Azman, H**; Balu, N* and Azman, I*

Download PDF

Abstract


Total Factor Productivity: How Productive is the Palm Oil Milling Sector in Malaysia?

This study investigates the total factor productivity (TFP) growth for Malaysian palm oil mills over the period 2010 – 2014, using the stochastic frontier analysis (SFA) model. TFP focuses on three components, namely, technical efficiency (TE), technical progress (TP), and scale components (SC). The first step in estimating TFP comprises specification and estimation of SFA, followed by tests for specification of the stochastic production functions. Secondly, it involves the selected specification of a regression model used to predict the TE effects. The empirical results show that productivity growth was driven mainly by TE, followed by TP. However, the change in SC had a small effect on productivity growth. Overall, results of the study suggest that there is an opportunity to improve productivity growth in the palm oil milling sector in Malaysia, for instance, by improving working conditions, upgrading the capacity of the mills, and providing incentives and rewards to the workers

Keyword(s): total factor productivity, Malaysian palm oil mills, technical progress, technical efficiency, scale components

Download PDF

Article Info

Vol 16 No.2 (2016) p9-18
The Push and Pull Factors in Business: A Study on Independent Oil Palm Smallholders in Selected States in Malaysia
Azhar Ahmad*; Ahmad Raflis Che Omar*; Lokhman Hakim Osman*; Norazlan Alias*; Mara Ridhuan Che Abdul Rahman*; Suraiya Ishak** and Mohd Abdullah Jusoh‡

Download PDF

Abstract


The Push and Pull Factors in Business: A Study on Independent Oil Palm Smallholders in Selected States in Malaysia

The oil palm industry faces market volatility and economic oppression. This has seriously affected the income of oil palm smallholders. One way to increase their income is to get them involved in business. However, the involvement of oil palm smallholders in business is not influenced by economic factors alone, but also by push and pull factors. Therefore, a study was conducted on 178 independent smallholders who are currently doing business in Johor, Selangor, Perak and Sarawak, Malaysia. Analyses of the data were done by using the Method Structural Equation Model (SEM) with the SmartPLS software. The study found that overall the respondents engaged in the business because of several push and pull factors. The respondents expressed that ‘risk/challenges management’ was the most important push factor in business. This was followed by ‘leadership skills’, ‘business opportunity’, ‘family encouragement’, ‘knowledge and skills’ and ‘income level’. An important pull factor for the respondents was the ‘opportunity to attend training’, followed by ‘infrastructure facilities’ and ‘finance’.

Keyword(s): independent oil palm smallholders, business involvement, push and pull factors in business, entrepreneurship

Download PDF

© Malaysian Palm Oil Board (MPOB). All Rights reserved.
No part of this publication may be reproduced, stored in a retrieval system,
in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of the publisher.

This online publication is electronically compiled by Palm Information Centre, Malaysian Palm Oil Board (MPOB)
Page 2 of 15

Menu

Popular Titles

BOOKS e-BOOKS e-JOURNALS
   Updated on 10 October 2017  

Subscribed Resources

e-RESOURCES

e-BOOKS 

 

2017 SUBSCRIBED TITLES

TITLE LIST

USER GUIDE

Updated on 10 October 2017

Portal Survey

Your opinion about PALMOILIS website?

Daily CPO Prices

Quick Links


                 


      

              
Copyright © 2018 PALMOILIS Portal. All Rights Reserved.
Designed & Developed by Palm Information Centre, MPOB. Contact webmaster

Visitor Counter

049349
TodayToday11
YesterdayYesterday88
This WeekThis Week331
This MonthThis Month1438
All DaysAll Days49349