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LIST OF ARTICLES

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Article Info

Vol 9 No.2 (2009) p1-12
Production Cost of Palm Oil in Malaysia
Mohd Basri Wahid and Mohd Arif Simeh

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Abstract


Production Cost of Palm Oil in Malaysia

The Malaysian oil palm industry is facing rising production cost which is partly due to a stagnation in productivity. This affects business profitability, especially during those times when prices of palm oil are low. A low replanting rate has contributed to an age profile featuring the existence of more old palms which are less productive. There will be larger areas of old palms in the near term if the current low replanting rate continues, and will result in pushing production cost to a higher level.
The article provides an overview of the need to monitor production cost dynamics to mitigate further cost increases. In particular, these include, among others, the prospects of using clonal materials during replanting, addressing the skyrocketing cost of fertilizer application, the approach towards integrated pest and disease management, and the prospects of precision agriculture, good agricultural practices, etc.

Keyword(s): PALM OIL; PRODUCTION COST; REPLANTING; CLONAL MATERIALS; FERTIZERS

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Article Info

Vol 9 No.1 (2009) p29-36
An Overview of Malaysian Palm Oil Market Share in Selected Markets
Mohd Arif Simeh and Mohammad Fairuz Kamarudin

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Abstract


An Overview of Malaysian Palm Oil Market Share in Selected Markets

Palm oil is the leading edible oil traded in the world market. Both Malaysia and Indonesia are the world’s largest exporters of palm oil, commanding more than three-quarters of the world market. In 2007, these countries contributed 83.5% of the production and 89.6% of the world trade in palm oil. Malaysia herself accounted for 47.9% of the production and 57.5% of the trade. However, over the years, Malaysia has been losing her market share to her closest rival, Indonesia. This article attempts to provide an overview of Malaysia’s market share of palm oil in five major markets compared to Indonesia. Apart from describing the share in the various markets in absolute terms, an index was also used as a bench-mark to overview the trend in real terms.

Keyword(s): PALM OIL; PALM OIL-Market Share; MAJOR MARKETS; PALM OIL INDUSTRY-Malaysia

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Article Info

Vol 9 No.1 (2009) p20-28
Management of the Malaysian Oil Palm Supply Chain: The Role of FFB Dealers
Ayat K Ab Rahman; Ramli Abdullah; Mohd Arif Simeh and Faizah Mohd Shariff

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Abstract


Management of the Malaysian Oil Palm Supply Chain: The Role of FFB Dealers

The fresh fruit bunch (FFB) dealer sub-sector is part of the Malaysian palm oil supply chain. It is inter-related with other sub-sectors either directly or indirectly. It serves as a intermediary between the smallholders and the millers. FFB dealers need to be efficient so that the FFB sent to the mills within 24 hr after harvesting remain in good quality. Shortfalls may affect the efficiency of the other sectors as well as the whole industry. The study found that the dealers have found ways of making profits and have undergone several structural changes. Despite the challenges, there is still scope for their improvement.

Keyword(s): OIL PALM INDUSTRY-Malaysia; SUPPLY CHAIN; FFB DEALERS; CHANGES AND IMPROVEMENTS

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Article Info

Vol 9 No.1 (2009) p14-19
Recent Developments of Malaysian Palm Oil Stock Level
Ahmad Borhan A Nordin and Mohd Arif Simeh

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Abstract


Recent Developments of Malaysian Palm Oil Stock Level

The level of palm oil stock is a strong indicator of its price and it comprises crude palm oil and processed palm oil. In the past, the palm oil stock has for a long time hovered around 1 million tonnes, and this volume has become the psychological level below and above which prices tend to be bullish and bearish, respectively. The end stock mainly depends on the production and export of palm oil, while imports and local consumption play minor roles. Based on changes in the supply and demand factors, it was estimated that 1.8 million tonnes could be considered as the new level of palm oil stock for the Malaysian palm oil industry.

Keyword(s): PALM OIL INDUSTRY-Malaysia; STOCK LEVEL; PRICES; SUPPLY AND DEMAND

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Article Info

Vol 9 No.1 (2009) p1-13
Palm Oil: Nature’s Gift to Malaysia and Malaysia’s Gift to the World
Mohd Basri Wahid; Chan Kook Weng and Rubaah Masri

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Abstract


Palm Oil: Nature’s Gift to Malaysia and Malaysia’s Gift to the World

For Malaysia, oil palm is the golden crop that has helped to change the scenario of the Malaysia’s agriculture and the Malaysian economy. In 2007 at 4.17 million hectares, the oil palm performance is compared over the last 90 years from 1917 to 2007 and some projections are made over the next 100 years to 2107. The various phases undergone by the oil palm industry from the pioneering work with the determination to nurture the plant into a crop and to create a home for it in Malaysia, have been marked with several important milestones such as diversification from the over dependence on rubber in the 1950s and 1960s, strong support from well thought-out policies involving use of palm oil as food, fuel, fibre and feed in the 1970s and 1980s, through R&D move into processing and value-adding activities to improve the health and food safety aspects and finally in the 1990s and 2000s to tackle the environmental and sustainability development. The broadening of the scope and horizon for export of oil palm and its products into 11 areas of food, oleochemicals, energy, biomass, biotechnologically improved products, nutraceutical, pharmaceutical, farm machinery, research and advisory services, processing, livestock integration and feed production will strengthen the competitiveness of the Malaysian oil palm products that will take centre-stage in international oils and fats businesses. In so doing, the impact of such massive development of the oil palm has helped uplift the rural poverty, enhance social and economic life, and yet protect the very environmental and ecological bases on which the oil palm thrives. Truly the oil palm is a crop that nature gives to Malaysia and now it has evolved into Malaysia’s gift, thanks to continuous R&D with many innovations, to share the new discoveries on the uses of palm oil and its products with the whole world. In the future, the Malaysian oil palm industry will remain a major reliable supplier of vegetable oil for both food and non-food applications. It must be mentioned that the projections made here after deliberation are the views what the MPOB team members have wished for the industry. For a forecast of a hundred years, the reality will be dictated by events and the rate of progress of R&D.

Keyword(s): OIL PALM; GOLDEN CROP; MALAYSIAN ECONOMY; RESEARCH & DEVELOPMENT; OIL PALM INDUSTRY-Malaysia

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Article Info

Vol 8 No.2 (2008) p28-38
Chemical Weed Control in the Oil Palm Sector with Particular Reference to Smallholders and Nursery Operators
Faizah Mohd Shariff and Ayat K Ab Rahman

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Abstract


Chemical Weed Control in the Oil Palm Sector with Particular Reference to Smallholders and Nursery Operators

This article attempts to assess the impact to the oil palm smallholders and the nursery operators when there is a change from using paraquat to other kinds of weed killers in the oil palm and nursery areas. Surveys via face-to-face interviews with independent smallholders and 56 nursery operators were conducted. The study found that the impact of paraquat was insignificant among the smallholders, with only 0.65%, 1.30% and 0.32% having problems related to skin, nose bleeds and nails, respectively. The cost comparison of spraying herbicides in the smallholders’ areas revealed that RM 221/ha/yr was incurred when using paraquat while RM 365/ha/yr was spent with the use of Round-up. At the nursery, annual spraying using paraquat and Basta incurred costs of RM 492.74/ha and RM 763.44/ha, respectively. The study revealed significantly that both the smallholders and the nursery operators were knowledgeable about the danger and handling of herbicides. Paraquat was the most preferred herbicide because it neither reduced the productivity of the oil palms nor affected the growth of the oil palm seedlings. It was also claimed that the use of paraquat helped to improve the texture of the soil. This indirectly led to efficient uptake of fertilizers and hence increased productivity of the oil palms.

Keyword(s): OIL PALM; OIL PALM-Cultivation; WEED CONTROL; SMALLHOLDERS; NURSERY OPERATORS

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Article Info

Vol 8 No.2 (2008) p17-27
The Malaysian Palm Oil Supply Chain: The Role of the Independent Smallholders
Ayat K Ab Rahman, Ramli Abdullah, Faizah Mohd Shariff and Mohd Arif Simeh

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Abstract


The Malaysian Palm Oil Supply Chain: The Role of the Independent Smallholders

The Malaysian palm oil industry is made up of interrelated sectors that produce various palm products for their end-users. To ensure an efficient supply chain, all sectors should operate efficiently; this includes the independent smallholders. An efficient production system by the smallholders is deemed necessary in producing quality fresh fruit bunches (FFB) which can then produce quality palm oil for meeting the rising global demand. Inefficiencies can affect the whole supply chain. This article investigates the efficiency level of this sector and the structural changes that it has undergone. It was found that there is plenty of room for improvement among independent smallholders to increase their FFB yield and income so that their future can be sustained.

Keyword(s): PALM OIL INDUSTRY-Malaysia; SUPPLY CHAIN; INDEPENDENT SMALLHOLDERS; FFB PRODUCTION

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Article Info

Vol 8 No.2 (2008) p8-16
Future Competitiveness of the Malaysian PKE
Ahmad Borhan A Nordin, Faizah Mohd Shariff, Mohd Arif Simeh and Norhanani Baharim

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Abstract


Future Competitiveness of the Malaysian PKE

The Malaysian palm kernel expeller (PKE) competes with various oilmeals in the world market, particularly as an animal feed. It has a competitive advantage over other oilmeals due to its consistent supply and competitive price. However, increasing production and export of other oilmeals coupled with changes in meat preferences worldwide are affecting the competitiveness of Malaysian PKE. Future development in the world livestock market will play a pivotal role in spearheading the future competitiveness of the Malaysian PKE.

Keyword(s): PALM KERNEL EXPELLER (PKE); ANIMAL FEED; COMPETITIVE ADVANTAGE

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Article Info

Vol 8 No.2 (2008) p1-7
EU's Renewable Energy Directive : Possible Implications on Malaysian Palm Oil Trade
Mohd Basri Wahid, Faizah Mohd Shariff, N Balu and Nazlin Ismail

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Abstract


EU's Renewable Energy Directive : Possible Implications on Malaysian Palm Oil Trade

Concerns about high oil prices, energy security and increasing import costs have encouraged the development of biofuel programmes worldwide. Brazil, the European Union (EU) and USA are among the countries that have launched significant biofuel programmes as a means of reducing their dependence on imported oil. In Asia, since 2006, biofuel policies have been considered as they have impact on energy security, employment and income. However, with countries pursuing various programmes on biofuel, questions of sustainability of feedstocks, deforestation and competition with food uses have led to stricter rules and regulations being drafted in the importing countries, these also affecting the vegetable oils trade. This article attempts to assess the new EU’s Renewable Energy Directive and their possible implications on the vegetable oils trade, especially that of palm oil.

Keyword(s): PALM OIL; BIOFUEL PROGRAMMES; EU DIRECTIVES; RENEWABLE ENERGY

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Article Info

Vol 8 No.1 (2008) p24-30
Malaysian Palm Oil Supply Chain: The Role of the Oil Palm Nursery Operators
Ayat K Ab Rahman, Ramli Abdullah, Faizah Mohd Shariff and Mohd Arif Simeh

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Abstract


Malaysian Palm Oil Supply Chain: The Role of the Oil Palm Nursery Operators

The function of the oil palm nursery sector is to produce high quality oil palm planting materials to the growers. Therefore, to ensure the smooth operation of the whole supply chain of the Malaysian palm oil industry, this subsector should operate efficiently. Ineffective management at this point will affect directly the efficiency of the oil palm producers and indirectly the other subsectors in the oil palm chain. Hence, when some of the oil palm nursery operators are inefficient, the producers and other subsectors will be negatively affected. A study found that there is room for improvement to enable these nursery operators to become efficient. Among others, they can become efficient if they are subjected to mandatory oil palm nursery certificates of competency (OPNCC).
Sufficient knowledge on how to operate their nurseries well should be provided, especially to the new operators. Elements of inefficiency among some of them could thus be solved through MPOB to ensure that they are able to produce seedlings of a high quality.

Keyword(s): PALM OIL INDUSRY-Malaysia; SUPPLY CHAIN; OIL PALM NURSERIES; PLANTING MATERIALS

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© 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)
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