Countdown to PIPOC 2017
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 7 No.1 (2007) p 1-8
Technological Development and New Growth Areas of the Oil Palm Industry
Mohd Basri Wahid; Lim, W S and Mohd Arif, S

Download PDF

Abstract


Technological Development and New Growth Areas of the Oil Palm Industry

Technological development has transformed the Malaysian palm oil industry into a strategic and well planned industry that responds to global challenges. In particular, genetic knowledge since as early as 1912 first led the phenomenal growth of the industry through the planting of tenera instead of dura palms. This was complemented by the government allocating land to the poor and landless to plant more oil palm, in great part causing the area to increase from 54 000 ha in 1960 to 1.02 million hectares in 1980 and 2.03 million hectares in 1990. By 2006, there were 4.16 million hectares of oil palm, constituting nearly two-thirds of the national agricultural area (Table 1). Malaysia continues to be the world’s largest palm oil producer with a production of 15.90 million tonnes in 2006.
The success of the crop is largely market driven with good longterm price prospects for palm oil making oil palm more attractive than most other crops. Palm oil contributes more than one-third of the national agricultural GDP, generating RM 31.81 billion in export earnings in 2006, making it one of the pillars of Malaysia’s economy. At present, the industry employs more than 1.5 million people in the core and related sectors. This paper provides an overview of the technological developments which have propelled the industry into a strategic and important sector and which will shape the future of the oil palm agro industry.

Keyword(s): OIL PALM & PALM OIL INDUSTRY-Malaysia ; ECONOMICS ; RESEARCH & DEVELOPMENT ; PRODUCTIONS ; MPOB PUBLICATIONS

Download PDF

Article Info

Vol 6 No.2 (2006) p37-48
Labour Constraints in the Plantation Industry
Daud Amatzin

Download PDF

Abstract


Labour Constraints in the Plantation Industry

In the case of modern Malaysian plantation scenario, there is already ample legislation in place to create conducive labour relations environment as well as to enhance industrial and economic growth. Its main functions are: protection of the economic and social interest of workers, assist in enhancing national productivity and in promoting and preserving industrial harmony in the country. It also encourages employers in the private sector to employ disabled persons, promoting activities to facilitate and improve the planting environment so as to enhance the participation of unutilized workforce into the labour market. Certainly, the quality development of human capital will ensure
continued progress for the nation. Hence, employers are duty-bound to invest in training. However, with a population of about 25 million and a vast area under cultivation of tropical crops such as oil palm, rubber, cocoa and paddy covering about 6 million hectares and a thriving manufacturing, construction and services sectors, intense competition to recruit suitable and available local workers is the norm. Today, it is evident that through the process of Malaysianization, the ownership of plantation equity is predominantly under Malaysian hands. Thus, conflicting priorities set by decision-makers, both in public and private sectors at times create a challenging situation as well, which may be one of the reasons discouraging the local population from being attracted
to plantation life. Overall, there is a shortage of manpower in the plantation sector. In order to sustain economic growth of the country, the government has been pragmatic in their approach to fulfill the manpower needs. Thus, employment of guest workers (generally known as foreign workers) from approved source countries were allowed in order to alleviate the shortage of manpower in certain sectors, including the plantation and construction industry. However, with the influx of
migrant workers with various background and disposition, many challenges are encountered. There has been some tension between the local community and guest workers. Cases of abuse and mistreatment
attracted the media into reporting them as sensational news and may have influenced policy-makers. Policies change frequently, employer’s dependency on guest workers increases with the area under cultivation. Local workers shun the plantation sector in favour of better working environment in and around urban setting. Over reliance on one particular group of guest workers has proved to bring negative impact. Additionally, of late (05/05/05), the Prime Minister (PM) had just outlined that addiction to cheap foreign labour as being one of the three Malaysian few bad habits, If we are not serious about combating this problem, maybe it is time for us to venture into other businesses which

Keyword(s): OIL PALM ESTSATES & PLANTATIONS ; LABOUR SHORTAGE ; FOREIGN LABOUR ; IMMIGRANT LABOUR ; MPOB PUBLICATIONS

Download PDF

Article Info

Vol 6 No.2 (2006) p31-36
Blending of Palm Biomass and Coal: An Alternative Fuel for Power Generation in Malaysia
A B Nasrin; Ma, A N; Chow, M C; H Hamdan and Choo, Y M

Download PDF

Abstract


Blending of Palm Biomass and Coal: An Alternative Fuel for Power Generation in Malaysia

Palm oil mills in Malaysia generate vast amounts of biomass wastes such as empty fruit bunches (EFB), fibre and shell. The mills burn the shell and pressed fibre to generate their own heat and electricity, but the EFB is surplus to its requirements although a legitimate fuel in its own right. With growing environmental consciousness, high petroleum prices and depleting fossil fuels, the palm biomass can be burnt in coalfired generating plants to produce green electricity for the country. How this can be done in Malaysian scenario is discussed.

Keyword(s): OIL PALM BIOMASS ; PALM OIL FUTURE MILLS ; EFB ; BIOBUEL ; MPOB PUBLICATIONS

Download PDF

Article Info

Vol 6 No.2 (2006) p22-30
Cosmetics and Personal Care Products - Recent Trends in the Asia Pacific Markets
Masataka Fukuda

Download PDF

Abstract


Cosmetics and Personal Care Products - Recent Trends in the Asia Pacific Markets

The cosmetics and personal care product markets of Asia Pacific are growing rapidly. Various players are entering these markets. These markets are the most expanding market among Asia Pacific for the
moment. Recent trend of China and ASEAN markets are reported with statistical data of market trend. The largest market of Asia is Japan market. Products of some global players are penetrating into Japanese consumers. Japanese players are fighting against them. Hard competition of this market is reported. There are some product categories in cosmetic and personal care market such as skin care and hair care in general. However, sign of new market trends are observed in more precise product
categories. New market trend in skin care field is introduced.

Keyword(s): COSMETICS AND PERSONAL CARE (CPC)STRY-Indonesia ; COSMETICS & TOILETRIES ; MARKET DEVELOPMNET ; MPOB PUBLICATIONS

Download PDF

Article Info

Vol 6 No.2 (2006) p 7-21
Indonesian Oil Palm Competitiveness: PT Socfindo as a Private Sector Example
Baskett, J P C and Jacquemard, J-C H

Download PDF

Abstract


Indonesian Oil Palm Competitiveness: PT Socfindo as a Private Sector Example

PT Socfindo is a long established, foreign owned, plantation company with operations in North Sumatra and Aceh. This paper provides a brief review of the background situation to the Indonesian oil palm industry, whilst noting the continued rapid expansion of this sector. The paper also provides a detailed example of how, over the past 30 years, PT Socfindo has retained its competitive advantage in terms of production costs and profitability through the twin mechanisms of increased productivity (internal factor) and rupiah devaluation(external factor). Provided the continued improvement in productivity of every hectare of planted land can be sustained by progressive
improvements in planting materials and agricultural practices, the future prospects of this company remain extremely positive. Therefore, the experience gained by PT Socfindo over this extended period of increasing competition and a declining trend in palm oil commodity prices, could act as an example for the new players to follow in order to sustain the competitiveness of the Indonesian oil palm sector

Keyword(s): PALM OIL & OIL PALM INDUSTRY-Indonesia ; PT SOCFIN, INDONESIA ; COMPETITIVENESS ; DEMAND ; PALM OIL FUTURE-Indonesia ; MPOB PUBLICATIONS

Download PDF

Article Info

Vol 6 No.2 (2006) p1-6
The Elasticity of Foreign Demand for Malaysian Palm Oil
Faizah Shariff; Ayat K Ab Rahman and Mohd Nasir Amiruddin

Download PDF

Abstract


The Elasticity of Foreign Demand for Malaysian Palm Oil

The price elasticity of export demand is expected to receive considerable attention due to the current economic climate of volatile export markets and prices. The export demand elasticity is used to predict the change in demand for an export for a unit change in its price and to model the
behaviour of foreign buyers. This project estimated the elasticity of foreign demand for Malaysian palm oil for the major importing countries - China P R, India, Pakistan, Egypt and South Korea. The
error correction mechanism (ECM) method was used for the estimation considering its usefulness in quantifying the short-run and long-run effects of explanatory variables on the dependent variables using timeseries data. It was found that the price of palm oil plays a very significant role in its export; thus, the price needs to be stable and competitive with those of its substitutes, especially soyabean oil. From panel data research, the effect of a unit change in the soyabean oil price is greater on the exports of crude palm oil than the effect of the same change in the palm oil price. This means that both oils are highly substitutable.

Keyword(s): PALM OIL & OIL PALM INDUSTRY-Malaysia ; PALM OIL FUTURE-Malaysia ; DEMAND ; EXPORT ; MPOB PUBLICATIONS

Download PDF

Article Info

Vol 6 No.1 (2006) p39-45
Production and Price Forecast for Malaysian Palm Oil
Ramli Abdullah and Mohd Alias Lazim

Download PDF

Abstract


Production and Price Forecast for Malaysian Palm Oil

In the oils and fats sector, Malaysia can always be associated with palm oil due to its being the world’s biggest producer and exporter of the commodity. Malaysia produces and exports most of its palm oil due to its small population size and receives quite substantial amount of revenues from this product to support its economy. Thus, in this respect, it is important for the country to monitor the commodity’s production as well as its price that can be used in a way to determine the country’s revenue or in various decision-making processes. It is the objective of this paper then to analyse them econometrically and finally to forecast them. The paper indicates that production of palm oil will increase at a decreasing rate in future due to limited availability of land. By 2020,
production is expected to reach 22 million tonnes while in the shortterm, it will be about 15.9 million tonnes in 2006. Price of palm oil is expected to fluctuate as before but in the near future, strengthening its level by increasing gradually in 2006.

Keyword(s): PALM OIL-Malaysia ; STATISTICS ; FORECASTS ; MARKET DEVELOPMENT ; MPOB PUBLICATIONS

Download PDF

Article Info

Vol 6 No.1 (2006) p30-38
Competitiveness in Global Trade in Edible Oil : Emerging Trends and Pivotal Drivers
Asopa, V N and Mohd Arif Simeh

Download PDF

Abstract


Competitiveness in Global Trade in Edible Oil : Emerging Trends and Pivotal Drivers

Away from classical theories of absolute and relative comparative advantage, modern agricultural industries are also experiencing a new paradigm for competitiveness. As producer countries attempt to appropriate more and more of added values, the framework for competitiveness shifts to newer grounds more in sync with the agricultural policies of the developed importing western world.
Interventions through government policies, notwithstanding supposedly a multilateral trade regime, distort competitiveness in the market place. This is done by limiting market access through innovative non-tariff trade barriers and levying discriminatory tariffs mainly to protect and
promote increased growth of domestic industries at the cost of the home consumers. This paper attempts to overview some of these developments affecting competitiveness of global trade in edible oils, in particular with respect to palm oil.

Keyword(s): PALM OIL ; EDIBLE OILS ; INTERNATIONAL TRADE ; MPOB PUBLICATIONS

Download PDF

Article Info

Vol 6 No.1 (2006) p18-29
Oil Palm in Indonesian Socio-Economic Improvement - A Review of Options
Zahari Zen; Colin Barlow and Ria Gondowarsito

Download PDF

Abstract


Oil Palm in Indonesian Socio-Economic Improvement - A Review of Options

The Indonesian Government has used oil palm as a tool of rural socioeconomic improvement, doing this through nucleus estates operated by estate companies and through assisting individual smallholdings. Over 900 000 ha of high yielding oil palm have been established in 2-3 ha settler blocks in nucleus estate plasma, and 250 000 ha have been planted on individual smallholdings. The initiatives have together raised the incomes of over 500 000 farmers, and may be judged successful market interventions which are far superior to laissez faire. Although the average economic and social performances of both initiatives have been reasonable, their outcomes have been variable. The nucleus estates have sometimes suffered from faulty management, bad community rapport and difficult land conversions, and from the mistakes of government agencies and settler cooperatives. They were
discontinued in 2001, due to scarce finance. The assistance to individual smallholdings has always had short funding, limiting its scope. Both initiatives were commenced under the New Order, and face fresh challenges in the present era of democracy and otonomi daerah. The analysis of this paper nonetheless shows that these Indonesian interventions should be continued, albeit more capital being provided and their deficiencies being remedied. It denotes that the interventions compare well with official efforts in other countries, strengthening the general case for public action to assist poor rural dwellers.

Keyword(s): PALM OIL & OIL PALM INDUSTRY-Indoneis ; OIL PALM ; ECONOMIC DEVELOPMENT ; MARKETING ; MPOB PUBLICATIONS

Download PDF

Article Info

Vol 6 No.1 (2006) p1-17
Oil Palm : The Agricultural Producer of Food, Fibre and Fuel for Global Economy
Yusof Basiron and Chan Kook Weng

Download PDF

Abstract


Oil Palm : The Agricultural Producer of Food, Fibre and Fuel for Global Economy

Oil palm industry has expanded from just an agricultural producer of edible oils and fats to fibre (material) and fuel (energy) as well for the global economy. In producing food, fibre and fuel (the 3Fs), the industry has also identified the enlarged environmental consequences that will now be involved. Arising from this, the science and technology (S&T) for the 3Fs production now falls squarely on the research and development (R&D) undertaken on land-use and land-use cover changes
from forestry (LULUCF) with inclusion of the two latter products. Besides the best practices implemented to enhance the economic, environmental and social requirements, any change in the land-use pattern is prioritized with the environmental consequences identified and minimized. The S&T development in itself is not enough and must be applied together with business. It is critical that sustainability and poverty reduction remain the guiding principles for efficient use of resources, harness of intellect, and channel knowledge to benefit the rural poor and marginalized. As more plantation companies develop the potential to produce the 3Fs, there will be greater realization that both the policy and infrastructure support from the government is important. This must be accompanied by higher participation in activities by all the stakeholders over the whole value supply chain that involve the companies, industry and nation at all three levels to strengthen agricultural development to realize this 3Fs objective. The benefits of this new 3Fs approach are three-fold: firstly, greater promotion of value-addition and accomplishment of accelerated growth
of agro-businesses in the food, material (fibre) and energy (fuel) subsectors. Secondly, creating more jobs in the rural sector with greater security for a fair standard of living for the smallholders and their families. Thirdly, discourage migration of people to the urban areas as the rural populace is better able to face the challenges coming from the economic liberalization and globalization resulting from more job opportunities created by the plantations and emerging agro-businesses. A total of 10 recommendations for policy refinement to enhance the 3Fs objective are discussed. They are aimed at achieving food security, fibre and fuel production by focusing on developmental and environmental consequences; continuing sustainable agriculture to improve the economic, social and environmental impacts of the companies in managing the 3Fs objective thereby hastening rural development when these new agro-businesses start to benefit not only the welfare of the people living in and around the plantations but also along the whole value chain.

Keyword(s): PALM OIL & OIL PALM INDUSTRY-Malaysia ; RESEARCH AND DEVELOPMENT ; ECONOMIC DEVELOPMENT ; FUTURE PROSPECTS ; MPOB PUBLICATIONS

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 9 of 13

Menu

Subscribed Resources

e-RESOURCES

e-BOOKS 

 

2017 SUBSCRIBED TITLES

TITLE LIST

USER GUIDE

Updated on 18 January 2017

Daily CPO Prices

Quick Links


                 


      

              
Copyright © 2017 PALMOILIS Portal. All Rights Reserved.
Designed & Developed by Palm Information Centre, MPOB. Contact webmaster

Visitor Counter

022971
TodayToday14
YesterdayYesterday90
This WeekThis Week614
This MonthThis Month2148
All DaysAll Days22971