Oil Palm Industry Economic Journal - Vol 3 No 2

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Volume 3 Number 2/2003
Published in September 2003 by the Malaysian Palm Oil Board

TABLE OF CONTENTS

Evolution of the Latin American Oil Palm Sector During the Last Decade (1991 - 2001)
by Eden C Bolivar and Marisol Cuellar - Mejia
Full text [PDF 118KB]

Empty Fruit Bunches Evaluation: Mulch in Plantation vs. Fuel for Electricity Generation
by N Ravi Menon; Zulkifli Ab Rahman and Nasrin Abu Bakar
Full text [PDF 37KB]

Palm Oil Products Exports, Prices and Export Duties: Malaysia and Indonesia Compared
by Mohd Nasir Amiruddin
Full text [PDF 69KB] Abstract

Economics of Higher Planting Density in Oil Palm Plantations
by Jusoh Latif; M Mohd Noor; Mohd Tayeb Dolmat and Ahmad Kushairi Din
Full text [PDF 55KB] Abstract

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Oil Palm Industry Economic Journal is published twice a year
in September and March by the
Malaysian Palm Oil Board (MPOB)
http://mpob.gov.my

Views of writers expressed in this publication are not necessarily those of MPOB.

MPOB welcomes contributions and comments from all individuals and organizations. Its inclusion is however, the prerogative of the Director-General of MPOB.

Contributions and comments should be addressed to :

Director-General
MPOB
P.O. Box 8073
46781 Kelana Jaya
Selangor
Malaysia

malek@mpob.gov.my

Material from this publication may be freely used or reproduced, provided the source of information is accurately recorded and acknowledgements made to the Malaysian Palm Oil Board

This online publication is electronically compiled by Palm Information Centre, MPOB
fatimah@mpob.gov.my
afdzan@mpob.gov.my

ABSTRACT

Palm Oil Products Exports, Prices and Export Duties: Malaysia and Indonesia Compared
Malaysia and Indonesia are the largest and second largest producers and exporters of palm oil products in the world where together they contribute 83.5% of production and 89.6% of palm oil trade in the world. Both countries export crude palm oil (CPO) and processed palm oil (PPO). The trend in exports indicates Malaysia exporting increasing quantities of CPO in the new millennium when exports of CPO in-creased from 0.4 million tonnes to 1.3 million tonnes in 2000 and 2001, respectively, while exports of Indonesian CPO increased from 1.8 to 2.0 million tonnes. PPO contributed to the larger share of palm products exports of both countries. Monthly FOB prices for Malaysian CPO and PPO in 2001 and 2002 were lower than those of Indonesia but prices for the latter were lower in the international market indicating price competition. Tariffs are imposed on exports of palm products by both countries with the objective initially of raising revenue. In the case of Malaysia, the objective later shifted to that of encouraging down-stream processing while for Indonesia, it reflected a goal of keeping cooking oil prices to consumers down during periods of high oils and fats prices. An evaluation of taxes imposed on exports of both countries indicated that there is a difference in the way the export duty payable in the two countries computed. The different manners of computing led to high duty payable in the case of CPO exports by Malaysia when compared to that of Indonesia. There is no duty on exports of PPO from Malaysia while Indonesian duty is very low.

Economics of Higher Planting Density in Oil Palm Plantation
The aim of this paper was to study the financial returns from oil palm planted at different densities on mineral and peat soils in Malaysia. The method of analysis to achieve the mentioned objective was by the cost benefit analysis approach. Data for the analysis was obtained from oil palm planting density experiments at MPOB research stations at Hulu Paka in Terengganu and Teluk Intan in Perak. The analysis indicated that maximum income could be obtained from a planting density of 148 palms/ha, contrary to the conventional practice of 136-148 palms/ha. On peat soil, income is still on the in-crease when the density is at 200 palms/ha. It is recommended that on peat higher than the conventional planting density of 136-148 palms/ha is adopted in order to maximize net present value (NPV).