|
ABSTRACT |
Palm
Oil: The Driving Force of World Oils and Fats Economy
Palm oil accounts for 21% and 47% of the global oil and fats production and trade respectively. Both Malaysia and Indonesia together are the world's largest producers and exporters of palm oil with 84% and 90% share of world palm oil production and export, respectively. The paper outlines the increasingly dominant role that palm oil has played in the world oils and fats supply and demand equation during the past 40 years. The ascent of palm oil as a powerhouse in the global oils and fats market has been achieved by leveraging upon the techno-economic advantages of palm oil vis-à-vis competing oils as well as positive developments arising from consumer concerns on health, environment and food security. In efforts to maintain continued market growth, the future direction of the industry relating to improving competitiveness, widening the uses of palm oil, eliminating trade barriers and exploring new innovative marketing approaches will be discussed. These positive developments augur well for palm oil in its role as the driving force of the world oils and fats economy.
Top |
Biodiversity,
Labelling and Other Issues in the Marketing of
GM Products
The marketing of genetically modified (GM) products, especially those derived from transgenic crop plants, has been plagued by regulatory and consumer perception issues. Concerns involving the effect of GM crop cultivation on biodiversity and the environment have been ad-dressed by the Convention on Biological Diversity (CBD) under the UNEP. These concerns led to the development of guidelines which be-came known as the Cartagena Protocol on Biosafety. The issue of the safety of foods derived from genetically modified organisms (GMOs) has been taken up by the Codex Alimentaris, which has provided guidelines or risk assessment and management. Consumer sentiments have led to regulations on the labeling of GM foods and there are provisions for this in several agreements under the World Trade Organization. Economic analysis showed that currently the farmers and technology suppliers are the gainers in this business. Whether consumers will see any benefit in future depends on the type, regulation and perception of GM products.
Top |
Selling
the Green Palm Oil Advantage
Palm oil has many positive environment attributes; this paper discusses the green palm oil advantage (GPOA) and the prospects of using it as a marketing edge over competing edible oils. Compared with the major oilseed crops (soyabean, rapeseed and sunflower), oil palm is considered the most environmentally friendly with respect to land use efficiency and productivity, energy efficiency and inputs of fertilizers and pesticides and pollution potential. It contributes positively to climatic change through effective carbon sequestration and it is not genetically modified. When defining GPOA, due consideration must be given to the expectations of its stakeholders and how well they are met. At present, some major stakeholders are concerned over the potential linkage between forest destruction and loss of biodiversity with the expansion of the oil industry. As this concern could lead to consumer action that could undermine the competitive position of oil palm, it is vital that the industry engages the stakeholders concerned, to bring about a win-win resolution to this contentious issue and enhance the green palm oil advantage.
Top |
Analysis
of Palm Oil Cost of Production Survey, 2002
A cost of production survey of the Malaysian palm oil industry was
undertaken in mid 2003. The analysis of the data revealed a number of
strategies to reduce cost of production. These are the exploitation of the
economies of scale, economies of scope, reducing on certain costs in the
high cost companies and integrating the estate and mill.
Top |
Other
MPOB Publications
Search
