Palm Oil
OIL PALM INDUSTRY ECONOMIC JOURNAL (VOL. 2(2)/2002)
Malaysian Palm Oil Industry at Crossroads and its Future Direction
Khoo Khee Ming* and D Chandramohan**
ABSTRACT Palm oil accounts for 20% and 46% of the global oil and fats production and trade respectively. Malaysia is the world’s largest producer and exporter of palm oil with a 50% share of world palm oil production and 61% of exports. This paper assesses the growth of the Malaysian palm oil industry and the limitations of land and labour on the future growth of the industry. The industry’s competitive edge will continue to be a vital factor for its future development. Thus, in order to remain competitive, the industry needs to improve on productivity, explore opportunities to diversity the income base, widen the end-use base for palm oil, explore new marketing approaches and intensify vertical integration.
PLANTED AREA GROWTH The expansion of oil palm plantings in Malaysia during the past 41 years has been phenomenal. From a mere 55 000 ha in 1960, the oil palm planted area had expanded to 3.5 million hectares by 2001, occupying 60% of the agricultural land in the country. About 60% of the planted area is in Peninsular Malaysia; 30% in Sabah and 10% in Sarawak (Figure 1). In recent years, most of the expansion has been in the East Malaysian states of Sabah and Sarawak due to the declining availability of land in Peninsula Malaysia.
PRODUCTION GROWTH The rapid expansion in oil palm cultivation resulted in a corresponding increase in palm oil production from less than 100 000 t in 1960 to 11.8 million tonnes in 2001 (Figure 2). The largest palm oil producing state in Malaysia is Sabah which accounted for 31% of total production in 2001. Palm oil is the second largest oils and fats produced after soyabean oil, accounting for 23.6 million tonnes or 20% of the world oils and fats production in 2001. Malaysia remains the largest producer of palm oil accounting for 50% of world production last year
*
Malaysian Palm Oil Industry at Crossroads and its Future Direction
Khoo Khee Ming* and D Chandramohan**
ABSTRACT Palm oil accounts for 20% and 46% of the global oil and fats production and trade respectively. Malaysia is the world’s largest producer and exporter of palm oil with a 50% share of world palm oil production and 61% of exports. This paper assesses the growth of the Malaysian palm oil industry and the limitations of land and labour on the future growth of the industry. The industry’s competitive edge will continue to be a vital factor for its future development. Thus, in order to remain competitive, the industry needs to improve on productivity, explore opportunities to diversity the income base, widen the end-use base for palm oil, explore new marketing approaches and intensify vertical integration.
PLANTED AREA GROWTH The expansion of oil palm plantings in Malaysia during the past 41 years has been phenomenal. From a mere 55 000 ha in 1960, the oil palm planted area had expanded to 3.5 million hectares by 2001, occupying 60% of the agricultural land in the country. About 60% of the planted area is in Peninsular Malaysia; 30% in Sabah and 10% in Sarawak (Figure 1). In recent years, most of the expansion has been in the East Malaysian states of Sabah and Sarawak due to the declining availability of land in Peninsula Malaysia.
PRODUCTION GROWTH The rapid expansion in oil palm cultivation resulted in a corresponding increase in palm oil production from less than 100 000 t in 1960 to 11.8 million tonnes in 2001 (Figure 2). The largest palm oil producing state in Malaysia is Sabah which accounted for 31% of total production in 2001. Palm oil is the second largest oils and fats produced after soyabean oil, accounting for 23.6 million tonnes or 20% of the world oils and fats production in 2001. Malaysia remains the largest producer of palm oil accounting for 50% of world production last year
*
References: KHOO, K M (2001). Developing trends in the Malaysian palm oil industry. Proc. of the 2001 PIPOC International Palm Oil Congress - Economics and Marketing Conference. MPOB, Bangi. MPOB (2001). Proc. of the 2001 PIPOC International Palm Oil Congress Oleochemical Conference. MPOB, Bangi. 215 pp. MPOB (2002). Malaysian Oil Palm Statistics 2001. MPOB, Kelana Jaya. 129 pp. OIL WORLD ANNUAL (2002). Oil world. Ista Hamburg. 15