Africa, Potential Market of Palm Oil, China Needs Innovation

Africa, Potential Market of Palm Oil, China Needs Innovation

photo : The Malaysian Reserve

InfoSAWIT, KUALA LUMPUR –The increasing tention with European Union about the suspect that palm oil is negative to the environment has forced Malaysia to make new export market for the commodity.

But for European Union is the second biggest continent after India to export, each block of palm oil production would influence the main commodity in Malaysia.

According to the official data, as quoted from The Malaysian Reserve, palm oil trade to European Union represented 12% of 13,8 million tons of crude palm oil (CPO) in total globally since last month.

The new goal is Africa. The population in the continent may be about 2 billion in 2040. This is potential continent for the palm oil in the world. In addition, vegetable oil in the continent gets decreasing that forces to do palm oil import.

Africa actually has 22 million hectares in the western and central regions. The regions are good to plant palm oil in the next four years.

Industrial Consultant,, M R Chandran said, Africa now offers the good chance to the local planters to expand their areas. This is to increase palm oil stock in the continent. “Malaysia should have more representative offices in Africa, develop the trade, and make palm oil acceptable in Africa. This is necessary investment,” he said, as quoted from  The Malaysian Reserve, Tuesday, (19/12/2017).

But he also admitted, there are some challenges to face before expanding the areas there.

There is a concern about the palm oil expansion, such as, the sustainability aspect. The government controls it tighter, for example, every loan is given by the financial instituion to the plantation companies.

He also mentioned, the forest moratorium in Indonesia contributes to decrasing palm oil expansion in the country for some last years.

He thought, Malaysia should make better steps in China for the markets are not fully absorbed.

“We have to make strategy and make China buy our CPO more. It needs to do by many combination. It means, we need to understand what China needs and should mix the vegetable oil. They use kinds of oil, such as, canola, soybean, beans, and linseed. So we need to produce palm oil that can be mixed to kinds of vegetable oil and then sell it,” he said.(T2)

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