ID :
158302
Fri, 01/28/2011 - 08:55
Auther :
Shortlink :
https://oananews.org//node/158302
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LOCAL-FOREIGN PARTNERSHIPS WILL BOOST GROWTH IN PALM OIL BASED FOOD AND HEALTH SEGMENT
KUALA LUMPUR, Jan 28 (Bernama) -- Growth in the oil palm based food and
health segment can be faster if there is more joint ventures between foreign
food players and local companies, says the Chairman of Malaysian Palm Oil
Council, Lee Yeow Chor.
Lee said this when presenting his talk on "Sectoral and Industry Outlook:
How Will Key Economic Sectors Perform - Unleashing Economic Potential of Palm
Oil" at the Malaysia Strategic Outlook Conference 2011 here Thursday.
He, however added that there could be challenges in terms of integration
between the local and foreign companies.
Another way to boost growth in the segment, which is part of the Entry Point
Projects (EPP) for the palm oil sector, would be through the introduction of the
anchor company model.
Under the model, he said the anchor company will consolidate or buy all
products produced by the small and medium enterprises, and will be also
responsible for branding, promoting and selling the products.
He said the anchor company will also advise the SMEs on technology, quality
control and market requirements.
He said the role of the SMEs will be to optimise productivity as well as
maintain or enhance the quality of the products and produce based on the
anchor company's requirement.
The food and health based segment of palm oil sector is expected to have
a RM4.9 billion (US$1=RM3.05) impact on the Gross National Income (GNI) in 2020.
Lee also recommend mandatory replanting policy as part of the EPP for
plantation and smallholders to accelerate replanting policy to clear the backlog
of low yielding palms across Malaysia.
He said this will have an impact of RM4.6 billion on GNI in 2020.
He suggested incentives for replanting and new higher yielding planting
materials to be introduced.
Other EPPs for the palm oil sector include improving fresh fruit
bunches yield to 26 metric tonnes per hectare annually from 21 metric tonnes per
hectare a year now, and this will have a RM10.2 billion impact on GNI in 2020.
Lee said low yield of independent smallholders now covered 600,000
hectares or 12 per cent of total palm oil areas in Malaysia.
health segment can be faster if there is more joint ventures between foreign
food players and local companies, says the Chairman of Malaysian Palm Oil
Council, Lee Yeow Chor.
Lee said this when presenting his talk on "Sectoral and Industry Outlook:
How Will Key Economic Sectors Perform - Unleashing Economic Potential of Palm
Oil" at the Malaysia Strategic Outlook Conference 2011 here Thursday.
He, however added that there could be challenges in terms of integration
between the local and foreign companies.
Another way to boost growth in the segment, which is part of the Entry Point
Projects (EPP) for the palm oil sector, would be through the introduction of the
anchor company model.
Under the model, he said the anchor company will consolidate or buy all
products produced by the small and medium enterprises, and will be also
responsible for branding, promoting and selling the products.
He said the anchor company will also advise the SMEs on technology, quality
control and market requirements.
He said the role of the SMEs will be to optimise productivity as well as
maintain or enhance the quality of the products and produce based on the
anchor company's requirement.
The food and health based segment of palm oil sector is expected to have
a RM4.9 billion (US$1=RM3.05) impact on the Gross National Income (GNI) in 2020.
Lee also recommend mandatory replanting policy as part of the EPP for
plantation and smallholders to accelerate replanting policy to clear the backlog
of low yielding palms across Malaysia.
He said this will have an impact of RM4.6 billion on GNI in 2020.
He suggested incentives for replanting and new higher yielding planting
materials to be introduced.
Other EPPs for the palm oil sector include improving fresh fruit
bunches yield to 26 metric tonnes per hectare annually from 21 metric tonnes per
hectare a year now, and this will have a RM10.2 billion impact on GNI in 2020.
Lee said low yield of independent smallholders now covered 600,000
hectares or 12 per cent of total palm oil areas in Malaysia.
